Compare different payment systems used by e-commerce systems.

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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. Similarly, payments by card reduce the amount of cash on the premise. There is higher average sales amounts. Credit card payments enable card holders to make purchases and pay for them at a later date which often leads to higher total spending at the point of sale. Similarly, accepting card payments will encourage impulse shopping in customers as the purchase amount is no longer limited by the amount of cash they have. Adding on to impulse shopping is that card holders often benefit from various incentive programs offered by the card issuers encouraging frequent usage of the card which can in turn into impulse buying. There are costs involved with using card payments.  A service from a payment service provider (PSP) can will be used by businesses to process transactions on your behalf, this will cost them money.

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Having a large range of different payment systems is great as customers can pick what they are most comfortable to use. However, some are better than others and may not be suitable for every e-commerce site.

When deciding what payment system is suitable, security should be thought of first. 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 ...

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