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63-487: Payment systems are used in lieu of tendering cash in domestic and international transactions. This consists of a major service provided by banks and other financial institutions. Traditional payment systems include negotiable instruments such as drafts (e.g., cheques) and documentary credits such as letters of credit . With the advent of computers and electronic communications, many alternative electronic payment systems have emerged. The term electronic payment refers to

126-598: A cash payment in retail costs an average of 24 euro cents, while payments with a girocard cost 30 cents (or often 0.3 to 0.4% of sales plus a transaction fee) and with a credit card charge one euro which is included in the sales price. This is why retailers often refuse to accept card payments below a minimum amount. Depending on the account model, there are also booking costs for the account holder with an average of 35 euro cents charged for each(!) account posting. Because of this convenient source of income, commercial banks and credit card companies favor cashless payments. In

189-575: A combination of such motives, with the precautionary motive of preserving value and anonymous payment being decisive. Due to its unique characteristics, there is no perfect substitute for cash. Demonetisation or capital control can destabilize the economy if electronic means of payment are not readily available (e.g. 2016 Indian banknote demonetisation ). Cash in circulation is characterized by strong seasonal fluctuations. Wage and salary payment dates, tax payment dates or holidays lead to statistically perceptible increases in cash in circulation, for which

252-496: A fairly complicated decision and is analyzing the pros and cons and working to determine under which conditions it may make sense to, one day, issue a digital currency. As a threat, a central bank digital currency could increase the risk of a run on the banking system. Also in 2012, Sveriges Riksbank , the central bank of Sweden, was reported to analyze technological advances with regard to electronic money and payment methods for digital currency as an alternative to cash. In 2019, it

315-436: A global scale, but there are still many country-specific and product-specific systems. Examples of payment systems that have become globally available are credit card and automated teller machine (ATM) networks. Additionally, forms exist to transfer funds between financial institutions. Domestically this is accomplished by using Automated clearing house (ACH) and real-time gross settlement (RTGS) systems. Internationally this

378-402: A high level of technical effort and generates immense amounts of data. It would combine the disadvantages of payment methods, the somewhat cumbersome nature of cash from the offline world and the lack of anonymity of electronic money from the online world. In addition, in most countries, personal tracking of payment transactions is not permitted for the reasons of information privacy . There are

441-488: A large-scale power blackout or shutdown of the communication network. Therefore, central banks and governments are increasingly driving the sufficient availability of cash. The US Federal Reserve has provided guidelines for the continuity of cash services, and the Swedish government is concerned about the consequences in abandoning cash and is considering to pass a law requiring all banks to handle cash. Digital currency

504-402: A maximum-level player-character admiral. The term is also used in the field of environmental engineering , particularly to describe construction or renovation projects on previously built sites, to improve water quality in nearby streams , rivers or lakes . The concept has also been applied to changing the output mix of energy from power plants to cogeneration in urban areas with

567-460: A national economy. Such failures can result in inefficient use of financial resources, inequitable risk-sharing among agents, actual losses for participants, and loss of confidence in the financial system and in the very use of money. The technical efficiency of the payment system is important for the development of the economy. An automated clearing house (ACH) system processes transactions in batches, storing, and transmitting them in groups. An ACH

630-449: A part of history from the very beginning of human existence. Barter and other methods of exchange were used to conduct a wide variety of trade transactions during this time period. Since the 1980s, the use of banknotes has increasingly been displaced by credit and debit cards, electronic money transfers and mobile payments , but much slower than expected. The cashless society has been predicted for more than forty years, but cash remains

693-797: A payment made from one bank account to another using electronic methods and forgoing the direct intervention of bank employees. Narrowly defined electronic payment refers to e-commerce —a payment for buying and selling goods or services offered through the Internet, or broadly to any type of electronic funds transfer . Modern payment systems use cash-substitutes as compared to traditional payment systems. This includes debit cards , credit cards, electronic funds transfers, direct credits , direct debits , internet banking and e-commerce payment systems . Payment systems may be physical or electronic and each has its own procedures and protocols. Standardization has allowed some of these systems and networks to grow to

