Major types of Electronic Payments are as follows:

Credit Cards: In a credit card transaction, the steps involved are authorization, batching, clearing and funding. Banks provides credit card to such customer when it sure that client has ability to pay credit to the bank.

The merchant then uses credit card purchase slip to collect funds from the bank, and, on the next billing cycle, the consumer receives a statement from the bank with a record of the transaction.

Electronic Cheque: Technology Corporation (FSTC) is a consortium of banks and clearing houses that has designed an electronic cheque that is initiated electronically, and uses a digital signature for signing and endorsing. By CyberCash, electronic cheque functions as a message to the sender’s bank to transfer funds, and, like a paper cheque, the message is given initially to the receiver who, in turn, endorses the cheque and presents it to the bank to obtain funds.

Smart Cards: Smart cards are any pocket sized card with embedded integrated circuits. Smart cards can provide identification authentications, data storage and application processing. Smart cards may serve as a credit or ATM cards, Fuel cards, mobile phone SIMs, access-control cards, public transport or public phone payment cards etc. on the card.There are the three types of Smart Cards.

Electronic Purses: Electronic Purse Card is very similar to a pre-paid card. Bank issues a stored value card to its customer, the customer can then transfer value from his/her account to the card at an ATM, a personal computer, or a specially equipped telephone. While making purchases, customers pass their cards through a vendor's Point of Sale terminal. Validation is done through a PIN Number.

Once the transaction is complete, funds are deducted directly from the cards and transferred to the vendor's terminal. When the value on a card is spent, consumers can load additional funds from their accounts to the card.