|
|
|
Home::ECommerce
Which e-Currency Should You Use?
Author : Simon Minister
by Matthew Glanfield, DXTrainers
With the recent problems that we have been seeing with IntGold
and other online currencies I have decided to address the issue
of which e-Currencies are good to use.
The main difficulty in talking about this is that working with
e-Currencies is not easy as they are constantly changing in many
ways.
We can easily see this with PayPal. As they grew they had to adopt new
rules and regulations to protect themselves and also those using
their services. Like any credit card company they have to deal with
fraud and other legal issues on a daily basis.
We see the same in banking. Banks need to have strict security
in all that they do in order to secure themselves and their
customers.
e-Currencies are no exception to this rule. In fact,
e-Currencies probably have to deal with more problems as they
work only with the Internet, which is probably one of the
biggest sources of fraud.
In the past we have seen e-Currencies fail: Notably those that
have been with
target=_blank>DXInOne for more than a year will know of the
infamous Evocash and the problems it caused when it shut down.
Now we are seeing similar problems with IntGold, although I
cannot say what their fate will be.
So how do you choose a good e-Currency?
The problem here is that all you can see is the website from
which the e-Currency operates. A good web designer can make even
the smallest of operations look like a large corporation.
Instead of judging by appearances we will consider the
following to be important when choosing an e-Currency:
1. Security
What does the e-Currency provide in terms of security? Simply
having a secondary password is not enough as key loggers can
easily bypass even them.
Questions to ask about security would be: Do they use a virtual
keyboard (like DXInOne)? Do they have more than one password to
remember (like IntGold or NetPay)? Do they have some sort of
hardware that you can purchase to increase your security (like
e-Bullion)? Do they require you to verify your identity to
prevent fraud (like PayPal and DXInOne)?
The more security measures that the e-Currency business takes the more secure that you can
feel when dealing with them.
However, security is not enough.
2. Customer Service
This is where the one or two man businesses will fail in
comparison to those providers that have real resources. Test out
their customer service by emailing them a simple question.
How long does it take them to respond? While customer service
doesn't necessarily give you a proper guage on a company alone
(DXInOne is still working on theirs...), it will help you to
feel more comfortable when dealing with the e-Currency.
This is important because illegal issues such as fraud or theft
do happen to people's accounts. No matter how secure an
e-Currency is it is still possible to lose money from theft or
fraud. The company's customer service is key in resolving these
matters quickly so that you lose the least amount possible.
3. Liquidity
This is a question on how easily you can exchange the funds in
this e-Currency for another. Any good e-Currency will allow you
to easily withdraw your funds, and not just to another account.
E-Bullion
has been great for this. I request a check for the amount in my
account and I have it delivered within two weeks, and that is to
another country! PayPal's option to outxchange right to your
bank account is quick and efficient.
Liquidity is a sign of healthiness in an e-Currency, and should
be considered as well. This is one of the main reasons that
DXGold is not yet used by a lot of companies in their online
transactions - their outxchange times are far too slow right
now.
Conclusion
In the end each of these factors alone will not give you enough
to determine if an e-Currency is any good, but combined they
will give you a healthy picture of how the company is working.
Always be careful when dealing with online transactions - there
is a lot of risk involved, more than most companies are willing
to tell you. Do not trust any e-Currency with a large amount of
funds until you have tested them out with smaller amounts.
e-Currency is the way of the online future. Choosing the right
one for you is as important as choosing the right bank.
Related articles
|
|
|
