"The money screamed across the wires, its provenance fading in a maze of electronic transfers, which shifted it, hid it, broke it up into manageable wads which would be withdrawn and redeposited elsewhere, obliterating the trail."
Nest of Vipers, a banking thriller by Linda Davies
Nest of Vipers, a banking thriller by Linda Davies
Electronic currency, also known as electronic cash or digital money, plays an important role in e-commerce. It is a form of electronic money that can be used to pay for goods and services on the internet or other electronic medium. Basically, electronic currency is intangible and only exists online. It is stored in media such as hard drives. We cannot see or touch it.
There are two forms of electronic currency:
1) Identified e-money
E-money that contains information identifies people who originally withdraw money from bank. The bank can trace the money and reduce financial crime.
2) Anonymous e-money
E-money that is an electronic equivalent or paper cash. It cannot be trace back and its owner can't be identified.
There are two further varieties of e-money:
1) Online e-money
Third party such as bank is required for the transaction. Similar to credit card clearing mechanisms at the point-of-sale in shops.
2) Offline e-money
Third party not required for the transaction. It is the most complex form of e-money.
Examples of electronic currency:
1)Paypal is an e-commerce business that allows users pay and get paid online. A Paypal account can be funded by credit card or bank account transfer. It performs payment processing for online vendors,auction sites, and other commercial users and charges fees. Fees charged are based on currency used, the payment option used, the country of the sender, the country of the recipient, the amount sent and the recipient's account type. PayPal has now become a global leader in online payment solutions with more than 153 million accounts around the world. It is available in 190 markets and 18 currencies. It also enables payments made across different locations, currencies, and languages.
2)Mondex, a smart card electronic cash system which was originally developed by National Westminister Bank in UK. It is a part of the MasterCard WorldWide suite of smart card products which enables cardholders to carry, store and spend cash value using a payment card. Mondex can be used in internet, mobile phone and interactive television. Value is stored as electronic information on a microchip and exchanged securely from the chip on the card to a chip in a terminal/card reader.
3) Chipknip is the electronic cash system used in Netherlands. Smart card included in ATM cards that issued by Dutch bank can be loaded with value via Chipknip loading stations next to ATMs. It can be used for payments at parking machines, public transport, office canteens, and for small retail transactions. Besides, no network access is required. PIN is not required to unlock the value stored on the card. The card is entered into the reader at the point of payment. Card holder can easily confirms the transfer of value.
References:
Electronic money (wikipedia)
E-money-What is it?
There are two forms of electronic currency:
1) Identified e-money
E-money that contains information identifies people who originally withdraw money from bank. The bank can trace the money and reduce financial crime.
2) Anonymous e-money
E-money that is an electronic equivalent or paper cash. It cannot be trace back and its owner can't be identified.
There are two further varieties of e-money:
1) Online e-money
Third party such as bank is required for the transaction. Similar to credit card clearing mechanisms at the point-of-sale in shops.
2) Offline e-money
Third party not required for the transaction. It is the most complex form of e-money.
Examples of electronic currency:
1)Paypal is an e-commerce business that allows users pay and get paid online. A Paypal account can be funded by credit card or bank account transfer. It performs payment processing for online vendors,auction sites, and other commercial users and charges fees. Fees charged are based on currency used, the payment option used, the country of the sender, the country of the recipient, the amount sent and the recipient's account type. PayPal has now become a global leader in online payment solutions with more than 153 million accounts around the world. It is available in 190 markets and 18 currencies. It also enables payments made across different locations, currencies, and languages.
2)Mondex, a smart card electronic cash system which was originally developed by National Westminister Bank in UK. It is a part of the MasterCard WorldWide suite of smart card products which enables cardholders to carry, store and spend cash value using a payment card. Mondex can be used in internet, mobile phone and interactive television. Value is stored as electronic information on a microchip and exchanged securely from the chip on the card to a chip in a terminal/card reader.
3) Chipknip is the electronic cash system used in Netherlands. Smart card included in ATM cards that issued by Dutch bank can be loaded with value via Chipknip loading stations next to ATMs. It can be used for payments at parking machines, public transport, office canteens, and for small retail transactions. Besides, no network access is required. PIN is not required to unlock the value stored on the card. The card is entered into the reader at the point of payment. Card holder can easily confirms the transfer of value.
References:
Electronic money (wikipedia)
E-money-What is it?
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