Electronic Money Transfer Essay

Electronic Fund Transfer appears for many as the next logical step in advanced electronic and computing technology, having the potential to become the money of the future, electronic fund transfer (ETF) has caught the eyes of entrepreneurs, IT professionals, computer scientists and economists.

ETF is in two commercial products, the card-based and software-based. This research emphasis on ETF is from the software perception. This specialized software that has been extensively researched and experimented is designed to enable the means of transferring money locally from one point to another.

This requires the transfer of money between parties via electronic system that have been fashioned to do so.

This project aims at the convenience of the transfer of funds and to develop specialized software, which will enable the secured and detailed transfer of funds.

CHAPTER ONE

1.1Background of Study
A simple and cost effective means of transferring money locally from one point to another, with emphasis on the design of a program (software).

Electronic Money (E-Money) may be broadly defined as an electronic store of monetary value on a technical device that may be likely used for making payments to undertakings other than the issues without necessarily involving bank accounts in the transaction, but acting as a prepaid bearer instrument (European Central Bank, 1998). In other words, Electronic Money is money that cannot be touched (cashless) or held (paperless) but can be transacted on line. These products could be classified into two broad categories.

a.Software-based Products
b.Card-based Products

Software-based Products: employs specialized software on a personal computer, typically allowing the electronic value to be transferred.

Card-based Products: these are prepaid stored value card sometimes called “electronic purse”. Electronic value stored on a plastic card with a chip/magnetic strip.

The main difference between the card-based products are certain aspects of technical security features and the storage medium of the electronic money however, there are also similarities in both cases the user has to pay in advance for the value stored as electronic money units, which can then be used for payment purposes. In the processor memories and during transfers between them, the electronic money is represented by an encrypted string of bits. It initializes through devices or codes that let you or those authorized to do so. Electronic money differs from other existing forms of money in various ways. In comparison with cash, which uses only physical security features, electronic money products use cryptography to authenticate transactions and to protect the confidentiality and the integrity of data. Electronic money no longer needs to be physically exchanged like bank notes and thus can be more easily used for remote payments.

1.2Objective of Study

It is known that several method of transfer of funds have been used to deal with the features of e-money, unfortunately these techniques have proven to be unsafe in their transactions.

As a contribution to the success of globalization, the use of this program would provide a secured and easy flow of transfer of funds conveniently.

1.3Significance of Study

The success of most software project development is determined if there is a secured and accurate transfer of funds, which can only be achieved if the right software programs are used and the right information made.

The study shows how to design a cost effective software program as an easy way for the flow of money transfer.

1.4Scope of Study

This study will be concentrating on the way money is transferred from one point to another, using specialized software installed on a personal computer.

1.5Limitation of Study

One of the limitations of this study is getting information from relevant sources that operate the transfer of funds. Other limitations include time interval and financial constraint.

1.6Research Methodology
The information used for this study was through the following research methodology.
•Internet
Different papers and publications were downloaded from the internet, which aimed in making the work a success.
•Textbooks on Programming Language
Some textbooks on programming language were also used as a source of information.