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756-688: A secondary meaning ' money ' . This secondary usage became the sole meaning in the 18th century. The word cash comes from the Middle French caisse ' money box ' , which comes from the Old Italian cassa , and ultimately from the Latin capsa ' box ' . In Western Europe, after the fall of the Western Roman Empire , coins, silver jewelry and hacksilver (silver objects hacked into pieces) were for centuries

819-477: A very small part of the money supply. Its remaining role is to provide a form of currency storage and payment for those who do not wish to take part in other systems, and make small payments conveniently and promptly, though this latter role is being replaced more and more frequently by electronic payment systems . Research has found that the demand for cash decreases as debit card usage increases because merchants need to make less change for customer purchases. Cash

882-519: A warfleet. The Japanese Momi class from the interwar period, for example, was converted from destroyers to patrol boats in 1939, as they were no longer capable enough to serve in the role of destroyer. Other times classes are retrofit because they are no longer needed in warfare, due to changes in tactics. For instance, the USS ; Langley was an aircraft carrier converted from a collier (coal-carrying ship to supply coal-fired steamships with fuel) of

945-408: Is current assets comprising currency or currency equivalents that can be accessed immediately or near-immediately (as in the case of money market accounts ). Cash is seen either as a reserve for payments, in case of a structural or incidental negative cash flow or as a way to avoid a downturn on financial markets. The English word cash originally meant ' money box ' , and later came to have

1008-654: Is a RTGS system that covers the European Union member states which use the euro . It is part of the Eurosystem , which comprises the European Central Bank and the national central banks of those countries that have adopted the euro. TARGET2 is used for the settlement of central bank operations, large-value Euro interbank transfers as well as other euro payments. TARGET 2 provides real-time financial transfers, debt settlement at central banks which

1071-418: Is a generic term for various approaches to support secure transactions of the public or using a distributed ledger , like blockchain , as a new technology for decentralized asset management. The blockchain 1.0 era has enabled the application of virtual digital currencies in the marketplace, such as money transfer and payment systems. It considers establishing an electronic version of the national currency which

1134-512: Is accomplished by correspondent banking (possibly using the SWIFT network) or a more centralised system like the CLS settlement system . An efficient national payment system reduces the cost of exchanging goods, services, and assets. It is indispensable to the functioning of the interbank, money, and capital markets. A weak payment system may severely drag on the stability and developmental capacity of

1197-431: Is also an important part of climate change mitigation and climate change adaptation : because society invested in built infrastructure, housing and other systems before the magnitude of changes anticipated by climate change . Retrofits to increase building efficiency , for example, both help reduce the overall negative impacts of climate change by reducing building emissions and environmental impacts while also allowing

1260-531: Is also observed in many other currency areas, e.g. in the United States and Japan . Theoretically, it is possible to track cash usage by capturing the unique serial numbers on the banknotes during transactions. To do this, the serial numbers would have to be recorded personally for all withdrawals from automated teller machines (ATM) and for each payment transaction at a retail checkout, including change. In practice, such comprehensive tracking requires

1323-426: Is backed by the central bank as the issuer. Virtual currency is a digital representation of value that is neither issued by a central bank or a public authority, such as Bitcoin . Facebook's concept for the diem is based on a token to be backed by financial assets such as a basket of national currencies. In 2012, Bank of Canada was considering introducing digital currency. Meanwhile, it rates digital currency

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1386-496: Is considered a net settlement system, which means settlement may be delayed. This poses what is known as settlement risk . Real-time gross settlement systems (RTGS) are funds transfer systems where the transfer of money or securities takes place from one bank to another on a "real-time" and on "gross" basis. Settlement in "real time" means that payment transaction does not require any waiting period. The transactions are settled as soon as they are processed. "Gross settlement" means

