E-commerce is becoming a trend of modern economy,thus to make the business more fruitful the service lenders today are offering online payment systems. Online payment generally refers to electronic exchange of money. It includes well settled computer networks, digital stored value systems along with the internet. In addition, today every industry, from shopping sites to other vendors such as mobile recharge (e.g.: a Vodafone online recharge),is using online payment methods as it saves both time and money.
The typical stages of online payment process are that customer submits payment information to the merchant via online payment gateway. Then the information is passed to the payment processor. Then later, the merchant responds back to the customer by indicating him that his online payment is successful or not.
Although online payments offer severalbenefits, there are many potential risks involved in using online payment system in corporate environment. Some common ones include:
- Security Issues:
One of the major issues regarding online transactions is lack of security. The more you receive electronic information, the more chances of frauds are there. Some of the known risks include computer hacking that can lead to credit card theft. For instance, if you are buying anything online,you need to fill all your personal information along with the details of credit or debit cards. To avoid this issue, you need to confirm that your transaction partner is reliable and has great reputation in the market.
- Complex transactions:
When you are new to internet, it might be possible that you make wrong transactions. It will not only take your time to sort everything out, but you would be neededto check if the amount is refunded in your bank account or not. Apart from this, going to the place and solving the issue will be more hectic than paying it on your own. Furthermore, if your details got leaked, it might be possible that it is caught by third party,thus you need to make instant changes in your account to add protections in the same.
- Incomplete transaction:
Financial transactions with your computer can also be delayed because of slow processing.Usually, when you are making online transactions,you need internet connection thus weak signal can also impact your financial transactions.
By understanding the risks involved, many companies have chosen important procedures for managing these risks. For this, they train their staff to handle e-business for avoiding and solving future risks for online payment transactions. While choosing the bank, make sure to choose the rightfinancial institution or the merchandiser. Do check their terms and conditions in advance to enjoy positive results. Apart from this, you must reset your passwords after certain intervalsas it would pose difficulty for a hacker to trace your account.
When you are using electronic payment method, check the cutting costs because usually these charges are more than traditional charges. Once you understand these risks, you can be sure of protecting yourself from scams and frauds during online payments.