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Compare different payment systems used by e-commerce systems.

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Introduction

Transfer-Encoding: chunked A card payment is when a customer uses a card is used to pay for things. It can be a debit card which take the money directly from your bank. Or a credit card which borrows money from the bank which will need to be payed later with interest. Card payments can be made with banks such as Barclays?s or Lloyds Bank. Card payments are time efficient because they are processed electronically therefore eliminating the need to make physical bank deposits. In addition, it increases service levels. Card payments are quicker, more convenient. The business could also offer additional services such as automatic currency conversion to your customers. Not is also easy to handle. Understanding of card payments is more reliable and less complex than accounting for cash or cheque payments. Using card payments means there will be guaranteed payments. Funds are available for payment immediately therefore also reduces business risk. There is also high protection. Card payments provide a guard against counterfeit money. ...read more.

Middle

Digital Payment Services have high security because it is anonymous. When the money is sent to the business for a purchase, it?s almost impossible to obtain any personal information about the customer. This is because the security of electronic currency is provided by using encryption. This means that information is very secure and is unlikely to be hacked. In comparison, Electronic Cheques may uphold some security risks. As the computer processes an electronic cheque it means that it is at risk of hackers hacking the details and gaining access to your banking information. Additionally, card payments have security issues. When entering your card details online there is software that hackers use and key logging which tracks what the customer is typing, allowing them to gain personal information and use it for fraud. Costs are another factor to consider. Businesses who employ electronic cheques spend less money in processing fees which lets the business put more money on other important operations. Digital payment also lowers costs for businesses. ...read more.

Conclusion

Yet, the customer needs to register to the institution in order to be authorised to perform money transactions with them. The customer will need to have a username and password and will also need to keep the account up to date which can be irritating and boring for the customer. Overall, there are many benefits and drawbacks to each online payment system. In order to have an online business it?s important to have payment systems in order for customers to pay for the items. I have highlighted all the positives and negatives of the different types of payment systems. One of the main factors in payment is security which is why I recommend using digital payment services like PayPal. It is secure, fast and easy to make payments for items and although having to make an account which is long and boring, once it?s made you do not have to do anything other than put a username and password in when you pay for items. However, I do also recommend to have other payment methods like the use of cards to give a variety of choice to customers to ensure a good customer service so they return back. ...read more.

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