Mode of payment available in online shopping:
1. Cash on Delivery (COD):

Under Cash on Delivery (COD) mode the customer needs to pay for the product in cash after he receives it.

2. Cheque:

• Under cheque system the seller sends his person at customer’s place to collect the cheque for the order placed.
• The seller then deposits the cheque in his account. Once the cheque gets clear he sends the product to the buyer.

3. Transfer through net banking:

• The banks and seller together provide the facility to the customer for transferring the money into seller’s account using internet banking.
• In this system the seller’s account is linked with our bank’s website. Once the seller gets his money he sends the product.

4. Credit and debit cards:

• Credit and debit cards are also called plastic money. These cards are used quite widely in online shopping.
• While making payment through credit cards the banks provide credit to the buyer which he uses to shop online. The buyer pays to the seller by providing his card details. The bank pays to the seller on behalf of the buyer.
• The bank then adds this amount to the buyer’s account and sends him a statement. The buyer pays to the bank as per the time limit mentioned in the statement.
• If the buyer buys using debit card the amount gets debited from his bank account immediately. The buyer can buy only till the balance is available in his account.

5. Digital cash:

• Digital cash is a system of purchasing cash credit is from the banks, storing the credit in your computer in a banking software and spend while purchasing electronically over the internet. In this sense digital cash is called e-currency and it exists only in the cyber space i.e. the digital world.
• Digital cash is not physical money as we see.
• The customer pays real physical money to the bank to buy digital cash. The bank then provides the buyer e-cash or say, digital cash in the form of credit. Banks provides the software which the buyer needs to install in his computer and use it for making online payment.