Description and Evaluation of 
Different Types of 
E-Payment Systems 1999-2005
- for the e-commerce students of
Prof. Tim Richardson
witiger.com is the largest web site of course information by any prof teaching at the college or university level in Canada

updated 2015 Jan 23

m
 

WTGR at a "Lab" meeting with one of 
his grandchildren
There are many challenges to creating content and updating web pages on an active teaching site like witiger.com. One challenge is the question of what to do with a category of content that has been eclipsed by newer technologies.

When i (WTGR) first started talking about e-commerce payment systems in 1999, many of the things we take for granted today (Jan 2013) like PayPal (invented in 1999, acquired by eBay in 2002) had just started to become popular.

Now in early 2013 a definite trend confirmed is that the majority of access to web content, especially shopping sites, is through smartphones and other mobile devices such as small tablets, e-readers and netbooks.

Therefore, in a sense, all e-payment systems are m-payment systems and subsequent developments will be discussed on the page 
 witiger.com/ecommerce/mcommercepayment.htm
 
If you are reading this in 2013, you are welcome to scroll through the content below, but please be advised that many parts of it need updating from 2006
.

see also  www.witiger.com/ecommerce/paymentmatrixPayPal.htm
 
INTRODUCTION This matrix was created for the purpose of better explaining to, and discussing with, e-commerce students, the basics of e-payment systems. 

We looked for a similar matrix on the web but could not find anything close to explaining all the various payment systems within an annotated structure

There is a small matrix at www.backe.com/epssum.html but it is dated 1996 and has no indications of being updated. www.backe.com/epssum.html checked again in March 2003, and October 2003 - the site still up, but it was  not updated.

There is a very long alphabetically ordered list of payment systems at the web site of Networks and Telecommunications  Research Group, Department of Computer Science, Trinity College Dublin. We consider this list to be a great resource, however each entry has just one hyperlink to the main page of each system, leaving it to the browser to read further.  In 2002 - the specific page on payment systems had been taken down. Dr Phillip M. Hallam-Baker has a page at  http://www.w3.org/ECommerce/roadmap.html on e payment systems but I have no idea of how up-to-date it is. "A Bibliography of Electronic Payment Information" can be found at  http://robotics.stanford.edu/users/ketchpel/ecash.html assembled by Stanford University. Scott Richards, and MBA student did a good site at  http://www.tec.informatik.uni-rostock.de/IuK/lehre/settlement-seminar/InternetPayment.html but it is dated 1996 and no longer working.

So, because there was a lack of a simple source of information on the different e-payment system, we decided to build our own page, and have kept it updated these past few years.

The learning objectives of this section is that when the student has finished reading this material, and clicking on the links [that work] they will be able to 

  • know the various components of an e-payment system
  • understand that there are many system competing
  • know the names of some of the leading contenders
  • anticipate which system might see market dominance in the future
  • understand the basics of what an e-payment system needs to be competitive


WTGR 2003 Oct 01

.
KEY
POINTS
This is the type of subject which is "challenging" to teach because the "players" change often and technical innovations occur frequently - sometimes between semesters 
 
"Implementation of electronic payment systems is in its infancy and still evolving. The technical, economic, cultural, and legal components of EPS are not fully understood" *

Chpt 7, "Electronic Commerce" by Gary Schneider and James Perry

It is the responsibility of the student to use the info on this page as a basic guide, and then use various e-media sites to see what is the current status of the payment systems mentioned, and check for new developments.

By 2003 there has been a Darwinian "winnowing out" of some of the systems that cannot make it and some systems have gathered a lot of momentum. Furthermore, the credit card companies are putting a lot of research into competing in this field so that they end up participants and not observers. It seems fairly soon that something will breakthrough and we will have one or two dominant players emerge - however by the time of last updating this page in early Oct 2003 (and 2006), that player is not easy to identify.

WTGR

.
 
