Disadvantages of Electronic Payment Systems

Disadvantages of Electronic Payment Systems

Electronic money, also known as e-money, electronic cash, e-currency or digital cash, refers to money or scrip which is exchanged electronically. Basically, electronic payment systems are key enablers for mass acceptance of electronic commerce over insecure systems such as the Internet. In Business-to-Business (B-2-B) e-commerce, there is a rapidly growing interest in processing payments online.

However, these electronic payment systems have a number of a number of disadvantages also. You need to record to the establishment in order to be empowered to perform money transactions with them. Now, you need to have a username and password, and for that you need to have password aegis. Moreover, you also need to keep up an account per organization, which can be very irritating or pesky for you.

To make sure that your online transactions are solid, it is essential that you observe strict security policies. If password is capable of being hacked, it can mean serious fiscal loss for you. Banks or financial institutes that have your financial information can expose it to cyber-terrorist. So, there is unstated risk of your personal and account particulars being stolen.

The transfer of digital currency arouses questions such as how to impose taxes and the potential ease of money washing. There are also possible macroeconomic results such as exchange rate stabilities and shortage of money supplies.

Moreover, you are always at a loss if your card is stolen. If the card falls in wrong hands, there is a danger of expenditure of entire bank balance. You will obviously inform the concerned authorities about the loss but the time taken between losing the card and informing the authorities is critical.

The purpose of the above article is not to discourage people from making electronic payments but to make them aware of the inherent dangers that such payment systems involve.

 

Views: 228
Author: Regular Articles

To read more about Rental Property Ideas visit Rental Property Ideas Learn more about Buying Investment Property in Bulgaria




Tell a friend
Average rating:
(0 votes)

Hezbollah buries militant Qantar, says Israel will be held accountable

Lebanon's Hezbollah group said on Monday that Israel would be held accountable for killing prominent militant Samir Qantar in an air strike in Syria, and accorded him an elaborate funeral of... Read More

Russia says black box from warplane downed by Turkey unreadable

Investigators in Moscow said on Monday they were unable to retrieve information from the damaged black box of a Russian warplane shot down by Turkey last month, data the Kremlin hoped would support... Read More

Exclusive: U.S. glossed over Oman's human rights record during Iran talks

By Jason Szep, Matt Spetalnick and Yara Bayoumy WASHINGTON/MUSCAT (Reuters) - As the United States negotiated this year’s nuclear pact with Iran, the State Department quietly agreed to spare the... Read More