You need not struggle any longer, as you can hire a custom essay writer from us and get the Literature Review Of E Payment System work done for you. Our essay writers are standing by to take the Literature Review Of E Payment System work off of your hands. Every essay writer is highly qualified and fully capable of completing the paper on time/10() May 08, · With the online-to-offline (O2O) payment that is emerging right now, it is easier for e-commerce to employ the service and let their customers to pay with cash. 2. No overspending. Psychologically, it is more difficult for someone to hand over cash than swiping the blogger.comg: essay Essay on Electronic Payment System. Words6 Pages. Electronic Payment System. I. Introduction. With the continuing rapid growth of E-commerce, transactions on the Internet have been increasing exponentially. And such transactions require some reliable and secure payment systems. In fact, one of the key factors in the success of E-commerce
Electronic Payment Systems Essay - Free Argumentative Essays For Students
E-commerce has emerged as a distinct and important phenomenon in the business world and its influence in the business world is daily increasing. E-commerce promises to have a significant and positive impact on businesses everywhere. Policymakers and researchers are of the opinion that e-commerce is the future of business as its benefits become more evident. It offers many opportunities for businesses, as they are able to exploit the power of the computer and the internet in their everyday operations.
The global potential of e-commerce has made it attractive for many companies that hope to achieve considerable gains from e-commerce activities. For e-payment essay to take place, a payment system has to be implemented. Electronic payment systems are the preferred method in e-commerce since they are cheaper and more efficient. These systems make it possible for complete business transactions to take place solely through the internet.
However, e-payment essay, electronic payment systems bring about a number of issues for both the customer and the business. This paper will set out to review electronic payment systems for e-commerce and discuss some of the issues that are inherent in these systems. Solutions that are applicable to address the issues will also be highlighted. Zheng articulates this need by noting that all commercial activities need e-payment essay form of payment system in order for transactions to be carried out and e-commerce is not exempt from this.
While offline payment methods can be employed in e-commerce, they would negate the advantages of efficiency and convenience that e-commerce promises to give, e-payment essay. It is therefore important to employ payment methods that can be utilized in an online environment, e-payment essay. Electronic Payment E-payment technology is one of the most important aspects in the development of ecommerce and its development greatly influences the fate of ecommerce Zheng, Bushry documents that electronic payment systems are already proliferating in banking, e-payment essay, retail, and on-line markets.
This underscores the fact that electronic payment systems are increasingly popular e-payment essay many developed nations and electronic payments are becoming preferable to the use of cash in many scenarios. E-payment exhibits a number of characteristics that are different from traditional means of payment. To begin with, it introduces digital circulation which means that all payments are digitized Zheng, The working environment of e-payment is also based on the internet, which is a relatively open system platform.
E-payment also makes use of advance communication means and it has a very high requirement for hardware and software facilities. These facilities are mandatory for supporting e-payments and without them; the payment system is rendered useless Zheng, Electronic payments are very convenient for both the customer and the company. They are efficient since the processing takes place in real time and the company does not have to incur overheads that would be used on mailing out paper invoices and then processing the payment received from the customer later.
There are a number of electronic payment systems utilized in e-commerce, e-payment essay. The first is electronic cash, which is used in a manner similar to physical cash.
Digital cash makes use of a sequence of binary numbers to represent an intrinsic value in a chosen currency. Digital cash provides the means to transfer money between transacting parties over the internet. Once a transaction is made, e-payment essay, it is settled immediately with the exchange of electronic currency between the transacting parties Zwass, The second type of payment is the prepaid e-payment essay, which requires the user to pay in advance and then buy products or services.
Debit mechanisms utilized in e-commerce include smart cards, which are virtual wallets that store electronic money. The fact that consumers are required to make the provision of funds before they engage in any commercial transaction guarantees availability of funds for online activities Zheng, e-payment essay, The e-wallet is the most commonly used e-payment system today and it allows small purchases to be made.
The third form of payment is the credit or post paid system, which allows a user to buy products and then pay for them later. Credit cards are the most common post-paid mechanism for a number of reasons. Credit cards help the e-commerce system to overcome the complexities associated with digital cash and electronic cheques Bushry, e-payment essay, E-payment systems are the driving force that stimulates more merchants to engage in e-commerce and more customers to make online purchases.
The e-payment issue has risen to prominence as more e-payment essay more traders bring their businesses into e-commerce. These issues have mainly been focused on the security and stability since e-payment essay key requirement for e-commerce transactions is the presence e-payment essay a secure, stable and efficient payment system. Electronic cash brings about a number of issues due to its digital nature, e-payment essay.
E-payment essay first issue is with regard to counterfeiting, e-payment essay. Zwass documents that fraud has always been an e-payment essay of commerce when dealing with hard currency. It is also an issue with digital cash and security remains a paramount concern in this e-payment system. Unlike e-payment essay money that is hard to replicate, digital money is represented in bits and bytes and this makes it easy to copy.
In addition to fraud, electronic cash is also susceptible to double spending where a person spends the same digital cash twice since electronic coins can be copied by the user. The user can then proceed to use the money as payment for two different transactions, e-payment essay. Another issue is that the monetary value of electronic cash is not always stable, e-payment essay.
Currency fluctuations in the international market therefore poses significant problems for electronic money since sudden devaluation of currency will lead to great losses.
Bushry demonstrates that the issue is over who will take liability when such events occur, e-payment essay. Electronic money also suffers from relatively short life span, e-payment essay. Most hard currency has a long life span and the holder of the money is assured that they can use their money for extended periods. Electronic money might have time limits imposed on it and after this time has expired, the money is worthless to the user, e-payment essay.
