Q.What is an electronic payment system? Explain any four methods of electronic payment.

An electronic payment system lets buyers pay online without physical cash, and there are several methods differing in how and when the money moves. …

Meaning. An electronic payment system (e-payment) is any way of paying for goods or services electronically — without physical cash or a paper cheque changing hands. It is essential to e-commerce, because online trade needs a fast, safe way to move money.

Four methods (any four):

1. Credit card — the bank lends the buyer the money to pay now; the buyer repays the bank later within a credit period. Suited to larger purchases, but interest applies if not repaid in time.
2. Debit card — the amount is taken immediately from the buyer's own bank account; there is no borrowing, so you spend only what you have.
3. Net banking (internet banking) — the buyer logs in to the bank's website or app and transfers money directly from their account to the seller's account.
4. Unified Payments Interface (UPI) — an Indian system that instantly moves money between bank accounts using a mobile app and a simple virtual address or QR code, without sharing full account details.
5. Digital wallet (e-wallet) — money is pre-loaded into an app and then spent quickly, like a purse on the phone. …

Listing cash on delivery (COD) as an electronic payment method — it is a payment option offered online, but the money itself is paid in cash, so it is not truly electronic. Also, do not confuse credit …