Electronic payment systems (Electronic money, EPS). Types of email

Greetings to all my regular readers, investors and guests of my blog! This article opens the “electronic money” section, and to begin with, I propose to get acquainted with the concept of electronic money and find out what electronic payment systems (EPS) are.

I strongly advise you to study this article, because for us, as investors, this topic is actually the basis, because investments on the Internet are inextricably linked with electronic money.

In today's article, we will discuss the following questions:

Most of us have been using electronic payment systems for a long time when paying for various purchases and services on the Internet. EPS are also used to transfer funds to your friends, relatives around the world.

Payment using electronic money is currently one of the three most "favorite" payment methods by bank transfer among people aged 12 to 55 years.

So, why do we need electronic money:

• Well, firstly, most of us use electronic money when paying for various goods and services on the Internet;
• Secondly, we also use them to transfer funds to our friends, relatives, etc. around the world;
• And, of course, we Internet investors are interested in electronic money as a tool for replenishing and withdrawing funds in online investments.

Electronic money - what is it, when did it appear

Electronic money is the currency that you and I use when paying or investing online. With the help of these virtual units, calculations are carried out - as a rule, in real time.

This type of money is becoming more and more popular, as it makes it possible to make payments between people not only in different cities, but also countries around the world.

In fact, ED can be equated to real money that is stored on our plastic cards or accounts.

Electronic money can be completely freely exchanged for real currency (for example, you can exchange dollars from your Perfect money wallet and withdraw to a ruble or dollar plastic card at the current rate).

By the way, I recently wrote a detailed comparison of bank plastic cards, with which you can freely withdraw dollars from ATMs around the world: you can read this review

In addition, I would like to draw your attention: do not confuse electronic money and funds on your plastic card or bank account - these are different concepts.

Payment systems - a brief excursion into the history of electronic money

In general, the term payment systems and electronic money first appeared in the 70s of the twentieth century and for a long time the circulation of such money was very limited. In our time, the range of use has become much larger.

At the moment, for example, the inability to pay with electronic money on the website of an online store is already perceived as bad form: after all, with the help of electronic units, we can easily buy a ticket for any type of transport, top up our mobile balance, pay for housing, and, of course, invest funds in order to receive passive income!

So let's recap:

Electronic money -it is fast, reliable and convenient for making financial transactions online, for investments, and maintaining anonymity. The modern financial market is increasingly turning to the attractive conditions of Internet systems.

Electronic payment systems - principles of operation

EPS are companies that introduce their own electronic money and invest it in the development of innovative technologies. There are quite a few examples of large companies on the Internet that have created their own EPS, for example, Yandex.Money.

ED of one system can be exchanged for the currency of other payment systems at a certain rate with a certain commission for the transfer.

Yes, of course - all EPS that are registered in a particular country are required to comply with the law. However, financial transactions on the Internet are extremely difficult to track, so the acts of legislation are not yet strictly regulated.

Moreover, many EPS are officially registered offshore, which means that they do not fall under the regulation of other countries, which gives them certain advantages for their use.

How do EPS earn?

The earnings of such systems are based on commissions charged for transactions, exchange operations and other trading relationships between clients. In other words, EPS are the same banks, only on the Internet.

Benefits of using electronic money and electronic payment systems

• Work on the condition of anonymity - the ability to make payments and transfers without specifying personal data;
• Efficiency of money transfer operations, payment for services and purchase of goods;
• Low payment commission: moreover, many EPS do not charge any interest for payment at all, such as the ADVCash system;
• The most simplified procedure for creating an electronic account;
• High level of protection during operations;
• The ability to transfer funds to a bank account and plastic cards, as well as instant replenishment of wallets.

Types of EPS

As I mentioned earlier, all EPS issue their own currency. Some of them are recognized all over the world, and some work only within a few countries.

That is why before choosing a particular system, you need to clearly define what needs it will be used for. Of course, no one limits you to one system: I personally have wallets open in most payment systems, and I actively use them.

