Advantages And Disadvantages Of Payment Card

All the electronic forms of payments and transactions are managed by the Payment Card Industry (PCI) which is a section of the financial industry. Major commercial industries related to Payment Card Industry (PCI) are any form of money card (i.e. credit, debit, prepaid and electronic cards), automated teller machines (ATMs), point of sale (POS) terminals and all forms of interlinked industries. The Payment Card Industry Data Security Standards that are used globally are created by the Payment Card Industry Security Standards Council. Notable worldwide acknowledged card brands are MasterCard Worldwide, Visa International, Japan Credit Bureau, American Express, Discover Financial Services, and China UnionPay. As a global practice most of these

EMV payment cards sometimes have wireless capabilities. Without the user’s concern it can be linked up to any wireless network. Hackers can easily wirelessly determine the location and recent purchases of any customer. EMV chips also transfer higher content of data than magnetic strips.
Payment card industry has become increasingly popular in the modern digital world. However these potential security risks in data control are the biggest concern for organizations. Hence the companies decided to migrate to the cloud computing gradually. Cloud computing significantly reduced the operations and maintenance costs for the IT department in the industries and helps the lenders to achieve scalability faster. The primary reasons for implementation of cloud computing in the payment card industry are
• Simplified disaster recovery management – It becomes easier for the organization to recover rapidly from any IT incident. With the advent of cyberspace it has become easier to transfer and store backups. Even an entire server containing auxiliary data and software applications can be loaded in a virtual host in a short span of time. It is also very cost effective and reduces the total cost of ownership. It provides the flexibility to allow the business to scale up and

POS prevents the hassle of organizing the products by providing multiple categorizations
• POS also offers real time sales by allowing the provision to access the back office server remotely. The user can control the business remotely. Many POS systems allows to customize the reports generated by the system.
• POS offers smooth accounting and faster calculation of sales tax. POS software contains integrated accounting modules which contains general ledger, accounts payable and receivable
However in spite of the significant advantages to the digital market, payment card industry has multiple disadvantages as well. Frequent fraud and high debt issues are some of the common globally reported incidents. The following points describes some of the common disadvantages in a payment card industry
• Loss of network sometimes shut down the ATMs. Running out of cash are also reported very commonly
• ATMs located in isolated or deserted places always pose a security threat to the customers. Risks of robbery are always prevalent in these