ENG 102 Assignment: The Benefit of Electronic Money

ENG 102
Professor: Marine
Xuanchang Zhang
04/29/2017
The Benefit of the Electronic Money
The improvement of the modern expertise has resulted in the discovery of an automated currency method. The computerized method constitutes approximately 90 % of all the monetary dealings in the United States. The approach utilized the programmed banker’s technology and the internet backing mechanisms to transfer dollars in the economy. It is slowly replacing the outdated means of exchanging cash, which is perilous and expensive. Besides, electronic cash has enhanced efficiency in the banking field. This paper investigates the benefits of utilizing the automated cash scheme in the economy.
The Americans used cash and checks to trade items and services in the past era. Bank notes were used to make minor disbursements while ordinary checks were preferred in settling huge payments. The use of the actual dollars still persists in the modern society, although it is gradually substituted by the digital currency. The use of automated cards and electronic gadgets has transformed the fiscal aspect of the economy in the United States.
The digital payment approaches have totally reformed the bonds among the customers and traders. The technology has resulted to an ethical financial progression, thus expanding the level of uptake. Consequently, more employment opportunities have been created, hence enhancing the economic productivity and minimizing poverty in the society.
Types of the Electronic payment Schemes
There are two electronic payment systems one is electronic cash also known as the token-based system and secondly the credit-debit also known as account based systems (Abrazhevich, 83). Token-based system refers to a system where one has to feed money into a card before using it or one can be able to access the money in their account. With access to the funds in their account or money previously loaded, they can then use them for their own liking. The account-based system is one whereby an individual has access to money that they do not have but are using it on behalf of the bank. Once they have made money, they will repay the bank usually at an interest. There are four major classes of the digital financial systems. First, the digital cash approach offers an individual client with a secure, swift and cheap online monetary transaction method. It operates via a manifold network structure as an alternative to the typical financial organizations. Besides, it is mostly used to make small payments. It is transportable and does not rely on other financial systems.
Both the trader and the clients are required to register accounts with a financial organization. The corporation then sends money messages to the client which can be withdrawn through the trader. The amount of cash revealed on the message reflects the actual quantity of funds which can be withdrawn by the customer. In addition, the client can request for the monetary replenishment from financial company. The issuer will verify the details of the customer, disburse the extent demanded, and deduct it from the storage account.
Second, the digital check method is another online approach utilized in the modern monetary sector. They are processed through an online conversa...