Define the following terms (a) Cash on Delivery (CoD) (b) Net-banking Transfer © Cheque (d) Credit or debit cards
(a) Cash on Delivery (COD) The payment for the goods ordered online may be made in cash at the. time of physical delivery of the goods.
(b) Cheque The buyer may send a cheque to the online vendor. The goods are delivered upon realization of the cheque. This method is not popular.
(c) Net-banking Transfer The buyer may instruct his bank to electronically transfer the amount from his account to the account of the online vendor.
(d) Credit/Debit Card This is the most popular method of payment in online shopping. In case of credit card, the buyer can make purchases on credit. Later, the issuing bank transfers the amount to the vendor’s account and the buyer’s account is debited.
The debit card allows purchases up to the specified amount. The amount is deducted electronically from the card as and when the purchase is made.