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Online Systems and Chips: Ruling over Transactions

Different modern technologies have given us great benefits that made our lives easier. But everything good and remarkable will always have disadvantages that we also have to deal with. Examples of this modern technology that contributed benefits for us is the online transactions and chip cards.

Electronic Payment System

Some costumers use electronic payment system for an internet transaction such as PayPal because nowadays, credit card users are hesitant to provide credit card information over the internet due to fraudulence of some unscrupulous merchants. With this type of transactions it is more guaranteed that your credit card information will only be provided to companies that provides electronic payment system such as PayPal and not to the merchant. There are also added features that PayPal offer such as Buyer Protection Guarantee and you are entitled to a refund if you do not receive the promised goods from the verified seller. Other features are; Free Automatic Account Insurance and Bonus for Signing up (, 2007).

Smart card

A smart card is a pocket-sized card with embedded computer chip which can store data and process transactions. The transaction can be made through a computing system. This technology is used worldwide in applications like healthcare, bank transactions, transportation and entertainment. From a simple parking, attending movies, buying groceries to a more complicated processes such as Electronic Benefit Transfer .It also provides added features and security systems.

Smart cards offer convenience and security of any transactions from security threats and system hacks. Primarily, smart cards are used as a stored value and loyalty cards that is safer than cash payments. It can even serve as lock for E-mails and PCs, laboratory equipments and dispensers for drugs and library cards(Corp., 2004).

However, smart cards have also limitations that costumers might consider. The machine that the user would want to gain access with, should basically, have smart card reader attached to it. Moreover, smart card technology are quiet expensive. You have to pay separately for the smart card, the smart card reader, a PCMCIA-reader and also for the interface software.

Charges are also given for the software license fee. Some smart cards that are implemented perform slower compared to software-based tokens in Pentium-based PCs in terms of initial loading during logs on, message signing and encryption(Chadwick, 1999).

Today, our way of living has always been in a fast- pace and dependent to technology. We must cope up to these changes through awareness and technological convergence.

Works Cited:

CHADWICK, D. (1999) Smart Cards Aren’t Always the Smart Choice.

CORP., C. (2004) Smart Card Basics.

MUNISING.COM (2007) PayPal Payments.