In respect of the use of electronic payment systems, consumers have a much higher security risk...

In respect of the use of electronic payment systems, consumers have a much higher security risk
than banks. Critically examine the above statement with reference to the issues raised by Schulze
(2004).

Solutions

Expert Solution

Yes, it is true that with regards to the use of electronic payment systems, consumers have a much higher security risk than banks. This is because of the fact that consumers face the issue of ‘identity theft’ and this threat is more significant and carries more implications for them than the threats that are faced by banks. Besides identity theft other threats that consumers face are threats of stealing of cards, counterfeit and skimming. In all these cases a customer will have to bear significant out of pocket expenses. Even Schultz had raised issues in this regard. Schultz said that while identity thefts have implications for both banks and consumers in the form of costs like card reissuance costs, out of pocket expenses, time and effort spend in resolution etc. the impact is far more profound on consumers than banks because of the fact that consumers have to change their payment behavior and this may entail switching costs for them.

jeff jeffy answered 2 years ago

Next > < Previous

Related Solutions

How much higher in energy is this electron with respect to the ground state of H

Part A Suppose an electron is in the n=6 energy level of a H atom. How much higher in energy is this electron with respect to the ground state of H Part B How much additional energy is required to just remove this excited electron from the H atom?

Construct models to find the impact of electronic payment on consumers by using Game Theory and...

Construct models to find the impact of electronic payment on consumers by using Game Theory and its Nash Equilibrium. (Users of electronic payment and Electronic payment industry are the players of the games)

(i) Which security has greater total risk? Which has greater systematic risk? Which has greater unsystematic risk? Which security will have a higher risk premium?

(i) Which security has greater total risk? Which has greater systematic risk? Which has greater unsystematic risk? Which security will have a higher risk premium?(ii) Construct a two-asset equally weighted portfolio is minimising the overall risk. What is the portfolio's Beta? What is the standard deviation of the portfolio?(iii) Calculate the Sharpe ratios for the three securities and the equally weighted portfolio in part ii. Is it possible to build a two-asset equally weighted portfolio with a higher Sharpe ratio...

How might electronic payment systems affect the UCC rules governing a buyer’s payment for goods? How...

How might electronic payment systems affect the UCC rules governing a buyer’s payment for goods? How might these systems affect the legal principles governing letter-of-credit transactions? If a contract involves a sale or lease of software that can be delivered, and accessed, online, what might be the effects in terms of such rights and remedies as cure, cover, replevin, and reclaiming goods?

Mexico tends to have much higher inflation rate than the United States and also much higher...

Mexico tends to have much higher inflation rate than the United States and also much higher interest rate than the United States. Inflation and interest rates are much more volatile in Mexico than in industrialized countries. The value of the Mexican peso is typically more volatile than the currencies of industrialized countries from a US perspective; it has typically depreciated from one year to the next, but the degree of depreciation has varied substantially. The bid/ask spread tends to be...

Recognizing that there is much discussion amongst consumers as to the dangers of the use of...

Recognizing that there is much discussion amongst consumers as to the dangers of the use of technology in radiology, identify what questions consumers should be asking before agreeing to a CT scan

Database Systems - Security and Administration Jak University is a leading higher education institution that is...

Database Systems - Security and Administration Jak University is a leading higher education institution that is well known throughout Malaysia for its academic achievements. It is proven that this university exists in all major cities in Malaysia. Jak University is also in Kuala Lumpur and as a management center, has 100 thousand students and 10 thousand lecturers spread across several branch campuses. The learning process is done face-to-face and online. Each campus in each city can join virtual classes, so...

Discuss the use of technologies and security impacts of New Ways of Work with respect to...

Discuss the use of technologies and security impacts of New Ways of Work with respect to COVID-19.

What are the key factors that differentiate the different mobile payment systems? Which factors do consumers...

What are the key factors that differentiate the different mobile payment systems? Which factors do consumers care most about? Which factors do merchants care most about?

Regarding Risk Assessment Security is imperative in payroll systems. Payroll information security is about more than...

Regarding Risk Assessment Security is imperative in payroll systems. Payroll information security is about more than computer security. It covers a wide range of security measures like protecting the data or information from theft, misuse, natural disasters, social attacks, or hacking. How can we advance the security in payroll transactions? PLEASE MAKE COPY PASTE AVAILABLE

Subjects