N-GEN Communications Web-based Seminars ©NGCS

Seminar - An Overview of Communications Technologies

Module 6 - Internet, Intranet, Extranet, e-Commerce and Web Services                                      Slide 39 of 70 _________________                                                                                  __________

                                       Electronic Payment Systems

                                            Millicient 

                                            NetBill

                                            Mondex

                                            eCash

                                            CyberCash

_________________                                                                                  __________

There are many payment systems in use around the globe, with various means of handling authorization and settlement.

Millicient - This system was developed by Digital Corporation in 1997. It uses a "Scrip Broker" model for accumulating small transactions into large amounts for processing. In a "Scrip Broker" model Brokers buy "Scrip Like stamps" at discount from vendors. A consumer gets Scripps from a broker. An individual consumer has an account with one broker whereas vendors have accounts with multiple brokers. When a purchase is made, scrips change hands from consumer to vendor. The system does not provide audit trails or receipts.

NetBill - This system was developed at Carnegie Mellon university. A NetBill server maintains accounts for each vendor and customer. All server accounts are linked to the account holder's financial institution account. When a consumer requests information, say an article, from a vendor, NetBill acts as a middle man. The information is transmitted to the consumer. he consumer's account is debited and the vendor's account is credited. NetBill server acts as an aggregator and once the funds reach a reasonable amount, the transaction takes place.

Mondex - A smart card system

eCash - A bearer certificate system developed by DigiCash, based in Amsterdam. A consumer issues blank tokens by using DigiCash Purse software and sends these token to his bank for certification. The bank certifies the tokens, debits the consumer's account and sends certified tokens to the consumer to store on his/her hard disk. Now consumers can make purchases with these tokens. Before accepting these tokens as payment vendors require verification from the bank. The vendor's account is credited after a successful transaction.

CyberCash - CyberCash provides electronic payment process services to financial institutions worldwide. CyberCash provides consumers three options: Credit Card, Electronic Cheques and Electronic cash, CyberCoin. The Credit Card payment option accepts payments from Visa, MasterCard, American Express and Discover. The Electronic Cheques option allows cheque processing over the Internet. Customers open account with CyberCash and transfer funds to this account. Payments are made from this account for the electronic cheques. The CyberCoin option allows purchases from 25 cents to 10 dollars. Subscribers buy coins from a traditional financial institution and their value is hold in escrow by CyberCash.

CyberCash provides CyberCash Wallet software free to consumers through financial institutions. on-line service providers and Internet software companies. This software operates on major operating systems including Windows, MacOS and OS/2 and is compatible with major Web browsers. A Merchant software is available to the financial institutions like banks. It runs on most server hardware and software. A Gateway Software interfaces with the bank's system. It is designed to handle credit card authorizations and electronic fund transfers. It provides strict security for transactions.