With electronic payment, your customers can pay for goods and services without cash using cards, mobile phones, or the Internet. It offers a number of benefits, including saving time and money, increasing sales, and reducing transaction costs. However, it is vulnerable to Internet fraud and can potentially increase business costs.
Electronic payment is very convenient compared to conventional payment methods, such as cash or check. Because you can pay for products or services online from anywhere in the world at any time of the day or night, your customers don’t have to spend time online waiting for their turn. To treat. They also don’t have to wait for a check to free the bank to access the funds they need to make purchases. Electronic payment also eliminates security risks when handling cash.
3. REDUCED TRANSACTION COSTS
While there are no additional costs to pay in cash, trips to the store generally cost money, and checks must also be paid in advance. On the other hand, there are generally no very low or very low fees for swiping your card or paying online. In the long term, electronic payments could save hundreds of thousands of dollars in transaction costs for individuals and businesses.
Although there are strict measures such as symmetric encryption for the security of electronic payment, it is still susceptible to piracy. For example, scammers use phishing attacks to engage unsuspecting users into providing credentials for their electronic wallets that they collect and use to access victims’ personal and financial information. Inadequate authentication also damages electronic payment systems. Without superior identity verification measures like biometrics and facial recognition, anyone can use someone else’s electronic cards and wallets and run away without getting caught. These security concerns can make some people reluctant to use electronic payment systems.
If someone uses your company’s electronic money without your permission, identify the unknown fees, and file a claim with your bank, online payment service, or Credit Card Company. However, without enough information about the person who made the transaction, it can be difficult to win the claim and get a refund.
Electronic payment systems are associated with an increased need to protect confidential financial information stored in a company’s computer systems from unauthorized access. Companies with internal electronic payment systems have to pay additional costs for the purchase, installation, and maintenance of advanced payment security technologies.