Credit cards, on the other hands, are backed by international organizations responsible to issue and acquire credit card transactions. Often, the transaction fees (flat fee or a percent from a transaction) are charged to the merchant. From a end-user standpoint, credit cards are existing and trusted technology whereby the security standard (e.g. Payment Card Industry Data Security Standard) is verified by independent qualified security assessors (QSA). Additional benefits such as CashBack, AirMiles and membership points increase the adoption rate by the consumers. The drawback (which is considered by some consumers as an advantage) is the fact that all purchases are done in credit, and if not paid in full are subject to comparatively high interest rates changed.
It is difficult to compare the security risk between the E-money and the credit card technologies as both had high profile data thefts such as theft of 25,000 Bitcoins from 478 account (Jason Mick, 2011) and “a massive" security breach at a credit card processor has put 10 million accounts at risk” (Brandon Hill, 2012). On both fronts, there are efforts to tighten up the security as evident with Payment Card Industry Data Security Standard (PCI SSC, 2010) and MintChip Challenge by Royal Canadian Mint to create a secure alternative to E-cash backed by the Canadian Government (Emily Jackson, 2012).
With variety of methods to exchange funds (i.e. payment and transfers) electronically such as PayPal, MintChip, Bitcoin, Credit and Debit Cards, it is not surprising that Sweden moving towards cashless economy (CBCNews, 2012) where different digital payment methods are used in parallel serving different purpose (i.e. micro payments) rather than compete with each-other.
- Brandon Hill, 2012. “Global Payments Inc. Hit By Security Breach; 10M Visa, MasterCard Accounts at Risk” [online]. DailyTech. Available from: http://www.dailytech.com/Massive+Security+Breach+Hits+MasterCard+Visa+10M+Accounts+at+Risk/article24355.htm (accessed: April 14, 2012).
- CBCNews, 2012. “Sweden moving towards cashless economy” [online]. Available from: http://www.cbsnews.com/8301-202_162-57399610/sweden-moving-towards-cashless-economy/ (accessed: April 14, 2012).
- Emily Jackson, 2012. “Royal Canadian Mint to create digital currency” [online]. The Star. Available from: http://www.thestar.com/business/article/1159513--royal-canadian-mint-to-create-digital-currency (accessed: April 14, 2012).
- European Commission, n.d. “e-Money” [online]. Available from: http://ec.europa.eu/internal_market/payments/emoney/index_en.htm (accessed: April 14, 2012).
- Jason Mick, 2011. “Inside the Mega-Hack of Bitcoin: the Full Story” [online]. DailyTech. Available from: http://www.dailytech.com/Inside+the+MegaHack+of+Bitcoin+the+Full+Story/article21942.htm (accessed: April 14, 2012).
- Ken Griffin, Phillip Balsmeier, Bobi Doncevski, n.d. “Electronic Money as A Competitive Advantage” [online]. Available from: http://journals.cluteonline.com/index.php/RBIS/article/download/5458/5543&ei=uVKFT-2kBoXh4QSvr4izBQ&usg=AFQjCNFHe4HkbgG7hbdsQzlWnXg1LR7MNA (accessed: April 14, 2012).
- Payment Card Industry Security Standard Council, 2010. “Payment Card Industry (PCI) Data Security Standard” [online]. Available from: https://www.pcisecuritystandards.org/documents/pci_dss_v2.pdf (accessed: April 12, 2012).
- Ross J. Anderson, 2008. “A Guide to Building Dependable Distributed Systems”. 2nd Edition. Wiley Publishing.
- SecondLife, n.d. “Buy L$ ” [online]. Available from: https://secondlife.com/my/lindex/buy.php?lang=en_US (accessed: April 14, 2012).
- Peter Coogan, 2011. “Bitcoin Botnet Mining” [online]. Symantec. Available from: http://www.symantec.com/connect/blogs/bitcoin-botnet-mining (accessed: April 14, 2012).