1. ELECTRONIC PAYMENT SYSTEMS
LEARNING UNIT 7
ELECTRONIC PAYMENT SYSTEMS

2. LEARNING UNIT OUTCOMES
Understand the common electronic payment systems used in electronic commerce

3. INTRODUCTION
An E-Commerce business that is enabled to accept electronic payments, particularly credit and debit card payments, offer customers convenience and simplify the purchasing cycle
Surveys show that it will soon overtake cash and cheques as the preferred method of payment

4. COMMON ELECTRONIC PAYMENT SYSTEMS
Electronic money is a digital equivalent of cash, stored on an electronic device or remotely at a server. One common type of e-money is the 'electronic purse', where users store relatively small amounts of money on their payment card or other smart card, to use for making small payments
ATM’s
DEBIT AND CREDIT CARDS
EFT (Electronic funds transfer)
Direct deposit

5. Alternative Systems
Electronic or digital money – system of debits and credits to exchange value.
Can do it online or offline.
Electronic currency – e-gold, non-gold, eee-currency
Paypal or e-bullion

6. VIRTUAL DEBIT CARDS
Various companies now sell VISA, Mastercard or Maestro debit cards, which can be recharged via electronic money systems
This system has the advantage of being anonymous and more secure since the client can never be debited with more than the value of his/her prepaid card
Also useful for people living in countries where international money transfers are not authorised or that do not have bank account
Cards are recharged by way of a wire-transfer

7. ADVANTAGES OF ELECTRONIC PAYMENTS
SPEED
CONVENIENCE
EFFICIENCY
REDUCED COSTS
INCREASED CUSTOMER BASE

8. DISADVANTAGES OF ELECTRONIC PAYMENT SYSTEMS
FRAUD
FAILURE OF TECHNOLOGY
TRACKING OF INDIVIDUALS
LOSS OF HUMAN CONTACT/INTERACTION

9. ICE In your opinion shortly discuss:
Do you think that electronic money is likely to replace physical money (CASH) in South Africa? (5)
Name three online card payment companies (3)
Name one online payment platform that is used
widely on the internet. (1)
4. Name one advantage of electronic payments (1)