Future Direction of Virtual Payments

Internet protocol based communications is the most important advancement of late. The fact that you are on this specific page of Traffic's website reading about eCommerce suggests that you are most likely an IP address holder. IP (Internet Protocol) not only allows you to check your emails, play games, and make Internet calls using VoIP, but can be used as a powerful payment-processing tool as well. With the help of Internet Protocol based communications, businesses are able to offer faster and more secure financial transactions. Besides this, the biggest upcoming trends in payment processing are going to be modelled on IP-based communications.

This is a phenomenon we have been witnessing for some time already. A huge variety of credit cards, debit cards, prepaid debit cards and the like is already used ubiquitously across the globe. Plastic has replaced many of the transactions we used to complete with cash; the fact that even the small retailers now accept payments through such cards shows how much a part of our everyday life they are. The attitude to cards and cash is changing in the favour of cards as people find them more convenient and less hassle than cash.

This latest trend in payment processing features built-in radio frequency tags in credit and debit cards. This allows the customer to process the payment by just tapping his card or simply waving it from a distance of up to ten centimetres. In contact-less payment processing, signatures are required only for purchases over a certain amount, usually it's around $25 but this can vary from country to country. Many service operations such as restaurants and petrol stations are already using this novel and handy form of processing payments.

Smart Cards provide added security in financial transactions and prevent frauds. A Smart Card is a simple plastic card that looks no different to a usual credit card. They work like a normal credit or debit card; a customer's account balance decreases and increases with the purchase or deposit taking place. But unlike conventional credit cards that use a magnetic strip, Smart Cards feature a microchip, which increases the card's capabilities manifold. Acting as a microprocessor as well as a storage tool, the chip holds the complete account information of the cardholder. It also features added security tools, including automatic shut down, which deactivates the card the moment any unauthorised use is detected.

Payment processing via a person's unique physical characteristics is already in use by many grocery stores in the United States. Every individual has unique physical traits such as fingerprints, voice pattern, or the colour and shape of their eyes. Biometrics is viewed as the ultimate solution for the threat of identity theft as it provides unmistakable identity traits of the customer. One such service in place is ‚'Pay by Touch' which requires customers to simply register their bank account and fingerprint with the service to be able to ‚ 'pay by touch'. Once registered, all the customer needs to complete the transaction at a participating retailer is to "swipe" their finger. Biometrics is a fantastic technology with great benefits and is poised to sweep the world of payment processing