1449-607: Is defined as: "any work to a building over and above maintenance to change its capacity, function or performance' in other words, any intervention to adjust, reuse, or upgrade a building to suit new conditions or requirements". Refurbishment can be done to a part of a building, an entire building, or a campus. Sustainable refurbishment takes this a step further to modify the existing building to perform better in terms of its environmental impact and its occupants' environment. Most sustainable refubrishments are also green retrofits: any refurbishment of an existing building that aims to reduce

1512-427: Is higher volumes of payments—in terms of both currency value and number of transactions. This is also leading to a consequent shift downwards in the average value of these payments. The ways these payments are made can be cumbersome, error prone, and expensive. Payments systems set up decades ago continue to be used sometimes retrofitted , sometimes force-fitted—to meet the needs of modern corporations. And, frequently,

1575-511: Is immediate and irreversible. For users of these systems, on both the paying and receiving sides, it can be difficult and time-consuming to learn how to use cross-border payments tools, and how to set up processes to make optimal use of them. Solution providers (both banks and non-banks) also face challenges cobbling together old systems to meet new demands. For these providers, cross-border payments are both lucrative (especially given foreign exchange conversion revenue) and rewarding, in terms of

1638-561: Is increasing in circulation. The amount of the United States dollar in circulation increased by 42% from 2007 to 2012. The amount of pound sterling banknotes in circulation increased by 29% from 2008 to 2013. The amount of euro in circulation increased by 34% from August 2008 to August 2013 (2% of the increase was due to the adoption of euro in Slovakia 2009 and in Estonia 2011). In economic theory (according Keynesian economics ),

1701-538: Is investigating whether Swedish krona need to be made available in electronic form, the so-called e-krona, and if so, how it would affect Swedish legislation and the Riksbank's task. It has started procuring a technical supplier to develop and test solutions for a potential future e-krona. No decisions have yet been taken on issuing an e-krona. An analysis by the Deutsche Bundesbank in 2017 found that

1764-774: Is retrofitting a 3-way valve into a 2-way valve, which results in closing one of the three openings to continue using the valve for certain industrial systems. Retrofitting can improve a machine or system's overall functionality by using advanced and updated equipment and technology—such as integrating Human Machine Interfaces into older factories. Car customizing is a form of retrofitting, where older vehicles are fitted with new technologies: power windows , cruise control , remote keyless systems , electric fuel pumps , driverless systems , etc. Trucks and agricultural machines can also be given retrofits to make them driverless. Many naval vessels have undergone retrofitting and refitting, sometimes entire classes at once. For instance,

1827-415: Is still the primary means of payment (and store of value) for unbanked people with a low income and helps avoiding debt traps due to uncontrolled spending of money. It supports anonymity and avoids tracking for economic or political reasons. In addition, cash is the only means for contingency planning in order to mitigate risks in case of natural disasters or failures of the technical infrastructure like

1890-509: Is the addition of new technology or features to older systems. Retrofits can happen for a number of reasons, for example with big capital expenditures like naval vessels, military equipment or manufacturing plants, businesses or governments may retrofit in order to reduce the need to replace a system entirely. Other retrofits may be due to changing codes or requirements, such as seismic retrofit which are designed strengthening older buildings in order to make them earthquake resistant. Retrofitting

1953-478: Is usually more centralized than before, the potential for abuse increases. On the other hand, the cash transactions are anonymous, unless purchasing profiles are recorded with the help of loyalty programs based on customer cards, and keep the payment landscape competitive. In August 2023, Chancellor of Austria Karl Nehammer came out in support for enshrining cash in the Austrian constitution . This came after

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2016-636: The Balkan area and Kievan Rus also used marked silver bars for large payments. As the world economy developed and silver supplies increased, in particular after the colonization of South America, coins became larger and a standard coin for international payment developed from the 15th century: the Spanish and Spanish colonial coin of 8 reales . Its counterpart in gold was the Venetian ducat . Coin types would compete for markets. By conquering foreign markets,

