Advantages or authorize a financial institution to debit

Advantages of E-Payments:

 

·      It’s the most convenient mode of
payment for customer.

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·      E-payments lowers the cost for
businesses.

·      Transacting is as simple as
clicking your mouse & confirm your payment.

·      Reduces the use of paper.

·      There’s an instant transfer of
money, enables faster work completion.

·      Business transactions can be done
24*7*365.

·      It has worldwide acceptance.

 

Disadvantages of E-Payments:

 

·      Transaction fee per transaction
and monthly fees are more.

·      They are prone to hacking and
other another online threat.

·      Not all websites support a particular
payment method.

 

E-payment system:

 

·      EFT is defined as “any transfer
of funds initiated through an electronic terminal, telephonic instrument, or
computer so as to order, instruct, or authorize a financial institution to
debit or credit the account”.

·      EFT utilizes computer and
telecommunication components both to supply and to transfer money.

 

 

Classification of EFT:

 

EFT can be segmented into three broad categories

 

·      Banking and financial payments

o   Large scale payments

o   Small scale payments

o   Home payments

·      Retailing payments

o   Credit card

o   Charge card

·      On-line electronic commerce
payments.

o   Token-based payment systems.

o   Credit card-based payments
systems.