By online transaction or Electronic Funds Transfer we mean a facility that manages transaction related activities. Making use of a digital payment platform for carrying out any monetary dealings, like, payments, recharges etc. are termed as e-transactions. It is a convenient procedure as compared to offline payments in the sense that it saves you a lot of time and is done instantly within minutes, excusing you from showing up in person. In the urban cities, with a Smartphone or a laptop at hand along with an efficient network connection, more people are seen to be using and widely depending on these platforms. The fast pace of life has given birth to an alternative payment option providing a respite from the never-ending long queues.
The e-payment platforms are an option to the other offline payment methods like, cash, cheque, demand drafts and challans. It is an obvious fact that the Electronic Funds Transfer is different from the rest in some aspects.
When it comes to cash, payments are easy to make when you are physically present at the place. However, cash trails are hard to trace hence they leave ample space for corruptions like, black money, hoarding, fraudulent activities and tax evasion among others. Whereas, e-platforms ensure transparency of transactions as it involves banks and are recorded activities.
A cheque, on the other hand, can be described as a bill of exchange issued by a person that in writing requests the bank to make the payment to another person or party. A cheque given by you to a person can be encashed by the latter across the counter in a bank. These are called open cheques but they are subject to theft and hence are risky. Instead crossed cheques can be issued which request the bank to transfer the amount to the bank account of the payee.
Unlike cheques, Electronic Funds Transfer saves a lot of time. A cheque issued by someone is given to another who then goes to the bank at a certain date to fetch the money. It’s obvious that it’s time consuming as compared to online payments which are done instantly.
Also, online payments help save paper and can be termed as environment friendly in some sense. Whereas, a cheque, on the other hand, needs a good quality paper for its functioning. Whoever opens a bank account, is given a chequebook to avail the facility. In the process, one can imagine the amount of paper it consumes. There also remain equal chances of damage to the cheque, which might get torn or mutilated, thus making it improper to use. Mutilated cheques are not encashed by the banks. Hence, the paper gets wasted twice by making use of another one.
Online payments posing so much convenience and ease are sure to make the use of cheques and other offline payment methods outdated in near future. With more and more people relying on the safe and secure procedure of Electronic Funds Transfer, the latter is expected to see a bright future ahead.
Rampragash Ramanathan, Singer, Writer by Hobby and Digital Marketing Head by Profession in One of Leading Sri Lankan Online Recharge Portal Dthpay.com