Cyberspace is experiencing innovations in worldwide payment systems. As the digital infrastructure is made even larger, more retail websites are created, offering goods and services. Advanced payment solutions include those of international and domestic money transfers. The possibilities are endless, as the requirement of the ever-changing online consumers demands innovations.
The online methods complement conventional cash payment systems and work as an alternative. While our digital space has made eCommerce boom, the existing threats of cybercrimes also evolve. The dominant risks include the virus infection of computers, unauthorized access, and fraudulent debit/credit card transactions.
The use of e-payments for retail varies because of their kind of electronic payment system. The many kinds include e-debit, e-money, internet banking, telephone banking, POS electronic funds transfers. The growth of electronic payments has transactional benefits and improves efficiency. As such payments are more convenient and secure, internet transactions also provide an excellent opportunity for businesses to widen their reach.
Businesses that have embraced e-payments and integrated online payment methods into their sites benefit from reduced costs, increased efficiency, and operating using different platforms. Cyber-enhanced non-cash payment systems are growing. The most common payment methods are card-based. The most popular payment type is by debit card transaction.
No physical contact
Most people are aware of the risks of transacting using payment methods. Yet, the greater majority prefer using mobile money transfers and payment cards than cash transactions. People would rather use non-cash payment methods to prevent the ever-prevailing risk of being robbed. Though there is the same type of threats for online payments, there is no physical contact with the cybercriminals, and one does not have to put their lives at risk.
The highest percentage of fraudulent activities occur because of the sensitive information being stolen and used to make unauthorized purchases. Cybercriminals typically gather such information by using phishing sites. There are also online scams that use the veil of the Internet to conduct the dreaded deed of identity theft.
Secure payment methods
Cyber-security measures vary. For retailers and certain payment systems, there are strict access controls such as requiring the customer to confirm payment. There are also firewalls and anti-virus software installed into transaction systems. The most secure payment solutions are those that have the cyber-security and systems that are backed up by traditional banking institutions.
Legitimate payment channels
When the payment methods are legitimate, all involved in the transaction flow are secured. Governments impose strict rules and regulations for money services to operate. There are laws that further protect the consumer, such as the Electronic Funds Act and other applicable ones. If there is fraudulent activity, after an investigation, criminal charges may be filed against the culprits.
Preventing criminal activities
Payment methods are secure. Countries such as Sweden have the digital payment infrastructure for a cashless society. A lot of concerns are addressed by using secure payment methods. These concerns include money laundering, tax evasion, and corruption. The boom of the various industries due to the fast payment transactions and the power of connectivity also greatly aids the growth of the economy.