Hard Vs Soft Electronic Currencies
A hard electronic currency is one that does not have services to dispute or reverse charges. In other words, it only supports non-reversible transactions. Reversing transactions, even in case of a legitimate error, unauthorized use, or failure of a vendor to supply goods is difficult, if not impossible. The advantage of this arrangement is that the operating costs of the electronic currency system are greatly reduced by not having to resolve payment disputes. Additionally, it allows the electronic currency transactions to clear instantly, making the funds available immediately to the recipient. This means that using hard electronic currency is more akin to a cash transaction. Examples are TokenPay, Pecunix, Western Union, KlickEx and Bitcoin.
A soft electronic currency is one that allows for reversal of payments, for example in case of fraud or disputes. Reversible payment methods generally have a "clearing time" of 72 hours or more. Examples are PayPal and credit card.
A hard currency can be softened by using a trusted third party or an escrow service.
Read more about this topic: Electronic Money
Famous quotes containing the words hard, soft and/or electronic:
“If we would enjoy the most intimate society with that in each of us which is without, or above, being spoken to, we must not only be silent, but commonly so far apart bodily that we cannot possibly hear each other’s voice in any case. Referred to this standard, speech is for the convenience of those who are hard of hearing; but there are many fine things which we cannot say if we have to shout.”
—Henry David Thoreau (1817–1862)
“The thundering line of battle stands,
And in the air Death moans and sings:
But Day shall clasp him with strong hands,
And Night shall fold him in soft wings.”
—Julian Grenfell (1888–1915)
“Ideally, advertising aims at the goal of a programmed harmony among all human impulses and aspirations and endeavors. Using handicraft methods, it stretches out toward the ultimate electronic goal of a collective consciousness.”
—Marshall McLuhan (1911–1980)