Let's take a quick look at the most popular systems (I've listed them in my priority order):

perfect money.

The undisputed leader of this review. I personally use it to participate in many investment projects.

The year of foundation of this system is 2007. Perfect Money is often used for financial transactions by both individuals and legal entities. This payment is accepted in 99% of investment projects, which makes it very popular in the investment environment.

Perfect Money Finance Corp received a license in offshore (Panama), so it is almost impossible to somehow influence it. A more detailed overview and how to start a wallet in this system is posted on my blog on this >>>

AdvCash.

The second most popular EPS for me personally.The system is relatively young, and its active development began only in 2014.

Initially, many investment projects did not use it as an opportunity for investing funds, but more and more often I see the opportunity to invest through this payment aggregator.

Moreover, the AdvCash service is constantly evolving and is scheduled to be released soon. special program for IOS and Android. A huge advantage of this system is the possibility of issuing a MasterCard bank card, with which you can pay for purchases and withdraw cash dollars in more than 200 countries of the world, including the CIS countries.

I also wrote a detailed article on this system, I recommend it for review..

payeer.

It is also very popular with online investors.This payment service started working in 2012 and quickly gained popularity on the Internet among brokerage companies and electronic stores.

The company began active expansion in the network, including in the US and Europe, and as a result, the number of users is already over 15 million.

The advantage of this system is the absence of mandatory identification, the presence of its own exchange points, the ability to issue its own bank card, similar to AdvCash.

But I want to note that commissions in Payeer are less humane than in AdvCash. You can learn more about the advantages and disadvantages of this system in my review on this >>>

OkPay.

Also a popular EPS, which is in demand among investors and is recognized by many investment projects. It was launched in 2009 (the system is registered in the British Virgin Islands). OkPay is also used for settlements of both individuals and legal entities and is recognized in more than 200 countries around the world.

The system is easy to use, moreover, it was the first system among offshore wallets that offered its customers the issuance of a bank card. Personally, I actively used it before, despite the increased commission, but for a long time it was the only alternative for withdrawing dollars from an ATM.

But with the advent of AdvCash, I began to use this system less actively, although I periodically invest through it. I also wrote a review on OkPay, I recommend reading this >>>

PayPal.

It has been operating since March 2000 and is part of the structure of the Ebay company, through which goods are purchased online (online stores, individuals). The PayPal system is recognized in most countries of the world, however, in some of them - with restrictions. This system is used by more than 140 million users, it can carry out transactions with 26 currencies.

In the CIS countries, this EPS is not very common, but development is still underway: since 2013, it has become possible to withdraw rubles to bank accounts and cards, albeit with a high commission.

I am registered in this system, but I use it exclusively for purchases on Ebay. If you plan to invest in networks, this system is not suitable for this in principle, so you don’t have to waste time registering.

WebMoney (WebMoney).

This EPS occupies a leading position both in the Russian Federation and in the CIS. From a legal point of view, WebMoney Transfer is not a payment system, because ED does not issue. However, this does not change the essence - this payment system is actively used by users, whose number is more than 25 million. WebMoney was founded even earlier than PayPal - in 1998.

Some investment projects connect this system to accept payments, but it is worth noting that in case of complaints about dishonest work, the system quickly responds and blocks the user's wallet. This is used by competitors to block payments from investment projects, which leads to panic and negative reviews (the project does not pay, etc.) and early closure of the investment project.

I use it extremely rarely and only when absolutely necessary: ​​I am personally annoyed by the high percentage of commissions for transactions, as well as extortionate interest when cashing out.

Yandex money

The second most popular EPS within the Russian Federation. The system was launched in 2002 and is part of the Yandex. Transactions are carried out in ruble equivalent. Mainly used in Russia.

The system was created in cooperation with a foreign partner PayCash: as a result of this cooperation, Yandex Money LLC appeared.

In this system, I also have a wallet, but I try to use it to a minimum. The reasons are the same as WebMoney: extortionate commissions for the transfer and withdrawal of funds. I rarely see this system in investment projects, apparently for the same reason as the situation with WebMoney - account blocking.

