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:
“It is hard to describe the thrill of creative joy which the artist feels when the conviction seizes her that at last she has caught the very soul of the character she wishes to portray, in the music and action which reveal it.”
—Maria Jeritza (1887–1982)
“There is nothing more poetic and terrible than the skyscrapers’ battle with the heavens that cover them. Snow, rain, and mist highlight, drench, or conceal the vast towers, but those towers, hostile to mystery and blind to any sort of play, shear off the rain’s tresses and shine their three thousand swords through the soft swan of the fog.”
—Federico García Lorca (1898–1936)
“The car as we know it is on the way out. To a large extent, I deplore its passing, for as a basically old- fashioned machine, it enshrines a basically old-fashioned idea: freedom. In terms of pollution, noise and human life, the price of that freedom may be high, but perhaps the car, by the very muddle and confusion it causes, may be holding back the remorseless spread of the regimented, electronic society.”
—J.G. (James Graham)