Question

What are the differences, and the benefits and the risks, of payment systems that are de­signed for cyberspace? Which requirements of negotiability seem unnecessary for an online transaction?

Answer 1

Benefits of payment systems designed in cyberspace - Cyber Space payments allows customers to make cashless payments for goods and services through cards, mobile phones or the internet. It presents a number of advantages, including cost and time savings, increased sales and reduced transaction costs.

Risk of payment through cyberspace are given below :-

1. Poor Patching.
2. Application Vulnerabilities
3. Service Providers
4. Failed Understanding of Cyber risk
5. Smarter Phishing and Spear Phishing
6. Cloud Unpreparedness.

Requirements of negotiability seem unnecessary for an online transaction are:-

• It must be in writing.
• It must be signed by the maker or drawer.
• It must be an unconditional promise or order to pay.
• It must be for a fixed amount in money.
• It must be payable on demand or at a definite time.
• It must be payable to order or bearer, unless it is a check.