Points to remember
Payments are the financial instruments used globally to transfer value in the
form of money or its substitutes and are constantly changing due to new
technology and Government regulations.
system can also be divided into two types, namely the cash payment system and
the non-cash payment system based on the instruments used. In the cash payment
system, the instruments used are in the form of currency (paper money and
coins) while in the non-cash payment system the instruments used are card-based
payment, Cheques or electronic money.
Credit card plays a major role in electronic payment system worldwide.
● ECS is
treated as a electronic cheques by the bank. The advantages and disadvantages
of the physical cheque is also extended to ECS. In electronic clearing
services, bank process the instructions from the customer to debit his account
and pay another automatically without much human interference.
Point of Sale Terminal- It enables customers to make payment for purchase of
goods and services by means of credit and debit cards. To facilitate customer
convenience some banks also cash withdrawal using debit cards at POS terminals.