INTRODUCTION Electronic payment systems, commonly known as e-payment systems, are integral to modern commerce and banking. They represent a subcomponent of electronic data interchange (EDI) and have witnessed a surge in popularity as more individuals turn to the internet for financial transactions and shopping. With credit cards serving as the predominant payment method for E-commerce transactions, their widespread use has become a cornerstone for online retailers. In North America, as of 2008, nearly 90% of online retail transactions relied on credit cards, underscoring their significance in the digital marketplace. Online retailers must adhere to stringent regulations set by credit and debit card issuers like Visa and Mastercard, aligning with banking and financial legislation in the regions where these services are active. However, the ubiquity of E-commerce payment systems also poses security challenges, necessitating careful coding and encryption to safeguard user data, particularly in an era when identity theft is a growing concern. Despite the advancements in credit card security in some regions, global improvements are still needed, especially in countries like China and India. To enhance security, measures such as the use of card verification numbers (CVNs) have been implemented. In this dynamic landscape, various financial intermediaries have emerged, each specialising in facilitating online financial transactions. Platforms like PayPal offer alternative payment methods at checkout, Smart Pay streamlines direct online bank payments, and Stripe specialises in credit card processing. The ease and speed with which these cyber-mediary accounts can be established and utilised have led to their widespread adoption. However, these conveniences are not without risks, including the potential for theft and misuse, as well as the complex process of seeking redress when issues arise. Consequently, the relationship between the public and financial institutions remains one characterised by information asymmetry, and trust can be fragile, particularly when incidents like the Lehman Brothers’ collapse reveal the exploitation of asymmetric power within the industry. What is E-Payment System? A subcomponent of EDI, an E-commerce payment system (also known as an electronic payment system) makes it possible to accept electronic payments for offline transfers. A STUDY ON CUSTOMER PERCEPTION REGARDING USAGE OF E-PAYMENT SYSTEM WHILE DOING ONLINE SHOPPING Meghna Chauhan*, Kairvi Rathod** Abstract: An electronic payment system, often referred to as an e-payment system, is a crucial component of electronic commerce (E-commerce) and electronic data interchange. It enables the acceptance of electronic payments for various offline transactions. As the internet has become integral to banking and shopping, E-commerce payment systems have gained widespread popularity. Credit cards are the dominant payment method for online transactions, with nearly 90% of North American online retail transactions utilising them. These systems require strict adherence to regulations set by credit and debit card issuers and the implementation of security measures, including encryption and careful coding, to protect user data. While credit card security has improved in some regions, challenges persist in enhancing it worldwide. Various financial intermediaries like PayPal, Smart Pay and Stripe facilitate online transactions, but concerns about security and trust issues between the public and financial institutions continue to be relevant in the digital payment landscape. Keywords: Electronic Payment System, E-Commerce, Credit Cards, Security Measures, Financial Intermediaries, Trust Issues * Research Scholar, Department of Management, Faculty of Business & Commerce, Atmiya University, Rajkot, Gujarat, India. Email: meghna.chauhan121997@gmail.com ** Assistant Professor, Department of Management, Faculty of Business & Commerce, Atmiya University, Rajkot, Gujarat, India. International Journal on Customer Relations 11 (2) 2023, 29-47 http://publishingindia.com/ijcr/