It is possible to order a bank card, but reviews on the Internet about its use are quite contradictory. I didn’t order it myself, so I can’t express my opinion about the use of this card. To use this system or not is up to you personally.

Qiwi.

Another popular EPS, launched in 2007. It operates on the territory of the following countries: Russia, Belarus, Moldova, Kazakhstan, America and a number of other countries.

The advantage of this system is a large number of machines through which you can replenish the balance and transfer funds.

I have a wallet in this system, but a couple of years ago I was blocked from withdrawing funds. I never heard a clear explanation from support, and the blocking was eventually lifted, but an unpleasant aftertaste remained. Another disadvantage is the high interest on cashing out funds from this wallet.

Finally

Before registering in a particular system, first decide for what purpose you plan to use it. If your goal is, then I recommend Perfect Money, AdvCash, Payeer and OkPay: after registration, you will need to replenish your wallet usingexchange offices (bestchange), and then move on to investing on the Internet.

When registering with the EPS, I strongly recommend that you indicate your real data, since:

• firstly, in most systems you simply cannot withdraw money without it;
• secondly, it will be proof that the wallet belongs to you - if attackers steal your password and hack the wallet.

I hope I was able to convey to you in as much detail as possible information about what electronic payment systems are and how to use them.

You also have the opportunity to find out where I invest money: investment projects are presented in my portfolio at the links below:

Greetings friends.

It is difficult to imagine online payments, online investments, without the use of electronic money. Electronic payment systems have firmly entered our lives. Today we will talk about electronic payment systems ( EPS, electronic money ). Find out when the first electronic money appeared. Learn about the advantages and disadvantages of electronic payment systems.

When the first sprouts of e-commerce began to emerge on the Internet in the early nineties of the last century, it quickly became clear that traditional financial institutions were poorly suited to the requirements and specifics of the World Wide Web. How do you imagine it - the purchase is made online, on the Internet, and you have to go back to the bank to pay for the goods? What then is the advantage? This is how digital money appeared and .

DigiChash, an electronic money payment service launched in 1994, is considered to be the first example of an electronic payment system. The founder of the common ancestor of today's e-money was a certain Mr. David Chaum from the sunny state of California, USA.

How electronic payment systems work.

There are a lot of electronic payment systems on the Web. Here are just a few of them:

The principles of functioning of electronic payment systems are different. Most founders of electronic payment systems tend to introduce their own digital currency. Since it is illegal to consider it money, nice-sounding symbolic names are invented:

• Electronic payment obligations.
• Certificates for specific online stores.
• Gift certificates.
• Digital letters of credit or checks.
• Credit obligations with a guarantee in the gold reserve.

Experienced financiers understand that all these beautiful words mean only one thing - the complete absence of all kinds of legislative guarantees. In relation to electronic money, an ordinary user can only rely on the care of the owners of the electronic payment system about their reputation. After issuing its own virtual currency, the electronic payment system organizes a cloud financial infrastructure:

1. The official portal where new members register and most transactions take place.
2. Electronic wallets that record how much electronic money a particular depositor has.
3. Electronic terminals or gateways for accepting payments on websites. All these critical nodes are united by a specially designed network of encrypted communication channels, through which the exchange of electronic money is carried out.
4. Some electronic payment systems create their own networks of ATMs, electronic money exchange points for regular ones.

Additionally, each electronic payment system must establish links with real banks in order to convert real money into virtual. However, the dependence of EPS on conventional payment systems is minimal, which explains the presence of a large number of advantages of the former.

Advantages of electronic payment systems

1. Nearly instant transactions money transfers, payment for goods, currency exchange.
2. Due to the lack of a deployed physical infrastructure, the cost of an online transaction tends to zero. Most electronic payment systems on the Web try not to take commissions from ordinary users at all.
3. Privacy and anonymity. This is an attractive moment for many semi-legal online services such as adult services or gambling.
4. Simplicity and speed of opening electronic accounts.
5. Replenishment of wallets and transfer of funds to real banks.
6. Transaction security. If we omit the moment of trust in the payment system itself, then it is possible to protect currency transactions at the digital level much more reliably than at the physical level. Transferring web currency over an encrypted Internet channel is not like handing over a suitcase full of dollars in an abandoned warehouse.