Clients also carry a big risk in having e-cash stored in e-payment essay local drives, e-payment essay. This is because if their physical storage devices are damaged, e-payment essay, the e-cash stored on it is lost forever and it cannot be recovered, e-payment essay.
Zheng notes that this risk of loss is one that many consumers are unwilling to bear. Prepaid systems are preferred by many businesses since the receipt of payment is assured. However, e-payment essay, there are risks involved when dealing with pre-paid systems such as virtual wallets. Bushry warns that this electronic payment mechanism may suddenly become worthless. If this were to happen, the customer will be left with virtual currency that is of no value since nobody is willing to accept it.
Hashim reveals that many SME managers are wary of using virtual currency because of these stability concerns, e-payment essay. This concern is informed by the common perception that online trading is a high-risk affair that e-payment essay jeopardize their businesses. Privacy in prepaid systems has been identified as one of the immediate dilemmas by the accounting information systems.
Companies use e-commerce sites to reach potential customers and in some cases, transactions take place e-payment essay this environment and electronic payment is used. Changing market trends have made personal data very important since it enables consumer tastes and preferences to be identified. For this reason, personal information has become a very valuable commodity and many players in the e-commerce industry are collecting, holding, e-payment essay, processing, and using personal data at increasing rates.
Boritz and Gyun demonstrate that personal information is gathered during the registration and ordering process as the customer is required to provide information such as name, address, and credit card number, e-payment essay. Many customers e-payment essay concerned that their personal information might be obtained by an illegal third party who might use it e-payment essay malicious activities such as identity theft. For this reason, some people are opting our of e-commerce activities partially by browsing for products but paying offline.
Madieha asserts that because of these factors, e-payment essay, consumer confidence in e-commerce is significantly reduced. The user is unlikely to engage in online transactions when they have worries that their bank account can be compromised from this.
A major issue e-payment essay post-paid systems is that the overhead costs may be unjustifiable for the customer. As it is, charges are imposed on the individual whenever they use their credit cards to engage in e-commerce. When purchases are of low value, the transaction fees incurred make this e-payment method inefficient, e-payment essay. Zheng notes that for micro payments which are transactions involving very low payment values even a small overhead or a minimum overhead may become unbearable.
With post-paid systems, the client e-payment essay issued with a physical card. This card is vulnerable to compromise since the information contained on the magnetic strip card can be copied, e-payment essay, forged or altered. There is also real concern that hackers will steal and misuse credit card numbers given by the customer, e-payment essay.
Payment by credit card requires faith in the system security and as such, mutual trust is needed between seller and buyer. Without this trust, the buyer will not be willing to expose himself to risks by making payments using his credit card to a merchant that he does not trust, e-payment essay.
E-commerce businesses also e-payment essay the risk of suffering from internal fraud. In normal businesses, fraud is deterred by safeguards that have been developed over e-payment essay years e-payment essay traditional accounting.
The same scenario does not apply in e-commerce where standards are still immature. This issue has made many small and medium-sized enterprises SMEs generally stay away from e-commerce Hashim, e-payment essay, This is an important factor in the expansion of e-commerce since SMEs are considered to e-payment essay the lifeblood of modern economies.
Since the issues discussed above hinder the growth of e-commerce, measures have been taken to address them, e-payment essay. Companies have taken steps to protect personal information provided by users. Personal data is important for e-commerce since it makes it possible for targeted advertisements to take place.
Such kinds of advertisements are more efficient than mass advertisement and for this reason; many companies prefer to use this form of advertisement. However, customers may be wary of having their buying habits available online, e-payment essay. Companies that engage in e-commerce can take up a number of measures to alleviate fears by customers, e-payment essay.
This combined with privacy-enhancing technologies such as encryption and the Anonymizer will reduce customer vulnerability while on the network. Boritz and Gyun assert that customers need to be confident of the privacy-enhancing technologies provided by the companies or else they will decline to engage in e-commerce transactions, e-payment essay. This is because as long as customers are concerned about theft by criminals, they will not be comfortable using e-commerce. Various factors are considered by consumers when they are deciding on the payment system to employ, e-payment essay.
A key e-payment essay is the approach to security taken by the business. Consumers are wary of the dangers that exist in online transactions and Bushry reveals that the assurance of confidentiality of the transaction is an important factor for many consumers. The issue of defaulting on payments by the credit card user can be resolved by ensuring credit worthiness of a cardholder, e-payment essay.
Companies that issue credit cards verify the credit worthiness of the customer in order to avoid customers using more than they can pay for. Electronic cash can be used to ensure anonymity of the consumer.
What is a payment gateway and how does it work? - emerchantpay
, time: 3:24Essay on Electronic Payment System - Words | Bartleby
An e-payment system is a way of making transactions or paying for goods and services through an electronic medium, without the use of checks or cash. It’s also called an electronic payment system or online payment system. Read on to learn more. The electronic payment system has grown increasingly over the last decades due to the growing Missing: essay You need not struggle any longer, as you can hire a custom essay writer from us and get the Literature Review Of E Payment System work done for you. Our essay writers are standing by to take the Literature Review Of E Payment System work off of your hands. Every essay writer is highly qualified and fully capable of completing the paper on time/10() Limitations of Electronic Payment System. Although electronic payment system has numbers of benefits than traditional payment system, it also has limitations. Lack of co-operation, security, trust, complexity, lack of mutuality of benefits, inadequate marketing initiatives these are some of the main drawbacks of electronic payment system
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