2079-626: The Banque Royale . The relation between money supply and inflation was still imperfectly understood and the bank went under rendering its notes worthless, because they had been over-issued. The lessons learned were applied to the Bank of England , which played a crucial role in financing the Peninsular War against French troops, hamstrung by a metallic Franc de Germinal. The ability to create paper money made nation-states responsible for

2142-494: The European Central Bank (ECB) therefore requires to check the authenticity of deposited and withdrawn banknotes at bank counters and ATMs using tested devices and to trace the origin of suspected counterfeit banknotes to the account holder and physically seize it. Cashless society can be defined as one in which all financial transactions are handled through "digital" forms (debit and credit cards) in preference to cash (physical banknotes and coins). Cashless societies have been

2205-623: The Freedom Party of Austria campaigned on the idea. In 2023, The Swiss government supported moves to have a constitutional protection for cash. This came after a popular initiative asked for it. In June 2023, The Slovakian parliament voted with the support of 111 of 150 MPs to put the right to use Cash in the Constitution of Slovakia . The amendment was proposed by the Sme Rodina party. Retrofit Retrofitting

2268-647: The New Threat Upgrade program of the US Navy saw many vessels retrofitted for improved anti-air capability. Naval vessels are often retrofit for one of three reasons: to incorporate new technology, to compensate for performance gaps or weaknesses in design, or to change the ship's classification . Militaries of the world are often ardent adopters of the latest technology, and many technological advances have been spurred by warfare, especially in fields such as radar and radio communications. Because of this, and

2331-621: The carbon emissions and environmental impact of the building. This can include improving the energy efficiency of the HVAC and other mechanical systems, increasing the quality of insulation in the building envelope , implementing sustainable energy generation, and aiming to improve occupant comfort and health. Principally retrofitting describes the measures taken in the manufacturing industry to allow new or updated parts to be fitted to old or outdated assemblies (like blades to wind turbines). Retrofitting parts are necessary for manufacture when

2394-589: The 13th century, Marco Polo was amazed to find that people traded paper money for goods rather than valuable coins made of silver or gold. He wrote extensively about how the Great Kaan used a part of the Mulberry Tree to create the paper money as well as the process with which a seal was used to impress on the paper to authenticate it. Marco Polo also talks about the chance of forgery and states that someone caught forging money would be punished with death. In

2457-441: The 17th century, European countries started to use paper money in part due to a shortage of precious metals, leading to fewer coins being produced and put into circulation. At first, it was most popular in the colonies of European powers. In the 18th century, important paper issues were made in colonies such as Ceylon and the bordering colonies of Essequibo , Demerara and Berbice . John Law did pioneering work on banknotes with

2520-606: The Crown, the coins, having received royal sanction, were struck as silver rupees; the inscription runs "The rupee of Bombaim", by the authority of Charles II. Around that time, coins were also being produced for the East India Company at the Madras mint. The Tamil the word for money is kaasu, which may have been modified into 'cash'. Both words, 'kaasu' and 'cash', have the same meaning, unlike money box. The currency at

2583-740: The Jupiter-class. Because of the heavy use of retrofitting and refitting, fictional navies also include the concept. As an example, in the Star Trek MMORPG Star Trek Online players can purchase retrofitted ships of famous Star Trek ship classes, such as those crewed by the protagonists of the Star Trek TV series. This is done to allow players to pilot iconic ships from old series of the show, that wouldn't naturally be latest-and-greatest ships due to their obsolescence or size, but are retrofitted to be suitable for

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2646-407: The building to be more healthy during extreme weather events. Retrofitting also is part of a circular economy , reducing the amount of newly manufactured goods, thus reducing lifecycle emissions and environmental impacts. Sustainable refurbishment describes working on existing buildings to improve their environmental performance using sustainable methods and materials. A refurbishment or retrofit

