The types of electronic payment systems are one-time customer-to-vendor payments, recurring customer-to-vendor payments, and automatic bank-to-vendor payments. An electronic payment is a non-cash payment, not including physical checks, such as credit cards, debit cards, and the Automated Clearing House network.Continue Reading
One-time customer payments are primarily for customers paying at an e-commerce source. The method features payment by credit card, debit card and online check. The vendor confirms the transaction with the customer's bank, who then initiates an electronic funds transfer or sends a check to the vendor.
Recurring customer-to-vendor payments are necessary for some services that require a long-term contract. It automatically pays a vendor by directly charging a bank, and repeats the transaction based on the set time interval. Automatic bank-to-vendor payments authorize a bank to automatically transfer money to an account in order to pay bills. Most banks offer this service as a manual transaction for each billing cycle or as a recurring transaction.Learn more about Personal Banking