Premium Essay

Smart Cards and Electronic Cash

In: Computers and Technology

Submitted By jcarey
Words 1387
Pages 6
Electronic Cash and Smart Cards

CMPS / ECBU 410: Management Information Systems

Prepared by
Joanna Carey

Fall 2012
Instructor: Dr. Seta Whitby

Table of Contents

I. Introduction

II. Body

III. Advantages/Disadvantages of Electronic Cash & Smart cards and paper based currency

IV. Conclusion

V. References

Introduction This research paper will closely investigate the relative importance between electronic and paper-based payments across the world. Although electronic payments are becoming more popular and easy to use, numerous surveys for payment instruments have shown the pace of change from an established payment method to a new payment method to be considerably slower than industry predictions. The movement to electronic payments and smart cards has been slow and has focused primarily on credit cards at the point of sale because bank emphasis is on expanding loan revenue and a historical reliance on checks which provide users with short-term credit. As technology continues to evolve the use of paper currency is becoming more obsolete. Although the modernization of digital money is changing into forms that don’t directly connect our electronic payments to our private information, such as smart cards, the transition into “cybercash” is still in the premature stages of development. This paper will highlight the advantages as well as the disadvantages of conducting business in a virtual world with peace of mind. The emerging role of smart cards lies the potential to provide a greater trust between a buyer and seller who only meet in the virtual reality.

Body The shift from traditional paper-based payments into electronic payments and traditional credit cards into “cyber cash” across the world will ultimately make electronic…...

Similar Documents

Free Essay

Smart Grid

...Exploring the imperative of revitalizing America’s electric infrastructure. the SMART GRID: an introduction. How a smarter grid works as an enabling engine for our economy, our environment and our future. prepared for the U.S. Department of Energy by Litos Strategic Communication under contract No. DE-AC26-04NT41817, Subtask 560.01.04 DISCLAIMER This report was prepared as an account of work sponsored by an agency of the United States Government. Neither the United States Government nor any agency thereof, nor Litos Strategic Communication, nor any of their employees, make any warranty, express or implied, or assumes any legal liability or responsibility for the accuracy, completeness, or usefulness of any information apparatus, product, or process disclosed, or represents that its use would not infringe privately owned rights. Reference herein to any specific commercial product, process, or service by trade name, trademark, manufacturer or otherwise does not necessarily constitute or imply its endorsement, recommendation or favoring by the United States Government or any agency thereof, or Litos Strategic Communication. The views and opinions of authors expressed herein do not necessarily state or reflect those of the United States Government or any agency thereof. PRINTED IN THE UNITED STATES OF AMERICA. PREFACE It Is A ColossAl tAsk. But It Is A tAsk thAt must BE donE. The Department of Energy has been charged with orchestrating the wholesale ......

Words: 13792 - Pages: 56

Free Essay

Smart Phones

...In today’s world, smart phones play an important role for many people and businesses. People use smart phones because it allows them to do many tasks on the go, checking e-mail, viewing bank statements and balances even social networking. For many it has also become a status symbol. To own the latest iPhone or Android is no longer about just function, many of the phones features are never even understood or used. It is about the bragging rights. To stand amongst your friends and family and hold up the shiny new phone and feel superior. The real question though, is are these new phones really better for us, or are they making us better targets for identity theft, privacy invasion and hacking attempts. There have been several changes to phone technology since the cell phone was invented in the 1970’s and used the analog system of sending information. The analog system was unencrypted and could be intercepted by anyone with common electronic devices available at Radio Shack. Next was iDen (Integrated Digital Enhanced Network), which used digital waves instead of analog. It has evolved into what we know now as Nextel’s Push-to-Talk feature. More secure than analog, but still easy to intercept and decode. TDMA (Time Division Media Access) was implemented by AT&T in the 1990’s. It featured a voice security that enabled encryption on your phone based on your voice. However if you enabled it, your phone would not work because AT&T never installed the software on......