2709-585: The case of cashless payment transactions, in addition to the documentation of the payment itself, the personal details of the payer are usually linked to the data of the payee according to the Know Your Customer (KYC) principle. This enables the payment process to be precisely traced for the payer and the payee. The constant increase in digitization leads to a more detailed recording of cashless payment transactions and their evaluation for advertising and marketing campaigns. Since this digital documentation

2772-564: The cash holding of cash (especially sight deposits) is roughly attributed to three motives: The transactions motive covers the business needs of economic subjects, the precautionary motive serves to hold money for liquidity purposes and to provide for crisis situations, and the speculation motive, according to John Maynard Keynes , results from the uncertainty about future interest rate developments and relates to financial investments. In addition to this purely economic importance, there are other aspects of cash use: In practice, there may be

2835-687: The cash in circulation in relation to the gross domestic product (cash to GDP ratio) is a good indicator of cash usage and payment behavior in an economy. In countries like the United States, increased use of debit and credit cards is increasing the amount of cash in circulation at a slower rate than in countries with a high amount of cash payments. In 2018, it ranged from 1.3% (in Sweden ) to more than 21% (in Japan), 10.5% in Switzerland and 10.7% in

2898-599: The company's Bombay and Bengal administrative regions was the rupee. At Madras, however, the company's accounts were reckoned in pagodas , fractions , fanams , faluce and cash . This system was maintained until 1818 when the rupee was adopted as the unit of currency for the company's operations. Paper money was first used in China during the Tang dynasty 500 years prior to it catching on in Europe. During his visit to China in

2961-511: The credit institutions are preparing. Since cash holdings at banks do not earn interest and can also lead to security problems ( bank robbery ), banks usually only hold very small amounts of cash. They are therefore forced to involve the central bank in times of higher cash requirements. Therefore, the cash in circulation only remains unchanged if the banks hand over cash from their own cash holdings to their bank customers or take cash deposits from their customers into their own holdings. The ratio of

3024-454: The design of a large assembly is changed or revised. If, after the changes have been implemented, a customer (with an old version of the product) wishes to purchase a replacement part, then retrofit parts and assembling techniques will have to be used so that the revised parts will fit suitably onto the older assembly. Retrofitting is an important process used for valves and actuators to ensure optimal operation of an industrial plant. One example

3087-466: The eurozone. Since around 2018, exacerbated by the COVID-19 pandemic, cash in circulation in the eurozone has increased significantly while the share of cash payments (i.e. transactions) has decreased, known as the paradox of banknotes . Analyzes show that private households are increasingly keeping cash as a precaution against crises and that negative interest rates also play a role. This effect

3150-530: The following exceptions in cash applications: Since 2016, the People's Bank of China has requested the recording of banknotes issued and deposited at ATMs and bank counters, arguing that counterfeit money will be prosecuted. However, the serial number is not a reliable indicator, because counterfeit banknotes mostly use serial numbers from real banknotes in circulation. In addition, damaged or scribbled banknotes may cause reading errors . With Directive ECB/2010/14,

3213-514: The gold ducat and the gold florin were still issued as trade coins: coins without a fixed value, going by weight. Colonial powers also sought to take away market share from Spain by issuing trade coin equivalents of silver Spanish coins, without much success. In the early part of the 17th century, English East India Company coins were minted in England and shipped to the East. In England, over time

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3276-442: The issuing rulers would enjoy extra income from seigniorage (the difference between the value of the coin and the value of the metal the coin was made of). Successful coin types of high nobility would be copied by lower nobility for seigniorage. Imitations were usually of a lower weight, undermining the popularity of the original. As feudal states coalesced into kingdoms, imitation of silver types abated, but gold coins, in particular,

3339-705: The management of inflation , through control of the money supply . It also made a direct relation between the metal of the coin and its denomination superfluous. From 1816, coins generally became token money , though some large silver and gold coins remained standard coins until 1927. The World War I saw standard coins disappear to a very large extent. Afterward, standard gold coins, mainly British sovereigns , would still be used in colonies and less developed economies and silver Maria Theresa thalers dated 1780 would be struck as trade coins for countries in East Asia until 1946 and possibly later locally. Cash has now become

