Comparison of modes of payments

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Different Types of Payments

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Comparison of modes of payments

  1. 1. Method Features Limitations Oldest Method of Payment Cannot be used for large amounts Offers immediate credit Costs of transportation and cash collection / treasury services for banks Easiest to Use Safety issues Needs no literacy to use it Safer than cash Banks may charge to issue drafts Stop Payment instructions can be issued Checks need to be physically cleared, leads to delays Legal protection if checks bounce Transportation costs of moving checks to clearing houses Very user Friendly and gives you control over payments Dangers of Fraud Quick way of transferring money Time-frame dependent on clearing house system Can be used for inter-bank or intra-bank transfers Payments made are at user's risk Cumbersome to register and use Cannot do Stop Payment May offer a range of services Can be proprietary Very Cumbersome to register and use May work with only a few vendors Dangers of credit / debit card fraud Comparison of Modes of Payment Cash Notes and Coins Paper Check / Demand Drafts Payment Portals/Online Service Providers’ (E*Trade, E*Bay etc) InternetBanking Funds Transfer Dangers of credit / debit card fraud Cannot do Stop Payment Offers great flexibility and convenience Dangers of phishing and online fraud Cumbersome to register and use All customers may not feel tech-savvy Payments made are at user's risk Cannot do Stop Payment True anywhere, anytime banking Safety issues Easy to Use Only allows text-based (SMS) payments Possibility of payments being allowed to only pre-registered vendors Cannot do Stop Payment True anywhere, anytime payments More oriented to Retail Payments Credit Facility available Bank charge customers to use this service Very Easy to Use Dangers of Skimming and Frauds Very Cumbersome to claim reimbursements against Frauds Very Costly to use as interest rates are the highest for credit and withdrawals against Credit Cards This article is written by: Skype: parthohc01 by print or electronic medium whatsoever This article is meant for education purposes only and it is not be reproduced for any commercial purpose email: parthohc@airtelmail.in; parthohc@rediffmail.com Partho H. Chakraborty Cell: +91 99863 22504 MBankingCards (E*Trade, E*Bay etc) InternetBanking Internet Banking MBanking Cards

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