E-Commerce - In a B2B business model, a business

sells its product or service to another

1. Commerce business. Sometimes the buyer is the
- A division of trade production deals with the end user, but often the buyer resells to
exchange of goods and services from the consumer.
producer to end customer.
2. E-Commerce Pros
- Commonly known as Electronic 1. Lineups at the cash register are not a problem
Commerce/Marketing. 2. Reducing the cost
- A business transaction that is carried out in a 3. You have the ability to shop from anywhere
completely electronic manner on the internet. in the world
- Example: Amazon, Shopee, Lazada 4. 24 hour access is available
5. There is a wide range of options to satisfy the
1. Customer needs of all customers
2. Online Store 6. There are a variety of payment methods
3. Products and Offers available.
4. Safe Payment
5. Expedition Cons
6. Delivery 1. Impossible to personally examine items
2. The Internet is not accessible to everyone
History 3. Theft of credit card numbers is a risk
Electronic Funds Transfer (EFT) - 1970 4. Problems with delivery/shipping
• Technology that is convenient to use 5. Market is very competitive
for publishing and providing 6. Site instability
information.
• Amazon and Ebay was launched in Notes and Coins
1995.
Banknote
- The term “banknote” refers to the negotiable
Mobile Commerce
promissory note that is issued by the central
• Buy and sell through wireless
bank. It is used as a legal tender such that one
handheld devices such as smartphones
can use it to pay others a specific amount of
and tablets.
money.
- These legal tenders are also popularly known
Types of E-commerce
as bills or simply notes. The figure
1. BUSINESS TO CONSUMER (B2C)
mentioned on the face of the banknote is the
- B2C business sell to their end-user. It
amount payable on demand to the bearer
is a model that is the most common
without any interest.
business model
2. CONSUMER TO COSUMER (C2C)
History
- It is also called an online marketplace.
• Paper currency, in the form of receipts, was
This model connects consumers to
first introduced in China during the reign of
exchange goods and services and
the Tang dynasty in the 7thcentury. However,
typically make their money by
true paper money called “jiaozi” was first
charging transaction or listing fees.
used in the 11th century during the reign of
3. CONSUMER TO BUSINESS (C2B)
the Song dynasty.
- C2B businesses allow individuals to
• Later, the use of paper currency spread
sell goods and services to companies.
throughout the Yuan dynasty or the Mongol
Affiliate marketing services would
Empire. In the 13th century, the concept of
also be considered C2B.
paper currency was introduced in Europe by
4. BUSINESS TO BUSINESS (B2B)
 European explorers, such as William of Online banks don’t have a physical location.
Rubruck and Marco Polo. By the 14th You can only access them by using your cell
century, paper currency was eventually phone, tablet, or computer.
adopted in every part of Europe. ● Online Banking is any financial transaction
• In 1695, the Bank of England was the first performed over the internet through a bank’s
bank to introduce a permanent issue of website on an electronic device.
banknotes, while in the United States the
federal government started to print banknotes How does Internet Banking Works?
only by 1862. To start using an online banking service, customers
• However, the backing of banknotes by need to register for an online account with their bank.
precious metals has become obsolete as the This requires using an ATM/debit card or bank
paper currency has evolved over time to account number and creating a username and
become pure fiat money password to access the e-banking facility. Once
registered, customers can complete bank transactions
Coin such as funds transfer and bills payment anytime and
• A coin is a small, flat, round piece of metal anywhere without having to go to a physical branch.
or plastic used primarily as a medium of
exchange or legal tender. They are
standardized in weight, and produced in large Advantages
quantities at a mint in order to facilitate trade. 1. CONVENIENCE AND ACCESSIBILITY
They are most often issued by a government. Online and digital banking services
Coins often have images, numerals, or text on are available 24/7, except during system
them. maintenance or upgrade. You can access them
at your convenience, whether you’re at home,
History in the office, or on the go.
• The world's first coins appeared around 600 2. FAST AND EFFICIENT SERVICE
B.C., jingling around in the pockets of the Transactions can be completed over
Lydian's, a kingdom tied to ancient Greece the internet in only 5 to 10 minutes. This
and located in modern-day Turkey. They saves you a lot of time compared to
featured the stylized head of a lion and were over-the-counter transactions.
made of electrum, an alloy of gold and silver. 3. ABILITY TO MANAGE ACCOUNTS
• It took some time before ancient coins were Keeping track of your bank accounts
used for commerce and trade, however is just a few clicks or smartphone taps away
currently coins have been the most universal 4. PAPERLESS STATEMENTS
embodiment of money. The only thing worse than having
• The invention of coins is still shrouded in your money stolen is having your identity
mystery stolen. And the two go hand-in-hand. Even if
hackers don’t take your money, they can still
Internet Banking and telebanking get your personal information —including
your social security number—which they use
Internet banking is also known as: to hack into your other accounts.
- Web Banking
- Online Banking Notable Feature
- Virtual Banking A notable feature of some online banking
- E-Banking channels is automatic bills payment – including for
- Net Banking government services such as:

