background image
The following table gives an overview of some of the more commonly used electronic
payment systems:
250
IX TECHNOLOGY
Token-based
systems
NetCash
MilliCent
CyberCash
InstaBuy
NetBill
SET Secure
Electronic
Transaction
Description
NetCash, as all token systems, is real
electronic money. Distributed system of
currency servers.The Net Cash coin carries
the name of the issuing server and a specific
serial number.The system allows to
exchange e-currency for digital checks; here,
NetCash is embedded into a digital check.
A Japanese system and strong alternative to
Netcash.The system supports micropay-
ments (1/10th of a dollar), and therefore
would allow consumers to buy content by
the piece.The value unit is "Scrip", which
unlike real e-cash functions like a pre-paid
coupon that can only be used with specific
vendors.The system relies on brokers who
exchange Scrips from one particular vendor
against Scrips from other vendors. Custo-
mers can buy Scrips using a credit card.
Charges the client's credit card; allows
transactions with immediate payment
between seller/consumers through a
financial institution.Transactions are
performed by credit card.
A spin-off of Cybercash that deals with small
payments and micropayments.
Developed at Carnegie Mellon University.
System can handle micropayments and
carries our authentication, verifies credits,
controls access and records transactions.
Works with open protocols. Is used with
electronic goods only. Uses encryption and
digital signature; low transaction costs.
This standard was developed as a co-oper-
ation of the major credit card companies, in-
cluding Visa and MasterCard, after none of
the companies were successful in developing
their own proprietary standard. It works
slightly differently from the other notational
systems. Although uptake of the standard was
slow in the beginning, it is now more
commonly used.
Model
Direct cash-like payment
model with online
validation
Direct cash-like payment
model with semi-online
validation
Secure credit card
presentation notational
payment model with
online validation
Direct account-based no-
tational payment model
with online validation
Direct account-based no-
tational payment model
with online validation
Secure credit card
presentation notational
payment model with
online validation