Before we get into a presentation of the features of e-commerce payment systems, read the article to the right which features an interview given by Prof. Richardson in August 2004 re: the challenges in developing payment systems for mobile commerce (m-commerce). http://www.witiger.com/ecommerce/articleEpayments1266x811.jpg
.
2 most common payment methods The 2 most common payment methods on the internet today (2004) are
  • Phone in orders: "Many companies are only using the Web as a billboard for the company and its products. If a person wants to order an item they are given a 1-800 number to call. An operator processes the order just as if the customer saw an advertisement on TV or in a magazine. "
  • Credit card orders: "Customer use a web based CGI form to fill out their order information and provide their credit card number. Netscape 2.0 introduced Secure Sockets Layer (SLL)technology to protect the card numbers. Users are often advised if they are using an older browser that does not have SLL built in, to phone in their order. Still, many people are very concerned about internet security and are reluctant to send their gold card numbers with their $5000 credit limit into cyberspace." 
from Scott Richards at http://www.tec.informatik.uni-rostock.de/IuK/lehre/settlement-seminar/InternetPayment.html
.
Challenges  Challenges of Internet Payment Systems
  • "The biggest challenge for Electronic Payment Systems is finding customers and vendors who are willing to risk investing in a product that is currently in its introduction stage. This has created is a chicken and egg effect. Banks/software companies can't get customers without vendors, and they can't get vendors without customers."
  • "Security factors are perhaps the biggest deterrent for individuals interested in making on-line purchases. Most people fear giving their credit card numbers, phone numbers or addresses not knowing who will be able to retrieve that information without their consent. It is interesting to note that most people don't even give it a  second thought when purchasing items with a credit card over the phone, but to ask them to do it from their PC  makes them very uncomfortable. New developments in credit card security Secure Electronic Transaction (SET)  are taking this fear away by adding encryption to scramble the card so only the vendor and customer can read it. "
  • "Privacy is a significant factor in some of the payment schemes. Cyberpunks feel that privacy is paramount. However, the public has become comfortable with credit cards and debit cards. Private cash has a potential market, but it may not be as large as people today are thinking."
from Scott Richards at http://www.tec.informatik.uni-rostock.de/IuK/lehre/settlement-seminar/InternetPayment.html
Challenges  student Rajeeve Ganeshalingam in MGD415 at UTM in March 2006 emailed to say

In your class regarding e-payment systems you talked about a cashless society.  I ran into this article today, http://www.pulse24.com/Business/Top_Story/20060328-001/page.asp,
It is regarding a couple who ordered a $4.33 combo from Burger King but were accidentally charged $4330 out of their debit account.  The funny thing is that they didn't even notice the money was taken out until a few days later when they went to make a mortgage payment and their was no money in the bank.  Burger King wanted to refund the money but Bank of America said there was a few days hold on the money so they wont get it back right away.  Eventually they did get their money back however, this article goes to show you some of the problems faced by a cashless society where money flows through wire and the importance of following up on your transactions regularly.

Rajeeve Ganeshalingam
 

KEY
POINT
Rajeeve's story is one of many that we could add to this page - suffice it to say that these types of stories are one of the main reasons why many people are still nervous about a cashless society since it is perceived that technology just causes bigger mistakes.

While technology can help things in many ways, it also means that people who use technology have to be more vigilant about mistakes that can be made since sometimes "digital errors" are not so obvious to spot as errors "in real life".

I would certainly notice the difference between handing the Burger King counter person a $5 bill compared to handing over $4330 in cash.

Our "witiger.com" matrix is designed to give "one glance" viewing of the main points of each system. It should be understood that it is "under construction" and we do not accept responsibility for people making business decisions as a consequence of reviewing this table.

A helpful list  http://www.verisign.com/products/payflow/glossary.html
An article about payment systems from www.indiawebdevelopers.com check
 www.indiawebdevelopers.com/articles/internet_payment_systems.asp
- thanks to Vithya Sivaparamananthan in BCS 555
 
E-Payment Systems Don't Fit All Marketplaces
Wenbin Li, in BCS 555 Oct 2004 
sent an email and said  "Hi prof., I found a article, which is "E-Payment Systems Don't Fit All  Marketplaces ". It talks about some problem about the e-payment, such as the disparity between the purchase-order price and the invoice price, it is important for the perishable-food business"
http://www.internetweek.com/indepth/indepth112000-3.htm
Charles Waltner, who wrote the original article, is a freelance computer journalist based in Seattle. He can be reached at  cwaltner@home.com

 
 
Dexit
 www.dexit.com
What the
customer does
What the
vendor does
Third party
involvement
Security Pros and Cons
founded in 2003 by
Ms. Renah Persofsky who used to work for Bank of Montreal

It is a small plastic tag like a key chain that you use to swipe and pay for small items

You pay Dexit a fee of $1.50 each time you add up to $100 to your Dexit account 

they hope to have 50,000 customers signed up by April 30, 2004.

