Non-Bank Payment Systems
What the non-bank payment systems? Non-bank and electronic payment system is modern system and has emerged all over the world recently. This system has emerged after the great development in the world in the use of technology and reliance on computers and smart devices in various aspects of life.
Non-bank payment systems had to be introduced after the spread of electronic stores and online shopping. New payment methods had also to be introduced for purchase from these stores, especially after purchase and shopping online has been known and accepted throughout the world. This online shopping makes it easy for people to buy what they need without wasting time and efforts.
Non-bank payment systems are one of the most important paymentmethods that enable everyone to pay all their obligations online. After many customers have been attracted to this system, it has become very popular. In addition, most of the banking institutions have started dealing with it.
Non-bank payment systems are subject to a set of laws set by banking institutions and governments. These systems are completely secure; payment can be made secretly concerning customers’ data and balance.
The Main Advantages and Disadvantages of Non-Bank Payment Systems
Non-bank payment systems save time and effort. The electronic payment cardholder can pay and buy safely without the need to go to banks. Such systems are safe for customers, especially businessmen and people who deal with large sums of money. This system allows people to avoid the risk of carrying large amounts of money.
Banks that are using non-bank payment systems make lot of profit due to the fees imposed on the operations performed through these systems.
The Disadvantage of Non-bank Payment Systems
Taxes or fees (often large taxes) are imposed on the transactions of non-bank payment system. These fees are imposed by the client’s authority or bank. The greater the amount paid or purchased, the more fees are imposed.
The Most Important Methods of Payment Through Non-Bank Payment Systems
The methods of non-bank payment systems have significantly developed. There are a lot of methods that customers can deal and pay through, and the most important methods of payment are as follows:
- Digital and encrypted Currencies
After the use of electronic currencies has been developed and spread around the world, there have been many electronic stores dealing with these currencies.
- Debit Card
These cards are issued by banks. The customer opens a current account and deposits a sum of money into the account, and then the bank issues him adebit card. This card can be used for purchases. When you buy through this card, money will be automatically withdrawn from your current account. It can’t be used in electronic payment when the balance is zero.
- Prepaid Credit Card
This type of card is issued from banks. These cards are often used in electronic payment only. They do not contain a magnetic stripe and thus can not be used for normal shopping or for withdrawing or depositing inATM. In order for the customer to use this type of cards, he must first deposit money in his account.
- E-accounts and Websites
It is a very important modern method, through which people can transfer money online.