Author Archive

Study on Electronic Money

September 24th, 2021

Introduction :

Commerce refers to all the activities surrounding the purchase or sale of goods or services. As we step into the next century, the Internet promises to bring unpredictable change in the society. Spanning the entire globe, crossing all boundaries, the net has redefined the methods of communication work, study, education, interaction, Entertainment, Health, Trade and commerce. There are some activities in commerce such as marketing, sales, payment, fulfillment, customer service etc.

Electronic commerce is the application of communication and information sharing technologies among trading partners to the aim of business objectives. Electronic Commerce is associated with the buying and selling of information, products and services via computer networks.

Electronic Commerce is a new way of conducting managing and executing business transactions using computer and telecommunication networks. Electronic Commerce refers to the paperless exchange of business information using EDI (Electronic Data Interchange), Electronic Mail, EFT (Electronic Funds Transfer) and other networks based technologies. Electronic Commerce applications started in the early 1970s, with such innovations as EFT.

Objectives Of The Study:

Purpose of the study is to diagnose the state of efficiency in itself and trace out the factors responsible for lower or higher efficiency in discharging various operation and activities of analysis in Electronic Money security.

1. To review rational and motives underlying term lending agencies in the present day complex mechanism of Electronic Money.

2. To analyze the institutional and organizational constraints hampering efficiency, efficiency and effectiveness of Electronic Money.

3. To assess their quality performance through structural analysis.

4. To examine the impact of new business policies and liberalization on these Electronic Money.

5. To study and analyze the security of Electronic Money transaction.

6. To suggest possible remedies for these institutions to halt their present declining trends.

7. To suggest the techniques for lending to higher growth of Electronic Money security.

Advantages Of Electronic Money:

Digital cash will allow for the immediate transfer of funds from an individual’s personal account to a businesses account, without any actual paper transfer of money. This offers a great convenience to many people and businesses alike.

Banks can offer many services whereby a customer can transfer funds, purchase stocks, and offer a variety of other services without having to handle the physical cash or cheques. Customers do not have to wait in lines, and this provides a lower hassle environment.

Disadvantages Of Electronic Money :

Although there are many benefits to digital cash, there are also many significant disadvantages. These include fraud, failure of technology, possible tracking of individuals and the loss of human interaction. It is very common that almost all systems have drawbacks. However, the question that needs to be asked is whether the advantages of using the system overpass the disadvantages.

Fraud over digital cash has been a pressing issue in recent years. Hacking into bank accounts and the illegal retrieval of banking records has led to a widespread invasion of privacy, and has promoted identity theft.

There is also a pressing issue in regards to the technology involved in digital cash. Power failures, loss of records, undependable software often cause a major setback in promoting the technology.

Fraud over digital cash has been a pressing issue in recent year. Hacking into bank accounts and illegal retrieval of banking records has led to a wide spread invasion of privacy and has promoted identity theft.

Power failures, loss of records and undependable software often cause a major set back in promoting the technology.

Frame Work Of Electronic Commerce:

Many people things Electronic Commerce is just having a web site, but Electronic Commerce is much more than that. There are dozens of applications of Electronic Commerce such as home banking, shopping in online stores and malls, buying stocks, finding a job, conducting an auction and collaborating electronically on research and development projects.

To execute these applications, it is necessary to have supporting information and organizational infrastructure and system.

Electronic Commerce applications are supported by infrastructures and their implementation is dependent on four major areas such as

1.people

2.public policy

3.technical standards

4.protocols and organizations

Peoples – Buyers, sellers, intermediaries, services etc.

public policy – Taxes, legal, and privacy issues, domain names.

technical standards – For documents, securities, and network protocols.

Organizations – Partners, competitors, associations, Govt. services.

There are some other area of Electronic Commerce infrastructure such as

1.Common business services infrastructure – security smart cards / authentication, Electronic Payment, directories / catalogs.

2.Messaging and information distribution infrastructure – EDI, Electronic Mail, HTTP.

3.Multimedia content and network publishing infrastructure – HTML, Java, WWW, VRML.

4.Network infrastructure – Telecom, cable, TV, wireless, Internet, WAN, MAN, LAN, Intranet, Extranet.

5.Interfacing infrastructure – To databases, customers and applications.