Most of all, online payment systems are used by freelancers for settlements with remote customers, virtual casino players, online store buyers, and investors. Gradually, offline services are being drawn into the infrastructure of digital payments. It is very easy and fast to replenish your account with digital currency mobile phone, pay an Internet tariff, even pay for some utilities.

Disadvantages of electronic payment systems

The disadvantages of electronic money stem from their incomplete legitimation. Not all services and purchases can be paid from your electronic wallet. Indeed, transactions with electronic money can be free, but converting into real banknotes is expensive. Since accredited banks do not convert virtual money into real money, private online exchangers charge huge percentages for transferring homemade certificates.

Due to weak government regulation and the difficulty of law enforcement control, scams and fraud flourish in the field of electronic money. In principle, any advanced user can concoct in five minutes on a free hosting “like a site of a payment system” or an exchanger, and for some time cut coupons from gullible users.

How to find out in practice whether this e-money service is fraudulent? It is necessary to check whether such banks of state importance as SBRF, Gazprombank, cooperate with this system. If the giants of the financial world agree to deal with EPS, then the average user has nothing to fear.

Future and prospects of electronic money

It is hard to imagine that states will long tolerate the existence of parallel financial institutions and even currency issuers with little government control. Evidence of this is adopted not so long ago.

So far, parliamentarians simply do not know what to do with it, with this Internet. When sorted out, electronic money is smoothly transformed into a conventional convertible currency. And then there will be peace and universal agreement at the level of fiscal structures in the world.

Already today, the largest payment systems on the Internet are closely cooperating with the state and are striving to obtain the status of legitimate financial organizations, to catch up with real banks and funds. Therefore, such services as WebMoney, Yandex.Money are vitally interested in the trust of users and will try to do everything to avoid any problems with electronic money transactions.

Successful Investments and success in all your affairs. See you on the blog pages.

In recent years, electronic payment systems have taken a firm place in the financial world, which is associated with the active evolution of money as a means of payment. In developed countries, this process has been rapidly developing over the past forty years, and in Russia - since the early 90s, which resulted in electronic money.

So, what is an electronic payment system? Briefly, electronic payment systems (EPS) can be described as a technology of direct mutual settlements between the participants in the transaction without additional conditions (interbank transfers, indication of personal data, etc.) via the Internet. Combined with speed, the use of EPS has contributed to the rapid development of e-commerce. Today EPS is a convenient payment method for mobile operators, Internet providers, large stores and many others. Let's try to understand how this happens.

Electronic money (ED) has gone through three stages of development. The first stage is magnetic credit and debit cards with extensive use of EPS. The second stage is the introduction of smart cards (with a stored amount). These EDs did not replace cash for their owners, but only made the management of bank accounts more efficient. So the main meaning of ED acquired a new meaning: a combination of the advantages of cash and electronic circulation of the money supply. The third stage in the development of electronic money - "network money" - has already made it possible to make "on-line" payments.

Today, several main technologies of payment systems are used as EPS:

• use of credit schemes;
• use of debit schemes
• use of digital money.

The first of them - the most popular in the world - work with ordinary credit (plastic) cards (Visa, MasterCard, etc.). The second technology is based on the use of digital equivalents of checks and cash (NetCash, NetChex, NetBill, etc.). The third (the so-called payment gateways) is a category of electronic payment systems that translate the benefits of real cash into the Internet world (Citybank, DigiCash, PayCash, WebMoney, etc.). Let us consider in more detail the features of each type of EPS.