Words: 2658 - Pages: 11

Free Essay

Multiservice Smart Cards

...a single smart card to be used for multiple services has been around for years. Instead of using separate access devices for different services, a user can access multiple services from different service providers by a single smart card. For example, a user can use the same smart card to log on to a remote server system, enter a secure building, and perform a financial transaction. This kind of design frees people from carrying many cards, bringing users the great convenience and at the same time saving resources and costs by manufacturing and managing less volume of cards. Therefore, multi-service smart card systems exhibit a high potential for economic and social benefits. Such a system is even more convenient if only one pass- word is used for each card so that users do not need to remember and cope with many passwords. 1.1 MULTISERVICE SMARTCARDS A smart card, chip card, or integrated circuit card (ICC), is any pocket-sized card with embedded integrated circuits. With a single card, and a single administration tool, organizations from government, to industry to academic institutions can deliver an array of personalized credit and loyalty-based services to their users, while generating comprehensive reports, and maintaining strict controls on usage. These cards can offer multiple applications such as: * Credit cards : These are the best known payment cards (classic plastic card): * Financial : Smart cards serve as credit or ATM cards, fuel......

Words: 4969 - Pages: 20

Premium Essay

Electronic Library Card Catalog System

...Project Plan For NORSU Electronic Library Card Catalog System Researchers: Project Leader: Medura, Jess Linguaje, Ed Lorence Los Baños, Marilyn Maquiling, Marres Contents 1. Overview…………………………………………………………………………………………………………………………...3 2. Goals and scope………………………………………………………………………………………………………….….….4 2.1 Project Goals…………………………………………………………………………………………………………4 2.2Project Scope…………………………………………………………………………………………..……….……5 2.2.1 Included………………………………………………………………………………………………………….….5 2.2.2 Excluded .................................................................................................................5 3. Organization……………………………………………………………………………………………………………………….6 3.1 Organizational Boundaries and Interfaces…………………………………………………………….…...6 3.1.1 Resource Owners……………………………………………………………………………………………….6 3.1.2 Receivers…………………………………………………………………………………………………….……..6 3.1.3 Cross Functions…………………………………………………………………………………………………..7 3.2 Project Organization…………………………………………………………………………………………………..8 3.2.1 Project Manager…………………………………………………………………………………………….….8 3.2.2 Project Team……………………………………………………………………………………………………..9 4. Schedule and Budget…………………………………………………………………………………………………………10 4.1 Work Breakdown Structure…………………………………………………………………….…………...11 4.2 Schedule and Milestone………………………………………………………………………….……………12 4.3 Budget.......................................................................................................................13 4.4 Development......

Words: 4136 - Pages: 17

Free Essay

Smart Card

...all the banks in Kuwait use the smart cards instead of the regular credit and debit cards. A smart card resembles a credit card in size and shape, but inside it is completely different. First of all, it has an inside -- a normal credit card is a simple piece of plastic. The inside of a smart card usually contains an embedded microprocessor. The microprocessor is under a gold contact pad on one side of the card. Think of the microprocessor as replacing the usual magnetic stripe on a credit card or debit card. The microprocessor on the smart card is there for security. The host computer and card reader actually "talk" to the microprocessor. The microprocessor enforces access to the data on the card. If the host computer read and wrote the smart card's random access memory (RAM). The Smart Cards provides unlimited benefits to the customers, and its used recently almost in every organization and the business benefit from implementing the smart card. The most common smart card applications are: Credit cards Electronic cash Computer security systems Wireless communication Loyalty systems (like frequent flyer points) Banking Satellite TV Government identification Advantages and Disadvantages: Advantages: 1- Flexibility: Smart cards have a lot of flexibility. They can store multiple types of information including identification, credit cards, business and family contacts. 2-Cost and Availability: Smart card readers are expensive to produce...

