An electronic payment system in e-commerce refers to a paperless monetary transaction that allows customers to pay for goods and services electronically without the use of checks or cash. E-commerce payment systems have become increasingly popular due to the widespread use of internet-based shopping and banking. There are various types of electronic payment methods such as online credit card transactions, e-wallets, e-cash, and wireless payment systems. Some of the most common methods of electronic payments include:

• Credit or Debit Card Payments: When paying by card, an electronic payment device initiates the online payment transfer. The consumer will have to fill out their card details and have their transfer authorized.
• E-Money Transactions: This refers to a situation where payment is done over the network, and the amount gets transferred from one financial body to another financial body without any involvement of a middleman. E-money transactions are faster, convenient, and save a lot of time.
• Electronic Fund Transfer (EFT): It is a very popular electronic payment method to transfer money from one bank account to another bank account. Accounts can be in the same bank or different banks. Fund transfer can be done using ATM (Automated Teller Machine) or using a computer. Nowadays, internet-based EFT is getting popular.

Electronic payment systems work when people and electronic technologies work together to move the payment information instantly through a logical progression of steps – usually in just a few seconds. These systems use various technologies and protocols to process, authorize, and complete transactions securely. Electronic payment systems are highly beneficial to both businesses and their suppliers. In the context of accounts payable, e-payments are a win-win in that they reduce costs, improve relationships, increase visibility, and provide enhanced security when compared to traditional checks.