Various types of electronic payment systems (EFT)

Various types of electronic payment systems (EFT):

In the early 1970's the developing electronic payment technology was given the name as electronic technology was given the name as electronic funds(EFT) where it lead to the concept of EFT  which stands for electronic fund transfer and it can be defined as any transfer of funds which can take place through an electronic terminal, telephonic instrument, computer or any other device like magnetic tapes to carry the transactions like debit or credit an account. In EFT  both the computer and telephonic components are utilized for proper supply of money or financial assets. Electronic funds transfer can be broadly categorized into three segments

Banking and financial payments:

This type of segment contains transaction as large scale or wholesale payment or bulk payment where the payments are done in huge sectors. The best suitable example is of bank to bank transfer where crores millions of amount is transferred from central transaction level to the subordinate levels of different banks. We also consider the examples like small scale or retail payments which are a part of large scale banks where the limited amount is dumped into different ATM  counters and automated teller machines. In this the last and the least type of transaction's home banking where different bills are collected like electronic power, property etc.

Retailing payments:

This type of segment consists of transactions with the usage of credit cards like VISA card or master cards where different transactions can be made even under the absence of paper money or coin money and latter the amount can be handed over to the respective concerned authorities. We also use the concept of private label card/debit cards, charge cards which are like the plastic money where different transaction can be done pertaining to a particular limit.

Example:

If we consider debit card the maximum limit is only up to rs.15,000 for 24 hours and we also consider an example like J.C penny cared and american express. The third segment what we find here is on line electronic commerce payments taken based payment systems

Where the payment is done on the system of tokens where all the transaction can be done at same time with respects to the tokens issued by the authorities.Here electronic tokens are issued which are equivalent to cash which is backed by bank. These tokens are of three types:

1. Cash or real time which involves the paper cash or coin cash.

2. Debit or prepaid where the amount can be paid in advance eg. reservation of flight or train. The best examples are smart cards and electronic purchase which store electronic money.

3.Credit or postpaid where the amount can be paid later with certain interest rate.

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