You carry around a little plastic tag and swipe it to pay for small things like coffe.

"The tag contains a secure microchip, which corresponds to  a unique customer account. When it is tapped on a Dexit terminal, the tag securely communicates with the terminal using radio frequency waves. Once  the transaction is authenticated, the customer account is charged for the amount of the purchase. "

In downtown Toronto "Dexit is accepted by more than 40 downtown merchants from McDonald's to Taco Bell to PharmaPlus the coffee chains are getting the best buzz. Timothy's has embraced it heartily, while Second Cup is pleased with its pilot at Union Station."
 
 

 

working in conjunction with TD Canada Trust, National  Bank of Canada and TELUS Mobility  you only can spend $100 a day

No one can make purchases directly from your bank account using your tag.
                               Your Dexit account information is password protected..

There is no personal financial information stored on your Dexit tag. 
 

Con - not used for large puchases

Pro - easy to use for coffee, newspapers, small items - just swipe nd walk away - very fast - no punching in PIN numbers like a debit card
 

.
 
E-gold
 www.e-gold.com
What the
customer does
What the
vendor does
Third party
involvement
Security Pros and Cons
e-gold is an electronic currency, issued by e-gold ltd. a Nevis corporation, 100% backed at all times by gold bullion in allocated storage.

e-gold.com info provided by UTM student Brian Ng

Customer can open an account with a real or fake name.  Customer uses a credit card or wire transfer to fund the account with units of e-gold.  These units are then transferred to other e-gold accounts. The vendor/online merchant can set up an e-gold "Shopping Cart Interface" which accepts payment automatically and can be incorporated into business web programs. Omnipay.com, an affiliate of e-gold handles the conversion of conventional
currency into e-gold.
All transactions are on-line with access requiring account number, passphrase, Turing number, and IP address confirmation
Transactions are settled immediately, records are maintained on dedicated servers, data integrity is highly controlled, and all hardware and software has a strong back-up and continuity program
cons e-gold has the perception of being linked w/ crime
pros
payments clear instantly
remain anonymous
transaction fees are lower then credit cards and bank wire transfers.
.
UseMyBank
 www.usemybank.com
What the
customer does
What the
vendor does
Third party
involvement
Security Pros and Cons
UseMyBank Services, Inc. is based in Toronto. Founded by Joseph Iuso in July 2002.

UseMyBank is the first online payment provider to enable consumers to purchase items on the Web using their existing bank or credit union.
 

 "When a consumer is ready to check out at one of our Internet merchant sites they can choose credit or debit. If they decide to pay by debit, they scroll down and choose their online"
Iuso
. To complete the transaction, UseMyBank uses GPAY of Edmonton, one of 4,000 billers in Canada with direct biller access with Canada's big banks. . .

 
 
 
Mondex
What the
customer does
What the
vendor does
Third party
involvement
Security Pros and Cons
still active and growing in late 2002
(in 2003, the site down)
only 16,000 customers in its first 18 months in Guelph.
Mastercard acquire full ownership of Mondex in 2001

Mondex is electronic
cash that takes the form of a plastic card, like a debit card or credit card, which stores the value of money electronically on a microchip
 www.mondex.com
(this URL not working Oct 2003)

uses the MULTOS  smart card platform which is MasterCard's preferred operating system for multi-application smart cards
Guelph, Ontario
1996 - 1998
Brampton, Ontario
1997 - 1999
Toronto, Ontario
1996 - ongoing
Saskatchewan
1997 - 1998

The customer obtains a card and then deposits cash into it.The custo-
mer would also need an electronic wallet to read the card or to make
P2P (Person to Person) transfers. Special phones that read the cards would allow transfers over long distances.This would effectively bring the ATM to any home or public phone.

Purchases made with
Mondex incur no
transaction fees. 

Bank fees apply when withdrawing from ATMs

Vendor acquires 
right to collect payment using Mondex and obtains necessary hardware

No central processing 
fees are incurred by the vendor.
 
