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SMEs slow to accept electronic deposits


Johannesburg, 09 Apr 2003

While electronic deposits are completely secure, a lack of education and understanding about electronic payments has meant small and medium enterprises (SMEs) are still generally wary of accepting electronic deposits.

Angus Brown, CEO of eBucks.com, says while the majority of large retailers have embraced all forms of e-commerce including electronic deposits, SMEs have been slower on the uptake because of a lack of confidence in the security of electronic deposits.

"There is the perception that electronic payments are not as secure as other forms of payment, such as cheques. However, the opposite is true. Cheques deposited into an account can be reversed - and the funds withdrawn - while an electronic deposit is totally secure.

"Once the money is in the recipient`s account, it belongs to the recipient. Electronic deposits are also cheaper than cheques."

Brown says businessmen who are concerned about the security of electronic deposits often don`t bank online themselves and are therefore not aware of how the medium can benefit them and their business.

However, Brown says the trend is reversing.

"While 20% of eBucks.com`s clients are businesses, they constitute about 60% of the traffic on a monthly basis. While consumers are logging on about four times a month, businessmen are logging on 10 or more times a month," he says.

Brown encourages small business owners who are planning to accept electronic deposits to conduct their own banking electronically.

Businessmen are now able to check their balances in their bank account at any time of the day or night and are able to make payments to suppliers and receive payments from clients or customers.

"Having regular access to statements is critical if you are planning to accept electronic deposits as payment for products or services.

"A faxed payment transaction slip should not be taken as proof of receipt. Check your bank statement yourself and see that the money has been received before dispatching the goods," he says.

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