Words: 881 - Pages: 4

Free Essay

Smart Card

...Smart Cards for Future Healthcare Systems Secure, efficient, reliable Card-based e-health networks: cutting costs and improving care All around the world, news­ paper headlines warn about the exploding costs of health­ care. Advanced medicines and technology are boosting life expectancy. As a result, people can now look forward to living past the age of 80 – twice as long as 100 years ago. This trend, however, has the side effect of driving up healthcare costs. As people get older, they need more frequent and more expensive care, causing the price of insurance to skyrocket. Clearly, something needs to be done to contain these costs. A number of countries have implemented conventional measures aimed at saving money. One of the most basic measures is the introduction of card­based e­health net­ works, which can help reduce costs remarkably. Card for physicians and phar­ macists, and a Card Application Management System (CAMS). Patient Data Card The Patient Data Card is a PIN­protected smart card incor­ porating a microprocessor and protected by cryptographic functions. It contains adminis­ trative insurance information and entitles patients to seek medical treatment. In turn, the patients give their doctors access to their personal medical data, which is stored either on the card or in the e­health network. The card can also hold information such as elec­ tronic prescriptions. How to cut healthcare costs 1. Reduce fraud 2. Streamline administration 3. Improve communication 4...

Words: 1254 - Pages: 6

Free Essay

Cash vs Debit Cards

...Cash Versus Debit Cards When making a purchase, the situation that crosses a person’s mind if using cash was a better option than using debit. In today’s society, numerous individuals use their debit card to make a purchase no matter how big or small. It would be difficult to track the amount of money a person spends if they are constantly using invisible money. The draining process from constant surveillance over electronic bank statements can be untimely, especially if those individuals are on the go. Carrying cash on a person is more effective than a debit card because it helps maintain an awareness of money spent, limits overspending, and prevents unnecessary fees. For instance, a person immediately notices how much cash they are carrying in their wallet. This makes them conscious of what available funds they actually have. Pulling out the right amount of cash is done when it is decided how much is appropriate for the week. Although people may worry about spending too freely, a psychological thought barrier prevents them from doing what is best. Being conscious of how much cash is being carried tells him or her how much they are allowed to spend. This now means that every person will now think twice about a purchase. Not everyone has time, or patience to access their account through computers or their cell phones, especially during a transaction. Using an electronic form of payment will not help a person realize that small transactions will add up. Constant......

Words: 1058 - Pages: 5

Premium Essay

Electronic Payment

...ELECTRONIC PAYMENT SYSTEM Electronic Payments or e-payments refer to the technological breakthrough that enables us to perform financial transactions electronically. It can also be explain as a way of paying for a goods or services electronically, instead of using cash or a check, in person or by mail. TYPES OF ELECTRONIC PAYMENT SYSTEM Some of the types of electronic payments are the following; • Credit Card • Debit Card • Smart Card • E-Money • Electronic Fund Transfer (EFT) CREDIT CARD Credit card is small plastic card with a unique number attached with an account. It has also a magnetic strip embedded in it, which is use to read credit card via card readers. When a customer purchases a product via credit card, credit card issuer bank pays on behalf of the customer and customer has a certain period after which he/she can pay the credit card bill. It is usually credit card monthly payment cycle. Following are the actors in the credit card system. • The card holder - Customer • The merchant- seller of product who accept credit card payments. • The card issuer bank - card holder's bank • The acquirer bank - the merchant's bank • The card brand - for example , visa or MasterCard Credit card payment process STEP DESCRIPTION 1 Bank issues and activates a credit card to customer on his/her request. 2 Customer presents credit card information to merchant site or to merchant from whom he/she want to purchase a product/service. 3 Merchant validates customer's...

