CASHLESS TRANSACTIONS OF UNIVERSITY OF MINDANAO EMPLOYEES
A BUSINESS RESEARCH PRESENTED TO THE FACULTY OF COLLEGE OF BUSINESS ADMINISTRATION EDUCATION
UNIVERSITY OF MINDANAD
CHAPTER 1
INTRODUCTION
Background of the Study
In recent years, debit and credit cards have become increasingly common as retail payment mechanism and have increasingly displaced checks and cash. The payment system has no doubt has witnessed advancement in adoption of cashless payments to provide a chance to consumers for satisfying their buying desires in a convenient way. Cashless payment system where transactions is functioning, operated or performed without using coins or banknotes for money transactions instead using credit and debit card or electronic transfer of funds. Growth in cashless payments surpassed not only general economic growth but also growth in financial sectors. Thus, it is too valuable for the development, growth, promotion and enhancing competitiveness of banks.
Cashless payment system has been widely accepted by consumers and merchants throughout the world, and by far the most popular methods of payments especially in the retail markets (Laudon and Traver, 2002).Consumers paying their expenses by credit card are the once who tend to make additional purchase which increase the amount of spending (Lo and Harvey, 2011). Cardholders are the once paying/spending much compared to cash users due to availability to purchase.
In using cashless transactions, China is already ranked second to the USA in the number of plastic cards in issue particularly with the credit card products (China Union Pay, 2006).China’s cardholder revealed more often use...
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... 20% of the time activity is performed.
Department Store 5
Always 4
Often 3
Sometimes 2
Rarely 1
Never
1. I prefer to use credit card.
2. I prefer to use debit card.
3. Carefully plan most of purchases using swipe card.
4. Keep track record of how much I spend.
5. I find more convenient using swipe cards.
Restaurant
1. I prefer to use credit card.
2. I prefer to use debit card.
3. Carefully plan most of purchases using swipe card.
4. Keep track record of how much I spend.
5. I find more convenient using swipe cards.
Grocery
1. I prefer to use credit card.
2. I prefer to use debit card.
3. Carefully plan most of purchases using swipe card.
4. Keep track record of how much I spend.
5. I find more convenient using swipe cards.
Credit to buy goods or services has been around since the early 1900s, when consumers would use credit to buy goods or services and pay for them at a later date. The bill would send the bank containing a description of the items bough, their price, tax, and overall total. The consumer would visit to the bank and pay it before a set date set by the retailer. Today, “7 out of 10” Americans have one or more credit cards. Credit Card companies introduced the ‘chip,’ a magnetic strip in cards to prevent fraud in brick-and-mortar stores, in late 2015. Major credit card companies, such as Visa and MasterCard, pushed the new cards onto their cardholders by mailing out chip cards and letting the cardholder know their regular card
Everywhere public place you go it is hard not to run in to the idea of the credit card. You will see credit card logos on the front of every business. Every department store you go in has it’s own version of a credit card from Target to Macy’s. The Diner’s Club Card that originally was only for businessmen to eat lunch at 27 different restaurants. Now it is accepted almost everywhere. And for everything else there’s Mastercard……(or Visa, Discover Card orAmerican Express.
American Express has been known as a commodity to most business travelers. In order to build its customer base, other consumers need to see the card as an indispensable convenience in their lives. American Express offers convenient methods to obtain account information, pay bills, find discounted products, and even make travel plans via the Internet. The Internet site offers these options, as well as other services, such as on- line help and assistance for small businesses. American Express realizes the need for many consumers to save time and money, but to still feel important and respected. The ingenuity and thought put into the services offered on the web site shows that American Express is genuinely concerned with the satisfaction of its customers.
And the bank need to change the appearance of credit card, they can use chip instead of holograms for increasing security of credit card. Because the chip card is able to identify customer’s personal information through the chip when this card pit in the payment device. On the other hand, the bank need to make some relevant educated guidance to customers (Balan and Popescu 2011), it can help them to safely use their credit cards. Furthermore, the bank staff have the responsibility to check the ATM whether has matters or not on time. Finally, if a customer lost or stolen their credit card, first they need to call the bank for freezing their account. The key is that customers should open message’s verification function when they cost or withdraw much money through credit card. These reasonable measures are able to help customers protect their credit card securities. But these measures also have more difficulties on some actions, for example, enacting law is not an easy thing. There need to make more efforts on many aspects. And for customers, relevant educated guidance on credit card which has being added to new functions on their phone are not available ways, possibly, because some people are not able to make any changes and then the bank do not force them to
Now let us step to the other side of the Merchant counter as a consumer and realize how RFID can benefit the average person. Have you ever felt impatient when standing behind someone in line at the grocery store who insisted on paying by check? Well, get ready to get agitated at the slowpoke of the future—the techno challenged person using a credit card. Contactless cards, already used in Asia for several transit and payment systems, have been introduced to the United States via pilot programs sponsored by American Express and MasterCard. Thes...
