ELECTRONIC

PAYMENT
SYSTEMS - E
CHEQUE
LET'S
BEGIN!
Are You Ready?
E CHEQUE
1. eCheque is short for an electronic cheque. It’s a method of
payment between two parties that mimics a cheque - only it’s
digital.
2. It’s a way to send money from a sender’s current account
directly to the recipient. It contains the information that a paper
cheque would.
3. Additionally, it has more security features than standard paper
cheques including authentication, public key cryptography,
digital signatures, and encryption, among others.
HOW DOES E CHEQUE WORKS?
1. To complete a transaction, the buyer sends a cheque to the seller for a certain
amount of money. These checques may be sent using Email or other Transport
methods.
2. When deposited, the cheque authorises the transfer of account balances from the
account against which the cheque was drawn to the account to which the cheque
was deposited.
3. The electronic cheques are modeled on paper checks, except that they are initiated
electronically. They use digital signatures for signing and endorsing and require the
use of digital certificates to authenticate the payer, the payer's bank and bank
account.
4. They are delivered either by direct transmission using telephone lines or by public
networks such as the Internet.
ADVANTAGES OF E CHEQUE WORKS?
1. Similar to traditional cheques. This eliminates the need for
customer education

2. Since Electronic cheques use conventional encryption than

Public and private keys as in e-Cash, Electronic cheques are much
faster.

The risk is taken care of by the accounting server,

which will guarantee that the cheque would be honoured.
DIS- ADVANTAGES OF E CHEQUE WORKS?
1. E-Cheque cannot be broken into smaller denominations.
2. The concept of maintaining a database of spent notes is very
expensive.
3. Accessing Database of spent notes is also very time consuming.
4. Transaction based taxes account for a significant portion of state
and local government revenue. If e-Cheque becomes successful,
then people will use it to buy things like cars and houses, which
would not have been possible with actual cash. (One can't
physically carry so much of real cash)
5. Currency fluctuation is another issue related to e-Cheque.
ARE E CHEQUE SAFE?
For banks to authorize e-cheque payments, the system used must
be secure.

There’s always a slight level of risk with any online transaction.

However. Compare that to the comedy of errors your could face
accepting paper cheques. Paper cheques can get lost, stolen,
damaged, weather-beaten. They could have errors on them or
arrive with ineligible handwriting.

None of these are risk factors with e-cheques.

DIFFERENCE IN BETWEEN E CHEQUE AND BANK
TRANSFER
1. You can cash an e-cheque as you would a paper cheque. You have to go
to certain banking locations to do this but it is possible. With bank
transfers, you will need to access your funds using an ATM. It won’t be
the exact amount of the cheque in question.
2. The payer doesn’t need the recipient’s bank details to send an e-cheque
It’s a one-sided transaction. They only need the recipient’s business
name to send funds.
3. eCheques can still bounce, just like paper cheques. Because of the delay
in processing the funds, there’s still the risk of the cheque bouncing
when the funds are ready to send.
THANK
YOU!
Have a
great day
ahead.