Hard Vs Soft Electronic Currencies
A hard electronic currency is one that does not have services to dispute or reverse charges. In other words, it only supports non-reversible transactions. Reversing transactions, even in case of a legitimate error, unauthorized use, or failure of a vendor to supply goods is difficult, if not impossible. The advantage of this arrangement is that the operating costs of the electronic currency system are greatly reduced by not having to resolve payment disputes. Additionally, it allows the electronic currency transactions to clear instantly, making the funds available immediately to the recipient. This means that using hard electronic currency is more akin to a cash transaction. Examples are TokenPay, Pecunix, Western Union, KlickEx and Bitcoin.
A soft electronic currency is one that allows for reversal of payments, for example in case of fraud or disputes. Reversible payment methods generally have a "clearing time" of 72 hours or more. Examples are PayPal and credit card.
A hard currency can be softened by using a trusted third party or an escrow service.
Read more about this topic: Electronic Money
Famous quotes containing the words hard, soft and/or electronic:
“A good short story is a work of art which daunts us in proportion to its brevity.... No inspiration is too noble for it; no amount of hard work is too severe for it.”
—Elizabeth Stuart Phelps (1844–1911)
“Year after year beheld the silent toil
That spread his lustrous coil;
Still as the spiral grew,
He left the past year’s dwelling for the new,
Stole with soft step its shining archway through,
Built up its idle door,
Stretched in his last-found home, and knew the old no more.”
—Oliver Wendell Holmes, Sr. (1809–1894)
“The war was won on both sides: by the Vietnamese on the ground, by the Americans in the electronic mental space. And if the one side won an ideological and political victory, the other made Apocalypse Now and that has gone right around the world.”
—Jean Baudrillard (b. 1929)