Money Then and Now

The history of money was a long and winding one. In about 1200 B.C. in China, cowry shells were the first medium of exchange. From shells, people soon started using pieces of coins and several years later, banknotes in the form of leather were used.

All of these lead to the the paper and coin currencies we have nowadays which are more commonly known as money. We are currently living in the Information Age where electronic money or digital cash is being exchanged over the Internet. An electronic payment is any kind payment where electronic money is used. Methods of electronic payments include credit cards, debit cards and the ACH (Automated Clearing House) network.

Direct deposit, direct debit and electronic checks or e-checks are included in the ACH system. Electronic payment is certainly the most convenient payment option available. You don't have to handle any paper money, swipe a credit card or write a check. All you have to do is enter your account information, such as your credit card number and shipping address into your web browser and, with just a few mouse clicks to confirm your purchase, you're done. Its simplicity and ease are enticing more and more people to utilize electronic payment.

Businesses employing electronic payment methods or e-commerce could certainly lower their expenses because they spend less on paper and manpower. Customers who have done certain transactions with a business establishment thru electronic payment would certainly be more likely to return to the same e-commerce site, thus, improving customer retention. Banks, in fact, are encouraging their clients to use their online banking service. However, with this kind of payment, one must be careful not to be defrauded because identity theft or breach of privacy can happen.

But fortunately today, online businesses have done safety measures so that their customers are protected. There are anti virus software and firewall programs on computers that protect us and guarantee safe transactions online. A key lock icon usually found at the bottom corner of a browser indicates that you are dealing with a secure server, you should look for this before you send your credit card information. Though there are risks, electronic payments are still favored by many.

A survey done on this subject shows that more than 94% of large banking companies and more than 65% of community banks have started offering these services to their clients. If you haven't used e-payment for your transactions, why not consider starting now? You don't have to be a geek to use electronic modes of payment because it is very easy and convenient as well.