Skip to content

Digital Cash and How it Affects You

What are the economic consequences of digital cash? What are its implications from the view of economics? In recent years, several proposals for electronic cash have appeared in cyberspace. In several cases, forms of digital cash are already in use. The economic consequences of these transactions have not yet been fully examined. To some observers, one important economic consequence of electronic cash is the free issue of private currency by commercial banks or other non-firms. However, if we look at the history of money, it is not easy to make privately issued currency credible in the eyes and wallets of the public.

As long as there is competition between b 소액결제현금화 anks, private banks will sometimes become bankrupted. Nothing is more debilitating to the credibility of privately issued currency than bankruptcy. The most important characteristic of digital cash is its Trans-nationality.

Digital cash does not recognize national borders. It is not controlled by any central bank of any national state. The unprecedented efficiency of international payments with digital cash may indeed increase the instability of the global monetary system. This efficiency indeed may lead to conflicts between digital cash providers and users and the central banks of nation-states. There are over a dozen proposals for electronic payment systems on the internet.

In comparison to using cash in the real world, transmitting a credit card number over the internet might lead to the following difficulties. First, there is the entire question of security. Credit card numbers may be viewed by unauthorized individuals because the Internet is an open system. In the real world, there are a number of means to minimize fraud. A customer using such a card will usually opt to carry out transactions at trustworthy or familiar facilities, stores, and markets. Second, those cards can be used only at authorized stores. Unauthorized small businesses or individuals generally cannot carry out transactions with these plastic-items. In other words, credit cards cannot be used for peer-to-peer payment.

Cash encourages peer-to-peer payments. Third, such electronic payments usually charge a small fee. Although the cost is low, it can be significant when the payment itself is very small, such as less than 1 Dollar. As a result, those electronic items can not be used for micro-payments. A cash payment is used for even the smallest financial transactions. Finally, receipts from these card payments leave residual records of expenditures. Those who issue electronic cash know exactly what kind of goods and services have been purchased, as well as where and when they were acquired. In other words, user's expenditures by using debit cards can be traced while cash payments are untraceable. Electronic payment systems, more or less, try to cope with the above issues. According to the extent to which those systems cope with these problems,

Once you have decided to start up a cleaning business, one of many small considerations that you must think of will be how you are going to receive payments from clients for your cleaning services. You will have to think about the choices and decide which options you will offer your customers. There are many ways to collect payments and we have outlined some below along with their advantages and disadvantages.

1) Cash. Traditionally the most popular method of getting paid for a service like cleaning. Popular in the house cleaning sector it is common for households to leave payment in the form of cash or check on the premises to be picked up by the cleaner after the job is complete. This way is still the best if your customers will agree to it as you are paid up front and don't risk having the account fall behind with payments. Cash also appeals to many small cleaning businesses out there as it helps them to avoid paying tax. Professional cleaning business operators however should operate honestly with the IRS and it is professional to leave a proper receipt for the customer.

2) Another option is to have your clients set up a direct debit from their bank account so that funds are paid to you automatically each week. If cleaning charges are the same and work is done on a regular basis then this arrangement can work well.

3) Credit cards are a popular way of paying for services these days and many of your customers will appreciate the convenience and like to pay by card as they are members of credit card loyalty programs. Getting set up to take credit card payments is costly and there are ongoing fees that you will incur with each transaction so this method is usually only considered by larger, more established cleaning firms. Offering this payment option will however make your services more marketable and if you feature this information in your advertising you may find that many clients are attracted to your service over other companies based solely on the fact that you accept credit cards.

4) Lastly, you can offer to leave an invoice for clients or to mail one to them. This option is not common among house cleaners but is the dominant method in the commercial sector of the cleaning industry. Invoices often offer clients more favorable payment terms with most of them requiring charges to be paid within a thirty day period. This method is very attractive to clients as they can pay in arrears but can give cleaning business owners headaches if invoices become overdue and time and money have to be wasted pursuing bad debts.

Leave a Reply

Your email address will not be published. Required fields are marked *