For many years, Target has been hesitant to change credit card security and has shown little to no motivation to make changes. Due to the lack of security measures, hackers were able to steal the identities of many consumers. When credit cards are swiped, the transaction goes through the process of authorization, clearing and settlement. Each phase of the process entails the exchange of transaction data and money that needs to be settled and balanced. This process concludes when the cardholder pays for the goods or services listed on the monthly credit card statement. This is the current system that is used by Target. The company uses a customized version of the Hypercom Optimum L4150 High-Performance Multi-Lane Payment and Advertising Terminal which features a color glass touch screen that offers the brightest and the clearest interface for efficient interactive advertising at the point of sale (POS). “Global payment technology leader Hypercom Corporation delivers a full suite of high security, end-to-end electronic payment products and services” (CARTES & Identification, 2007). The benefits of this device and terminal included an advanced security structure which simplified hardware and application authentication, various privacy options which eliminated the need for add-on physical privacy shields that interfere with terminal usage by the consumer (CARTES &
With the disadvantages comes the advantages, sure using cash can sometimes be dangerous among other things, but there are some safety advantages that come associated with using cash as well. When choosing to use cash instead of credit you won 't have to necessarily worry about your credit card being encrypted at checkout. Although people have become more financially safer with how they use their card and the risk of data breaches have lowered in the last couple of years. Just three years ago the “Data breaches totaled 1,540 World wide were a little over 10% of that 1,540 breaches were in the retail sector” (Holmes1). And with the growing rate of fashion and the standard of looking good and fitting into society I would say the outcome of your card being stolen or even encrypted at checkout is still there. If you 're worried about your card being encrypted next time you 're at checkout just use cash not only will you avoid encryption you will also be able to see how much you 're actually spending.
Credit and debit cards are two different methods to accomplish the same goal. However, these cards have different features and functions associated with each one. One of the main selling points of a credit card is that when
Over the last ten years people in the United State and around the world have heavily relied more on their debit or credit cards to process transactions of their purchases. In the old days it used to be when you would get your paycheck on Friday and rush to the bank during your break or lunch in order to cash withdraw your funds or deposit them into your account. It used to be where you carry cash to buy groceries, pay bills, and go shopping. Now some people don’t even set foot inside their bank branch because they are paid using direct deposit or the funds are loaded into a debit card provided by their employer. Many employers from around the globe don’t even issue paper check anymore. Bills are often times paid online, babysitters are accepting electronic payment such as PayPal and even food trucks now take electronic payments. According to a Washington Post column by Michelle Singletary society and businesses embrace using cashless ways to pay for things than the old time traditional “cold hard cash”. In my opinion there should still be cash circulating out in the world. My first ...
Let’s say in small villages & remote areas where only few people have internet access. The customer can go to their local store & use the shop keeper’s internet connection to browse & select goods from Amazon.in. The shop keeper record their order & alert customer when their products are delivered to the store. They collect the cash payment & pass the money, minus a handling fee to Amazon. This arrangement intelligently patches the problem of conducting e-commerce in a cash economy. Also, the store owners report an increased in sales of their
When it comes to convenience credit outweighs cash. It’s always easier just to pull out a card and swipe rather than pull out cash and should give exact change. Swiping a credit card is also less time consuming which can be convenient when running low on time. Credit also lets you keep track of your transactions, that way you know where your money is going. I know personally that keeping track of my
The use of credit and debit cards today are taking a tour in the sense that electronic cash is becoming more admissible as the world makes a switch towar...
Credit cards were not always been made of plastic. There have been tokens made from metal coins, metal plates and celluloid, metal, paper, and now mostly plastic cards. American Express issued their first credit card in 1958. Bank of America issued the Bank Americard (now Visa) bank credit card later in 1958. Presently some college students have credit card already which some use for emergency purposes and while others use it as a substitute for cash. The researchers would like to know the factor that affects the College student perception on using credit card in their daily life in De La Salle Lipa, having a convenience of using a credit card as the biggest factor why a college student want a credit card.
Digital money is undeniably convenient; anyone who has used a credit or debit card understands this. However, the era of digital money is only beginning; rapid technological advances will continue to make paper money a remnant of the past. Several innovations are already lessening the burden in your wallet. For instance, the seemingly innocuous mobile phone is actually playing an increasing role in facilitating monetary transactions, especially in Asia. Already, in Japan, large companies such as Coca-Cola have sanctioned vending machines that are not only compatible with common cell phones but also allow consumers to earn credits for using them (Kupetz). In this regard, the United States is strikingly behind the times when compared to other countries. Another new technology in the vein of mobile phones is no-contact cards. These innovative cards do not require a cashier to conduct a transaction; one simply holds a specia...
From PayPal to Debit cards, from EFT to Credit cards, this modern world has been inundated with new ways of making business transactions. Instead of the conventional use of dollars and nickels, now there are electronic payment systems. These types of systems allow for better trust and acceptance between consumer and businesses. In the traditional way of buying a product, one would see a product in person, and pay for it with cash or credit. In e-commerce, the business uploads images of its products online and it enables its customers to shop it using any type of electronic payment system.