Disadvantages of Electronic Payment Systems

Electronic money, also known as e-money, electronic cash, e-money or digital cash, refers to money or scrip which is exchanged electronically. Basically, electronic payment systems are meaningful 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 formation 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. additionally, 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 substantial, it is basic that you observe strict security policies. If password is capable of being hacked, it can average serious fiscal loss for you. edges 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 move of digital money arouses questions such as how to impose taxes and the possible ease of money washing. There are also possible macroeconomic results such as exchange rate stabilities and shortage of money supplies.

additionally, 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 complete bank balance. You will clearly inform the concerned authorities about the loss but the time taken between losing the card and informing the authorities is basic.

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 include.

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