Payment Options

Mysportcart uses cash on delivery and electronic payment where electronic payment refers to paperless monetary transactions. Electronic payment has revolutionized the business processing by reducing paper work, transaction costs, labour cost. Being user friendly and less time consuming than manual processing, helps business organization to expand its market reach / expansion. Some of the modes of electronic payments are following.

  • Credit Card
  • Debit Card
  • Wallet
  • Cash on delivery
  • Net Banking
  • Bank Transfer

Credit Card

Payment using credit card is one of most common mode of electronic payment. Credit card is small plastic card with a unique number attached with an account. It has also a magnetic strip embedded in it which is used to read credit card via card readers. When a customer purchases a product via credit card, credit card issuer bank pays on behalf of the customer and customer has a certain time period after which he/she can pay the credit card bill. It is usually credit card monthly payment cycle. Following are the actors in the credit card system.

  • The card holder - Customer
  • The merchant - seller of product who can accept credit card payments.
  • The card issuer bank - card holder's bank
  • The acquirer bank - the merchant's bank
  • The card brand - for example , visa or mastercard.

Credit card payment process

StepDescription
Step 1 Bank issues and activates a credit card to customer on his/her request.
Step 2 Customer presents credit card information to merchant site or to merchant from whom he/she want to purchase a product/service.
Step 3 Merchant validates customer's identity by asking for approval from card brand company.
Step 4 Card brand company authenticates the credit card and paid the transaction by credit. Merchant keeps the sales slip.
Step 5 Merchant submits the sales slip to acquirer banks and gets the service chargers paid to him/her.
Step 6 Acquirer bank requests the card brand company to clear the credit amount and gets the payment.
Step 6 Now card brand company asks to clear amount from the issuer bank and amount gets transferred to card brand company.

Debit Card

Debit card, like credit card is a small plastic card with a unique number mapped with the bank account number. It is required to have a bank account before getting a debit card from the bank. The major difference between debit card and credit card is that in case of payment through debit card, amount gets deducted from card's bank account immidiately and there should be sufficient balance in bank account for the transaction to get completed. Whereas in case of credit card there is no such compulsion.

Debit cards free customer to carry cash, cheques and even merchants accepts debit card more readily. Having restriction on amount being in bank account also helps customer to keep a check on his/her spendings.

 

Cash on Delivery

 

Cash on delivery (COD), sometimes called collect on delivery, is the sale of goods by mail order where payment is made on delivery rather than in advance. If the goods are not paid for, they are returned to the retailer. Originally, the term applied only to payment by cash but as other forms of payment have become more common, the word "cash" has sometimes been replaced with the word "collect" to include transactions by checks, credit cards or debit cards.

 

Wallet

E-Money transactions refers to situation where payment is done over the network and amount gets transferred from one financial body to another financial body without any involvement of a middleman. E-money transactions are faster, convenient and saves a lot of time.

Online payments done via credit card, debit card or smart card are examples of e-money transactions. Another popular example is e-cash. In case of e-cash, both customer and merchant both have to sign up with the bank or company issuing e-cash.

Netbanking

This is a system, well known in India, that does not involve any sort of physical card. It is used by customers who have accounts enabled with Internet banking. Instead of entering card details on the purchaser's site, in this system the payment gateway allows one to specify which bank they wish to pay from. Then the user is redirected to the bank's website, where one can authenticate oneself and then approve the payment. Typically there will also be some form of two-factor authentication.

It is typically seen as being safer than using credit cards, with the result that nearly all merchant accounts in India offer it as an option.

Bank Transfer

It is a very popular electronic payment method to transfer money from one bank account to another bank account. Accounts can be in same bank or different bank. Fund transfer can be done using ATM (Automated Teller Machine) or using computer.