Online Banking ● Pag-IBIG

● An online bank is just like a traditional bank ● Philhealth
except for one huge difference: a building. ● SSS
 ● NBI 4. IDENTITY THEFT
● Clearance The only thing worse than having
● Passport your money stolen is having your identity
● Application stolen. And the two go hand-in-hand. Even if
● HMOs hackers don’t take your money, they can still
get your personal information —including
Disadvantages your social security number—which they use
1. CYBERSECURITY THREATS to hack into your other accounts
- Although banks invest in technologies to
boost website security, their online banking How to Prevent those risks?
channels are still vulnerable to hacking, ● Never access your Online Banking accounts
identity theft, and other fraudulent activities through hyperlinks in e-mails, pop-up
that result in unauthorized transactions. windows, or search engines.
● Be Aware of unexpected hoax and scam
2. INTERNET ISSUES e-mails with attachments and be aware of
- With the notoriously poor internet speeds in suspicious web sites.
the Philippines, online banking facilities are ● Always access your account by typing the
sometimes inaccessible, especially when web address in the address bar of the browser
customers need them the most. or by selecting the bookmark for the genuine
website.
3. LEARNING CURVE ● Install a personal firewall and anti-virus
- It takes some time getting used to. This is software and regularly update them.
why some customers prefer to transact face to ● Never leave your computer unattended while
face with tellers in bank branches even if the logged on to Online Banking.
queues get very long. ● Always log out of your accounts after you
have finished your banking session.
Risks ● Never give out your password.
● Do Not use your date of birth, phone number,
1. SCARY CUSTOMER SERVICE address, your name, or name of a
If you have a problem with your friend/pet/relative in your password.
online bank account, you can’t walk into a ● Change your password regularly- every two
branch and talk to the manager. You have to months preferably.
call customer service. And depending on the ● o Not use your online banking password for
bank you choose, you may break the record anything else (ex. Email)
for "time spent stuck on hold listening to ● Always be cautious when using computers in
crappy music." public places.
● Do not leave the screen idle for long periods
2. ONLINE BANKS CAN GO OFFLINE or leave the computer unattended.
When an online bank goes offline,
you can’t just stroll to the nearest branch to Two types of Online Banking
transfer money to pay an upcoming bill. The
good news is, most problems get fixed ONLINE BANKS THAT HAVE PHYSICAL
quickly— since it’s the way the bank stays in LOCATIONS.
business! Although these traditional banks have online
banking channels, they operate in physical locations
3. HACKERS around the country. Customers still have to visit their
The possibility of someone stealing branches for account opening, cash and check
money from your bank account makes your deposits, and other transactions that involve large
skin craw amounts of money. Cash withdrawals still have to be
done via ATMs or over the counter.
 when they do their best to protect your money and
BPI, BDO, METROBANK when you do your best to stay alert and make smart
decisions. When that happens, you can take
ONLINE BANK THAT IS ONLY AVAILABLE advantage of the benefits of online banking, like the
IN THE INTERNET lower fees and higher interest. Hence, Online
banking is safe if you choose the right one and if you
Banks that offer all-digital banking services take some smart precautions.
operate only over the internet, which customers
access on a mobile app. Every activity and TELEBANKING
function—both frontend (what customers see) and
back-end processes— is fully automated using Telephone banking
technologies like artificial intelligence, big data, and ● Telebanking expands to Telephone Banking.
analytics. However, with a fully digital banking It is basically an automated facility, in which
service, you can’t open a joint account or a checking the customer can access account information
account. and also perform various routine transactions
using a keypad or touch-tone telephone
OCTO BY CIMB BANK without actually going to the bank branch or
ING PHILIPPINES ATM, or accessing a mobile
EON BY UNIONBANK application/website.
● It is the first technology-based banking
Philippines' Stand in Online Banking service that initially used the classic
● Online banking in the Philippines has a telephone lines for the purpose of
slower adoption rate than its Asian neighbors. communication. Prior to the provision of the
Bangko Sentral ng Pilipinas (BSP) Governor requested banking service information, the
Nestor Espenilla Jr. sees strong demand from identity of the customer is verified.
consumers and small-andmedium enterprises ● Telebanking uses Interactive Voice Response
for banking innovation. (IVR) system to perform the banking
● The latest BSP financial inclusion survey transaction.
found that 88.5% of Filipino adults don’t ● The service involves manual intervention by
have bank accounts. Among the top reasons an executive, in which the customers make a
for not having an accounts are long lines in call to the bank’s specified tollfree number
bank branches and the inaccessibility of through the landline or mobile device from
branches and ATMs. anywhere.
● These findings are corroborated by a Unisys ● Customers need to follow the user-friendly
APAC Banking Insights survey, in which menu and answer the questions to verify their
53% of Filipino respondents said long bank identity and access the account, then the call
queues frustrated them the most. is connected to the representative, to whom
they submit their queries or requests, which is
Why do people like Online Banks? then processed accordingly.
People choose online banking because it’s ● This facility is available 24/7 and it is mainly
quick and convenient—no waiting in line at the offered by banks, credit unions, and credit
drive-thru teller. And they also like online banks card companies. Also, for availing this
because they often charge lower and fewer fees and service, nominal charges may apply and the
give you better interest rates. That’s because they charges vary from bank to bank.
don’t have to pay for an actual building.

