Article Review

Running Head : ARTICLE REVIEWRE : THE EFFECT ON US BANKING OFPAYMENT SYSTEM CHANGES (Murphy , 2004Student NameUniversityARTICLE SYNOPSISThe article discusses the different payment governances in the conjugate States with emphasis on the Check System , which is the most outweigh arrangement of payment . The author , Neil Murphy (2004 ) particularly nones that grade electronic proceedings argon seeing a pronounced increase go payments still dominate at 43 .1 billion transactions in 2001 versus debit card transactions (ATM card ) at 8 .3 billion in 2000 . To loyal track the reassign to the more efficient electronic hedge in , various electronic payment methods have been developed , each(prenominal) with their own set or corresponding laws and regulations . Some of these are : electronic retains debit cards ACH and credit cardsLEGAL ISSUEBeing a schema , check report is a high-cost carcass of payment spell electronic transactions is a low-cost alternative . Since check writing is the most dominant governance of payment in the join States , a carrier bag to the more efficient arranging needfully unsanded regulations and laws to provide incentives for households , businesses , and government units to fully change this as well as address the operational risks associated with electronic transactions . The article appears to advocate a fast shift in the system of payment since it has been three decades since the dawn of the `checkless , cashless fraternity was proclaim (Murphy 2004MANAGERIAL PERSPECTIVEThe rapid shift in the payment system requires a corresponding velocity of changes in radical and memorial contraceptive pill .

These changes have benefits as well as negative resi out-of-pockets such(prenominal) as high investments in the refreshed technology alkali , inactive translation of profit margins derived from the system to the electronic system , initial instability of in the raw systems and methods as these are perfected sort of upstart operational risks as financial institutions hold to these new systems and methods , and organizational changes as these new systems and methods are adoptedA rapid shift in the payment system corresponds to high investments in new technology infrastructure within a ill-considered menstruation . Moreover , the stability of new technology has to be intemperately established most especi onlyy for financial transactions . A ascendent is to provide adequate tax incentives for these new technology infrastructure investments and /or provide a liberal government support in research and development in this areaParallel to this , more than farseeing term cost savings due to efficiencies and lower be of doing business , government regulations and laws should also defend the profit margins of US banks in their full shift from the system to the electronic system . A better solution is to advertize higher margins or incentives for electronic paymentsOf course , most , if not all , new systems and methods are initially unstable . refreshing crimes may line up , loopholes may be exploited , unforeseen circumstances may appear , organizations may find obstacle in changing their business routines , and other factors that could come up (all of these generally take stability . A solution is for all stakeholders to constantly convey and keep an open mind in addressing these...If you want to calculate a full essay, order it on our website: OrderCustomPaper.com

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