2018-07-31 By Maya Pillai
An e-payment system is a way of making online transactions or the cashless transactions. It is believed that the e-payment system has brought a revolution in the industry of e-commerce. This has been made possible by reducing the paperwork, labor cost as well as the transaction cost. An e-payment system is very user friendly as well as time consuming than that of the manual processing. It is helpful in expansion of a business organization. Below mentioned are a few modes of electronic payments:
- Credit card
- Debit card
- Smart card
- Electronic fund transfer
It has been observed that the traditional methods of e-payments have been replaced by the modern methods of e-payment system. It has been see that most of the individuals prefer having virtual wallets than that of keeping cash in his/her pocket. Below discussed are a few advantages as well as disadvantages of e-payment system.
In comparison to the traditional payment system, an e-payment system has a wide range of benefits for its users:
- Reduced risk of loss and theft: As these transactions used to take without any cash, so there is no risk of theft or loss. Also, one cannot even forget a virtual wallet anywhere.
- Time saving: These transactions can be made from any nook and corner of the world. This usually takes a time of a few seconds. Whereas in the traditional method, minimum the time of a day is taken for a transaction to take place. This also facilitates its users that they are not required to stand in long queues.
- Low commissions: it is belied that if a person is paying directly to an internet service provider or mobile account replenishment with the help of an unattended payment terminal, he/she is required to make high payments. In case of electronic payment, one is required to make payment of just 1% of the total amount.
- Convenience: these transactions can be made anytime and anywhere in the world, where he/she has access to the internet.
- Expenses control:
- User friendly: this has been designed to reach the highest possible target audience. So, it has better understanding of the user interface. This is available for 24×7 for providing customer support service. One can always get answers to all his/her questions by making use of forums on the subject.
- Restrictions: every payment system has some limitations associated with the minimum amount to be kept in the bank account. The amount of output as well as the transactions that are supposed to be done in a day.
- Necessity of internet access: it is mandatory to have an internet connection, in order to make a transaction without any disruption.
- Problem of transferring money in different payment systems: it is believed that most of the payment systems do not cooperate with each other. One can make use of currency exchange for solving this kind of problems.
- Lack of anonymity