The NewVista News

New E-Payment Alternatives 

The Internet, is not only changing the way in which vendors bring their goods to market, but it is also changing the way payment is being made. Some of the payment forms available to vendors are:

E-Checks
Electronic version of a paper check. The e-check may provide for multiple payer, endorser signatures and is governed by the Uniform Commercial Code article covering checks.

Guaranteed Checks
Software companies have developed websites that allow vendors to input checking account and payment information of a payer.  
 

Electronic Bill Presentment and Payment
EBPP is a system by which customers can call up and authorize payment of their bills online, either through a direct banking link, or through a Web site.
 

EMoneyMail
Provides for party-to-party payments and for companies sending rebates or refunds to their customers.
 

Credit Card
Payment by credit card is appealing as it allows for payment prior to goods being released. However, a vendor may risk chargeback of disputed balances. The credit card company is not obligated to verify whether or not the dispute is legitimate.
 

Virtual Credit Card
Customer can use a credit card online without giving their actual credit card number. Credit card issuer has customer download software that gives a one-time credit card number for the purchase. Vendor does not get the real credit card number.
 

CD Credit Card
Customer puts CD Credit Card into computer’s CD-ROM drive. The software company contacts customer’s bank for authorization, then sends an authorization number for payment processing to the online vendor.
 

Digital Cash
Web version of a phone card, which is currency that is only accepted on the Internet.
 

Virtual Points
Similar to frequent flier miles where users earn virtual currency. Some companies offer users the option of “cashing in” their currency points into their checking accounts or credit cards.
 

Party-to-Party Payment
A way to send money through the Internet to a vendor who does not accept creditcards payments. It is similar to an escrow. 
 

Virtual Escrow
A third party ensures that the customer receives the item and the vendor receives payment.
 

Digital Wallets
Customer downloads software that stores their credit card number and other information. Vendor downloads the same software to receive payment.