Electronic payments are simply those that involve no paper – neither currency nor checks. Such types of payments rely on a complex electronic and telecommunication infrastructure. Different types of electronic payments include credit or charge cards and those made via the Automated Clearing House (ACH) network like e-checks and electronic debits and credits.

While both individuals and businesses can benefit from the convenience of making electronic payments, it also makes ample sense for businesses to receive payments the same way. For one, it reduces the costs of having to manage the inevitable paperwork that comes with traditional payment formats. It’s also quicker, as account to account transfers can be done almost immediately. Third, with electronic debits and credits, reliability is not an issue, since the bank has standing instructions to pay your company on a certain day, and that eliminates the possibility of a check bouncing. No misplaced checks and no forgetful debtors – what more do you want?

If you anticipate that a significant part of your business will be conducted online, you might like to go for an in-house solution. The first step is to install a secure server, which uses complex encryption technology to make sure hackers can’t get to confidential data. A secure server is the hallmark of a reliable vendor, and goes a long way in assuring customers that they can trade safely online. Follow this up with a digital certificate for your website from a digital authorization service. This protects both parties’ interests – it validates customer payment related information and also assures them of the security and genuineness of your site. Step three is to make an online store – this means building a shop front displaying all items on sale as well as creating an online shopping cart for customers to load their purchases into.