Analysis of Electronic Payment Systems Essay Example | Topics and Well Written Essays - 500 words

Analysis of Electronic Payment Systems - Essay Example Electronic payment systems (EPS) can be classified into four main categories namely Online Electronic Cash System, Online Credit Card Payment System, Smart Cards based Electronic Payment System and Electronic Cheque System. These categories can be compared using various features. In terms of actual payment time, electronic cash and smart cards are prepaid whereas online credit card payment and electronic cheque are post paid/paid later. In Online Credit Card Payment and Electonic cash, all transactions are online but offline transactions are allowed in electronic cheque and smart cards. In Online Credit Card Payment, payments are made by the credit account, in electronic cheque, it is done by the bank acount and in smart cards, it is done by the smart card account. In electronic cash, there is no involvement of a bank account (Laudon and Laudon, 2008). As for their users, online credit card is open for all legitimate users of credit card, electronic cash is open for everybody while electronic cheque and smart cards are open for anyone with a bank account. In addition, smart card is also open for anyone with a credit card account. Online credit card can partially be used in real world, electronic cash can only be used in virtual world, smart cards can be used in used in real and virtual world and electronic cheque is limited to real world although its checking count can be shared with real world. Online credit card and smart cards are mobile whereas electronic cash and electronic cheque are not mobile. Transactions costs for online credit card are high thus it is not suitable for small payments. As for electronic cash and smart cards, their transaction costs are but low hence they are suitable for low transactions. Online credit card, electronic cash and smart cards have high levels of user anonymity but it is not found in electronic cheque (Laudon and Laudon, 2008). I mostly use electronic cash because it is open for anyone and there is no