Modes of Payment With Electronic Cash Debit Cards
Many retailers provide the option of paying by card or electronic cash, as both payment systems include a guarantee of payment. The electronic direct debit (EDD) system offers no such guarantee and thus exposes the retailer to a default risk.
- In 2005, 13.1% of all payments in Germany were made using electronic cash (payments included the entering of the PIN). In 2009, the percentage of payments using electronic cash went up to 19.4%; payments amounted to 71 billion euros.
- The electronic purse card or Geldkarte can also be used for payments. With an annual turnover of 0.1 billion euros its market share amounts to less than 0.04%.
- ELV (Elektronisches Lastschriftverfahren, electronic debit advice procedure) online or offline. 12% of 2005 turnover in commerce was processed using this method. The market share in 2009 was 12.2%, or 45 billion euros. The technology was introduced in 1984. When using ELV online (also called OLV) every online payment is checked against a credit rating score and a nationwide blacklist. When ELV takes place offline, there is no telephone line and no checking. It is the most inexpensive method for retailers. All procedures read only the account number, the bank code and the card number from the magnetic stripe or the chip. In contrast to the electronic cash method the customer authorises a direct withdrawal with his signature.
- POZ (Point of Sale ohne Zahlungsgarantie, point of sale without payment guarantee). Unlike OLV and ELV, which are procedures used in retail, POZ was a procedure used by the ZKA (Zentraler Kreditausschuss, the German Central Credit Committee) from its introduction in 1994 up to its abolition on December 31, 2006.
Read more about this topic: Electronic Cash
Famous quotes containing the words modes of, modes, payment, electronic, cash, debit and/or cards:
“The essence of belief is the establishment of a habit; and different beliefs are distinguished by the different modes of action to which they give rise.”
—Charles Sanders Peirce (1839–1914)
“The essence of belief is the establishment of a habit; and different beliefs are distinguished by the different modes of action to which they give rise.”
—Charles Sanders Peirce (1839–1914)
“There are always those who are willing to surrender local self-government and turn over their affairs to some national authority in exchange for a payment of money out of the Federal Treasury. Whenever they find some abuse needs correction in their neighborhood, instead of applying the remedy themselves they seek to have a tribunal sent on from Washington to discharge their duties for them, regardless of the fact that in accepting such supervision they are bartering away their freedom.”
—Calvin Coolidge (1872–1933)
“Sometimes, because of its immediacy, television produces a kind of electronic parable. Berlin, for instance, on the day the Wall was opened. Rostropovich was playing his cello by the Wall that no longer cast a shadow, and a million East Berliners were thronging to the West to shop with an allowance given them by West German banks! At that moment the whole world saw how materialism had lost its awesome historic power and become a shopping list.”
—John Berger (b. 1926)
“It seems I impregnated Marge
So I do rather feel, by and large,
Some cash should be tendered
For services rendered,
But I can’t quite decide what to charge.”
—Anonymous.
“Every notable advance in technique or organization has to be paid for, and in most cases the debit is more or less equivalent to the credit. Except of course when it’s more than equivalent, as it has been with universal education, for example, or wireless, or these damned aeroplanes. In which case, of course, your progress is a step backwards and downwards.”
—Aldous Huxley (1894–1963)
“A revolution is not the overturning of a cart, a reshuffling in the cards of state. It is a process, a swelling, a new growth in the race. If it is real, not simply a trauma, it is another ring in the tree of history, layer upon layer of invisible tissue composing the evidence of a circle.”
—Kate Millett (b. 1934)