OrganisationsElectronic money and electronic commerce

Most companies pay their employees via bank transfer, from the companies account to the employees'. It's now rare to be paid in cash.

Goods and services are usually paid for with electronic methods of payment, for example:

• direct debit
• standing order
• debit cards (Switch/Delta)
• smart cards
• online bank transfers

Electronic Commerce

Electronic Commerce or e-commerce is the selling and buying of goods or services over the internet.

E-commerce has both advantages and disadvantages for businesses and customers.

Advantages for businesses

• Increased customer base – with a website, a local store can have an international customer base.
• Cost effective – save on staffing a physical shop (or shops) and the associated costs, eg rent, electricity, gas, water etc.
• Services - for example, accountancy, lend themselves to being advertised online. Specifics on what's offered can be listed on the website, decreasing the need for real world consultation.

Disadvantages for businesses

• Increased competition - competition once limited to other local shops is now on an international scale.
• Newcomers - consumers may be reluctant to buy from a company they haven't heard of.
• Slow adoption - companies whose competitors already have an online presence may find it hard to gain market share.

Advantages for customers

• Increased convenience - customers can find what they're looking for without leaving their home.
• Greater choice - customers are no longer limited to shops nearby and can even buy from abroad.
• Cost effective - competition on an often international scale means prices are cheaper/more competitive.
• Product details - greater wealth of information available online than what a member of staff is able to provide in-store.
• Customer reviews - many sites allow customers to review products or services they’ve purchased, increasing buyer confidence.

Disadvantages for customers

• No human interaction - some people prefer to buy their goods or services in person.
• Returning goods - can be inconvenient (arranging postage) and expensive (if it is a large/heavy item).
• Fraud - a website may take your money, but have no intention of delivering the goods.
• Stock issues - the product may be out of stock, or if ordered and later found to be out of stock, a substitute product may be sent instead.