Electronic payment, or e-payment, is a way of making transactions or paying bills online or through an electronic medium, without the use of physical checks or cash. E-payments allow customers to pay for goods and services electronically, usually via debit cards, credit cards, or direct bank deposits. There are various types of electronic payment methods, such as online credit card transactions, e-wallets, e-cash, and wireless payment systems. The most popular methods of electronic payments include credit cards, debit cards, virtual cards, and ACH (direct deposit, direct debit, and electronic checks) .
E-payments have become increasingly popular due to the widespread use of the internet-based shopping and banking. They offer unmatched convenience, allowing businesses to pay vendors quickly, reduce risk, increase control, and improve visibility. Electronic payments and e-payment systems are highly beneficial to both businesses and their suppliers. In the context of accounts payable, e-payments are a win-win in that they reduce costs, improve relationships, increase visibility, and provide enhanced security when compared to traditional checks.
Electronic payments are fast and secure and promise significant benefits to businesses. However, they also come with some risks that businesses must be aware of. For example, e-payment fraud is a growing concern, and businesses must take steps to protect themselves and their customers.
