Electronic money, also known as e-money, electronic cash, e-currency or digital cash, refers to money or scrip which is exchanged electronically. Essentially, electronic payment systems are key enablers for mass acceptance of electronic commerce over vulnerable systems such as the Internet. In Business-to-Business (B-2-B) e-commerce, there is a quickly growing interest in processing payments online.
However, these electronic payment systems have a number of a number of disadvantages also. You need to register to the institution in order to be authorized to perform money transactions with them. Now, you need to have a username and password, and for that you need to have password protection. Moreover, you also need to keep up an account per organization, which can be very irritating or bothersome for you.
To make genuine that your online transactions are safe, it is essential that you observe strict security policies. If password is susceptible of being hacked, it can mean serious fiscal loss for you. Banks or financial institutes that have your financial information can expose it to cyberpunks. So, there is implicit risk of your personal and account details being stolen.
The transfer of digital currency raises questions such as how to levy taxes and the potential ease of money washing. There are also possible macroeconomic results such as exchange rate stabilities and shortage of money supplies.
Moreover, you are always at a loss if your card is stolen. If the card falls in wrong hands, there is a danger of expenditure of entire bank balance. You will obviously inform the concerned authorities about the loss but the time taken between loosing the card and informing the authorities is critical.
In spite of producing ways to make payments easier, electronic systems have raised issues relating to security and authencity of money transfer.
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