FREE online courses on ECOMMERCE FUNDAMENTALS - Electronic Payment Systems - Advantages

Compared to paper checks and other forms of payments, electronic checking provides the following advantages:

 

·         Electronic-checks can greatly reduce the time from the moment a consumer writes a check to the time when the merchant receives the deposit. The merchant can forward checks to the bank instantly and get them credited to his account.

·         There is no need for long queues at banks on the first day of the month. It reduces the bank employees' effort to receive the checks, process them and mail the cancelled checks to the consumers.

 

·         It can be designed in such a way that the merchant can get authorization from the customer's bank before accepting the electronic check.

 

·         Electronic checks can be used to give gifts or make payments without the fear of being lost or stolen. If a check is stolen, the receiver can request the payer to stop the payment.

 

·         An electronic check does not require secure storage such as that required for electronic cash. However, it still requires secure storage of the consumer's private key.