DIGITAL MONEY
WHY USE NETSPEND ?
I WALKED TO THE GROCERY STORE THE OTHER DAY TO GET A $200 VISA GIFT CARD SO I COULD PAY MY HOUSE HEAT BILL AND OTHER BILLS ONLINE RIGHT AWAY WITHOUT LOSING EVEN ONE DAY... IT COST ME FIVE BUCKS TO USE THE CARD BUT, HAD I GOTTEN INTO THE CAR, RAN TO GET GAS,PAYED FOR THE MONTHLY INSURANCE FOR THE CAR AND FIXED THE DAMAGE TO MY CAR RIGHT NOW, IT WOULD HAVE BEEN A HECKUVA LOT MORE TO GET TO MY BANK JUST TO PAY BILLS ONE STINKING DAY.......................................................................................................
SO, IN TIMES LIKE THESE WHEN I REALLY DON'T HAVE A LOT OF FAITH IN MEGA-BANKS ANYWAY, I DECIDED TO USE A COMPANY LIKE NETSPEND WHICH HAS THE SAME FDIC INSURANCE AS THE OTHERS DO. THE DIFERENCE BEING THAT THERE IS NO DOUBT WHERE THE BILLS WERE PAID FROM AND BY WHOM DUE TO THE FACT THAT THE CARD HAS MY NAME ON THE FRONT OF IT AND I PAY (ZERO) FEES EACH MONTH TO HAVE IT. THE OTHER NICE THING IS THAT NOW YOU CAN EVEN GET YOUR PAYCHECK DIRECTLY SENT TO THE CARD STORAGE AND USE IT RIGHT AWAY. THE DAYS OF DRIVING INTO YOUR BANK ARE NUMBERED... GOOGMAN
DEBIT CARDS (101)
Also known as (check card) which is a card that authorizes the EFT designed to transfer a certain
amount of money from one account to another. The customer's terminal can be automatic teller machine (ATM),
PC, or telephone terminals. When we use a debit card, the amount is immediately deducted from our checking
or savings accounts. The debit card allows we to spend only what is in our bank account.
Advantages Of Using Debit Card :
1.Obtaining a debit card is much easier than obtaining a credit card .
2.Using a debit card instead of writing checks saves you from showing personal identification .
3.Using a debit card frees we from carrying cash, travelers checks or a check book.
4.Merchants accepts debit cards more readily than checks.
The Smart Cards:
At present we carry many plastic cards such as credit cards, debit cards, charge cards, diving licenses,
health insurance cards, employee or student identification cards and other.
Now for a moment if we think that all these cards are replaced by a single plastic card carrying all the
information of the dozen or fifty cards. Not only dose it lighten our load, it makes identification and
purchasing easer for us. Credit, debit and charge cards currently store limited information about us in a
magnetic stripe. And unlike a smart card, a credit card dose not contain cash - it only contains a number of
an account that can be charged.
A smart card can store hundred times more information than a magnetic striped plastic card. A smart contains
private user information such as financial facts, private encryption key, account information, credit cards
numbers, health insurance information and so on. The current generation of smart cards includes IC chips
with programmable functions.
(5)Closed Vs Open Electronic Cash System:
Electronic cash system can be either closed or open.
A closed system implies that the cash value in the IC card can only be recharged from a banks accounts, and
the used money, which was collected in the memory of the IC card readers will be transferred to the
receivers bank account. The direct transfer between IC cards is prohibited.
In open system allows direct transfer of money value between IC cards. Because Govt. are afraid of the risk
of lost traceability money laundering.
Conclusion :
Nowadays the traditional bills and coins are giving way to the electronic money. With the wide spread of
Internet this transformation is inevitable. It is obvious that digital cash is the future of exchange
mechanism. It will surely condense many of the prevailing inconveniences such as carrying large amount of
cash and will resolve many of the in-security issues experienced today. The electronic money would not only
be quicker and cheaper but also more robust and easy to authenticate. People would not be apprehensive in
using it as it will respect their privacy and will allow even small merchants to carry out the business all
over the world. The digital cash will also reduce the cost of transferring the money internationally, which
is quite expensive at present. The electronic money will not replace the traditional form of transaction
completely but will facilitate it for sure...