E-cheques
E-cheques – The e-cheques consist five primary facts. They Are consumers, the merchant, consumer’s bank, the merchant’s bank and the e-mint and the clearing process. This cheaquring system uses the network services to issue and process payment that emulates real word Chaquing. The payer issue a digital cheaques to the payee and to the entire transactions are done through internet. Electronic version of cheaques are issued, received and processed. A typical electronic cheque transaction takes place in the following manner :
- The customer accesses the merchant server and the merchant server presents its goods to the customer.
- The customer selects the goods and purchases them by sending an E cheque to the merchant.
- The merchant validates the e-cheque with its bank for payment authorisation.
- The merchant’s electronically forward the e-cheque to its bank.
- The merchant’s Bank forward the e-cheque to the clearing house for cashing.
- The clearing house jointly works with the customer’s bank clears the cheque and transfers the money to the merchant’s banks.
- The merchant’s bank updates the merchant’s account.
- The customer’s bank updates the customer’s account with the withdrawal information.
That e-chequing is a great boon to big corporate as well as a small retailers. Most major banks accept e-cheque. Thus this system offers secure means of collecting payments, transferring value and managing cash flows.
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