It has long been a tradition to calculate plastic card with online purchases. Credit card payment, accepted by a huge number of online stores around the world, is very popular. By the way, the presence of a psychological factor - the imperceptibility of ED - plays an important role. As a result, when paying with a card, its owner usually easily spends much more than when paying in cash. Of course, this circumstance plays into the hands of online stores. There are not many of them in Russia yet, so this service is not very developed due to a number of subjective and objective circumstances.

However, not only online stores welcome the use of credit cards. Offline sellers also accept them with pleasure, which is typical of both the world market and the Russian one, although credit cards are only gaining popularity in our country. At the same time, debit (salary) “plastics” are not very favored by both online and offline stores. This is explained by studies commissioned by MasterCard by IMCA, which showed that Russians spend on average 30% more money from credit cards than from debit cards. IMCA also found out that in Russia the average monthly cost for one credit card is about 8.5 thousand rubles, while for a debit card it is 2 thousand less. For those who use a plastic card at least 4 times a month, the same figures reach 13.5 and 9.15 thousand rubles. for each card, respectively.

However, sellers are not the only party interested in this system. Banks deliberately stimulate customer preference for credit plastic by simply setting the percentage for withdrawing money from credit cards higher than from debit cards. And it seems to the owner of a credit card to pay with it more economically than in cash, which leads to the mentioned psychological factor.

It is clear that all this is doubly convenient in an online store: money from a credit card is not only “easy” to spend, you do not need to pick up the card itself. The combination of the benefits of an online store and the convenience of the client is obvious: I went to the desired site, chose the product and the option "Pay with a plastic card", entered the card number and - get your purchase. I didn’t wander anywhere, I didn’t seem to spend money, but the thing you needed was already brought. The beauty! But, as usual - with spikes ... These spikes, that is, shortcomings, can hurt the user with the loss of money, since there is always a risk of losing credit card data. The situation is further complicated by the fact that with an electronic payment by card, it is practically impossible to 100% identify the payer, assuring that he is paying from his card. An online store can also get a shot in the form of a chargeback (fine, refund). The reputation of the online store, the payment system and the acquiring bank directly depends on their number, up to the possibility of further work. Chargeback is issued in case of receiving a refusal to make any purchase. Due to the absence of a signed receipt in an Internet purchase, this allows attackers (including true cardholders colluding with someone) to make notes that "I (the real cardholder) did not make this purchase." According to analysts, the global damage from credit card fraud is measured in billions of dollars a year. So, according to the FTC, in the United States in 2003. amounted to about $ 50 billion. In Russia, the same figure almost reached $ 0.5 million (data from the GUBEP), and this is only taking into account the formation of the domestic credit plastic market at that time. The FTC notes that in the United States a victim of fraud in 2003. became every eighth owner of credit cards. Such sad statistics, of course, cannot but affect the trust of users in the use of electronic payments. Together with customers, all other participants in electronic payments, especially online stores, suffer from fraudsters. Factors contributing to the preservation of the number of consumers of EPS services, in addition to greater convenience and lower costs, are the security and confidentiality of settlements. So what is the electronic payment flow scheme and the main participants involved in it? Acceptance (processing) of plastic cards as a means of payment for Internet goods/services - Internet acquiring - includes:

• buyer
• online store
• issuing bank (card issuer)
• acquiring bank (conducting the primary processing of the transaction and providing the full range of operations with cards of partner banks)payment server (EPS, which ensures the security of the payment, etc.)

In some cases, there is no fifth participant, but due to the high degree of risk, such schemes are now practically not used. Visually, the scheme for implementing an electronic payment looks like this:

Essentially, the card EPS procedure ensures the security of card data transmission to the processing center of the acquiring bank. In fact, there are much more functions implemented, with many services, but guarantees are the main purpose of systems.

It turns out that card EPS play the role of an agent in managing operations with the card account of the cardholder. Representatives of this class of systems in Russia Cyberplat, Assist, Chronopay, etc. operate only with bank records, but not with the money itself. Against the background of the traditional nature of Internet payments abroad, where plastic cards are the main means of payment, these systems have not yet become widespread in our country. In our country, the types of electronic payment systems operating with digital cash.

