Online payment methods have been available for decades, but some of us are still a little confused about them. Wanting to be sure of the security of electronic payments, the speed of refunds, and the methods that work best are all good questions. So we’ve put together everything you need to know about paying for goods using electronic payments, including the pros and cons.
The first concern that prevents some people from using certain electronic payment companies is that they are not protected by the Financial Services Compensation Scheme (FSCS). The FSCS protects every payment you make to a traditional bank, ensuring that if something goes wrong and it’s not your fault, your funds will be returned to you. Most electronic payment companies are not protected by this regime. However, some of them use security procedures. Paypal, for example, has its security standards, which it uses to provide a level of protection similar to that of FSCS. However, if their safety standards fail then, unlike FSCS, you are not protected by law. When using relatively new electronic payment options, it should also be borne in mind that if they go out of business, any money you store in your account with them could also be lost to you.
Faster refunds and payments
Now that the pessimism has passed, there are real bonuses to using electronic payments. For example, using an electronic wallet to make payments is the preferred choice of many. Most online providers accept e-wallet payments and, in the event that you need to receive money in exchange, either as a refund or as game winnings, payments can be faster. Casino sites are particularly likely to recommend e-wallet deposits; However, it’s always worth checking the site you’re using first to make sure.
Ease of use
While you can’t just swipe your credit card over your phone screen to make payments, you can use your fingerprint to pay for goods using electronic payment options. For example, when you load maps on your phone with Apple Pay Where Google pay, you can use your fingerprint for authentication. This makes things a lot faster when paying for goods, and there isn’t the added hassle of remembering a PIN for all of your separate cards. Better yet, looking over someone’s shoulder and copying their PIN can be worryingly simple, but no one stands a chance of copying your fingerprint! Thus, the use of an electronic payment option may be more secure than the use of contactless or the chip and PIN code.
Limited currency availability
While this is technically a disadvantage for traditional and online payment methods, it affects traditional banks more. Cryptocurrencies are becoming more and more popular way to pay for goods, but many banks do not yet accept them as a method of payment. Likewise, a handful of e-wallet vendors don’t either, but they’re generally more likely than department stores. If you regularly trade in alternative currencies, using an e-wallet may be the only option for some transactions. As several countries in Africa begin to favor cryptocurrency for its reduced volatility over their currency which is so easily devalued, it is expected that the situation may start to change. Banks are starting to realize the need to accept cryptocurrencies, with some of the more prominent names already taking steps to introduce them. For now, electronic payments are winning this round, but it shouldn’t be long before the big banks are competing.