Electronic Cash and Smart Cards Essay

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ELECTRONIC CASH AND SMART CARDS Introduction When you go into a store to make a purchase a monetary transaction takes place between a merchant, the provider and the consumer, which is you. Typically you would either use cash, check or credit card. If you are making a purchase less than five dollars it doesn’t seem reasonable to pay with a credit card or write a check. Electronic cash is the solution to this problem regardless how big or small the transaction is electronic cash is a viable alternative to traditional payment methods. What is Electronic Cash? In the past people had to go to the bank and stand in line to deposit or withdrawn money from their accounts. In today’s time, money is accessible with the help of a computer. The…show more content…
ELECTRONIC CASH AND SMART CARDS Introduction When you go into a store to make a purchase a monetary transaction takes place between a merchant, the provider and the consumer, which is you. Typically you would either use cash, check or credit card. If you are making a purchase less than five dollars it doesn’t seem reasonable to pay with a credit card or write a check. Electronic cash is the solution to this problem regardless how big or small the transaction is electronic cash is a viable alternative to traditional payment methods. What is Electronic Cash? In the past people had to go to the bank and stand in line to deposit or withdrawn money from their accounts. In today’s time, money is accessible with the help of a computer. The monetary value of your bank balance is available electronically through your banks computer. The electronic form of money defines what is referred to electronic cash. This boosts your purchasing power because your funds are available to you around the clock 24 hours a day, year round. What is a Smart Card? Smart card is a plastic card equivalent size to a credit card that holds embedded chip on which digital information of how much money your card or account holds. The chip stores this information and updates it along with every transaction that is made off this card. The process to use is you swipe the card to pay for a purchase and the swiping device deducts the purchase amount from the amount that is stored on the chip. Some debit cards

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