Risks in Electronic payment systems:-

Advertisement

 

There are three major risks in the operation of the payment system, they are

1)  Fraud or mistake.

2)  Privacy issues.

3)  Credit Risk.

 

1)  Fraud or Mistake:

 

All electronic payment systems need some ability to keep automatic records. Once information has been captured electronically, it is easy and inexpensive to maintain. The need for record keeping for purpose of risk management like fraud or any sort of mistake.

 

2)  Privacy Issues:

 

The electronic payment system must ensure and maintain privacy. The privacy customers should be protected as much as possible privacy must be maintained against unauthorized persons. For any type of transaction trusted third-parties will be needed for all tenacity and good faith.

 

3)  Managing Credit Risk:

 

Credit or systematic risk is a major concern in net settlement systems because a bank’s failure to settle its net position could lead to a chain reaction of bank failures.

Advertisement
The following two tabs change content below.
We, at BMS.co.in, believe in sharing knowledge and giving quality information to our BMS students. We are here to provide and update you with every details required by you BMSites! If you want to join us, please mail to [email protected]
12 Comments

Leave a reply

BMS.co.in is aimed at revolutionising Bachelors in Management Studies education, also known as BMS for students appearing for BMS exams across all states of India. We provide free study material, 100s of tutorials with worked examples, past papers, tips, tricks for BMS exams, we are creating a digital learning library.

Disclaimer: We are not affiliated with any university or government body in anyway.

©2020 BMS - Bachelor of Management Studies Community 

A Management Paradise Venture

Ask Us On WhatsApp
or

Log in with your credentials

or    

Forgot your details?

or

Create Account