Are online banks safe? History of Telebanking

Here’s the bottom line: Every bank has its
weaknesses, even the one sitting around the corner. Telephone banking became commercially
And just like a physical bank, online banks are safe available in the 1980s, first introduced by Girobank
in the United Kingdom, which established a ● It is safer because you do not have to walk
dedicated telephone banking service in 1984. around with cash to pay your utility bills.
Telephone banking saw growth during the 1980s and ● It is cheaper since the transaction cost is less
early 1990s and was heavily used by the first than the transportation cost to and from the
generation of direct banks. However, the utility company.
development of online banking in the early 2000s ● Informing customers about the new activities
started a long-term decline in the use of telephone or special events of the bank.
banking in favor of internet banking. The advent of ● The mass-market delivery mechanism of
mobile banking further eroded the use of telephone financial services.
banking in the 2010s.
Disadvantages
Features ● First-time users may find the system slightly
● Multilingual facility (which supports multiple difficult to use.
languages) ● Instead of a receipt, you will receive a
● User-friendly transaction reference number as proof that the
● Immediate call transfer to the branch payment was made
representative
● A step towards anywhere banking 24 hours a Several services available
day, 7 days a week facility ● Account Balance status
● Last five transactions
Sign Up Process of Telebanking ● Inquiry about cheque
1. One can only avail this facility when he/she ● Renewal of term deposit
gives an application to the bank for the same ● Order placement
by submitting a form and thereby registering ● Account statement
with the bank branch where the account of the ● Stop payment
customer exists. Also, the facility is available ● Fund transfer
to all the customers who have an account in ● Payment of Bills Interest or exchange rates
the bank. ● Report loss of card
2. Thereafter a Customer ID, TPIN (Telephone
Personal Identification Number), and FTPIN Telebanking Fraud
(Financial Personal Identification Number) Telephone banking fraud is a scam which is
will be allotted to the customer along with a becoming increasingly commonplace. The fraudsters
kit. do not actually scam their victims online, but use the
3. To access the information related to the telephone to do so. Here’s how it works:
customer’s account, the customer needs to
dial the local telebanking number. Once the You receive a call from somebody who claims to be
pre-recorded message is complete, press the from an organization you trust, such as your bank or
number of your choice from the menu. After the police. They inform you that there is a safety or
that, he/she will be asked to enter the security problem associated with your bank account
customer ID and the TPIN, which is nothing or payment cards, and you need to take some kind of
but a phone banking password. However, in immediate preventative action, which normally
case of transfer of funds, the customer will be involves confirming your confidential login details.
asked to enter their FTPIN. However, the person on the other end of the call is
not your bank or card issuer, but a fraudster. You may
Advantages also be asked to give your cards to a courier sent by
● It is convenient because you can pay your the ‘bank’ or ‘police’ to ensure that they have been
bills on time and do not have to go to the stopped, or for evidence. This is known as ‘Courier
utility company during business hours. Fraud’.
● It saves time as it eliminates waiting in line at
the utility company. Risks of telebanking fraud
 ● You provide your account details and answers written against a checking account, but they
to security questions to fraudsters can also be used to negotiate funds from a
● Your bank account is emptied and/or cards savings or other type of account..
used to their limit
● You could become a victim of identity theft
because you have revealed confidential
financial and personal information

