Here we have three major benefits and losses of digital payment you should know it if you have debit and credit card..

Why do we go towards e-payment system..?? Does it a beneficial or full of loss deal ???



Expenses control :- Even if someone is eager to bring his disbursements under control, it is necessary to be patient enough to write down all the petty expenses, which often takes a large part of the total amount of disbursements. The virtual account contains the history of all transactions indicating the store and the amount you spent. And you can check it anytime you want. This advantage of electronic payment system is pretty important in this case.  
Time savings. Money transfer between virtual accounts usually takes a few minutes, while a wire transfer or a postal one may take several days. Also, you will not waste your time waiting in lines at a bank or post office.

. Low commissions :- If you pay for internet service provider or a mobile account replenishment through the UPT (unattended payment terminal), you will encounter high fees. As for the electronic payment system: a fee of this kind of operations consists of 1% of the total amount, and this is a considerable advantage.
Convenience. All the transfers can be performed at any time, anywhere. It's enough to have an access to the Internet. 

 User-friendly :- Usually every service is designed to reach the widest possible audience, so it has the intuitively understandable user interface. In addition, there is always the opportunity to submit a question to a support team, which often works 24/7. Anyway you can always get an answer using the forums on the subject.

Disadvantage :-

Online Security:- When we check out at a merchant and use our credit cards we must present photo ID.  However when making online payments there is no real authentication process to verify that the person entering the information online is not a criminal.  Without this verification process time becomes of the essence when it comes critical to dispute a fraudulent charge made using your credit/debit card because research is needed to prove your case.

**It makes sense to some to invest 20 minutes to drive to the location to make a purchase using check or cash rather than waste 1-3 days to dispute a charge because someone gained their credit card information.

      Missed Errors:- Can you imagine being in business since 1970, each time you needed to replenish inventory you contacted your supplier with whom you have a personal relationship to place your order.  The supplier delivers your goods in a timely fashion.  Upon delivery an invoice is provided and you either pay COD (cash on delivery) or mail in your payment.  Now 21st Century technology is presented; you submit your order online which requires payment before delivery.  Once the goods arrive you realize you mistakenly order the wrong material.  Now you have you merchandise that cannot be used and you are out your money.  More time is now needed to return the “unnecessary material” to wait for the replacement order to arrive.  For many people the old way was more efficient.

      Fees:- Management courses have taught us that there is an opportunity cost for every choice we make.  Surprisingly, OPS are no different.  During the Introduction of Info 3130 we learned that the overall objective of Information Systems is to reduce operational costs.  Since the core business of many organizations is not IT based and more specifically not specialized in Online Payment Systems an outside vendor is required to provide the online payment services.  An Online Payment Systems vendor like PayPal requires the merchant to pay a convenience fee ranging between 2.2%-3.9%.  Would it be beneficial to use their services as opposed to alternative payment methods? For corporate organizations this fee may prove to be inconsequential.  However, for the small business owner these fees could equate to astronomical figures eating away at the bottom line. 

I’m sure you’re thinking to yourself, you only identified three negative aspects of Online Payment Systems therefore the Pros outweigh the Cons.  However, many of the Pros center on convenience.  Do you think convenience is more important than security and preserving profit?  If you have a moment, please share your negatives experiences with Online Payment Systems and see if they align with the 3 major downfalls identified above.

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