An online payment card is a card which can be used to make and receive payments via the internet. These payments are based on physical cards like atm, debit card and credit card. Some systems also offer fictional cards like a charge card and a stored value card. For the purpose of this paper, we will be discussing online payment via credit card.(Turban et al., 2008).
Advantages of online payment via credit card
Convenience – Online payment is convenient and fast. There is no need to visit the bank. You can simply transfer the money from the comfort of your home or office. In this respect, it also saves a lot of valuable time.
Increased Sales – Because payment is convenient, online stores enjoy increased sales.
Quick and Safe- Online transfers are password protected. Strict protocols are followed for security of the transactions. These transactions are quicker than traditional check deposits.
Day and Night stores – Since money transfers have become easier, e-stores are “open” night and day. Differences in time zones can be easily overcome and buying and selling of international products becomes easier.
Ecofriendly transfer – Since online payments do not require any paperwork, they are ecofriendly.
Disadvantages of online payment via credit card
Safety Concerns – Online payment systems attract a lot of hackers. In this regard, they can be a security risk.
Phishing – Phishing or identity theft has become rampant because of online transfers. Theft is possible if the identity of a user is compromised.
Transfer fees – Most companies which offer online transfer systems charge their own fees over and above those charged by the bank.( Mastercard: Security Rules and Procedures-Merchant Edition, 2009).
Guarding against phishing
Fraudsters often send mails to unsuspecting individuals and ask for personal information such as bank details and online transfer account details. These details are then used to steal money from the account. There are certain safeguards which both an individual and an organization can take to avoid phishing.
Individuals
- Beware of mails coming from unrecognized individuals and do not reply to them.
- Make sure that you confirm the identity of the person from whom you receive payment or make payment.
- Do not reveal your personal information online as far as possible.
- Use firewalls, spam filters and other security software to protect your system.
Companies
- Use security software from at least two different companies.
- Ensure updating of software is safe and secure.
- Consider subscribing to cyber intelligence to track mails.
- Invest in an education program to educate your customers against phishing.( Van der Merwe et al, 2005)
References
Turban, E. King, D. McKay, J. Marshall, P. Lee, J & Vielhand, D. (2008). Electronic Commerce 2008: A Managerial Perspective. London: Pearson Education Ltd.
Mastercard: Security Rules and Procedures-Merchant Edition (PDF). 2009. Retrieved: May 12, 2009
Van der Merwe, A J, Loock, M, Dabrowski, M. (2005), Characteristics and Responsibilities involved in a Phishing Attack, Winter International Symposium on Information and Communication Technologies, Cape Town, January 2005.
