Payment Systems and Security

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Payment Systems & Security From PayPal to Debit cards, from EFT to Credit cards, this modern world has been inundated with new ways of making business transactions. Instead of the conventional use of dollars and nickels, now there are electronic payment systems. These types of systems allow for better trust and acceptance between consumer and businesses. In the traditional way of buying a product, one would see a product in person, and pay for it with cash or credit. In e-commerce, the business uploads images of its products online and it enables its customers to shop it using any type of electronic payment system. Electronic payment systems can enable a customer pay for the goods and services without actually having to see them first. Payments systems such as electronic ones main objective are to improve security, increase efficiency, and boost customer convenience and ease of use. Some forms of Electronic Payment Systems are the following: o Electronic funds transfer (EFT) - EFT includes electronic transfer of money via financial institutions. o Payment cards - They include stored financial value that can be moved from the customer's computer to the businessman's computer. o Credit cards - They are the most popular method used in EPSs and are used by charging against the customer credit. o Smart cards- They incorporate stored financial value and other important personal and financial information used for online payments. o Electronic money (e-money/e-cash)- This is customary money converted into an electronic format to pay for online purchases. o Online payment-This can be used for monthly payment for Internet, phone bills, etc. o Electronic wallets (e-wallets) - They are similar to smart cards as they include ... ... middle of paper ... ...et up illegitimate credit card accounts, bank accounts and other accounts – this is called identity theft. That an individual will attack or corrupt the data in the electronic system, either as vandalism or to extort money from the sponsoring financial institutions. That an individual will take advantage of the convenience and speed of the electronic system to mask illegitimate or illegal transactions – i.e., money laundering. That a an individual will take advantage of the efficiency of the electronic system to facilitate funding of illegal activities, particularly terrorism It is also useful to consider not only these specific threats, but also the underlying themes that are of particular concern in recent years. Three such themes are terrorism, identity theft and internal fraud (that is, fraud committed by employees or other “insiders” in the organization).

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