Authors are attributed to having created technologies and new innovations that expounded heavily on what they might be, and how they might be used when writing their stories. Such an example is the debit card. A debit card is a plastic payment card that can be used instead of cash when buying goods or services. The checking account of the debit holder is automatically debited when a transaction has occurred. Safety measures such as entering a personal identification number (PIN) to verify a customers’ identity are part of the operating procedures when transacting with debit cards. A debit card is normally linked to one’s account and it can be accessed electronically. Debit cards are supported by various technologies which include: magnetic
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This includes identity theft that has been on the rise (Hayashi et al. 2012, 88). Criminals are coming up with ways of obtaining important personal information of debit card owners. With the stolen information, the thieves can attain debit cards using the other persons’ identity without their actions being discovered by the target. To curb this risk, banks have adopted microchips to augment identity theft against cyber criminals. This is because the microchips are complex for criminals to replicate especially the magnetic strips that enable them to steal data. Operational risk is another technological limitation of such a technology (Hayashi et al. 2012, 89). Operational risk normally is as a result of hardware or software problems, or human error that can produce an operational malfunction that leads to financial exposure. As a result of technology advancements, relationships among payment systems of participants is becoming increasingly complex, and intertwined and the consequence will be the increase in risk of software, hardware and other operational …show more content…
Statistics show that in the year 2009, a total of 37.6 billion transactions were attributed to debit cards. A performance measure that was conducted by the 10th Annual Debit Issuer in August 2015 based on penetration, activation and usage (PAU) of debit cards revealed that penetration and active rates were holding steady while usage continued to grow. Banks are also working round the clock to come up with the next generation debit card with some amazing features. For instance, MasterCard is working to have a “Display Card” that offers the first interactive card in the market. The card has a small visual display window and touch sensitive button that allows a card holder see information on the card in form of numbers and text. Such information includes dynamic passcodes, an account balance and spending limit. This is one of the many features for a debit card that is still in the pipeline because of the dynamism in technology. One other interesting innovation in the near future is the incorporation of biometrics in the design of the debit cards. The card is envisioned to be invisible and made of special materials that will not reveal any card details unless they are revealed through fingerprints or other ways of owner identification. This would be a
This includes identity theft that has been on the rise (Hayashi et al. 2012, 88). Criminals are coming up with ways of obtaining important personal information of debit card owners. With the stolen information, the thieves can attain debit cards using the other persons’ identity without their actions being discovered by the target. To curb this risk, banks have adopted microchips to augment identity theft against cyber criminals. This is because the microchips are complex for criminals to replicate especially the magnetic strips that enable them to steal data. Operational risk is another technological limitation of such a technology (Hayashi et al. 2012, 89). Operational risk normally is as a result of hardware or software problems, or human error that can produce an operational malfunction that leads to financial exposure. As a result of technology advancements, relationships among payment systems of participants is becoming increasingly complex, and intertwined and the consequence will be the increase in risk of software, hardware and other operational …show more content…
Statistics show that in the year 2009, a total of 37.6 billion transactions were attributed to debit cards. A performance measure that was conducted by the 10th Annual Debit Issuer in August 2015 based on penetration, activation and usage (PAU) of debit cards revealed that penetration and active rates were holding steady while usage continued to grow. Banks are also working round the clock to come up with the next generation debit card with some amazing features. For instance, MasterCard is working to have a “Display Card” that offers the first interactive card in the market. The card has a small visual display window and touch sensitive button that allows a card holder see information on the card in form of numbers and text. Such information includes dynamic passcodes, an account balance and spending limit. This is one of the many features for a debit card that is still in the pipeline because of the dynamism in technology. One other interesting innovation in the near future is the incorporation of biometrics in the design of the debit cards. The card is envisioned to be invisible and made of special materials that will not reveal any card details unless they are revealed through fingerprints or other ways of owner identification. This would be a