Electronic Money System Model:

The e-money system is a mechanism that facilitates payments – generally of limited value – in which e-money can be considered as an electronic surrogate for coins and banknotes. The e-money system is described on the basis of a model with a set of sub-systems through which electronic value (EV) is transferred, under the responsibility of a System Supervisor who monitors the security of EV creation, EV extinguishment and EV circulation within the system.

The three main elements which make up our e-money system model are EV, EV circulation between sub-systems and supervision. Put together, these elements constitute the core of the e-money system model. The notions of transactions, compensation, EV life cycle and actors then complete this model.

EV is a monetary value represented by a claim on an EV Issuer, which is:

- stored on an electronic device;

- issued on receipt of funds for an amount not less in value than the monetary value issued;

- accepted as a means of payment by undertakings other than the issuer.

The EV circulation starts with a first phase called EV creation, and ends with a final phase called EV extinguishment.

This model does not impose any restriction on the number of sub-systems that form an e-money system.

Transactions On The Internet:

All the transactions on the internet take place using the customer’s personal computer and the seller’s web server. Customers use a web browser to place on order with the merchant and specify their mode of payment. In the case of an online transaction the customer has the option of paying by credit card or smart card the customers can also to pay using electronic cash or a digital cheque . The software on the seller’s server has to verify the order and has to settle the transaction by receiving authorization for the transfer of funds from a bank or the credit and acquirer. It is possible that the applications on the customer’s, merchant’s and bank’s are not same. Hence the interaction across this step is achieved using a gateway, which is a link between applications.

The gateway allows for protocol conversion and communicates with the bank using the bank’s private network or the internet. Gateway, more specifically common gateway interface (CGI) is a specification for communicating data between an information server, for example server, and other application. CGI is used wherever the web server needs to send or receive data from another application, such as database. A CGI script is a program that negotiates the movement of data between the web server and an outside application. It typically passes data, filled in by the user in an HTML form, from the web server to a database.

Payment System:

In any business transaction, the customer and merchant enter into an agreement. According to this agreement the merchant supplies the goods and services that the customer requests for while the customer transfers funds to the merchant in lien for the goods received. Thus the payment is the most important part in the sales cycle.

The general requirements of payment system’s are-

(1)Confidentiality – the user expects a secure system of payment.

(2)Authentication – A method to verify the buyer’s identity before payment is authorized.

(3)Integrity – It ensuring that information will not be accidentally or maliciously altered or destroyed during transmission.

(4)Authorization – It allows the merchant to determine if the buyer actually has funds to pay for the purchase. The merchant verifies that the customer’s bank account has sufficient balance to honour the cheque amount.

(5)Privacy – There might be situations where both the customer and merchant would want to ensure the privacy of sale. example – a business conducting research might not the details of its purchases.

Types Of Electronic Payments:

The various methods that have been developed for making payments on the internet are electronic versions of the traditional payment systems that we use everyday. In our daily life we use cash, credit cards or cheques to make payments. All these systems are digitally incorporated on the web as e-cash, electronic cheques and credit cards.

(1)Credit Card:

Credit cards are the most popular payment method for cyberspace customer shopping today.

(a) The card holder- A customer or a corporate purchaser who uses credit cards to pay merchants.

(b) The merchant- the entity that accepts credit cards and offers goods or services in exchange for payments.

(c) The card issuer- A financial institution that establishes accounts for cardholders and issues credit cards.

(d) The acquirer- A financial institution that establishes an accounts for merchants and acquires the vouchers of authorized sales slips.

(2)Electronic Wallet Or Digital Wallet:

Secure electronic transaction (SET) protocol was initially designed by visa and master card in 1997. SET protocol meets the four security requirements for EC as SSL does: authentication, encryption, integrity and non repudiation. In addition, SET defines the message format, certificate format, and procedure of message exchange. The role of payment gateway is to connect the internet and proprietary networks of banks. Each participating entity needs its own certificates. To keep the consumer’s certificate in his or her personal computer or IC card, software called the electronic wallet or digital wallet.

(3)Debit Card:

It is also known as check card, is a card that authorizes the EFT. 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.Marchants accepts debit cards more readily than checks.

(4)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 surely.

