All you need to know about electronic payment technology




All you need to know about electronic payment technology
In the last twenty years  everything has changed completely  with the advent of electronic payment technology  electronic payment has actually made a real revolution in the world of payment and financial exchange  and formed a completely new concept of the idea of ​​buying and selling.

In this topic  I will discuss the concept of electronic payment, and what is the idea of ​​electronic payment from the basis and beyond the system and technology, and the most important ways and means of electronic payment.



The concept of electronic payment

Electronic payment:

Originally in English, electronic payment, which is short for e-payment, is a new generation of payment methods that are based on Internet and communications technology on the one hand, and smart systems linked together to banks and specialized money companies on the other hand.
With electronic payment, anyone can transfer money or make a purchase from anywhere in the world without leaving his home, in record time.

The urgent need for electronic payment systems emerged with the emergence of the concept of e-commerce, and today the idea of ​​electronic payment enters in many areas starting with the payment of salaries and invoices, through purchase, whether from electronic stores or stores that are on the ground, ending with the emergence of the so-called independent digital e-wallets.
With the continuous technological development, in addition to increasing the level of networking and communication between banks and financial institutions, this has led to the creation of more solutions for electronic payment, diverse, new and innovative solutions and suitable for everyone.


Important points about electronic payment


Electronic payment is not a standalone system
Rather, it is a smart system that connects communications and internet technology with traditional banks or money companies, allowing bank customers or subscribers of these money companies to use their balances in purchases, paying bills, and transferring money electronically, without the need for traditional direct cash payment.

Payment solutions are available to everyone through banks and specialized companies
There are a lot of banks and companies specialized in providing electronic payment solutions for business owners, and anyone can contract with one of these banks or companies to create an electronic payment system for its customers, and that is often in the case of creating an online store on the Internet.
It is worth noting here that recently, Arab companies specializing in payment solutions, such as Payfort and Cash u.


Online shopping is not the only form of electronic payment
Online payment can be applied to traditional purchases, for example debit cards (the bank account card used to withdraw from ATM machines) can be used to pay for purchases made from a store in the real world.

Online payment service providers charge commissions
In fact, electronic payment services are not provided free of charge, but there are always commissions that are added to the paid amount or the purchase amount, in exchange for providing the electronic payment service.

Communications technology and the Internet are essential to complete the electronic payment process
This does not apply to online shopping only, but also applies to all electronic payment and financial transactions, even in the case of withdrawals from the ATM machine. The machine must be connected to the bank’s database.


Electronic payment process steps?
In this section we will explain how to complete the electronic payment process in clear steps. Let us assume here that the electronic payment process will be for the purchase of a product from an electronic store, and it will be done through the use of a credit card (Mastercard) affiliated to Banque Misr.
Note: Mastercard is a company that specializes in the issuance of bank cards in cooperation with local banks, and it is considered the most popular network of credit cards, followed by Visa.
The buyer who is online is visiting the online store.

The buyer selects the product he or she wants to buy, then clicks the Pay or Pay button.
The buyer fills in the credit card details.
The payment information of the buyer is sent to the Payment Gateway, the payment gateway is a company specialized in payment services, and it represents a medium for carrying out the payment process for the convenience of the online store. The online store must be subscribed to one of these payment gateway services.

The payment gateway collects the buyer’s credit card data, and sends it to the card network (in our case here MasterCard ).
MasterCard checks with the customer’s bank, to ensure that the card is valid and that there is sufficient balance for the transaction.
If approved by the bank, the bank will deduct the purchase price from the balance available on the buyer’s credit card.

After some deduction of the purchase amount, the bank will send a confirmation of the payment to the Card Master Card network.
The card network sends the confirmation of the payment process to the beneficiary bank (the bank of the online store owner who receives the price of the product), then the confirmation is sent to the payment gateway as well.
The payment gateway sends confirmation of payment to the online store, which in turn informs the buyer to confirm receipt of the price of the product.
The buyer also receives a notification from his bank regarding the payment made.
Procedures for sending the product begin at the buyer’s address.

Electronic payment methods
There are many forms of electronic payment, including global methods, including local methods as well. It is important to mention here that not all payment methods are necessarily acceptable or appropriate for all purposes of electronic payment.

Cards issued by local banks
As mentioned above, banks issue cards in cooperation with specialized companies, led by MasterCard and Visa.
Here is a list of the most important types of cards that local banks block:

Credit card
This card is issued with a limited credit limit in accordance with the policies of the local bank, and in accordance with the policies of the central bank of the local bank. A credit guarantee is required to issue this card (bank balance or savings certificates), in order to guarantee the bank’s right in case of default. The card is usually used to purchase online, and can be withdrawn from ATM machines. The debts of the card are paid in the month that follows the month in which purchases were usually made, and instructions can be left to the bank to pay the debts from the account balance at the due date of the payment.

Prepaid card
This type of card is a container for saving money, and used for online purchases. This card is issued by some local banks, in which the customer makes a deposit with the card and uses this deposit for purchases from the Internet, the deposit is made through the bank itself or through the ATM. Usually, this card has a monthly limit for depositing and cashing.

Debit card
It is the card that is issued when opening a bank account, which is used to withdraw credit directly from the bank account through the ATM machine. It is also used to purchase from stores on the ground. This card is directly linked to the bank account, and may have daily withdrawal limits.

Cards issued by financial companies
Usually these cards are prepaid cards, and they are issued by specialized financial companies. These cards are used for online purchase and can be withdrawn from ATM machines. There are many financial companies that issue this type of cards, the most important of which are:

A wonderful international company that issues cards completely free of charge and is acceptable to pay in all stores and companies.

Cash u
A company dedicated to the countries of the Middle East and North Africa.

Electronic banks
Electronic banks are online banks specializing in electronic payment services, they are linked to the bank account, or credit card, and are used directly in making electronic payments, there are many of them, but the most important and most famous is PayPal Bank.

Digital currencies
Digital currencies are a very recent invention, they are currencies that have no physical balance on the ground, and are extracted through a process called mining (which is done by solving complex mathematical equations through huge computers). Digital currencies have started to become popular recently, and I search acceptable to many electronic stores and companies, as it has been recognized by many governments, the most important of which are:




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