Pros and Cons of an Electronic Payment System
During this highly technological age, cash is trying hard to compete with electronic money, since nowadays a lot of people choose to use their virtual wallets. Here, you will read about the pros and cons of using an electronic payment system.
It is plain to see that electronic payment systems have more advantages than traditional banking services. Let's see:
- Saves on time
Money transfer from one virtual account to another may only take a few minutes, whereas a wire or postal transfer may take a number of days. Besides, you have to spend some time to go to the bank or post office and wait in line.
- Controls expenses
Even if a person is willing to control his disbursements, it can take a lot of patience to jot down all the expenses, and this takes up a huge part of the total amount. On the other hand, the virtual account comprises the history of all the transactions, including the store name and amount spent. Best of all, you can check it whenever and wherever you like. In this case, an electronic payment system works to your advantage.
- Reduced loss and theft risks
You will not make the mistake of losing or leaving your virtual wallet behind, and it can never be taken by robbers.
- User- friendly
All services aim to reach out to a greater number of audiences and so, their interface should be easy for users to understand. Moreover, users can always ask help from the support team since they work 24/7. You can receive an answer by means of the forums as well.
- Convenient to use
After discussing the advantages that come with using an electronic payment system, it is essential to talk about its disadvantages as well:
In every payment system, there is a limit with regard to the number of transactions you can do per day and the maximum amount you can withdraw.
- Risk of Getting Hacked
Risks can be reduced when you follow the security regulations. This is comparable to the risk of being robbed. The situation can get worse when the processing company's system breaks down, since this may lead to the leaking of confidential information on the online cards, as well as its owners. Though some electronic payment systems do not launch plastic cards, they can however be involved in Identity theft scandals.
- The problem of money transfer from one payment system to another
Most of the time, electronic payment systems do not cooperate with one another. If that is the case, you can use e-currency exchange services. However, it can consume a lot of time when you do not have a service you can trust for this purpose.
- Lack of Anonymity
Since the database of the payment system stores all your transactions - like the name of recipient, amount and time - the intelligence agency can access all your information. Decide on whether that is good or bad.
- The Need for Internet Access
When you have no Internet connection, you cannot transact on your online account.