The Most Effective Advertising Medium – Electronic Message Centers

August 24th, 2021

A decade ago most of us sat in awe when viewing a huge full color full motion video screen at a professional sports stadium, or at a concert by one of many famous international musical groups. That cutting edge technology is available today at a fraction of the cost of products manufactured ten years ago, and the visual experience is far superior! If your company has an annual advertising budget of $50,000 or more, the question is no longer “can we afford an electronic message center”, it has become “can we afford NOT to invest in an EMC?”.

Consider the following facts from the Small Business Administration:

1) According to the Small Business Administration, sales increase between 15 and 150% when and electronic message center is installed.

2) Electronic message centers allow an unlimited number of message changes and variable controls, all easily completed with a computer. The result is lower labor cost and elimination of the physical liabilities often associated with copy changes on traditional reader boards.

3) Electronic Message centers communicate variable messages as people pass by, allowing greater flexibility in communicating to the public.

4) With their automated dimming and focusing systems, electronic message centers can respond to the visibility needs of the public, increasing safety and conspicuity day and night.

5) The flexibility offered by electronic message centers means your business can advertise specials while also displaying public service information or other items of public interest.

6) Electronic message centers can quickly “brand” your business site in the local community.

7) Electronic message centers are an investment in your business and provide the best and most cost-effective forms of paid advertising. The only form of advertising that may be more powerful is word of mouth (although it can be neither purchased nor controlled).

8) The effectiveness of an electronic message center is not limited by space or surface area constraints as with a reader-board.

9) Electronic message centers act as your “salesman on the street,” attracting new customers to your business location.

10) Electronic message centers allow you to market your products and services to your immediate trade area and prevent wasteful advertising expenses.

11) The business owner can change the message as needed to provide information to specific
retail customers, and can be used for political, social or community events.

12) Software is available that enables a business owner to display sophisticated logos or
images on the EMC precisely as planned.

An Answer to the Challenge of Changing Demographics

The public – your existing and potential customers – is on the move, both literally and figuratively, and sometimes catching their attention is like hitting a moving target. Consider that approximately 18.6% of Americans move every year. Whether they move a short or long distance, they usually change their basic trade area. Add to that the fact that 15-35% of the traffic on a given street is “just passing through” (vacation travelers and such), and you can see the great potential for single stops by those unfamiliar with the area. An electronic or variable message center offers a unique way to capture the attention of these passers-by. An EMC allows you to communicate more effectively with the typical person passing by at a particular time day by changing the message and graphic of your sign to match the profile on the street. The local airport in Monmouth, NJ offers a clever example of this flexibility. The airport used its display to advertise price specials at peak hours to those traveling by on the freeway on the way to and from work. During shopping hours or after-school traffic, the airport changed its display to offer community service messages. This kind of flexibility increases the readership of a message unit, as it can correspond to the traffic profile by the day of the week, the time of day, or the season. With the right software, virtually any message can be created and displayed. The demand by businesses for these electronic or variable message centers is increasing because these signs improve the economic viability of difficult commercial sites with limited space. Municipalities that wish to prevent urban sprawl or deterioration of urban land are passing enabling acts that require optimization of urban space, and thus are more willing to look at EMCs as a signage option for businesses.

Frequently Asked Questions about EMCs

We have a sign; why does my business need a message center?
Consider for a moment the speed at which traffic passes by the average business. A motorist has only a few seconds to see and comprehend any given sign. For example, on a street with traffic passing at 45 miles per hour, a car that is 500 feet in front of a given sign will have only 7.6 seconds to read the sign before it passes, under normal driving conditions. A business’ sign must be conspicuous if it is to catch the attention of passing motorists within the limited amount of time available. Motorists often spot electronic message centers quickly because the copy changes, the letters are illuminated, and the signs have traditionally been used as public service devices. Additionally, electronic message centers may have greater visibility from further distances, especially in poor lighting conditions, giving the motorist additional time to read the message displayed while safely maneuvering his or her vehicle. Message Centers act as a consolidating type of advertising. In other words, they offer businesses a way of posting a variety of information in one place rather than relying on numerous signs and banners displayed in windows, for example. This can be a real advantage for a business located in a district with strict rules about temporary signs. Most importantly, the electronic message center almost always increases a business’ share of revenue. This is a result of the “branding” of the site through the use of specific logos, reinforcement of other advertising messages, allowing for public service notices, generating exact impulse stops, and helping to change customers’ buying habits once they have stopped.

