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Jemshah
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Asked: 2023-01-08T04:37:21+00:00 In:

Outline five challenges that an organization may face when adopting electronic funds transfer as a payment method. (10 marks)July 2020

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Outline five challenges that an organization may face when adopting electronic funds transfer as a payment method. (10 marks)July 2020

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    Enlightened
    1. Technical issues: EFT relies on technology to facilitate the transfer of funds between accounts, which means that it can be vulnerable to technical issues such as system downtime or data breaches. These types of issues can disrupt the payment process and cause delays or errors.
    2. Fraud: EFT is vulnerable to fraud, as it is relatively easy for hackers or unscrupulous individuals to intercept or alter electronic payments. This can lead to financial losses or damage to the organization’s reputation.
    3. Costs: While EFT can be a cost-effective payment method for large volumes of transactions, it may be more expensive for small or infrequent payments. This can make it less attractive for some organizations or for certain types of transactions.
    4. Complexity: For organizations that are not familiar with electronic payment systems, the adoption of EFT may require a learning curve and may be perceived as more complex than other payment methods.
    5. Limited availability: EFT may not be available in all countries or for all types of financial institutions, which can limit its usefulness for organizations that do business internationally or with a diverse range of customers or suppliers.
    6. Customer preferences: Some customers may prefer to pay by other means, such as cash or check, which can limit the organization’s ability to fully adopt EFT as a payment method.
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