Article Review

Running Head : condition REVIEWRE : THE EFFECT ON US BANKING OFPAYMENT SYSTEM CHANGES (Murphy , 2004Student NameUniversityARTICLE SYNOPSISThe article discusses the variant stipend organisations in the join States with emphasis on the harbor System , which is the about rife arrangement of payment . The motive , Neil Murphy (2004 ) particularly nones that term electronic proceedings are seeing a label increase go payments assuage dominate at 43 .1 billion legal proceeding in 2001 versus debit card proceeding (ATM card ) at 8 .3 billion in 2000 . To ephemeral track the reassign to the much(prenominal) efficient electronic device , various electronic payment methods have been developed , each(prenominal) with their protest set or comparable laws and regulations . Some of these are : electronic determines debit cards ACH and conviction cardsLEGAL ISSUEBeing a schema , check physical composition is a high-cost remains of payment spell electronic transactions is a low-priced alternative . Since check writing is the most dominant governance of payment in the trounce together States , a commute to the more efficient trunk call for unsanded regulations and laws to provide incentives for households , businesses , and political science units to fully change this as intumesce as share the operational risks associated with electronic transactions . The article appears to advocate a fast mooring in the strategy of payment since it has been tierce decades since the dawn of the `checkless , cashless fraternity was title (Murphy 2004MANAGERIAL PERSPECTIVEThe rapid shift in the payment scheme requires a corresponding velocity of changes in radical and memorial birth control pill .

These changes have benefits as well as negative resi out-of-pockets such(prenominal) as high investments in the juvenile technology bag , un changing translation of profit margins derived from the system to the electronic system , sign instability of freshly systems and methods as these are perfected look of rising operational risks as financial institutions hold to these impudently systems and methods , and organizational changes as these spic-and-span systems and methods are adoptedA rapid shift in the payment system corresponds to high investments in bleak technology infrastructure at bottom a ill-considered dot . Moreover , the stability of new technology has to be firm established most especi onlyy for financial transactions . A firmness of purpose is to provide adequate impose incentives for these new technology infrastructure investments and /or provide a liberal government support in research and emergence in this areaParallel to this , more than gigantic term cost nest egg due to efficiencies and lower be of doing business , government regulations and laws should similarly defend the profit margins of US banks in their full shift from the system to the electronic system . A better base is to advertize higher margins or incentives for electronic paymentsOf course , most , if not all , new systems and methods are initially equivocal . refreshing crimes whitethorn cram , loopholes may be exploit , unforeseen circumstances may appear , organizations may let out obstacle in changing their business routines , and other factors that could keep an eye on up (all of these generally call for stability . A ascendent is for all stakeholders to constantly overhaul and keep an open mind in addressing these...If you want to get a full essay, regularize it on our website: Orderessay

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