Advantages and Disadvantages of an Electronic Payment

Technology allows meals to be prepared faster and allows the people at either end of a conversation to view the other person while connected regardless of the distance. Twenty years ago, people paid bills in person or via mail. Today, there is an additional option for individuals with computers, which is via electronic payments. There are advantages and disadvantages to paying bills via electronic payment.

The Advantage of Convenience

Electronic payments are convenient for the individual with around the clock availability. Bills may be paid when traveling with the assistance of a computer. Paying bills can be time-consuming the old fashion way of writing checks and attaching postage. Electronic payments may be set-up to automatically take place on a particular day each month. After the initial set-up, no input is required by the account holder.

Cost Savings and Security Advantages

The fee charged for electronic payments is nominal to zero. Soaring gas prices can add up in a hurry if paying bills in person and postage if paying by mail. Electronic payments are more secure than mailing a check. Identity thieves can steal a check out of a mailbox and play havoc on a bank account. Special encryption technology scrambles personal financial data before sending an electronic payment. The funds are delivered to the recipient safely and securely.

Disadvantages of Verifying Electronic Payments, Initial Site Registration and Canceling Scheduled Payments

Identity thefts can enter information online for a separate individual. Presently, a picture identification or signature is not required to verify electronic payments. Initial site registration can be time-consuming and each individual must remember a pin number for security when inputting information for electronic payments. It may be impossible to cancel a prescheduled electronic payment at the last minute, if an individual realizes that funds are insufficient and overdraft charges can be expected.