People are widely using the electronic ways of payment and they also prefer it over traditional ways. The easy ways provided by electronic systems which are convenient also are the reasons why such systems have achieved such popularity and adaption. But convenient and eased life doesn’t mean there is no risk. Electronic payment systems can show error responses also. There are crucial risks related to it:
Risk and Electronic Payment System
- The electronic systems are designed with vulnerable protocols to establish the identity of the person who is authorizing a payment. Passwords and security questions don’t work that efficiently to completely secure your finances. There are security threats of theft and data stealing.
- Electronic payments are done both nationally and internationally. The systems designed for overseas payments can be slow. The reason is that the national banking infrastructures are unable to establish efficient structures for cross-border payments.
- Online-shopping is an addiction. When you are able to buy things online, you don’t realize the effect of impulse buying that can in later times become an addiction. This can lead you to huge losses.
- Electronic systems are prone to errors. The risk is higher when it is a matter of huge payments. It is important to always keep a check and balance on the pay slips.