How to avoid telebanking fraud

● A bank or payment card company will never

ask you to transfer money out of your account
to another that you do not recognise, so hang -
up immediately.
● If you do think that the call may be authentic How checks work
and you choose to call your bank or card
issuer, call the number on your bank
statement or other document from your bank
– or on the back of your card, and NOT a The use of checks allows two or more parties
number given to you by the caller or the one to make a monetary transaction without the need of
you were called from. actually exchanging physical currency. Instead, the
● Never provide financial or personal details to amount for which the check is written is a substitute
a caller, but call back on a number you know for physical currency of the same amount.
to be authentic. Many scammers have the Checks can be used to make bill payments, as
ability to spoof authentic numbers to fool you gifts, or to transfer sums between two people or
into thinking that they are genuine. entities. They are generally seen as a more secure
way of transferring money than cash, especially
Checks/Cheques and Debit & Credit Card when there are large sums involved. If a check is lost
or stolen, a third party is not able to cash it, as the
payee is the only one who can negotiate the check.
Cheque Modern substitutes for checks include debit and
- CHEQUE IS THE BRITISH ENGLISH credit cards, wire transfers, and internet banking.
SPELLING FOR THE DOCUMENT USED
FOR MAKING A PAYMENT, WHEREAS History
AMERICAN ENGLISH USES CHECK Checks have been in existence in one form or
- A check is a written, dated, and signed another since ancient times. Many people believe a
instrument that directs a bank to pay a type of check was used among the ancient Romans.
specific sum of money to the bearer. The While each culture that adopted a form of check had
person or entity writing the check is known as its own system, they all shared the basic idea of
the payor or drawer, while the person to substituting the check for physical currency.
whom the check is written is the payee. The In 1717 the Bank of England was the first
drawee, on the other hand, is the bank on organization to issue preprinted checks. The oldest
which the check is drawn. American check dates to the 1790s.
- Checks may be cashed or deposited. When Modern checks, as we know them today,
the payee presents a check to a bank or other became popular in the 20th century. Check usage
financial institution to negotiate, the funds are surged in the 1950s as the check process became
drawn from the payor’s bank account. It is automated and machines were able to sort and clear
another way to instruct the bank to transfer checks
funds from the payor’s account to the payee
or the payee’s account. Checks are generally Types of Check
 1. Certified Check 1. STANDARD CARDS - SIMPLY EXTEND
- One example is a certified check, A LINE OF CREDIT TO THEIR USERS
which verifies that the drawer’s FOR MAKING PURCHASES, BALANCE
account has enough funds to honor the TRANSFERS, AND/OR CASH ADVANCES
amount of the check. In other words, AND OFTEN HAVE NO ANNUAL FEE.
the check is guaranteed not to bounce. 2. PREMIUM CARDS - OFFER PERKS SUCH
To certify a check, it must be AS CONCIERGE SERVICES, AIRPORT
presented at the bank on which it is LOUNGE ACCESS, SPECIAL EVENT
drawn, at which time the bank will ACCESS, AND MORE, BUT THEY
ascertain its authenticity with the USUALLY HAVE HIGHER ANNUAL
payor. FEES.
2. Cashier’s Check 3. REWARDS CARDS - OFFER CASH
- A cashier’s check is guaranteed by the BACK, TRAVEL POINTS, OR OTHER
banking institution and signed by a BENEFITS TO CUSTOMERS BASED ON
bank cashier, which means the bank is HOW THEY SPEND.
responsible for the funds. This type of 4. BALANCE TRANSFER CARDS - HAVE
check is often required in large LOW INTRODUCTORY INTEREST
transactions, such as buying a car or RATES AND FEES ON BALANCE
house. TRANSFERS FROM ANOTHER CREDIT
3. Payroll check CARD.
- Another example is a payroll check, 5. SECURED CREDIT CARDS - REQUIRE
or paycheck, which an employer AN INITIAL CASH DEPOSIT THAT IS
issues to compensate an employee for HELD BY THE ISSUER AS
their work. In recent years physical COLLATERAL.
paychecks have given way to direct 6. CHARGE CARDS - HAVE NO PRESET
deposit systems and other forms of SPENDING LIMIT BUT OFTEN DON’T
electronic transfer. ALLOW UNPAID BALANCES TO CARRY
4. Bounced Checks OVER FROM MONTH TO MONTH.
- When someone writes a check for an
amount larger than what is held in Pros
their checking account, the check
cannot be negotiated. This is referred CREDIT CARDS CAN OFFER CERTAIN
to as a “bounced check.” A bounced ADVANTAGES OVER DEBIT CARDS, THOUGH
check usually incurs a penalty fee to THEY CAN ALSO HAVE SOME DOWNSIDES.
the payor. In some cases the payee is HERE’S A CLOSER LOOK AT THE PROS AND
also charged a fee. CONS OF SPENDING WITH CREDIT CARDS.

