Skip to main content

Managerial Issues of Electronic Payment Systems

Some managerial issues related to electronic payments are as follows. 
1) What B2C payment methods should we use: Companies that only accept credit cards rule out a number of potential segments of buyers. Teenagers, non - U.S. customers and customers who do not want to use credit cards online are examples of market segments that are unable or unwilling to use credit cards to make online purchases.
 
E-checks, virtual credit cards, stored-value cards, and PayPal are some possible alternatives to credit cards. Also, when the purchase price is less than $10, credit cards are not a viable solution. In this case various e- micropayment systems can be used. Online merchants and other sellers need to be aware of the volatility and true costs of many of these alternatives. Because many of the various alternatives do not yet enjoy widespread use, it is always possible that they will not exist tomorrow.

2) What B2B Payment Methods Should We Use: Keep an open mind about online alternatives. When it comes to paying suppliers or accepting payments from partners, most large businesses have opted to stick with the tried-and- true methods of electronic funds transfer (EFT) or checks over other methods of electronic payment. For MROS, consider using purchasing cards. For global trade, electronic letters of credit are popular.
 
The use of e-checks is another area where cost savings can accrue. Finally, innovative methods such as TradeCard can be very effective. With all of these methods, a key factor is determining how well they work with existing accounting and ordering systems and with business partners.
 
3) Should we use an In-House Payment Mechanism or Outsource it: It takes time, skill, money, software, and hardware to integrate the payment systems of all the parties involved in processing any sort of e-payment. For this reason, even a business that runs its own EC site should consider outsourcing the e-payment component. Many third-party vendors provide payment gateways designed to handle the interactions among the various financial institutions that operate in the background of an e-payment system. Also, if a Web site is hosted by a third party (e.g., at Yahoo! Store), an e-payment service will be provided.
 
4) How Secure are E-Payments: Security and fraud continue to be a major issue in making and accepting e-payments of all kinds. This is especially true for online credit cards where fraud continues to grow. B2C merchants are employing a wide variety of tools (e.g., address verification and other authentication services) to combat fraudulent orders. These and other measures that are employed to ensure the security of e-payments have to be part of a broader security scheme that weighs risks against issues such as the ease of use and the fit within the overall business context.

Previous Next

 
Labels:

Comments

Post a Comment

Popular Post

Procurement Management Using Buyer's Internal Market Place

Improvements to procurement have been attempted for decades, usually by using information technologies. The real opportunity for improvement lies in the use of e-procurement, the electronic acquisition of goods and services for organisations. The general e-procurement process (with the exception of tendering) is shown in figure 2.8 .  One effective solution to the procurement problem in large organisations is to aggregate the catalogues of all approved suppliers, combining them into a single internal electronic catalogue. Prices can be negotiated in advance or determined by a tendering, so that the buyers do not have to negotiate each time they place an order. By aggregating the suppliers' catalogues on the buyer's server, it is also easier to centralise and control all procurement. Such an aggregation of catalogues is called an internal procurement marketplace .  Benefits of Internal Marketplaces   1) Corporate buyers can use search engines to look through internal aggre...
Post a Comment
Read more

Infrastructure for EC

Introduction The e-commerce infrastructure is defined here as the supporting capabilities for online trading between multiple companies which include hardware, software, networks, online payment technologies, security and encryption technologies, online trading business models, legal and regulatory framework, and managerial and organisation capabilities.  Infrastructure is the shared human, informational , and technical resources on which the work system relies in order to operate, even though these resources exist and are managed outside of the work system.  To evaluate the interdisciplinary aspects of construction e-commerce infrastructure, one proposes using a four pillar approach. Figure 5.1 illustrates the skeleton for the proposed integrated construction e-commerce infrastructure. The proposed integrated e-business infrastructure can be broken down into the following four groups of components:  1) Technological Infrastructure : Technology infrastructure is a work...
1 comment
Read more

What is COVID-19 ?

COVID-19 is a disease caused due to the infection of novel coronavirus. The first case of COVID-19 disease was founded at Wuhan, China in December 2019. It also named as severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2). COVID-19 is the most widely spread disease ever in the world. In most cases it infects the respiratory system that causes fever, dry cough, and shortness of breath. Previous : What is the difference between coronavirus and COVID-19 ?
Post a Comment
Read more