Question

Electronic payment system advantages and disadvantages

Answer 1

Answer:

Explanation:Time savings

With electronic payment system you do not have to spend and waste a lot of time standing in lines of banks and post office and then your transaction would take hours or days to be done. Using e-payment system you can make funds transaction in few minutes with waste of no time.

Expenses control

Using electronic payment system would allow you to have your electronic wallet where all the expenses and transactions history is recorded on your account. So it is easy to control and manage your expenses with e-payment system rather than paying by cash while you have no control unless you keep a writing record of your daily expenses which is of course difficult.

Reduced risk of money lost

While electronic wallets are virtual it cannot be left somewhere or even robbed by someone. You just need to make sure you have a secure e-payment account and then you do not have to be worry to forget your virtual wallet somewhere or you be the victim of rubbery. E-payment eliminates the security risks that come with handling cash money.

Low Transaction Costs

Using electronic payment system you will face no additional charges for making a cash payment. It can cost you money to get to store to purchase something and also checks postage can be costly too. On the other hand you probably know that paying through unattended payment terminal for internet or mobile bills cost customers high fees while electronic payment system would only cost 1% of the total amount fee in this kind of operations which is considerable.

DISADVANTAGES

Security Concerns in e-payment system

Encryption is a must for e-payment systems to make transactions safe and secure but the system is still vulnerable to security issues. Phishing attacks might be used to convince the account owner to provide login information of their account or e-wallet which can be used to access the victims’ personal and financial information and lead to rubbery of fake identity while there is no superior identity verification measurement such as biometrics or facial recognition. By the mean anyone can use another person’s cards and e-wallets and use it with no trouble.

Password Threats

If you decide to use electronic payment system to make your transactions you should create an account in the e-payment company website. Although transactions are made by using one-time passwords in order to increase safety but some parts of a transaction, or your personal details and bank account information is accessible through your password account of your e-payment website. So you will surely need password protection and this need would increase in case you have multiple account on different electronic payment companies website for any reason.

Necessity of Internet access in e-payment system

Basically electronic payment systems use internet connection to make transaction. While this has made them fast it can be considered as one of the disadvantages of electronic payment system since if Internet connection fails, you cannot get to your online account. As well online payment methods are not working in case of offline sales.

Answer 2

Advantages of Electronic payment:

1. Electronic payments are much faster than the traditional methods of payments such as cash or cheques. In the case of online payments, you do not have any constraint of time or location.
2. Electronic payment systems offer you multiple ways of securing your payments such as tokenization, encryption, SSL, etc.
3. Electronic payments can help you to provide convenient payment experience to your customers. It allows your customer to purchase goods on credit by offering them with the pay later facility.

Disadvantages of Electronic payment:

1. Many a time while using e-payment services we are liable to pay service fees or a convenience fee which adds to our expense.
2. There have been many incidents in which cybercriminals have manipulated people and money has been looted.
3. As it is an online service, it may go down due to technical issues and people who get 100% reliable on this service for their payments may face an issue.

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