Credit Card Build Credit History

- CREDIT CARD USE IS REFLECTED ON
A CREDIT CARD IS A CARD ISSUED BY YOUR CREDIT REPORT. THAT
A FINANCIAL INSTITUTION, TYPICALLY A INCLUDES POSITIVE HISTORY, SUCH
BANK, AND IT ENABLES THE CARDHOLDER AS ON-TIME PAYMENTS AND LOW
TO BORROW FUNDS FROM THAT CREDIT UTILIZATION RATIOS, AS
INSTITUTION. CARDHOLDERS AGREE TO PAY WELL AS NEGATIVE ITEMS SUCH AS
THE MONEY BACK WITH INTEREST, LATE PAYMENTS OR DELINQUENCIES.
ACCORDING TO THE INSTITUTION’S TERMS. YOUR CREDIT REPORT INFORMATION
CREDIT CARDS ARE ISSUED IN THE IS THEN USED TO CALCULATE YOUR
FOLLOWING VARIETY OF CATEGORIES: CREDIT SCORES. RESPONSIBLE
SPENDERS CAN RAISE THEIR SCORES
WITH A HISTORY OF EXPENDITURES
 AND TIMELY PAYMENTS AND BY DIFFICULT TO KEEP UP WITH MONTHLY
KEEPING THEIR CARD BALANCES PAYMENTS AND STRAIN YOUR BUDGET.
LOW RELATIVE TO THEIR CARD
LIMITS. Credit Score Impacts
- PAYING YOUR BILL ON TIME AND
WARRANTY AND PURCHASE KEEPING BALANCES ON CREDIT
PROTECTIONS CARDS LOW CAN HELP YOUR FICO
- SOME CREDIT CARDS MAY ALSO SCORES. HOWEVER, MISUSING CREDIT
PROVIDE ADDITIONAL WARRANTIES CARDS COULD HURT YOUR CREDIT
OR INSURANCE ON PURCHASED HISTORY IF YOU GET INTO THE HABIT
ITEMS THAT GO BEYOND THOSE THE OF PAYING LATE, MAX OUT ONE OR
RETAILER OR BRAND IS OFFERING. IF MORE OF YOUR CARDS, CLOSE DOWN
AN ITEM BOUGHT WITH A CREDIT OLDER ACCOUNTS, OR APPLY FOR
CARD BECOMES DEFECTIVE AFTER NEW CREDIT TOO OFTEN.
THE MANUFACTURER’S WARRANTY
HAS EXPIRED, FOR EXAMPLE, IT IS Interest and Fees
WORTH CHECKING WITH THE CREDIT - BECAUSE A CREDIT CARD IS
CARD COMPANY TO SEE IF IT WILL ESSENTIALLY A SHORT-TERM LOAN,
PROVIDE COVERAGE. OR YOU MAY YOU’LL HAVE TO PAY BACK WHAT
HAVE PURCHASE AND PRICE YOU SPEND WITH INTEREST. THE
PROTECTION BUILT IN TO HELP YOU INTEREST RATE AND THE FEES THE
REPLACE ITEMS THAT ARE STOLEN OR CREDIT COMPANY CHARGES ARE
LOST, OR REFUND PRICE USED TO CALCULATE YOUR ANNUAL
DIFFERENCES WHEN THE ITEM YOU PERCENTAGE RATE (APR). THE
PURCHASED IS SOLD ELSEWHERE FOR HIGHER THE CARD’S APR, THE MORE
LESS. IT WILL COST YOU TO CARRY A
BALANCE FROM MONTH TO MONTH.
FRAUD PROTECTION
- CREDIT CARDS OFFER MUCH Debit Card
GREATER PROTECTION THAN DEBIT - A debit card is a payment card that makes
CARDS IN MOST CASES. AS LONG AS payments by deducting money directly from a
THE CUSTOMER REPORTS THE LOSS consumer’s checking account, rather than on
OR THEFT IN A TIMELY MANNER. loan from a bank. Debit cards offer the
convenience of credit cards and many of the
Cons same consumer protections when issued by
major payment processors such as Visa or
THE MAIN DRAWBACKS OF USING CREDIT Mastercard.
CARDS INVOLVE DEBT, CREDIT SCORE - There are two types of debit cards that do not
