An alternate payment mechanism is finding ways of payment other than credit card payment. Alternate payment mechanisms include debit cards, prepaid card, direct debit, phone payments, mobile payments, money orders, bank transfers, charge cards, checks and cash payments. Every way of payment has its own advantage and disadvantage. Debit cards help you pay but it has a limit i.e. it is restricted to the amount present in the account associated with the card. There is no overdrawing limit in it. Similar is a prepaid card. Prepaid cards are issued on the same of the customers.
Direct debit is providing your bank with the ability to collect funds directly from another account. In phone payments, transactions done are added to the phone bill along with transaction charges which are recovered at the time of bill collection cycle. In mobile payments, payments are made via a mobile application. It can then be added to the mobile bill if the mobile is post-paid or if the mobile is prepaid, it can be deducted from the available balance.
In bank transfers, you initiate a fund transfer to the receiver’s account. Only the sender has to approve this transaction. Charge cards are very similar to a debit card. Checks are also known as electronic checks which allow funds to be directly withdrawn from the consumer’s account. Electronic checks take a substantially large amount of time to get cleared and there is always a risk of getting a chargeback in case the payer does not have sufficient funds. A good alternate payment provider is NOIRE Pay which allows you to transact locally and globally.
Noire 