What is Electronic Cheque
E-cheque
Recent year have seen a treatment does increase in e-commerce transactions. The success of e-commerce relies on developing adequate payments technologies. One such technology is e-cheque.
An e-cheque is an electronic document which substitute the paper cheque for on line transaction. Digital signatures (based on public key cryptography) replace handwritten signatures.
Definition Of Electronic Cheque:-
A form of payment made via the Internet that is designed to perform the same function as conventional paper cheque because the cheque is in an electronic format, it can be processed in fewer than a standard paper cheque .Because thees cheque is an electronic format ,It can be processed in fewer steps and has more security features than a standard paper cheque.
Working of E-Cheques:-
E-cheques work the come ways as paper cheque and are legally. binding promise to pay. the payment system uses digitally signed XML documents that provide mechanism to authenticates parties to a transaction .E-cheques are defined using FSml(Financial Services Markup Language) which allows for addition and deletion of document locks ,signing,co-signing,endorsing etc.
Benifits of E-Cheque:-
To Customer:-
Working of E-Cheques:-
E-cheques work the come ways as paper cheque and are legally. binding promise to pay. the payment system uses digitally signed XML documents that provide mechanism to authenticates parties to a transaction .E-cheques are defined using FSml(Financial Services Markup Language) which allows for addition and deletion of document locks ,signing,co-signing,endorsing etc.
- The e-cheque is compatible with interactive web transactions or with e-mail and does not depend on real -time interactions or on third party authorisations.It is designed to work with paper cheque Prectice and system.
- Payers and Payees can be individuals,businesses or financial institutions such as bank. E-cheque are transferred directly from the payer to payee.
Benifits of E-Cheque:-
To Customer:-
- it's more secure than physical cheques.
- They can serve corporate markets farm can used them is more cost effective manner.
- cheque reduce the potential of error and fraud because of fewwr people handle them .
- No physical movement of cheque so no fear of loss of cheque in transit.
- Quicker clearance within 3 and 4 working days.
- Reduce the risk associated with paper clearing.
- No geographical restrictions.
- No physical movement of cheque its save cost and time for banks.
- Well suited for clearing micropayments.
- Reduce processing cost by up to 60% e-cheque require less manpower to process and don't come with any deposit or transaction fees.
- As a result processing and e-cheque is generally much cheaper than processing a paper check or credit card transaction.
- No chance for cheque dishonor the risk is taken care of by the accounting server which will guarantee that the check would be honoured
EmoticonEmoticon