IMPACTS, AND COST. require the customer to have a checking or
savings account, as well as one standard type.
SPENDING CAN LEAD TO DEBT
- WHEN YOU MAKE PURCHASES WITH A 1. Standard debit cards draw on your bank
CREDIT CARD, YOU’RE SPENDING THE account.
BANK’S MONEY, NOT YOUR OWN. THIS 2. Electronic benefits transfer (EBT) cards are
MONEY HAS TO BE REPAID, WITH INTEREST. issued by state and federal agencies to allow
AT THE VERY LEAST YOU’RE REQUIRED TO qualifying users to use their benefits to make
MAKE THE MINIMUM PAYMENT DUE EACH purchases.
MONTH. RACKING UP HIGH BALANCES ON 3. Prepaid debit cards give people without
MULTIPLE CARDS COULD MAKE IT access to a bank account a way to make
 electronic purchases up to the amount that BANK’S ATM. CREDIT CARDS,
was preloaded onto the card. ON THE OTHER HAND, CAN
CHARGE A CASH ADVANCE FEE
Pros PLUS A STEEP INTEREST RATE
1. Avoid Debt FOR THAT CONVENIENCE. YOU
- A DEBIT CARD DRAWS ON MAY, HOWEVER, PAY OTHER
MONEY THE USER ALREADY FEES TO MAINTAIN YOUR
HAS, ELIMINATING THE CHECKING ACCOUNT
DANGER OF RACKING UP DEBT.
RETAILERS KNOW PEOPLE Cons
USUALLY SPEND MORE WHEN
USING PLASTIC THAN IF THEY 1. No rewards
WERE PAYING CASH. BY USING - UNLESS YOU HAVE A REWARDS
DEBIT CARDS, IMPULSIVE CHECKING ACCOUNT, YOU
SPENDERS CAN AVOID THE WON'T EARN ANY POINTS,
TEMPTATION OF CREDIT AND MILES, OR CASH BACK ON
STICK TO THEIR BUDGET. THIS PURCHASES MADE WITH YOUR
CAN HELP KEEP YOU OUT OF DEBIT CARD. BECAUSE
HIGH-INTEREST DEBT. REWARDS CAN SAVE YOU
2. Fraud Protection MONEY, DEPENDING ON HOW
- IN ADDITION, SOME DEBIT YOU REDEEM THEM, YOU
CARDS—PARTICULARLY THOSE COULD BE MISSING OUT IF YOU
ISSUED BY PAYMENT ONLY SPEND WITH A DEBIT
PROCESSORS, SUCH AS VISA OR CARD.
MASTERCARD—ARE STARTING 2. Won’t Build Credit
TO OFFER MORE OF THE - BUILDING GOOD CREDIT
PROTECTIONS ENJOYED BY MEANS DEMONSTRATING TO
CREDIT CARD USERS. LENDERS THAT YOU CAN
- THE KEY IS REPORTING FRAUD RESPONSIBLY REPAY THE
OR THEFT AS SOON AS YOU MONEY YOU BORROW. WHEN
REALIZED IT HAS OCCURRED. YOU’RE SPENDING WITH A
YOUR LIABILITY FOR DEBIT CARD THAT’S LINKED TO
FRAUDULENT PURCHASES IS YOUR BANK ACCOUNT, YOU
DETERMINED BY THE TIME DON’T HAVE THE OPPORTUNITY
FRAME IN WHICH IT’S TO DO THAT, SO USING A DEBIT
REPORTED. WAITING TOO LONG CARD ALONE WON’T HELP YOU
TO LET THE BANK KNOW THAT ESTABLISH OR BUILD A CREDIT
YOUR CARD HAS BEEN USED HISTORY.
FOR UNAUTHORIZED
PURCHASES COULD RESULT IN Fees
YOU BEING HELD RESPONSIBLE - THOUGH DEBIT CARDS DON’T HAVE
FOR SOME OR ALL LOSSES. ANNUAL FEES, YOU MAY PAY OTHER
FEES TO HAVE A CHECKING ACCOUNT.
3. No annual fee THOSE CAN INCLUDE MONTHLY
- THOUGH MANY CREDIT CARDS MAINTENANCE FEES, OVERDRAFT