Words: 1093 - Pages: 5

Premium Essay

Impact of Electronic Banking

...CHAPTER ONE 1.0 INTRODUCTION 1.1 BACKGROUND OF THE STUDY Electronic banking has long been recognized to play an important role in economic development on the basis of their ability to create liquidity in the economy through financial intermediation between savers and borrowers. It also offers financial services and products that accelerate settlement of transactions and in the process reduce cash intensity in the financial system, encourage banking culture, and catalyses economic growth. However, for the effective functioning of the financial system, the payment systems must be safe and efficient; otherwise they can be a channel for the transmission of disturbances from one part of the economy or financial system to others. This is why central bank have been active in promoting sound and efficient payments system and in seeking the means to reduce risks associated with the system. Nigeria historically operated a cash-driven economy particularly in the consumer sector, however the system has witnessed improvements over the years, and particular in recent times has moved from its rudimentary level of the early years of banking business to the current state of sophistication comparable to other economies at the same level of development. One important reason for financial liberalization and deregulation is the need to develop a good payment system which promotes an appropriate mechanism for efficiency in mobilizing and allocating financial resources in the economy. The......

Words: 4006 - Pages: 17

Free Essay

Disadvantages Electronic Card

...Disadvantages Electronic card at highway Actually electronic cards at highway there are many advantages to users and government but there are some disadvantages of electronic card at the highway. The first disadvantage of an electronic card at highway is will enhance the national unemployment rate. This is because, when all the highway using this card electronic system it will close a number of jobs for the community. People can no longer work in the cash portion of the highway. when the national unemployment rises, it will lower living standards. The living standards of the population in a country is measured by per capita income. When there is a lot of unemployed labor, the gross national product will decline and so will reduce income per capita. When the low per capita income, the standard of living of the population will also be low. Unemployment may also increase levels of poverty. High unemployment levels will enhance poverty in the country. The Government had initiated several programs to overcome poverty. This will affect the government's efforts to develop the country. In addition, the disadvantages of electronic card on the highway is lead the way into a jams because when the electronic card is damaged or not working it will make a problem to highway user. When jams occurs it would delay our journey to a destination and make it difficult for us to do business outside of your home or office. If government want using the electronic card at highway and eliminate......

Words: 467 - Pages: 2

Premium Essay

The Introduction of Smart Card Readers in the Nigerian General Election

...THE INTRODUCTION OF SMART CARD READERS AND THE 2015 GENERAL ELECTIONS IN NIGERIA Alli usman THE INTRODUCTION OF SMART CARD READERS AND THE 2015 GENERAL ELECTIONS IN NIGERIA: An Annotated Bibliography ACE Project (n.d.) Elections and Technology. Available at http://aceproject.org/ace-en/topics/et/et10. Accessed 16, June, 2015 ACE Project is high-level web-based proprietary project management software developed by a Canadian company Web systems Inc. based in Quebec City, Canada. The introduction of information and communications technologies (ICT) into the electoral process is generating both interest and concern among voters, as well as practitioners across the globe. Most electoral management bodies (EMBs) around the world use new technologies with the aim of improving the electoral process. These technologies range from the use of basic office automation tools such as word processing and spreadsheets to more sophisticated data processing tools, such as data base management systems, optical scanning and geographic information systems. Alvarez, R. M. and Hall, T. E. (2008) Electronic Elections: The Perils and Promises of Digital Democracy. Princeton; Princeton University Press Elections by nature are fraught with risk. Michael Alvarez and Thad Hall fully examine the range of past methods and the new technologies that have been created to try to minimize risk and accurately......

Words: 849 - Pages: 4

Free Essay

Octopus Card

...Keywords: smart card, transportation, payment system, technology diffusion, Octopus, Hong Kong A b s t r a c t Although debit/cash cards based on smart card technology promised to bring forth the end of loose change, very few managed to gain critical mass or come close to totally eliminating coins including those supported by major credit card operators (e.g., Visa Cash and Mondex). In this paper, we discuss a specific system – Octopus – which not only gained momentum among the passenger transportation industry in Hong Kong, but also expanded into other payment channels such as fast food outlets and snack machines. We examine the factors why Octopus has been successful despite most micro-payment systems failing to gain critical mass let alone expand their customer base. Finally, we conclude that convenience factors, a specific set of societal factors and its management strategy to expand from a captive market towards a generic micro-payment system had been instrumental to the growth of this e-payment system. A Copyright © 2001 Electronic Markets Volume 11 (2): 97–106. www.electronicmarkets.org Downloaded By: [Schmelich, Volker] At: 12:59 16 March 2010 E-COMMERCE IN AUSTRAL-ASIA u t h o r s Simpson Poon (Spoon@hku.hk) is the Director of the Centre for E-Commerce and Internet Studies at Murdoch University in Australia and a Visiting Associate Professor at the School of Business, The......