 

 

Mondex is not
directly involved in
the transaction but
it provides and
maintains the
system (ie.Licenses cards and hardware, ...)

Interac collects a fee when using a Mondex card at electronic cash machines at the store

Mondex uses the
most current chip 
technology to prevent
forgery. Furthermore,
Value Transfer Proto-
cal and other forms
of cryptography are
used to make it more
secure than ATM
transactions. Also,
there are no numbers
visible on the card,
they are password
protected and a lost
card can be cancelled
Security
If a card is lost or stolen the value is lost, just as it would be lost if you dropped a bank note.  Banks  incentivise the return of cards to their rightful owners (where capabilible of being identifieid), something which could never happen with money.
Advantages
- it can carry up to
five different currencies
- the transfer of money
between indivduals is
done without the use
of banks of other third
party involvement
- money can be spent
immediately by vendors

Disadvantages
The credit card companies can identify
the consumers, how
much was purchased
and the merchant
Mondex is private but not public
(UofT Information Policy
Research Paper)
 

.
. What the
customer does
What the
vendor does
Third party
involvement
Security Pros and Cons
NetCheque

www.netcheque.com
electronic checks 
electronic tokens
post-paid mechanism

been around since 1995

"developed at the Information Sciences Institute of the University of Southern California. At present the implementation is a research prototype"

  • Register with a 3rd party account server. 
  • The payer's digital signature is used to create an order to a bank computer that authorizes fund transfer to the merchant's bank.
  • Non-commercial and small-scale use only.
  • Like a paper check, a NetCheque payment

  • instrument bears an electronic signature, and must be endorsed by the payee, using another electronic signature, before the cheque
    will be paid. 
  • The merchant presents the information to  the accounting server for authentification.
  • Offer the software for download.
  • The accounting server verifies the digital signature on the check. 
  • Developed by Univ. of Southern California.
  • The system is based on the Kerberos security software system.
  • Reliability and scalability are provided by using multiple accounting servers. 
  • Conventional cryptography.
  • Pros
  • Fast check processing.
  • Eliminates stolen checks before deposits
  • Funds are moved within 48 hrs.
  • Licensing is royalty free

  • Cons
  • Not widespread.
  • Only good with other registered users.
  • Not for consumer use yet.
  • .
    http://www.paystone.com What the
    customer does
    What the
    vendor does
    Third party
    involvement
    Security Pros and Cons
    Paystone

     www.paystone.com
    provides the opportunity for website owners to accept micropayments as  low as $0.25 for their online content.

    This company founded by Chinese-Canadians and is Canadian run out of B.C.

    they began in 2001

    When consumers come to a site they click on the content they  want to purchase. They are then linked to a secure Paystone payment page.  The funds are instantly transferred from their Paystone account to themerchant. fees
     www.paystone.com/
    sell/entrepreneur
    _fees.php
    None uses 128 bit SSL encryption

    their security page

    Pro - accepts both US or Canadian currencies.
    .
     
    What the
    customer does
    What the
    vendor does
    Third party
    involvement
    Security Pros and Cons
    Checkfree
     www.checkfree.com
    provides online payment processing services to both large companies and individual users.
    Headquartered in  Atlanta, Georgia

    provided by Francis Ho

    in BCS 555 in Oct 2004

    the customer can receive and pay they're bills online, through they're financial institution. Anything from phone 
    bills, tv cable bills, school bills, etc. can be paid using this 
    system..
    they work with financial institutions and 
    organizations that issue regular bills or statements to give the 
    customer the ability to receive and pay bills online.
    .checkfree works with financial institutions and organizations that issue regular bills and statements. .checkfree is monitored by and works in conjuntion with the 
    same security that monitor major financial institutions. the 
    securities and exchange commision is one of those.

    -security issues: you are required to enter very confidential data 
    online and some people are scared that this info will not be safe over 
    the web.

    .pros- it's convenient because you can pay your bills anytime you want day or night. 
    -It works for any bills you pay like phone bills, cable bills, etc. 
    -partnered with major financial institutions for your convienience.
    -and of course it also saves you lots of time.

    cons- there is a small monthly charge for this service

    .
     