CHARGE AN ANNUAL FEE, FEES IF YOU OVERSPEND FROM YOUR
DEBIT CARDS DON’T. THERE’S ACCOUNT, RETURNED ITEM FEES,
ALSO NO FEE FOR AND FOREIGN ATM FEES IF YOU USE
WITHDRAWING CASH USING YOUR DEBIT CARD AT ANOTHER
YOUR DEBIT CARD AT YOUR
 BANK OR FINANCIAL INSTITUTION’S -When a purchaser pays for a money
MACHINE. order, it comes with a receipt that includes the
serial number of the money order.
Credit Card vs. Debit Card -This information should always be
CREDIT CARDS AND DEBIT CARDS kept until the purchaser is certain the money
TYPICALLY LOOK ALMOST IDENTICAL, order has cleared.
WITH 16-DIGIT CARD NUMBERS, EXPIRATION -Without a receipt, tracing a money
DATES, AND MAGNETIC STRIPS AND EMV order can be difficult or even impossible.
CHIPS. BOTH CAN MAKE IT EASY AND 3. Advantage of Money Order
CONVENIENT TO MAKE PURCHASES IN -Does not include personal
STORES OR ONLINE, WITH ONE KEY information
DIFFERENCE. DEBIT CARDS ALLOW YOU TO -The recipient can cash the order at a
SPEND MONEY BY DRAWING ON FUNDS YOU local bank or credit union.
HAVE DEPOSITED AT THE BANK. CREDIT -can also be deposited into a bank
CARDS ALLOW YOU TO BORROW MONEY account for free.
FROM THE CARD ISSUER UP TO A CERTAIN -can be issued in one country and be
LIMIT IN ORDER TO PURCHASE ITEMS OR cashed in another country.
WITHDRAW CASH. 4. Disadvantage of Money Order
-can be more difficult to track than a
● CREDIT CARDS GIVE YOU ACCESS TO personal check—to find out whether the
A LINE OF CREDIT ISSUED BY A BANK, money order has been cashed, for example,
WHILE DEBIT CARDS DEDUCT MONEY can require forms and take weeks.
DIRECTLY FROM YOUR BANK -Cashing the money order can incur a
ACCOUNT. fee.
● CREDIT CARDS OFFER BETTER -There may be a delay in getting the
CONSUMER PROTECTIONS AGAINST funds if they are cashed at a bank other than
FRAUD COMPARED WITH DEBIT the issuer.
CARDS LINKED TO A BANK ACCOUNT. - can be fraudulent
● NEWER DEBIT CARDS OFFER MORE 5. Electronic Transfer
CREDIT CARD–LIKE PROTECTION, -The most popular form of electronic
WHILE MANY CREDIT CARDS NO funds transfer is a direct deposit.
LONGER CHARGE ANNUAL FEES. -Other examples:
● WHEN COMPARING CREDIT CARDS ATMs.
WITH DEBIT CARDS LINKED TO A • Online peer-to-peer payment apps
BANK ACCOUNT, IT’S IMPORTANT TO like PayPal and Venmo.
CONSIDER THE FEES AND BENEFITS. • Pay-by-phone systems.
• Wire transfers.
- Business Ethics and Social Responsibility • Online or mobile banking. •
1. Money Order Electronic checks.
-is a certificate, usually issued by a 6. Types of Electronic Transfer
government or banking institution
-It allows the stated payee to receive
cash on demand. a. Electronic Check
-A money order functions much like a -In this payment, a digital check is generated
