Electronic cash:
Where the entire amount is in form of electronic media which can also be known as e-cash which presents some interesting characteristics that makes it attractive for payment over the internet. These are the fundamental payment systems in consumer oriented electronic payment systems. But in this type of system cash remains the claimants form of payment only for three reasons which are:
1. Lack of trust in banking system.
2. Inefficient clearing and settlement of non cash transactions.
3. Negative real interest rate which shall be paid on bank deposits.
Electronic checks:
Which are another form of electronic tokens preferring to pay on credit or through some mechanism other than cash. These have many advantages like
1. They simplify customer education as they are ease of use
2. Reliability and scalability is provided by multiple accounting servers.
3. These are well suited for clearing micro payment which use the concept of public key cryptography. Credit card based payment systems encrypted credit cards
Which uses the concept of cipher text form with secret key or privacy key. The best example is world wide web form based encryption. Third party authorization numbers
Where consumers can register with a third party on the internet to verify electronic micro transaction and electronic tokens are issued to the respective consumers which differ from existing financial instruments, on-line involvement measures which provides extra security.
Overall electronic payment systems save the time of respective users where the transaction done are accurate giving chance for different users and these electronic payment system or electronic fund transfer measures contain various advantages like.
1. Various detailed payments can be done through credit cards, charge cards etc in a very easy manner in the absence of paper money only keeping in view to pay some amount of interest to the concerned authorities.
2. Financial payments can be done to different sectors like large scales or small scales or retailers with the help of automated teller machines.
3. Bank to bank transaction i.e from central bank to subordinates is done in large scale.
4. Different online payments can be done with ecahs, debit cards, smart cards etc.
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