Are you willing to know the detailed information about the Payment Systems? Here is the article which provides you the clean and clear information about the Payment Systems. It is a system which is used to settle Financial Transactions through the transfer of monetary value. This also includes the institutions, instruments, people, rules, procedures, standards, and technologies which make the exchange possible.
The role of the Payment systems was an Electronic retail Payment Systems and Services which consists of different systems and platforms, payment products and services that allow firms, individual, government, and other economic agents that to transfer money on the daily basis without having to use of cash.
Does anyone know what is the essence of the payment system? It is that which uses cash-subtitles, such as checks or electronic messages, which is to create the debits and credits that transfer value.
Payments systems may be Physical (or) electronic and each has its own procedures and protocols.
Working of Payment System:-
Here is the first Payment gateway, software that links your sites shopping cart to the processing network. The second payment processor is which does all the heavy lifting such as moving the transaction through the processing network, sending you a billing statement, which is working with your bank, etc.
Types of Payment Systems:-
Some of the payment systems which include the Credit Mechanisms, which are essentially a different aspect of payments, such as it includes debit cards, credit cards, electronic funds transfers, direct credits, direct debits, internet banking, and e-commerce payments systems.
Classification of Payment Methods:-
These Payment Systems are classified into Large Value systems and as well as Retail Payment Systems. For the Purpose of making things easy to understand we have classified the various payments methods such as
1.Large Value Payment Systems:-
These are Typically processed with some of the high-value critical payments which is one of the essential payment systems which ensures the smooth functioning of the economy and the financial system. If the system fails, then it could trigger disruptions to transmit shocks within the economy. They offer the speed, reliability and safety concerns and the convenience, cost and the accuracy of the system. Here we are mentioning some of the Large Value Payments Systems, they are:-
- Inter Bank Cheques Clearing Systems.
- High-Value Cheques Clearing Systems.
- Government Securities Clearing Systems.
- Foreign Exchange Clearing Systems.
- Real Time Gross Settlement system.
- Systematically Important Payment Systems.
- FIJCLEAR to make large value payments in FIJI.
- SWIFT.
- Large value Transfer System in Canada.
2. Retail Payment Systems:-
It generally does the payment of transactions, which is related to the settlement of responsibility which is arising from the purchasing of some goods and services. This is one of the systems which is important as similar to the Large value of Payment systems and this has a Large group icon.
This retail level involves in most of the transactions like
- Cash
- Cheques
- cards
- Electronic Transfers.
These are the types of Bank Payments which is done by the Retail:-
- Cash Payments.
- Paper Based Payments.
- Card Based Payments.
- Electronics Payments and Remittances.
Cash Payments:-
It is a journal which is used to record transactions that which you are paid in the form of cash. It can also include a Creditor or commission fee, making an interest payment (or) Withdrawing cash.
If anyone of the payment is made through cash, it is recorded in the Cash payments journal.
Paper Based Payments:-
It is one of the payment system, where the paper is used instead of electronic systems, It is a type of payment which involves the payment system in shares instead of cash.
Card Based Payments:-
It is also known as Electronic Payments. Where the Debit Card payments are related to an existing transaction account at a financial institution. It refers to the Payment of goods and services with prepaid (or) store value of cards.
Electronics Payments and Remittances:-
It is a type of Payment system, where the amount is sent (or) transferred to another party usually from abroad.
These remittances can be sent through
- Wire transfer
- Draft
- Cheque.
