“Electronic Cash” has played a major role in the growth of e-commerce world-wide.
[5 Marks]
QUESTION 2
“Attacks against e-commerce web sites are so alarming, whereby every month, there is an announcement of an attack on a major website where sensitive information is obtained. Compared to robbing a physical outlet, the tools necessary to perform an attack on the internet is cheap. The criminal needs an access to a computer and Internet connection”
discuss them using suitable examples.
Differentiate between “electronic cash” and “credit cards”:
(i) Digital cash nowadays become very popular. It is considered as digital currency. You can store, send and receive money from and to others who have registered with the service provider. It is like real cash but the entire process happens electronically.
On the other hand credit card is a card which is linked to your bank account from which you can withdraw cash from ATM's and purchase something. It is necessary to keep in mind the account balance to which the credit card is linked while doing operations with the credit card.
(ii) Digital cash are owned by some private companies and you can transact your money from one your wallet to others.
Credit cards are provided by Banks to which you have account.
(iii) You can use digital cash only if you have a internet connection. By other means it is not possible to use digital cash.
Withdrawl of cash from ATM and purchasing something by swapping can be done offline and you don't need any internet connection for that. It is required when you do some online purchase.
(iv) In order to usage credit cards are more popular than electronic cash. It is largely accepted in every area including the rural ones whereas electronic cash are gaining importance day by day.
(v) While making payments by credit card bank can deduct some amount from your account for the processing. On the other hand there is no such fee for processing the electronic cash.
(vi) In some cases you can add money to your electronic cash wallet by using your credit card or debit card which signifies the ease of integrating one to another.
(vii) Electronic cash are introduced mainly for reducing the direct cash transactions where the cash transaction will be done easily even if there is no card swapping machine.
Above are the difference between electronic cash and credit card in general. Both of them are used according the need and ease of the customers.
Key advantages that “electronic cash” can provide to organizations and consumers:
(i) When a business goes online, both the business owner which means provider and consumers wants to have smooth way of payments where electronic cash pays a big role.
(ii) Instead of paying the amount in cash, digital payments are largely accepted worldwide. This is increases the convenance of the customers as well as the customers.
(iii) Electronic cash transactions are much more secure than other payment options. By this the provider don't need to keep track of each and every single thing that is happening with the payments.
(iv)In some cases the offline transaction and electronic cash in combination introduced smart card from which you can perform the transaction from your wallet. It is also a very helpful way to provide different options to customer to pay.
(v) Electronic cash are globally accepted which broads the path of acceptance of payments which makes it more flexible.
(vi) When consumers pays by the electronic cash the amount directly goes to the account of the organization but in case of offline payments the amount is processes through multiple stages which eventually becomes more time consuming.
(vii) One of the major advantages of using electronic cash is it is portable which means without carrying any real cash you can pay any amount as per your need.
Apart from these there are also plenty of advantages of using electronic cash which helps the organization to grow and consumers to pay easily.
“Electronic Cash” has played a major role in the growth of e-commerce world-wide. Differentiate between “electronic...