Digital Payment Options
Digital Payment Options : also known as Electronic Payment. Two buzzwords “Plastic Cards” and “Digital payment” are circulating among Indians nowdays. These options were already there before November 8. But now they are spreading like an epidemic among Indians. Indians have welcomed this new Initiative. They have experienced it to be easier. Moreover, there is no worry for cash and coin change. Tinypost says that this would drive India towards a cleaner economy. : Digital Payment Options
But still there are some apprehensions about it. Some being
What is Digital Payment?
How to make digital payments?
Ways to make digital payment?
Is it easy to make digital payments?
Is it safe to make digital payments?
Are there any transaction charges while making digital payments?
Digital Payment Options or Methods.
Q) What is Digital payment?
Ans. Digital Payment or Online Payment or Electronic payment is a transfer of money from an account (bank or e-wallets) to another by making use of electronic systems. It involves zero intervention of any bank or merchant official.
Q) Ways to make Digital Payment- Digital Payment Options
Ans. The following are the various ways to make a digital payment- Digital Payment Options :
- Credit Card: One of the most frequently used for electronic commerce(E-Commerce): Digital Payment Options. Credit Card is a payment card to enable a user ( or cardholder ) to pay a merchant for goods purchased. When a customer purchases a product via credit card, credit card issuer bank pays on behalf of the customer. The customer has a certain time period after which he/she can pay the credit card bill. Credit cards can be used for either Electronic Funds Transfer at Point of Sale(EFTPOS) like done in malls and other shopping centres or Online shopping through any e-commerce website. In the former you would be required to enter your credit card unique number that your issuer bank provides you with. Then either an OTP send to your registered phone number or your 4 digit credit card pin can be used for authorisation.
- Debit Card: Another commonly used method: Digital Payment Options. A debit card is very similar to you credit card. But you require having a bank account with the card issuer bank. A debit card is always linked to a bank account. The payment process is exactly same as that of credit card. But the purchase amount gets deducted from your bank account immediately. Also, there should be sufficient balance in your corresponding account for making the purchase.
- Smart Card: Similar to Credit or Debit Cards in functionalities. But with an additional information about the card holder. This information can be work related or personal information. Also a smart card holds only a fixed amount of money. This is usually renewed on a monthly basis. Also a smart card can be issued by an organisation ( in association with banks) as an incentive to its employers.
Also Read : All you should know on demonetisation
- Direct Deposit: Direct deposit refers to the transfer or deposit of money directly from a payer’s bank account to payee’s bank account. In India, this is done using National Electronic Funds Transfer (NEFT) or Real Time Gross Settlement (RTGS). The difference between both is the time that the process takes to deposit the money in payee’s account. In RTGS transaction happens almost immediately. While in NEFT a transaction completion may take minutes or few hours. These are now emerging as the fastest growing electronic funds transfer: Digital Payment Options. The process involved is like this :
Step 1-> The payer logins to a website or App provided by the bank in which it holds a bank account.
Step 2-> He then fills the form with certain details like name, bank name, branch name, IFSC, account number) about the payee’s. Then the payer (or remitter) enters the amount to be deducted from his account.
Then an OTP number sent to the remitter registered phone number is entered to complete the authorisation process. Hence, the payer’s work is done.
- E- Wallet (or Digital Wallet): One of the newest forms in Digital Money: Digital Payment Options. This is increasingly becoming popular among netizens. The reasons attributed to this are more secure transactions and ease of use. An E-wallet is an electronic device that allows an individual to make electronic transaction. You can also link your bank account with your E-wallet account. E wallets instead of using your account number use a unique wallet number to complete any transaction. Also they usually auto fill the forms on websites of e-commerce with the already provided information (stored during wallet creation). Moreover, transactions through E-Wallets will not yield an extra pay as taxes ( like service tax) done on card payments.
Q3) Will I be charged for any Digital Payment: Digital Payment Options?
Yes there are certain charges that you have to pay for a digital transaction. These charges are normally service tax. Usually for all debit and credit card transaction a 1% of service tax is levied. Then, on NEFT and RTGS the extra charge usually depends on the organisation or merchant to whose bank account the money is to be transferred or the one to whom the website belongs to. As the IRCTC charges Rs 10 extra on all NEFT or RTGS transactions.
But this is not same for E-Wallets: Digital Payment Options. Transactions through E-wallets don’t charge anything extra like service tax or etc. But when you try to transfer your E-wallet money to your bank account these charges come into picture. Usually for transfer of more than 25000 around 4% is paid as service charge to the E-wallet provider.
Q4) Is it safe to make digital payment?
Ans. Of course it is , as when you login for a payment process the merchant’s website redirects you to more secure bank’s website. These websites work on the various other protocols over the TCP/IP protocol. They carry out the transaction information in the strongest possible encrypted form. SO you don’t need to be very anxious enough about the security of your account information.
But yes there are some precautions that you must make. First, try not to do online transactions in a malware affected electronic device. Second, always make sure that you log out of your web account after making your transaction.
So I hope we have done with all questions and answer session. The objective of Tinypost with this post is to make people educated about digital payment: Digital Payment Options. Digital Payment can be and would be a big boost to the Indian economy. This would the great India towards cleaner economy.