E-Payment And Its Benefits

When it comes to payment options, nothing is more convenient than electronic payment. You don't have to write a check, swipe a credit card or handle any paper money. All you have to do is enter some information into your Web browser and click your mouse. It's no wonder that more and more people are turning to electronic payment or e-payment.

Let's have a look at electronic payment's benefits and limitations.

In technical terms, electronic payment is an online system of debits and credits, used to exchange value within another system, or within itself as a stand alone system. An electronic payment is any kind of non-cash payment that doesn't involve a paper check. Methods of electronic payments include credit cards, debit cards, electronic money.

Centralised systems

Many systems such as PayPal, WebMoney, cashU...will sell their electronic currency directly to the end user, but other systems such as Liberty Reserve only sell through third party digital currency exchangers.

Benefits of Electronic Payment

Electronic payment is very convenient for both the consumers and the merchants. In most cases, you only need to enter your account information such as your credit card number and shipping address. 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.

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.

Although electronic payment can provide many benefits such as convenience and privacy, increased efficiency of transactions, lower transaction fees, and new business opportunities with the expansion of economic activities on the Internet. There are many potential issues with the use of e-payment. The transfer of digital currencies raises local issues such as how to levy taxes or the possible ease of money laundering.

Disclaimer

Foreign Exchange trading carries a high level of risk, and may not be suitable for all investors. Before deciding to trade any Forex Exchange financial instruments you should carefully consider your investment objectives, level of experience, and affordable risk. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with the Foreign Exchange trading, and seek advice from an independent financial advisor if you have any doubts.