Disadvantages of Electronic Payment System
- Security Concerns: Electronic Payment Systems are susceptible to security breaches, including hacking, phishing, and identity theft.
- Technical Issues: Electronic Payment Systems rely on technology, and technical glitches or system failures can disrupt transactions.
- Fraud Risk: Despite security measures, Electronic Payment Systems are not immune to fraud. Unauthorized transactions, stolen credentials, or fraudulent activities can occur, leading to financial losses for individuals and businesses.
- Privacy Concerns: Users may be concerned about the collection and storage of personal information by electronic payment providers.
- Transaction Fees: Some electronic payment systems impose transaction fees, which can add up over time.
Electronic Payment System: Types, Advantages, Disadvantages and Regulatory Bodies
An Electronic Payment System is defined as a mode of payment over an electronic network, such as the Internet. The Indian economy has developed at a rapid pace since the growth of e-commerce, electronic payments, and digital payments have gone a long way. Electronic payments have been rising since the implementation of demonetization and will continue to do so with the current government ensuring that these types of payments are promoted.
Geeky Takeaways:
- Electronic Payment System allows customers to pay for goods and services electronically without the use of cheques or cash.
- Businesses need a strong and secure electronic payment system in online dealings.
- Electronic Payment System is regulated in India by the RBI.
- The system is safe, speedy, and cost-effective in comparison with paper-based payment systems.
Table of Content
- What is an Electronic Payment System?
- Types of Electronic Payment System
- Advantages of Electronic Payment System
- Disadvantages of Electronic Payment System
- Regulatory Bodies Governing Electronic Payment System in India
- Regulations Relating to Electronic Payment System
- Conclusion
- Frequently Asked Questions (FAQs)