Payment mechanism

Payment for online purchases can be made in several ways:

• Cash-on-Delivery (CoD): payment is made in cash at the time of physical delivery of the goods.
• Cheque: the online vendor arranges to pick up a cheque from the customer, and delivers the goods once the cheque is realised.
• Net-banking Transfer: modern banks let customers transfer funds electronically over the internet using IMPS (Immediate Payment Service), NEFT and RTGS. The buyer transfers the agreed price to the vendor's account, and the vendor then arranges delivery.
• Credit or Debit Cards — popularly called 'plastic money', and the most widely used medium for online transactions:
  • A credit card lets the holder buy on credit. The card-issuing bank assumes the amount due to the seller and later transfers it to the seller; the buyer's account is debited, and the buyer often has the freedom to repay in instalments at convenience.
  • A debit card lets the holder make purchases only up to the amount lying in the corresponding account; the amount due is deducted electronically the moment a transaction is made.
  • To accept card payments, the seller first needs a secure means of collecting card information. Card payments may be processed manually or through an online authorisation system such as an SSL Certificate. …