Merchant's-electronic device that enables the e - payments. It reads the card information from EMV or magnetic strip

(i) Immediate money transfers through mobile device round the clock 24 x 7.
(ii) Can use single mobile application for accessing multiple bank accounts
(iii) Single Click Authentication for transferring of fund.
(iv) It is not required to enter the details such as Card no, Account number, IFSC etc. for every transaction.
(v) Electronic payments will become much easier without requiring a digital wallet or credit or debit card

Hologram is a security feature that prevents duplication.

Micro electronic payment system and Macro electronic payment system

Based on the algorithm used, it is classified into the following categories.
(i) Hash chain based micro electronic payment systems.
(ii) Hash collisions and hash sequences based micro electronic payment systems.
(iii) Shared secrete keys based micro electronic payment systems.
(iv) Probability based micro electronic payment systems.

The advantage of Smart cards is that it can
1. Provide Identification
2. Authentication
3. Data Storage
4. Application Processing

Storekeeper or vendor who sell or providing service, receiving payment made by its customers through the credit card.

Electronic payment system ensures the transfer of value from one subject of the economy to another and plays an important role in modern monetary systems.

Stored value card is a type of debit card that is pre-loaded with certain amount(value), with which a payment is made. It is a card that has default monetary value onto it. The card may be disposed when the value is used, or recharged to use it again. The major advantage of stored value card is that customers don't need to have a bank account to get prepaid cards. There are two varieties for stored value card.
(i) Closed loop (single purpose) Eg: Chennai metro rail travel card.
(ii) Open loop (multipurpose) Eg.: Visa gift cards.

(i) Contact smart cards
1. Contact smart cards have a contact area of approximately 1 square centimeter, comprising several gold plated contact pads.
2. These pads provide electrical connectivity only when inserted into a reader, which is also used as a communications medium between the smart card and a host. e.g. a point of sale terminal(POS).
(ii) Contactless smart cards
1. Contactless smart card is empowered by RF induction technology.
2. Unlike contact smart cards, these cards require only near proximity to an antenna to communicate.
3. Smartcards, whether they are contact or contactless cards do not have an internal power source.
4. Instead, they use an inductor to capture some of the interrupting radio-frequency signal, rectify it and power the card's processes.

Apart from card based payment systems there are many alternative electronic payment systems. With the advent of computers, network technologies and electronic communications a large number of alternative electronic payment systems have emerged. These include ECS (Electronic Clearing Services), EFT (Electronic funds transfers), Real Time Gross Settlement system (RTGS) etc. These Electronic Payment systems are used in tendering cash in domestic and international transactions.
Electronic Clearing Services (ECS):
Electronic Clearing Service can be defined as repeated transfer of funds from one bank account to multiple bank accounts or vice versa using computer and Internet technology. The payer instructs the bank to debit from his bank account and credit it to one or more payee bank account provided amounts and dates of the payments earlier. This system provides the convenience of paperless payments. ECS can be used for both credit and debit purposes i.e. for making bulk payments or bulk collection of amounts.
Electronic Funds Transfer:
Electronic Funds Transfer (EFT) is the "electronic transfer" of money over an online network. The amount sent from the sender's bank branch is credited to the receiver's bank branch on the same day in batches. Unlike traditional processes, EFT saves the effort of sending a demand draft through post and the inherent delay in reaching the money to the receiver. Banks may charge commission for using this service. EFT is a widely used method for moving funds from one account to another in B2B business models.
Real Time Gross Settlement:
Real Time Gross Settlement System (RTGS) is a payment system particularly used for the settlement of transactions between financial institutions, especially banks. As name indicates, RTGS transactions are processed at the realtime. RTGS payments are also called as push payments that are initiated ("triggered") by the payer. RTGS payments are generally large-value payments, i.e. high-volume transactions.
Real-time gross settlement transactions are:
Unconditional: the beneficiary will receive funds regardless of whether he fulfills his obligations to the buyer or whether he would deliver the goods or perform a service of a quality consistent with the order.
Irrevocable: a correctly processed transaction cannot be reversed and its money cannot get refunded (the so-called settlement finality).