1. e-commerce payment methods which 2. compare the advantages and disadvantages of different payment methods

In the process of China's e-commerce development, B2C, C2C e-commerce has produced a variety of payment methods, including remittance, cash on delivery, online payment, telephone payment, cell phone text message payment and other ways, and these ways co-exist at the same time. According to 2005 CNNT statistics, consumers often use a variety of payment methods, including remittance users accounted for 43.2% of the total number of users, online payment accounted for 41.9%, cash on delivery payment accounted for 34.7%, cell phone payment accounted for 1.7%.

2.1 remittance

Bank remittance or post office remittance is a traditional way of payment, but also by far the most commonly used payment methods in e-commerce payment methods. Post office remittance is the customer will order the amount of money through the postal sector to the merchant settlement of a payment method. The use of bank or post office remittance, can be directly in RMB transactions, to avoid such problems as hacker attacks, account leakage, password theft, etc., more secure for customers. But using this payment method of receipt and delivery cycle time is long, for example, excellence in the post office remittance payment period of 14 days, bank wire transfer for 10 days, while the use of other online payment is only 1-2 days. In addition, the customer must go to the bank or post office to pay, the payment process is more cumbersome. For merchants, this transaction method also can not reflect the advantages of e-commerce high-speed, interactive, easy to use and low operating costs. Therefore, this payment method can not be adapted to the long-term rapid development of e-commerce.

2.2 Payment on delivery

Payment on delivery, also known as home delivery, refers to the content of the order submitted by the customer in accordance with the commitment to the distribution of the time limit to reach the customer's designated delivery location, the two sides on the spot acceptance of the goods, on the spot to pay the purchase price of a settlement payment method. At present, many shopping sites provide this payment method. This is a full of Chinese characteristics of the B2C e-commerce payment methods, logistics methods, both to solve the Chinese online retail industry, payment and logistics problems, but also to cultivate customer trust in the network. Cash on Delivery (COD) is still one of the most popular payment methods in China. However, there are many problems with combining payment and logistics. First, payment is made in cash, so it is limited to small payments, for example, Joyo.com's order amount cannot be higher than 15,000 yuan, which is not possible for merchants' large-value transactions. Secondly, due to the home delivery is limited by the region, and EMS costs are higher, so the customer chooses the most or ordinary mail, which will bring the inevitable time loss, causing inconvenience to the user. For example, Dangdang bookstore door-to-door delivery service, sent to the hands of readers in Beijing within 1-2 days, while sent to other cities will take 3-7 days, ordinary mail is more 1-2 weeks, which does not include remote areas. Delivered to the door of a single order purchase amount of 30 yuan free of 5 yuan flat fee, a single order purchase amount of 200 yuan free of expedited costs, the cost of small purchases for the customer is unacceptable.

2.3 online payment

The so-called online payment, is based on the financial electronic network, commercial electronic tools and various types of transaction cards as a medium, electronic computer technology and communication technology as a means to binary data stored in the form of data, and through the computer network system in the form of electronic information transfer to achieve the circulation and payment.

In 2006, online payment in the entire electronic payment market size accounted for 97% of the proportion of online payment is still the absolute main form of electronic payment, the domestic online payment business online bookstore has more than 100,000 total. Online payment methods mainly include: bank card payment, electronic check payment and electronic money payment. One of the more mature is the bank card payment method, the bank card payment method is currently the most important means of realizing online payment in the domestic online shopping.

2.3.1 Online bank card transfer payment

Online bank card transfer payment refers to e-commerce transactions through the network, the use of bank cards to pay the way. Customers through the Internet to the merchant after the order, on the Internet will be encrypted bank card number and password sent to the bank, directly requesting the transfer of funds to the merchant's bank account to complete the payment. Bank cards can include credit cards, debit cards and smart cards.

China's current online bank card transfer payment can be divided into two ways with digital certificates and without digital certificates. General users who do not go to the bank to apply for the activation of the online payment function with digital certificate protection, you can only use the online payment without digital certificate protection. Online payment without digital certificate protection will have certain limitations on the function, for example, can only carry out account inquiries or can only carry out small payments. While enabling digital certificate protection of online payment not only has a higher level of security, but also can enjoy the full range of services provided by the Internet banking, the amount of payment is not limited.

Bank card online direct transfer payment there is a contradiction in terms of security and convenience, such as the use of digital certificate protection, the payer must apply to the bank to install digital certificates, download the specified software and other procedures, some of the computer is not familiar with the operation of the customer is very difficult to realize. In addition, because the customer will be directly transferred to the merchant's account, if the transaction fails, then the process of recovering the purchase price may become very cumbersome and difficult.

2.3.2 Third-party payment platform settlement payment

Third-party settlement payment refers to the customer and the merchant are the first in the third-party payment platform to open an account; and will provide their respective bank account information to the payment platform account, the third-party payment platform to notify the merchant has received the payment, the merchant to ship the goods; the customer receives and inspects the goods, notifies the third-party payment platform can be After receiving and inspecting the goods, the customer notifies the third-party payment platform that payment can be made to the merchant, and the third-party payment platform transfers the money to the merchant's account. So the customer and the merchant's bank account information is only provided to the third-party payment platform, more secure, and the payment is completed through the third-party payment platform, if the customer does not receive the goods or goods have problems can be notified to the third-party payment platform refused to transfer the payment to the merchant. Merchants can be assured that the payment is guaranteed under the circumstances of delivery, effectively reducing the risk of the transaction. Third-party platform settlement payment is currently the largest number of domestic service payment mode. Domestic enterprises currently engaged in online payment has increased from more than 10 in 2004 to more than 50 now, in 2005 China's third-party payment platform scale grew to 16.1 billion yuan. The survey from Saidi consultant shows that in 2007 China's third-party payment platform scale has reached 21.5 billion yuan. Domestic third-party payment companies, the more well-known Alibaba's Alipay, Ebay's Paypal, PayPal, Tencent's Caixit, Ebay, Netbank Online, UnionPay electronic payments, the ring of the IPS, cloud network and so on.

Because of the intervention of the third-party payment platform to solve a series of problems in the process of e-commerce payment. Such as security issues, credit issues, cost issues. At the same time, China's existing third-party payment platforms also have certain problems.

(1) China's laws stipulate that only financial institutions have the right to absorb the money of the agent users, other enterprises and organizations are not allowed to engage in similar activities, and the legal status of the payment platform is also questioned by some people.

(2) the payment of goods in the third-party payment platform will produce a certain amount of interest in the time, this part of the interest how to allocate the current lack of clear norms and strict supervision.

(3) the payment platform to solve the e-commerce payment process security issues are limited to customers and vendors, other security issues such as the customer in the payment platform to fill out the bank data when the confidentiality of information, validity and integrity of the problem has yet to be further resolved.

(4) the operation is not simple enough, the customer in the use of the payment platform must carry out a series of cumbersome application.

(5) Loans will remain in the account of the third-party payment platform for a period of time, non-real-time payment of deposit risk, such as the third-party payment companies can not fully guarantee the safety of the payment, will greatly harm the interests of customers and merchants.

(6) The third-party payment platform may be utilized to cash out from credit cards by fabricating false transactions, and there is even a risk that it may be used for money laundering.