Consumers Union Policy Statement on Electronic Money and Banking Electronic technologies are changing the face of both banking and money. Banks are increasingly developing new channels for consumers to access banking services using home computers. These new approaches present important public policy questions about the impact of new ways to bank on those who, by choice or necessity, use existing branch-based banking structures. They also raise questions about the convenience, security, and cost of the new service for those who do use it.
Electronic money is a substitute for cash or checks when buying goods or services.
It may be issued by a private entity, which may or may not be a bank. Electronic money is emerging as an additional form of electronic payment. The balance on the card is debited from the card at a merchant's POS terminal when the consumer makes a purchase. The actual funds which the record on the card reflects are held in an account of the card issuer and paid out as the card is used. There are many types of stored-value card.