Advantages and disadvantages of electronic payments

Naturally any human being can rise to the question whether methods of payments through the Internet safe and comfortable. Most discussed issues look something like this. Is it safe to pay via Internet? Do not steal anyone money on the way? Not whether someone use my card later? And anyway who said that the company account which sent the money there? Seller’s perspective. According to the majority of suppliers of goods and services, the main reason forbidding customers from payments online – the fear of fraud. However, the providers themselves believe that this danger is imaginary and occupies the minds of the townsfolk solely through the efforts of the media. A security issue (at least in terms of customers) exists, and suppliers of goods and services have to fight it. The simplest and most common way to “fight” – providing clients with other payment methods, such as by mail, fax or telephone. Along this route are most successful sellers in the “electronic market”. Credit cards accepted from their point of view is very convenient, because the card number is easy to pass on any of the listed channels. Client’s perspective. Customers did not consider the problem of security far-fetched and actively use alternative methods of payment ordered through Internet purchases. However, the fear of fraud is not the only reason that hampers the activity of customers on the “electronic market”. An important role played and the inherent conservatism: they prefer to operate in a familiar environment. But if the average purchase (at a cost within a few hundred dollars), customers are already accustomed to paying by credit card, then in small purchases has been dominated by cash. ? At the “electronic market” there arises the natural niche for a certain product, which can be termed “electronic money” and which would provide simplicity, speed and convenience of the calculations inherent in cash. Nevertheless, despite attempts to introduce “electronic money”, made by several large companies, this niche is still virtually empty. Both extreme views are not correct. Crackers and other entities in the Internet are, but under certain rules of safety information sharing can be ensured. Moreover, in the area of financial relations, there are other methods of cheating customers, are not directly connected to the Internet. ?The first issue of the organizations to the Internet (not only financial, but also all others) was the problem of information security in their local networks from non-authorized access. This is an issue for many years, and always a struggle – find new holes in the protective systems, and invent new methods to combat infiltration. The fight against the penetration involves the use of private internal networks, fenced off from the outside world by firewalls (firewall), as well as the use of dynamic methods for identification of users. So When used can be assumed that from non-authorized access can protect themselves. This is something that concerns the protection of internal networks, and now on the passage of payments. ?Despite the extreme diversity of schemes of payments for goods and services via the Internet, they can be placed into three groups: credit schemes; debit scheme; the scheme with the use of “electronic money”. The unquestionable advantages of credit schemes should include their familiarity for customers and legal certainty. The security problem can be solved in the near future – with the introduction of the protocol SET, developed by MasterCard, VISA, Microsoft and IBM. SET protocol should protect clients from unscrupulous sellers and seller protection against fraud by using fake or stolen cards. The main advantage of debit schemes (e-check payments through electronic purses) is that they relieve the customer from having to pay interest on the loan. However, lack of support for established firms at the level of security – that’s one of the reasons for the unpopularity debit settlement schemes. Nevertheless, the sector of small payments, where the security problem is not so acute, debit scheme (which also applies a mechanism to collect the transaction) can successfully compete with the credit. Schemes to use “electronic money”. “Electronic money” is significantly different from electronic purses, mentioned above. The beauty of the idea of “electronic money” is here, perhaps, their only advantage to date. First, the customers no equipment required to work with them. Secondly, even if it is clear where this equipment to take, it is not clear who will pay for it. Thirdly, if it is a completely virtual “electronic money” (stored on your hard disk), it is not clear what would happen in case of damage to the hard disk, and finally, fourthly, a very vague legal framework of functioning “electronic money”. Thus, electronic payments are technologically realizable and realized. However, this does not mean that the appropriate tools will be easily and painlessly integrated into the existing financial and banking system. Along with the proper “technical” (technological) aspect of the settlement and payment, there is a “humanitarian” aspect associated with their implementation in specific communities of people with their history, culture and guided by certain regulations. Consequently, every proper technological advance in this field will go down in practice only as a certain way standardized.

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