Words: 6947 - Pages: 28

Premium Essay

Credit Card vs Cash

...Credit Cards and Cash There is very importance of money in our life. “When you have money in hand, only you forget who you are. But when you do not have any money in your hand, the whole world forget who you are”. This is the saying of a famous US Microsoft founder “Bill Gates”, from which one can easily understand the need of money in life for living and simplification. Among the different forms of money for financial transactions, Credit cards and Cash are the two major types. In spite of being both money, they have differences too. The differences between these two can be related as the advantage of one and disadvantage of others. Using of credit cards offers credit rewards like certain percentage of cash back which is not possible through the use of cash for transactions. Credit cards are more convenient than cash, as one can do online shopping using it while cash has disadvantage over it. Credit cards provides more security than cash. Use of credit card might require a signature and a PIN while for the use of cash nothing special is needed so if stolen cash draws more disadvantages over security. The loss of credit cards does not affect much as we can easily stop the use of that card and apply for the next card just by informing the bank. But if cash is stolen then one needs to rush to police station and needs to write a report of theft. Carrying a credit card, no one will know the amount of money you are carrying so even less chances...

Words: 678 - Pages: 3

Free Essay

Cash Management

...Cash management is also known as treasury management for businesses. Treasury management through commercial banks helps a company manage their funds through special business bank accounts. All banks have a department dedicated to treasury management that covers trading through bonds, money that can include all currencies and risk management. PNC Bank has many different services that are offered through their cash management programs. One of the services offered are card services. A business can get pre-paid cards that cover payroll, employee rewards, petty cash, per diem expenses and business-to-business incentive programs (PNC, 2010.) Another type of card service offered through the treasury management program is procurement plus travel and entertainment which covers better control over spending limit, establishes separate spending allowances for purchasing and travel and also reports for all company spending (PNC, 2010.) These reports help businesses keep track of all spending and purchases made by any employee who holds a card or who has access to these funds. The cards for travel or entertainment are for medium to large sized companies. According to PNC, these help reduce time and cost. PNC also offers Active Pay. Active Pay helps maximize payment controls, enhance transaction and data management and increase financial benefit (PNC, 2010.) Although PNC’s website does not expand on how this is done they do have a contact number for any business that is......

Words: 1088 - Pages: 5

Premium Essay

Smart Cards in Healthcare

...Module 3 - Smart Cards Module 3 - Smart Cards Kari Wachs Grand Canyon University: HCA - 360 November 19, 2011 Module 3 - Smart Cards Smart card technology is becoming commonplace in todays society. Smart cards are also referred to as chip cards. The smart card is a plastic card that contains an embedded computer chip that stores and transacts data (Smart card basics, n.d.). The computer chip could function strictly as memory or as a microprocessor depending on the intended use of the smart card. “The data is usually associated with either value, information or both and is stored and processed within the card’s chip” (Smart card basics, n.d.). Smart cards are being used in several different markets currently in the United States. European countries have been utilizing smart card technology for almost three decades. (Smart card basics, n.d.). The Smart Card Alliance is a group of businesses that have a vested interest in the adoption of smart card technology. The Smart Card Alliance’s mission is to help the forward momentum of the use of smart card technology in health care in the United States (Smart card alliance, 2007). Europe initially used the smart card as a tool for reducing theft at pay phones. Their use has advanced tremendously over the last three decades. They are used for credit purchases and for record keeping instead of paper (Smart card basics, n.d.). In the United States, smart cards are being used by consumers in many ways. Several......

Words: 1022 - Pages: 5