These are the key characteristics of an electronic payment system:
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Acceptability: Other banks and financial institutions should accept the value of electronic cash for reconciliation.
Reliability: Businesses and users want a payment platform that works. The availability and success of the payment infrastructure will determine the availability and smooth operation of an enterprise's services. Users should have complete protection from infrastructure failures. The user must be protected from any system or single point of failure.
Security: Digital money should be kept in a form that resists replication, double-spending and tampering. It should also offer protection against intruders who might attempt to use it for unauthorized purposes, when it is transmitted via the internet.
Useability: The payment system should be as easy to use as real currency. This means that the payment system must be integrated with existing processes and applications that play the role of transaction parties in ecommerce.
Scalability: Payment system infrastructure must be scalable to accommodate new merchants and users. Systems will function normally and without performance degradation, and the quality of service will be maintained. It should be capable of offering the same performance and cost per transfer overheads to a growing number of customers and transactions.
Privacy, anonymity: This characteristic refers to users' desire to protect their identity, privacy, and privacy. Anonymity can be used to protect the identities of parties in transactions. Anonymity is the inability to identify someone or monitor their spending habits.
Applicability: A payment system's applicability is the degree to which it can be used for payments at point of sale or online e-commerce websites. High applicability is due to the fact that credit and debit cards can be used in many places. A payment system's applicability may differ from one country to the next.
Authorization Type: Authorization type refers to the control of the validity of transactions. An authorization type can also be used offline. Offline authorization allows users to exchange money without being connected to the network. No third party is required to facilitate the transaction. Offline authorization is illustrated by paper cheques.
Convertibility: Funds that are represented by one payment system should easily be converted into funds from other payment systems. It should be possible to transfer money using electronic payment systems. It should be possible to transfer money to other money using electronic payment systems, e.g. You can either receive it in cash or transfer it to a bank account.
The electronic currency should work with all forms of electronic cash and paper currencies and be able to be exchanged with deposits in bank accounts, bank notes, or any other financial instrument.
Interoperability: A payment system is interoperable if it's not dependent on one company but is open to other interested parties. Open standards can be used to establish data transmission protocols for infrastructure and infrastructure. Interoperable systems are more likely to gain future customers and have greater applicability.
Multi-currency: Effective and efficient payment systems between countries can be made when a system process multiple currency. This is similar to what happens with credit cards. This feature does not exist in all payment systems. It binds them to a specific region. Payments in cross-border electronic commerce require multi-currency payments.
Traceability: Traceability is a way to track money flows and source of funds as they move through a payment system. It can be used to purchase goods. Money can be traced using records of payments activity in electronic payment systems.
Link Ability: Link ability of an electronic payments system means that payments can be associated to a specific user or that it's possible to recognize multiple payments that originate from a user. Even if they use an anonymous system, users can still be linked to their spending. It is possible to establish a relationship between the user's payments and his spending.
Trust: Trust is a measure of customer confidence that their money, personal information, and financial transactions will be secure and that no one will act against customers' interests. Payments must be trusted that they will not be stolen or misappropriated.
Flexibility: Payment systems must be able to accept multiple forms of payment instead of limiting users to one form of currency.
Efficiency: Efficiency refers to the overheads associated with the operation of digital payment systems. It should not cost more than one transaction to pay. A payment processing consultation service is available to help you determine if your electronic payments system will be reliable for your small business.