By Karina Popa Submitted On March 16, 2016
E-payment, also known as electronic payment, lets people, companies, governments and non-government organizations make cashless payments for products and services by means of credit/debit cards and mobile gadgets or the Internet. This method offers some advantages such as increased sales, lower transaction costs and time savings. However, it is prone to online fraud and could possibly cause additional business expenses.
E-Payment Pros
Convenience and Increased Speed
E-payment is more convenient than traditional payment methods like cash or check. It allows you to pay for products and services 24/7, the whole year-round, from the comfort of your home or anywhere you are. So, you do not have to go to the bank or merchant office, or fall in line and wait for your turn. You do not have to wait for check clearing to access the funds you need. Furthermore, it takes away the risks involved when carrying cash.
More Sales
Since online banking and shopping has become more common, less people are paying in the form of cash. A 2014 survey reveals that 75% of the individuals surveyed brought less than $50 each day. This means that electronic options are fast becoming the top choice of payment method. E-payment lets businesses make sales to customers who like to pay electronically and thus, gives them an advantage over their competitors that only accept payments through traditional methods.
Lower Transaction Costs
There are no extra charges for paying in cash. However, you spend on trips to the shops and postage, when you pay in the form of checks. On the other hand, you pay nothing or very small fees when paying online or swiping your card. At the end of the day, e-payment allows individuals and businesses alike to save on transaction fees that could amount to hundreds or thousands of dollars.
E-payment Cons
Security Issues
Strict measures like symmetric encryption are designed to make e-payment safe to use, but it is prone to hacking. As an example, fraudsters use phishing attacks to deceive trusting users into giving the log-in information of their e-wallet, which they get and use to gain entry to the victim's financial and personal details. However, a faulty authentication hurts the e-payment systems, which is why high-caliber identity verification measures - such as facial recognition and biometrics - should be used. Otherwise, your card can be used by others and they could get away with it.
Disputed Transactions
When someone else uses your e-money without the proper authorization, you could identify the unknown charge and go to your bank, credit card company or online payment processor to file a claim. However, it would be difficult to accomplish and get a refund if you do not have enough information about the person who did the transaction.
Additional Business Costs
Electronic payment systems have a need to secure confidential financial information saved in a business's computer system from unauthorized people. These companies that have in-house e-payment systems must incur extra costs for the installation, procurement and maintenance of expensive payment and security technologies.
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Article Source: http://EzineArticles.com/expert/Karina_Popa/1432444
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