BUS607 Discussion 1 Week 4 Negotiability

Negotiability

Smartphone-based payment system risks

A smartphone-based payment system is a wallet or software that enables users to transfer between products and services with a built-in camera. This camera will either be used for security purposes to verify the person’s identity before sending their money, or it may be used for marketing purposes. There are many reasons why this option might seem more convenient than carrying a traditional wallet; it is simple and easy to carry around, it does not require significant effort to use, and its small size allows for easy storage. The convenience of smartphones as payment systems leads some people to believe that these devices provide much greater security than carrying a physical wallet. However, this does not necessarily seem to be the case. The main problem with smartphones as payment systems, like most traditional wallets, is their lack of protection from outside threats (Gerbaix,2017). If the phone is lost or broken, a thief could take it and use it as a wallet. There are also other risks, such as the possibility of having unauthorized access to additional sensitive information on the device (such as email accounts or social network profiles) and viruses that can be installed on the phone without being detected.

Phone-based payment systems are prone to viruses and malware because phones have a lot of processing power and connecting devices. Although it is possible to create software that protects your smartphone wallet by encrypting all data, viruses will always find a way in. When viruses enter your phone, they can read your data and steal your money. Also, many viruses can affect your phone’s operating system, so you can no longer use it to make payments. The virus will always be a problem even if you do not lose all of your money. Therefore, it would be better to stick with an older payment method, like swiping a card through an ATM or using cash for purchases.

Smartphone-based payment system requires extra measures for security, which can be hectic to manage, especially for beginners. What you need to secure your phone, apps on the phone and account information are Unique passwords for all charges (and make them lengthy), sign up for two-step authentication wherever available, and update software and apps as soon as possible after the release of new versions, don’t unlock your phone while at work or anywhere else where there are strangers around (Gerbaix,2017). You will also need to update your phone with the latest patches released by the developer. If you want to use your phone or tablet in a public place, you will also need to take measures against fraud and loss of money. Some of the steps that one can take in these areas are: Change the PIN code regularly, enable fingerprint when available (you can block it if it bothers you), disable the “find my phone” feature if available, and move all necessary information about card details and account numbers into secured files on a PC as an additional safety layer, store some funds in an offline wallet for quick use in case of emergencies. Some of these processes require the owner to recall their passwords and usernames whenever they want to login into their account. This can be tiresome and draining to some point.

A hacker who can access your app or social media account could gain a great deal of information about you and possibly use it for personal gains, such as marketing or identity theft. Even if this doesn’t happen, you must be confident that the information is secured on your phone before handing it over to prevent potential risks. Another risk would be that your information is stored on the phone in some capacity, whether in the RAM or on a microSD card (Andreev,2018).

Phones are also vulnerable because people generally don’t secure their phone as well as their wallets because most think it’s not important enough (Andreev,2018). This has become a very relevant issue since the launch of Apple Pay, Google Wallet, and other mobile payment services, which are now available on most new smartphones. These new products force consumers to choose between convenience and security. New technologies will be a part of our daily lives for many years, but as we all know, things can always go wrong. Users will have to practice caution when using mobile payment systems and focus on keeping their phones safe from damage or theft. People are ignorant of the fact that we are constantly raising our level of awareness pertaining to technology and its potential threats. We could have prevented so many security issues if consumers had better knowledge of mobile payment system risks, like who should use it, how it works, and why they should pay attention to security in the first place.

Factors that do not affect negotiability

UCC is legislation by which the Contracting States have agreed to abide by. It is the Uniform Commercial Code that tackles the different aspects of business transactions.

The factors that the UCC has established that do not affect negotiability are:

·         The law of the jurisdiction where the contract was made-it does not affect negotiability because it only determines if a state can enforce a contract on an individual living in that state, not if a canceled or unenforceable contract can be enforced against them.

·         Third-party rights-it does not affect negotiability because it only concerns third parties and their rights are extra to any transaction between two people

·         The law of the place for payment of goods sold-it does not affect negotiability because it only refers to where goods are to be paid for and does not affect the negotiation between a buyer and a seller.

This is because they are factors that do not directly affect the terms of a contract, such as payment deadlines, rather they concern the rights and interests of individuals in relation to how they can use the goods or services that have been purchased. Some people do not think that these points are valid reasons to say that these factors do not affect negotiability. The reason is that if you were buying something online, then there would be no need for any third parties or rights (McCarthy,2020). The UCC states that contract terms cannot be altered, so if you were buying something without reading the terms and conditions, you have accepted that they do not affect the negotiations of your contract.

The policy as to why these factors do not affect negotiability is due to the fact that it makes business contracts more understandable and less complicated to negotiate with another person or company (McCarthy,2020). If these points did affect negotiability, then the complexities of a contract would be more confusing to negotiate as you could then take into account various other factors that could make your contract more complicated.

References

Andreev, P., Pliskin, N., & Rafaeli, S. (2018). Drivers and inhibitors of mobile-payment adoption by smartphone users. International Journal of E-Business Research (IJEBR), 8(3), 50-67.

Pasquet, M., & Gerbaix, S. (2017, February). Instant payment versus smartphone payment: The big fight. In 2017 Third International Conference on Mobile and Secure Services (MobiSecServ) (pp. 1-3). IEEE.

McCarthy, M. (2020). Factors affecting negotiation. Using learning contracts in higher education, 32-36.