The use of digital cash provides a manageable level of owner anonymity, which prevents computer crime, and electronic cash flows can be tracked in real time, which is practically impossible when using "live" money. These advantages, against the backdrop of large-scale fraud, led to the emergence of this type of EPS, which work not with cards, but with their own currency equivalent to real money at a stopped rate. By registering in the system, the client receives a personal Internet wallet. As it is replenished, the funds in it can be used to pay for goods and services in the online stores of the system. You can top up your account, depending on the system, with a special prepaid card, bank or postal transfer, cash at special kiosks or exchange offices, and even ATMs of EPS partner banks. There are also a huge number of electronic exchange offices. As for the withdrawal of money from an electronic wallet, the maximum benefit for the system prevails here. For the client, this is an incomprehensible and inconvenient process, fraught with high interest rates, a meager number of ways to withdraw money, etc. What can not be said about using e-money from a wallet - there are plenty of options.

Advantages, however, can have a downside. The possibility of anonymity of the payer, on the one hand, allows him to make appropriate purchases, and the online store to avoid taxes. On the other hand, it is possible to deceive a client with one-day shops without providing paid goods and services.

Interestingly, initially e-money was conceived to pay for goods/services on the Internet. This explains the noticeable advance in the dynamics of the electronic payment market (70%-120%), the development of e-commerce (30%-45%). However, the very idea of ​​digital cash in the current DigiCash design developed by Professor D. Chaum is definitely promising. And even with all the existing shortcomings, electronic money is quite firmly established in our daily lives.

Nevertheless, the development prospects and the future of such systems are not entirely clear. Despite the high level of protection, digital cash is still stolen, which representatives of payment systems explain by the user's ignorance of information security. So, first of all, it is necessary to determine their legal status. So, WebMoney calls itself a "system of property rights", "Yandex.Money" is a "prepaid financial product", and their activities are not regulated by the country's central financial institution. But in terms of virtual units, the role of EPS data in e-commerce and the commodity-money turnover of the country is increasing. At the same time, the fraud that exists in the traditional financial system is likely to find its place in the proposed systems of the future. Minimization of its spread by ensuring the security and confidentiality of settlements using e-money can be solved by the development of legislation and the development of uniform standards for settlements.

It is undeniable that digital cash systems have already won their audience, ideally suited to a range of tasks. Of course, it is not yet possible to completely replace cash transactions. Cash transfers are quite inexpensive and their costs are low compared to the purchase price. Today, each e-transaction costs about 15 cents on average. It seems inexpensive, but at the cost of, say, a drink for 60 cents, it will be a decent cheat. But with expensive purchases, the effect will be the opposite. Considering the expansion of the potential audience of EPS, and given that businessmen and government organizations usually pay by check or other non-cash means, the transition from cash to electronic payments should be expected mainly in the household sector. But that's not all. If electronic payment systems will be cheaper or more convenient to use than traditional ones, then the representatives of the business environment will be able to significantly increase the amount of working capital and, as a result, spend more. As a result, this will lead to an increase in their total income, which will also favorably affect the development of the economy as a whole. However, increased sales are not the only benefit of electronic payment mechanisms. Their use can significantly reduce costs. It's no secret that cash management is an expensive, slow, and insecure process. And systems that reduce the use of cash can reduce distribution costs, although they increase initial capital costs. In short, how much new forms of payments will reduce the total amount of costs in the short term will depend on the willingness of Internet providers to use them.

Summing up, we can say that in some cases, it is more convenient and easier to use digital cash systems than card ones. We repeat that in order to increase the reliability of this market and the degree of user confidence in it, it is necessary to clearly define the legal status and rules of the game for electronic payment systems operating with digital cash. To date, the general state of the market niche of payment systems in Russia is still at the stage of development. Accordingly, the volume of participants and the number of transactions carried out in comparison with North America and Western Europe is negligible. Nevertheless, observing some progress, it can be expected that the level of use of the Internet segment used for e-commerce will soon increase in Russia, along with the number of financial institutions and the quality of their services.