Is an electronic message center a cost-effective advertising medium?
Yes. Businesses often select their advertising medium, and messages, based upon the cost per thousand exposures of their message to the public. ON this basis, no other form of advertising comes close to matching the efficiency and cost-effectiveness, dollar for dollar, of an electronic message display. Compare the figures below:

· Newspaper advertising – the cost on average is about $7.39 for 1000 exposures within a 10- mile radius of the business location.
· Television advertising – The cost on average is approximately $6.26 per 1000 exposures.
· Radio advertising – The cost is about $5.47 per 1000 exposures.
· New LED electronic message center display – The cost is less than $0.15 per 1000 exposures. How? Assume, for example, that you spend $30,000.00 on this type of system, and that its useful life is about ten years. The amortized daily cost of the message center would equal about $2.74. Add to this the daily cost of electricity for this new LED unit (approximately $0.20), thus giving your business a daily message center expense total of $8.82. With a daily traffic count of 20,000 vehicles passing your business, you would have a cost of less than $0.45 per thousand exposures (counting drivers only)!
Best of all, with an electronic message center, a business does not have to worry about missing its target audience, becoming “yesterday’s news,” or facing expensive production costs for changing its message, as happens frequently with the other forms of advertising mentioned.

With an electronic variable message display:
· The business owns the form of advertising
· The advertising works for the business 24 hours a day, 365 days a year
· The sign acts as the “salesman on the street” attracting customers into the business
· The advertising speaks directly to the potential customers as they drive past the business location, and the EMC makes the business a landmark in its community. Finally, many message center manufacturers provide leasing programs, which include service and maintenance, thereby providing another option for covering the cost of usage.

Please contact the Small Business Administration for more information.

Before you decide that these incredible devices are beyond your scope of understanding or ability to operate, consider the fact that, with a rudimentary understanding of personal computers, within a couple of hours of “hands on” experience you will have a firm grasp of what it takes to run your new electronic message center. If you have the ability to use Microsoft software, electronic message centers will provide little challenge.

A common misunderstanding is that there must be constant communication between your computer and the electronic message center. In reality, this communication is only necessary when the user changes the message schedule, and it takes about 5 seconds for the transmission.

Electronic message centers range from small simple “time and temperature” displays to full color boards with the ability to show movie clips. You may choose between Mono(single color/text only), Gray Scale(single color with varying number of shades that allows basic graphic display), and Full Color, which offers beautiful realistic renderings of just about anything you can visualize!

One of the most exciting parts of owning an electronic message center is the ability to target your advertisements specifically to the potential customer passing in front of your location, by time, date, Holiday, or any other variable you choose… and if you use your imagination, and devise very tempting ads, that customer will come in your door immediately while your ad is still on his mind. Instant gratification!

One of the most frustrating advertising issues is coordinating ad dates with delivery of product. As a business owner, how many times have you spent thousands of dollars to run advertising on a new and exciting product, only to have the supplier “drop the ball”, and not deliver the goods on time? It’s happened to all of us… With your new electronic message center, until you push the “send” button your message doesn’t change.

How about the other side of the coin… A vendor calls and has acquired one of your best selling items at a tremendous savings and wants to get them out of his inventory very quickly. It’s a cash deal, so you want to turn your investment within a short period of time. Your ability to rapidly set up and get ads running on “standard” media is very limited, and could add weeks to the amount of time needed to sell the product. With your new electronic message center, you can target tens of thousands of passersby per day immediately! This provides a real advantage for you, when your competitors don’t own an electronic message center.

Time and temperature and public service messages will draw viewers to your electronic message center. Adding “non-sales” oriented public service messages to your schedule will cause those who use your street as a regular route to become accustomed to turning to look at your sign to get the latest updates, which is exactly what you are trying to accomplish.

Bottom line? You can own an electronic message center for less than the yearly cost of a full page Yellow Pages ad. The cost of a yearlong full coverage television or radio advertising campaign could dwarf the investment made in an electronic message center that will last for years, requires very little maintenance, and runs on standard 110 volt AC current.