3402-412: The most widely used payment instrument in the world and on all continents. In 17 out of 24 studied countries, cash represents more than 50% of all payment transactions, with Austria at 85%, Germany at 80%, France at 68%. The United Kingdom at 42%, Australia at 37%, United States at 32%, Sweden at 20%, and South Korea at 14% are among the countries with lower cash usage. By the 2010s, cash was no longer

3465-409: The only form of money, until Venetian merchants started using silver bars for large transactions in the early Middle Ages . In a separate development, Venetian merchants started using paper bills , instructing their banker to make payments. Similar marked silver bars were in use in lands where the Venetian merchants had established representative offices. The Byzantine Empire and several states in

3528-468: The overall financial relationship created with the end customer. The challenges for global payments are not simply those resulting from volume increases. A number of economic, political, and technical factors are changing the types of cross-border transactions conducted. Such factors include: Cash In economics , cash is money in the physical form of currency , such as banknotes and coins . In bookkeeping and financial accounting , cash

3591-521: The preferred method of payment in the United States. In 2016, the United States User Consumer Survey Study reported that three out of four of the participants preferred a debit or credit card payment instead of cash. Some nations have contributed to this trend, by regulating what type of transactions can be conducted with cash and setting limits on the amount of cash that can be used in a single transaction. Cash

3654-495: The significant investment that a ship hull represents, it is common for retrofitting to be performed whenever new systems are developed. This may be as small as replacing one type of radio with another, or replacing out-dated cryptography equipment with more secure methods of communication, or as major as replacing entire guns and turrets, adding armor plate, or new propulsion systems. Other ships are retrofit to compensate for weaknesses perceived in their operational capabilities. This

3717-615: The systems creak and groan as they bear the strain. Examples of such systems include STEP2 (an upgrade from 2003), which processes only Euros, and TARGET2 (an upgrade from 2007), which is closed on Saturdays and Sundays and some public holidays. As of 2014, STEP2 is the only Pan-European automated clearing house (or PE-ACH system) in operation. This type of system is thought to become less relevant as banks will settle their transactions via multiple clearing houses rather than using one central clearing house. TARGET2 (Trans-European Automated Real-time Gross Settlement Express Transfer System)

3780-404: The transaction from debit of ordering customer's account to credit of beneficiary customer's account within a timeframe of 10–15 seconds. Globalization is driving corporations to transact more frequently across borders. Consumers are also transacting more on a global basis—buying from foreign eCommerce sites as well as traveling, living, and working abroad. For the payments industry , the result

3843-451: The transaction is settled on one to one basis without bunching or netting with any other transaction. Once processed, payments are final and irrevocable. Comparatively, ACHs are typically used for low-value, non-urgent transactions while RTGS systems are typically used for high-value, urgent transactions. Countries and regions have also implemented real-time or instant (or faster) payment systems which typically operate 24x7x365 and perform

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3906-473: The word cash was adopted from Sanskrit कर्ष karsa, a weight of gold or silver but akin to the Old Persian 𐎣𐎼𐏁 karsha, unit of weight (83.30 grams). East India Company coinage had both Urdu and English writing on it, to facilitate its use within the trade. In 1671, the directors of the East India Company ordered a mint to be established at Bombay , known as Bombaim. In 1677 this was sanctioned by

3969-538: Was the secondary purpose of the US Navy's New Threat Upgrade program, for instance. Major changes in doctrine or the art of warfare also necessitate changes, such as the anti-aircraft upgrades performed on many World War Two-era vessels as air power became a dominant part of naval strategy and tactics. Additionally, because of the investment a hull represents, few navies scrap front-line warships. Many times smaller ships are retrofitted for patrol, coast guard, or specialized roles when they are no longer fit for duty as part of

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