Académique Documents
Professionnel Documents
Culture Documents
3 types
Cash or real-time
Debit or prepaid Credit or postpaid
Four dimensions
Nature of transaction for which the instrument is designed Means of settlement Approach to security, anonymity, and authentication Question of risk
Small payments
Payments of less than $10
Properties of E-cash
E-cash must have a monetary value. E-cash must be interoperable. E-cash must be storable and retrievable. E-cash should not be easy to copy or tamper while being exchanged.
In cryptography, a blind signature, as introduced by David Chaum, is a form of digital signature in which the content of a message is disguised (blinded) before it is signed.
Double Spending
Spending a particular piece of electronic cash twice by submitting the same electronic currency to two different vendors. By the time the same electronic currency clears the bank for second time, it is too late to prevent the fraudulent act. Encryption techniques used to prevent double spending.
Payer
Transfer digital cash
Payee
Bank
Database of spent notes
Electronic Check
Another form of electronic tokens An e-Check is an electronic transfer of funds in which the money is taken from a bank account, typically a checking account. The account's routing number and account number are used to draw funds from the account. e-Checks can clear much faster than written checks.
Electronic Check
Payer
Transfer electronic check
Payee
Deposit check
Bank
Accounting Server
Cryptography
Public key cryptography (E-cash)
When X wants to send a secure message to Y, he uses Y's public key to encrypt the message. Y then uses private key to decrypt it.
NetCheque
A prototype electronic check system Developed at the Information Sciences Institute of the University of Southern California. Registered users may write checks to other registered users through e-mail or other network protocols. When the check is deposited, it authorizes the transfer of funds from the issuer's account to the receiver's account. All information is kept on a netcheque server, which is responsible for keeping accounts for customers, approving payments, and making the necessary changes in client accounts. Security wise, Netcheque uses Kerberos for signature authentication, and it uses conventional cryptography, not public key cryptography.
Mondex
Smart card that holds and dispenses electronic cash Introduced in 1990 and now part of MasterCard International Can accept electronic cash directly from a users bank account Card carries real cash in electronic form
Risk of theft may deter users from loading it with very much money
Mondex (Continued)
Steps in using a Mondex card to transfer electronic cash from buyer to seller 1. 2. 3. 4. 5. Card user inserts Mondex card into reader Merchants terminal requests payment Customers card checks merchants digital signature Merchants terminal checks customers just-sent digital signature for authenticity Once electronic cash is deducted from the cardholders card Same amount is transferred into the merchants electronic cash account
Electronic Wallets
Hold credit card numbers, electronic cash, owner identification and contact information
Give consumers the benefit of entering their information just once Make shopping more efficient
eScrip, National Scrip Center and Scrip.com focus on not-for-profit fundraising market.
Credit card
Visa or MasterCard
Has spending limit based on users credit history
Credit Card
Debit Card
- Removes amount from cardholders bank account - Transfers it to sellers bank account
Charge Card
Merchant Server
OpenMarket www.openmarket.com
First Virtual www.fv.com
Customers might feel that all this record keeping is an invasion of privacy
Exercise
How debit card is different from credit card? Discuss the various Electronic Payment Systems. What are electronic cheques ? How they are different from traditional cheques? How electronic purses work? What are smart cards? How electronic checks are differ from credit card? How On-line third-party processors (OTPPs) differ from electronic token system?