Financial Institution Payment Service Nets And Their Use
Financial institution payment service nets refer to a network that has emerged due to a cooperative effort between the financial institutions and the people who can provide them with their technology related requirements while conducting online transactions. If you have seen a lot of websites and spent ample time on the internet, you must be aware that in most cases the customers are asked to give out their personal information, credit or debit card information and social security information when trying to make an online transaction. Well, what do you know; this is exactly what financial institution payment service nets protect you from. See below to get an idea how this service works and why it is getting so popular in the present days.
How Does It Work?
The working is simple for financial institution payment service nets and far more secure than the other means of transactions online. When you make a payment through your card online, you are giving out your sensitive information on the internet which raises the chances of leaking the information out and getting scammed. At the same time, the process followed in a conventional online transaction that involves giving out your credit information is less secure than the payment service nets. In that conventional transaction method, you give out your sensitive information and then the merchant approaches your bank through that information and the money is demanded on the card.
The bank looks for the information which is of course with your merchant since you provided it online. The merchant is then informed by the bank whether the inquired funds are available in the account.
However, with payment service nets, the process is simpler and more secure. You make an online purchase, you are directly in contact with your bank, you send the request for money transfer, your bank checks if enough money is available in the account, if available the bank transfers the money directly to the merchants account. In short, you have the control over your transaction. You dont have to give any kind of sensitive information and you are dealing directly with your bank you trust.
Is There Really A Need For This Service?
Well, maybe you are asking this question because you have not gone through the pain, which is of course a good thing to hear; however, you must think about the 10 percent of Americans who have been a victim of credit card frauds as per the recent reports. The figures from around the world are even more staggering. Out of all the credit card frauds that take place, 48% are carried out through emails and 12% through online websites. If you look at the figures you will know that all 60% of the cases are done through the internet. Financial institution payment service nets are thus protecting millions around the world from getting bankrupted and solvent as a result of these frauds. Online frauds are just one side of the picture, several cases take place only because people use public computers to order products and when they leave the computers, their information has already been recorded by the scammers.
How Does It Work?
The working is simple for financial institution payment service nets and far more secure than the other means of transactions online. When you make a payment through your card online, you are giving out your sensitive information on the internet which raises the chances of leaking the information out and getting scammed. At the same time, the process followed in a conventional online transaction that involves giving out your credit information is less secure than the payment service nets. In that conventional transaction method, you give out your sensitive information and then the merchant approaches your bank through that information and the money is demanded on the card.
The bank looks for the information which is of course with your merchant since you provided it online. The merchant is then informed by the bank whether the inquired funds are available in the account.
However, with payment service nets, the process is simpler and more secure. You make an online purchase, you are directly in contact with your bank, you send the request for money transfer, your bank checks if enough money is available in the account, if available the bank transfers the money directly to the merchants account. In short, you have the control over your transaction. You dont have to give any kind of sensitive information and you are dealing directly with your bank you trust.
Is There Really A Need For This Service?
Well, maybe you are asking this question because you have not gone through the pain, which is of course a good thing to hear; however, you must think about the 10 percent of Americans who have been a victim of credit card frauds as per the recent reports. The figures from around the world are even more staggering. Out of all the credit card frauds that take place, 48% are carried out through emails and 12% through online websites. If you look at the figures you will know that all 60% of the cases are done through the internet. Financial institution payment service nets are thus protecting millions around the world from getting bankrupted and solvent as a result of these frauds. Online frauds are just one side of the picture, several cases take place only because people use public computers to order products and when they leave the computers, their information has already been recorded by the scammers.