Author Question: Write a paragraph in which you outline the benefits of the U.S. Check 21 ... (Read 119 times)

james0929 · **on:** Jul 7, 2018

Write a paragraph in which you outline the benefits of the U.S. Check 21 law.

Question 2

Write a paragraph in which you outline the differences between smart cards and other types of payment cards.

Alyson.hiatt@yahoo.com · **Reply #1 on:** Jul 7, 2018

Answer to Question 1

The Check Clearing for the 21st Century Act (usually referred to as Check 21) permits banks to eliminate the movement of physical checks entirely. Today, retailers can scan a customers check. The scanned image is transmitted instantly through a clearing system and posts almost immediately to both accounts (that is, the withdrawal from the customers account and the deposit to the retailers account occur instantly), eliminating any float on the transaction.

Answer to Question 2

A smart card is a plastic card with an embedded microchip that can store information. Smart cards are also called stored-value cards. The microchip can also include a tiny computer processor that can perform calculations and storage operations right on the card. Most credit, debit, and charge cards currently store limited information on a magnetic strip. A smart card can store more than 100 times the amount of information that a magnetic strip plastic card can store. A smart card can hold private user data, such as financial facts, encryption keys, account information, credit card numbers, health insurance information, medical records, and so on.