Question

ntroduction to Electronic Commerce describes various types of customer payments. Please 1) select two, 2) describe each, and 3) discuss their benefits and potential problems. Which do you use? Have you encountered any issues?

Answer 1

E commerce offers various modes of payments for customers: Credit/debit card, internet banking, cash on delivery, own payment wallets of e-commerce Eg- Amazon Pay of e commerce, gift vouchers etc.

Let us consider two: Credit/debit cards and cash on delivery.

Cash on delivery: Benefits: 1. No problem of IT system getting stuck and refund later.

2. Customer may get additional time for payment.

Problems: 1. Many times customers refuse to accept goods.

2. Customer needs to be present at the time of delivery.

3. No surety about payment.

Credit/debit cards: Benefits:1. Secured payment.

2. Payment is realized immediately and it increases cash in hand for the company.

3. Customers get a window to repay amount.

Problems: 1. Credit card payments default may create problems for banks and future lending.

2. Interest rates charged on credit cards may be high.

3. IT system problems may cause customer complaints.

I have used Credit/debit card, internet banking, cash on delivery, own payment wallet.

I have found own payment wallets offer more discounts but we need to deposit money in them first and company gets this money to use.

For credit cards a person overspends money.