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Advantages and Disadvantages of Electronic Payment Systems

Advantages of Electronic Payment Systems

1) Convenience: Electronic payment is very convenient for the consumer. In most cases, you only need to enter your account införmation -such as your credit card number and shipping address - once. The information is then stored in a database on the retailer's Web server. When you come back to the Web site, you just log in with your username and password. Completing a transaction is as simple as clicking your mouse: All you have to do is confirm your purchase and you're done. 

2) Low Cost: Electronic payment lowers costs for businesses. The more payments they can process electronically, the less they spend on paper and postage. Offering electronic payment can also help businesses improve customer retention. A customer is more likely to return to the same e-commerce site where his or her information has already been entered and stored. 

Disadvantages of Electronic Payment Systems

1) Security: The flexibility that e-payments enjoy can also create security hazards. Malware and other hacking attempts can track keystrokes in order to copy account passwords and access payment information. Online databases can be hacked and important information can be stolen. Money can be stolen from online accounts like PayPal. It is difficult for businesses "to guard against all possible security risks when creating online payment systems .

2) Payment System Collision: Because online payment systems are new and global in their perspective, problems can occur when it comes to applying them to all e-commerce businesses. Some types of payment that customers are used to depending on may not be available in other countries, even when purchasing online from those countries is an option. E-payments can also struggle to match up the values of different currencies or different types of bank accounts.

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