Electronic payment systems enable a merchant to automatically receive into his account the money deposited by customers for the purchases they make through his virtual store. Once he has completed an online purchase, a customer is redirected by the e-commerce system to the e-payment system.

Electronic payment systems make the purchasing and selling process simpler for both the buyer and the merchant.

There are many different e-payment systems. All of them, nevertheless, share a number of features, which is hardly surprising in view of the fact that they perform the same function to provide the link between a buyer’s means of payment (generally his credit card) and the merchant’s account (generally his bank).

In order to understand an electronic payment system we have to imagine three separate accounts: the customer’s credit card account, the customer’s virtual account with the system, and the merchant’s account with his bank.

The e-payment system will withdraw the amount of the transaction and deposit it into the customer’s virtual account managed by the merchant that made the sale. Then, on request, it will credit the money to the merchant’s bank account.

Please note that, even though we talk about sending money, no physical transfer actually takes place and all participants in the process will settle their debts at a later time.

In order to choose one or more e-payment systems, a merchant should take into account the following:

-The system should support transactions through the credit cards with the greatest number of holders among its market target.

-The system should be legally recognized in the geographical area where the transaction is to take place (more particularly, in the geographical area receiving the money)

-The system should charge low rates on account of commissions and implementation costs.

-The system should work with a bank where the merchant has a current account or allow the amount of the transaction to be sent to the merchant’s location by a courier or another system for the physical transfer of money.

-The system should be supported by reliable security systems (authentication by digital certificates issued by a certificate authority (e.g.: Thawte or Verisign) accepted by browser software providers, and encryption systems for communication sessions with customers.

-Another important consideration is the e-payments system provider’s policies regarding fraudulent transactions and transaction reversals.

-The system’s features and limitations regarding both credit and debit cards should also be known in detail.

Stores operating on the Cube Stores e-commerce platform are interconnected with the main e-payment systems in over 200 countries. Our administration tools enable the merchant’s own administrator to add new payment options to his system in a matter of seconds.

Note: some providers of secure e-payment systems charge a fee for implementing a system as well as a commission per transaction processed.