1. D2 Presentation Electronic Cheque
By Gavin Harris, Daniel Wright

2. Electronic Cheque- Introduction
In this task I am going to Explain the following Parts of Electronic Cheques;
Explain and Description
Advantages
Disadvantages
Comparison
Conclusion

3. Explain and Description of Electronic Cheque.
Same as a normal paper cheque
- Works very similar to paper cheque
Instant Transaction.
- Money is taken straight out the account
Electronic Cheques:
Electronic cheques work similar to normal paper cheques as they work by asking their banks to make a payment and the payment is made digitally if possible, this is a quick and instant way of transferring credit/ funds from one account to another. If the bank cannot use electronic cheques for whatever reason they will revert back to paper cheques.
Cheques:
All cheques need an account to take credit out of, and one to put credit into, also all cheques need a date and signature, and amount of credit to be taken out.
For Electronic cheques most of this information is inputted automatically and uses an electronic signature to confirm the payment.

4. Advantages More reliable Cant be lost or damaged
Eliminates simple mistakes (Signatures)
Less costs
Cost of stamps and envelopes is eliminated
Instant verification and 24 hour access
- Customer and seller get verification message
Electronic Cheques are more reliable
The problem with conventional paper cheques is that they are a physical object which can be lost or damaged rendering them unusable, whereas with an electronic cheque the possibility of losing it is virtually impossible as it is digital and will have its details monitored on a system.
Eliminates simple mistakes
Another point is, with a traditional cheque the person paying by cheque needs to sign their signature in order for the cheque to become redeemable. Therefore if the person sending the check does not sign the cheque its useless, that’s why electronic cheques eliminate the possibility of some simple mistakes as all of the required information will be gathered when the cheque is created.
Instant verification and 24 hour access
When an electronic cheque is processed both the sender and the receiver (customer & Seller) both get an instant message which informs each party that funds have been transferred so that everybody is kept informed. Also the customer can check their account transactions any time to review their spending's and spot any mistakes.

5. Disadvantages Non-Reversible
- Once transaction is complete it is non reversible
Not as Secure
- You could send to anyone with a simple mistake
Non-Reversible:
Electronic Cheques are non-reversible as the transfer of credit/ funds is instant. So the bank cannot reverse the transaction.
If you enter the target account number incorrectly, there is no way to reverse the transaction since the bank would process the transaction under the belief that the information you provided is accurate.

6. Comparison In Comparison to other payment systems;
Not as secure- Compared to PayPal/ NoChex
More secure- Compared to Credit/Debit Card
Less Protection- Compared to all others
PayPal Compared to NoChex-
PayPal and NoChex are similar types of payment method apart form that NoChex only accepts Debit Cards as PayPal accepts Credit/Debit/Top-up Cards.
Credit Compared to Debit Card-
A Credit card offers protection and bank will cover the price of the purchase when purchasing items up to the price of £25,000 as a Debit Card will only allow you to take so much money out in comparison to the amount of money you have in the account as if you only have £5,000 in the account you will only be able to withdraw £5,000 and to the maximum of your withdraw balance.
Electronic Cheque Compared to PayPal -
Electronic Cheque allows instant payment but without the protection and speediness of PayPal, as PayPal allows instant payment to be made as soon as your logged into your account, this saves the customer from needing to input their details online to make a purchase, Electronic Cheque will allow you to make bigger purchases as PayPal limit the amount of money that can be spent per month through your account.

7. Conclusion
In conclusion we have found that each different payment method has its own positives and negatives which will suit different types of purchases. For example a certain payment method might offer the consumer more protection depending on the characteristics of the purchase they are making.
Characteristics include the price involved or the overall product. Is the price a significantly high price that requires protection and is the product something that might need to be returned.
Based on the characteristics the consumer should check the protection that each payment method provides so they can choose the appropriate one.