eCommerce Solution

Coping with Challenges of E-payment

The apprehension of online merchants and consumers world-wide, arises from the import of danger posed by cyber crime to e-commerce business environment. As serious as issue of e-payment is, merchants have continue to flock the internet to showcase their business to the world.

An article titled; “Online Fraud and IP Address Tracking”, publish by quoted: Gartner Inc, in one of its 2002 publications saying that, 1.14% of total online transactions volume were lost to internet fraudsters.

The quoted figure is high in value, but bearing in mind that all business are prone to risk, the percentage trade volume loss can still be considered low, while effort continue to push it further down.

Base on this premise, one can reasonably say that e-commerce transaction is profitable venture. This explain why, in spite of the internet fraud challenges, merchants still takes their businesses to the internet for marketing to increase consumers patronage and profit taking. For them, all that is required, is to play by the rule guiding the payment process.

Off-shore Payment Service Providers, backed by their home financial institutions, are already penetrating the Africa markets, introducing e-commerce solutions services to manufacturing and services industries. The effort is yielding good measure of success by the sizable number of corporate, medium and small indigenous companies already accepting payment online.

But consumers patronage is particularly low in Africa region. This development was traced by some media papers in Nigeria to low awareness and slow response to IT development. Although, the trend is changing in Nigeria, more effort is required from African government to sensitized the citizens about the benefit of e-commerce buying and selling.

It is regrettable that large chunk of Africa youths engage their valuable time in the fraudulent aspect of information technology, rather than investing their brain in the world of opportunity ICT bequeath them.

They’re the most involve in swindling unsuspecting people of their money in cyber cafe. Their inglorious activities portrayed African image in bad light outside the continent.

The high online crime rate traceable to some Africa countries is responsible for the back-lash being experienced by genuine potential consumers in Africa.

However, the negative impact of internet scam is not taking the shine off cashless or e-payment system. Rather, the short-coming is seen as one of those challenges encountered in any enterprise. Adequate attention have been devoted by stakeholders and have continued to proffer solution to the security problem.

Genuine online customers must show the understanding in the situation. Declined online transactions, does not necessarily mean diminishing consumer’s personality status. For instance, citizens of a credible country, visiting Ghana, must inform his country home card issuer of his address change. Otherwise, he risk transaction declines throughout his stay in the foreign a country. Reason? he’ll be considered an impersonator, and potential fraudster.

So if merchants are in business to make profit , they must be careful in order to remain in business also.

Rules guiding e-payment transactions is strict and programmed. Reason for transaction decline is usually not stated. Sometimes, merchants direct their customers to use alternative payment method on their payment platform. Where a buyer is not satisfy with merchant response, he’s at liberty to contact the merchant directly on phone.
Merchants are much delighted to receive calls from potential customers. Reason? It give them an opportunity to confirm the genuine identity of online customers. “e-commerce payment process” article highlight possible grey areas that usually result to transaction decline.

To shop securely online, consumers need to know the basic security rules, guiding both online and offline transactions. I stumble on this rules during my search on “E-payment Security” I believe should be of interest to everyone engage in cashless payment. Most online fraud are due to victim’s negligence. Consumers need to update themselves with information relating to e-payment instrument (electronic cards and mobile phone). I’ve seen friends gave out their ATM cards and PINs to relations or subordinate to cash money for them. This reckless action that may result to breach of trust in future when the process is compromise by a third-party to the system. Given ones card to another person amounts to breaking e-commerce payment rules that should be discouraged.


One thought on “Coping with Challenges of E-payment

  1. Only few days ago, I posted an article, “Coping with Challenges of E-payment” on this blog site. It was like I’m part of the internet crime operative system, when I read from a news website:, report about drop in the rate of card fraud.

    Quoting the BBC News, the paper reported, “The amount of money lost due to fraud on credit and debit cards fell last year by seven per cent to £341m — its lowest level for 11 years”. This news report is an affirmation of my believe in the electronic payment system. IF Europe, American and the Asian countries adopted the cashless payment system in their economy, nothing should stop the Africa continent from joining the rest of the world.

    Back home in Nigeria, a related news by the same news website, reported the vulnerability of the cashless economy policy which the apex bank of the country embarked on this year. The report which traced to Information Security experts said, 60% of infrastructures in place for the operation are prone to attack by online fraudsters because the system were not well secure.

    Global security compliance (PCI DSS), prescribed by Card Issuing banks to Payment Service Providers was said to be lacking in the payment infrastructure deployed by majority of participating service providers. This is an indictment of Central Bank of Nigeria. Personal information and card data of card-holders are key to the operation of electronic payments. These are information that require utmost protection from operatives of the payment system and internet fraudsters.

    Government need to support the central bank in establishing bilateral relationship with relevant bodies to enhance the success of the e-commerce payment system.

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