Payment Systems and Security From PayPal to debit cards, from EFT to credit cards, the modern world has been inundated with new ways of transacting business. Instead of the conventional use of dollars and nickels, electronic payment systems now exist. These types of systems allow for better trust and acceptance between consumers and businesses. In the traditional way of purchasing a product, you would see the product in person and pay for it with cash or credit card. In e-commerce, the company uploads images of its products online and allows its customers to purchase them using any type of electronic payment system. Electronic payment systems can allow the customer to pay for goods and services without having to see them first. The main objective of payment systems such as electronic ones is to improve security, increase efficiency and increase customer convenience and ease of use. Some forms of electronic payment systems are as follows:o Electronic Funds Transfer (EFT) - EFT includes the electronic transfer of money through financial institutions.o Payment Cards - Include stored financial value that can be moved from the customer's computer to that of the businessman. o Credit cards: are the most popular method used in EPS and are used by charging the customer's credit.o Smart cards: incorporate stored financial value and other important personal and financial information used for online payments.o Electronic money (e- money/e-cash) - This is the usual money converted into electronic format to pay for online purchases.o Online payment: can be used for monthly payment of Internet, telephone bills, etc.o Electronic wallets (e-wallets) - They are similar to smart cards in that they include… card halves… create credit card accounts, bank accounts and other illegitimate accounts – this is called identity theft. That an individual will attack or corrupt data in the electronic system, either as an act of vandalism or to extort money from sponsoring financial institutions. That an individual will take advantage of the convenience and speed of the electronic system to disguise illegitimate or illegal transactions – i.e., money laundering. The individual will benefit from the efficiency of the electronic system to facilitate the financing of illegal activities, especially terrorism. It is also useful to consider not only these specific threats, but also the underlying issues that have been of particular concern in recent years. Three of these themes are terrorism, identity theft, and insider fraud (i.e., fraud committed by employees or other "insiders" within the organization).