check. upon the payer’s authorization.
-first issued by American Express in 1882 - E-checks are commonly used for vendor
and later became popularized as traveler's payments.
checks. b. Direct Deposit
2. HOW MONEY ORDER WORK? -funds are automatically deposited into an
account with little to no paperwork.
 - This method is popular among employees. -The low effort aspect is a financial benefit
c. Phone Payments when it comes to time spent, but it also means
-This is a casual transaction, and it occurs employees can concentrate on larger issues since the
during a phone call. details are taken care of through electronic
- Usually the payee will supply their automation.
information, typically a card number, to the recipient
over the phone. Bank Draft
-The transaction will happen on the A bank draft is a negotiable instrument where
recipient’s line. payment is guaranteed by the issuing bank. A bank
d. ATM TRANSACTIONS draft is a convenient and secure instrument for
-A global convenience, ATM transactions making large payments without having to withdraw
occur at electronic kiosks found throughout cities and cash from one’s account. Bank drafts are guaranteed
banks all over the world. In this case, a person is by financial institutions and can be used by
withdrawing cash from their bank account by individuals to make payments to third parties.
inserting their debit card into a machine, which will
transmit information to the bank, and then process
the request to dispense money. It is an instant
transaction.
e. Card Transactions
-This can be in person or online, and entails
the swipe, dip, or entry of a card, during which
account information is electronically received and a
payment withdrawal is approved, then the payment is
scheduled and processed within a day or two.
f. Internet Transactions
-The internet version of tapping, swiping, or
inserting a card involves manual entry into a point of
sale field, followed by clicking a payment button.

7. Are Electronic Transfers Safe?

-One of the best features of the EFT is its
security.
-While transmitting over the internet always
involves an element of risk, EFT is generally
considered a safer method of payment than a
traditional paper check.
-The best way to ensure a tamper-free EFT is
to use companies that you know and trust, or come
from a reliable source in the case of a
recommendation

8.WHAT ARE THE BENEFITS OF

ELECTRONIC TRANSFER?
-When it comes to payment, EFT has a lot to
offer.
-All types of EFT are fast and reliable, and
they don’t require much work on either end of the
transaction.
-This means EFT is a cost-effective solution
so businesses save money.