banking and online shopping (disadvantages)

There are disadvantages to using technology for banking as well as advantages.

If the connection from the shop to the bank goes down it means that no-one will be able to buy anything using their credit card. This means that the people will not be able to buy what they want and that the shop will not get as much money. Although a PIN is required to purchase something in a shop, only the card number is needed to purchase something online. This means that if a card is stolen the thief will not be able to use it in a shop but will be able to make purchases online. This means that the person who the card legally belongs to will lose a lot of money. If some-one reports a missing card to their bank it takes the bank a long time to sort it out. Also the bank will re-imburse people for stolen money provided the cartd is stolen. This can result in the bank having to pay out a ot of money which could lead to financial difficulties

Another problem with online banking is that there is now a lot of “virtual” money as well as real money. This is because a lot of companies now do all of their banking and business only. This could lead to problems such as hyperinflation when there is not enough real money to equal the value of the virtual money.

A major problem with ATMs and card readers is that people are hacking into and modifying them. This hack means that the reader records all information on the card and sends it to the hacker. This means that criminals can gain access to the information on a card without having to get hold of the actual card.

There are disadvantages to online shopping as well.

A common one is that when people are buying objects off other people via the internet the products are not in a good condition and possibly do not work as they are meant to. Another problem is that because the general public are setting the prices there is no standard for them to use. This means that some of the prices can be ridiculously high for the product.

A problem with making reservations over the phone is that it is possible for companies to double book an appointment. This means that there are 2 appointments booked for the same time. This can lead to problems as one person may not get the service they have reserved. This can be very annoying for the person and can make them stop going to that company. Sometimes if companies double book a person is given the service at another time free of charge. This is to try and keep the customers so they keep going to that business. However providing a service for free means that the company loses money when it is trying to gain money.