Debit cards are often used to access electronic money.
Electronic money is one of the instruments that can be used to carry out paperless transactions. Paperless transaction is a term used to describe financial exchanges that do not involve the physical exchange of currency. Instead, the monetary amount is credited and debited electronically. Often referred to as electronic money or digital money, this financial instrument is commonly used to carry out transactions at a distance, such as those between parties on the Internet and those between parties in different countries.
Debit card machines allow customers to make purchases using their debit cards.
E-money can be a financial instrument created and used within a private system, much like frequent flyer miles. However, in most cases, e-cash is equivalent to paper money and can therefore be exchanged between individuals or spent on any types of goods or services that a person wants to purchase. This financial instrument played an important role in the growing popularity of telecommuting, which is an arrangement that allows people to work together in distant places.
Digital currency could allow a freelancer in India to get paid for work they did for a contractor in Canada. This is possible due to a currency exchange system whose principle is similar to that of money transfer. When a person uses a cabling service, they usually present cash or have cash withdrawn from an account.
The value of that money is then credited to someone else elsewhere. Paper money that the sender presents or that is withdrawn from his account is not physically sent and delivered to the recipient. Electronic money is exchanged in a similar way. One big difference, however, is that transactions can often be conducted without a live intermediary.
People involved in electronic money transfers can never acquire paper money. They can receive their funds electronically and they can use them electronically. This does not mean, however, that it is impossible to obtain paper money from electronic money.
In many cases, electronic money can be converted into paper money quite easily. This is possible because e-cash is normally held in an account that can be accessed in a variety of ways. For example, many have debit cards that can be used at ATMs. Sometimes, a person may request that all or part of the money held electronically be made available by check.
Electronic money has several advantages. One is that it eliminates the apprehension that many people feel about carrying and exchanging paper money. Another advantage of electronic money is that it is usually easily converted to another currency, making international travel and business substantially easier.