Electronic Payment Methods
Sizes of Electronic Payments
Payment systems that use electronic distribution networks constitute a frequent practice in business sector, especially for banking industry. The term of electronic payments includes any payment to businesses, banks, and public services from citizens or businesses through a telecommunications or electronic network using modern technology. During these years, the important technological payment has developed rapidly. Moreover they created new social practices, which make the use of the payment systems necessary. Based on different countries, people prefer different forms of electronic payment system. The market has been built from traditional financial intermediaries, which offer conventional electronic payment services. In 2003, 94.1 percent of all worldwide e-commerce transactions were conducted using credit cards. Even today, credits cards are very popular form of online payment all over the world, especially for the developed and fastest developing countries. Sizes of Electronic Payments
There are four major sizes of electronic payments: 1) Business-to-Business (B2B); 2) Business-to-Consumer (B2C); 3) Consumer-to-Business (C2B), and 4) Consumer-to-Consumer (C2C). Each of them has special characteristics that based on different value of order. Furthermore, based on different methods transferred online, there are many types of electronic payment systems, such as PC-Banking, Credit Cards, and E-Cash. Electronic Means
There are several electronic means to include bank and non-bank providers in three distinct areas to include retail, wholesale, and other payment/services. There are several methods to complete an electronic payment such as electronic payment cards (credit, debit, and charge), Virtual credit cards, E-wallets or e-purses, Smart cards, Electronic cash, Wireless Payments, Stored-value card payments, Loyalty cards, Person-to-person payments, and Payments made at kiosks. Critical Issues
Security risks with electronic payment cards are stolen cards, renege by customer, and theft of card details from a merchant’s computer system. With the growing use of shopping on the internet, a great deal of fraud occurs online when shopping with an electronic payment card. Fraud on the Internet happens four times more frequently than catalog sales, and nine times more frequently than in an establishment. The merchant is responsible for this fraud when a customer claims someone else made the purchase and refuses to pay. The merchant is at risk of losing customers and losing money.
* Convenience * Speed * Fungible * Transferability, peer-to-per payments * No additional cost, especially for no effective lower limit to the value of a transaction * Privacy, which means e-payment, can create historic record of any individual’s cash transactions. * Durability, the electronic money should not be easily ‘lost’. * Immediate control, financial institutions and regulators seek a system to control. * Traceability * Non-repudiation, which means transactions have the quality of non-deniable proof or receipts. * Worldwide acceptance * Fraud protection
| * Security problem when customers use ATM outside. * Digital cash, which minted by company, cannot be exchanged for cash. * Per-transaction fees, monthly processing fees * Merchant must first set up merchant account, in order to empower to perform money transactions with them for per organization. * Annual fee * No audit trail in electronic cash transactions....
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