    What the
    customer does
    What the
    vendor does
    Third party
    involvement
    Security Pros and Cons
    Clickshare
    is an electronic cash system for the magazine and newspaper industry. Can be used for micropayments.
    website

    Clickshare FAQ
    Seetharam

    Users with an ISP that supports Clickshare are automatically registered with Clickshare. When they visit certain sites that have services, they can click on those services and can access - they will be billed later by the ISP, not the vendor. Clickshare enabled     content provider sites
     sell music, information
      and other digital
    objects. Content
    providers are paid by
    Clickshare. 
    Clickshare service providers are those like ISPs, cable providers, phone companies, etc. registered with Clickshare.

    The ISP, which has an account with the vendor, bills the user for their purchases, depending on what they click on.

    Users are protected as their credit card information is not required for purchases. Pros

    Make purchases without using credit card 

    Cons

    Limited to those service providers like ISPs registered with Clickshare.

    FSTC
    Financial Services
    Technology
    Consortium
    www.fstc.org

    electronic checks
    web site

    For the past year,(1999) echeck has been in active use for  U.S.Treasury payments in the United States, is under development in Singapore,

    Sept 2003 update - their website does not refer to e-payment developments

    can issue electronically and digitally sign a payment instruction and transmit over public networks

    check their page for "past projects"
    www.fstc.org/projects/

    universal industry standards
    FAQ
    a consortium of banks, computer co., govt, assocs. trying to develop a system independent of the hardware, software and financial service provider uses public-key cryptography provides rapid and secure settlement of financial obligations

    used by large and small, even where other electronic      payment solutions are too risky, or not appropriate

    Open Market
    Transact
    web site
    customer must interact with payment screen for every transaction merchant trasmits the credit card info. via leased line to payment server of Open market Open market acts as a 3rd party and provides reports & authentication to merchants . rules based fraud prevention that monitors CC black lists.
    Does not charge transaction fee
    . .
    .
     
    http://www.eCoin.net/ What the
    customer does
    What the
    vendor does
    Third party
    involvement
    Security Pros and Cons
    eCoin.Net
     www.eCoin.net
    eCoins are electronic tokens issued by eCoin.Net that can be used topay for online goods. Allows for micropayments.

    Note in  2002 says they are still an experimental site - checked them in April 2003 and many links not working

    related to
    paypal logo
    checked Sept 2003 - many links still not working

    Install the wallet software,eCoin Wallet Manager as browser plugin and download ecoins from his/her online account to wallet.
     

     


    Get embedded invoice tags from the Server(broker) and generate them in its HTML pages to enable the Wallet Manager. 
    The eCoin server operates as a broker that maintains and updates consumer and merchant accounts.It acts as both the"token issuer" and the "transaction handler" . Each online eCoin transaction is conducted through SSL and additional private encryption, which is a MIME type of application/x-ecoin, defined by eCoin.net). The hacking of URL is difficult because communication between Wallet and Server is encrypted.

    Chances of double spending are minimized.

    If there is any dispute about one transaction , lack of traceability will be a problem.

    .
     
    What the
    customer does
    What the
    vendor does
    Third party
    involvement
    Security Pros and Cons
    NetCoin
    KCOM, a subsidiary of Japan's KDD offers NetCoin through NetCoin Center which is supported by software called MilliCent
    Japanese users can download MilliCent  "scrip" (electronic currency) from KCOM's NetCoin Center, and use it to purchase low-cost digital contentsfrom stores in a KCOM-hosted virtual shopping Mall.

     

     * Millimeter cent contract charge: 10,000 Yen
    * Vendor server contract charge: 10,000 Yen
    * Vendor server utilization charge: 8,500 Yen
    * Contents server utilization charge (the KCOM server is utilized, Only when):
    With capacity 10 MB 15,000 Yen, in every 10 MB additions 10,000 Yen
    * Commission: in contents sale every of month specific magnification ratio power the amount
    Compaq, which has been conducting micro-commerce experiements worldwide, KCOM's MilliCent Islands virtual mall, which went online June 1, 1999, is the first commerical application of MilliCent Encryption ensures that scrip cannot be counterfeited, altered, stolen, or spent more than once. Ideal for the instantaneous online purchase of small-unit digital content, such as single newspaper article, an individual song, a digital photo or video clip, or game software.
    .
     
     
    MilliCent was developed by computer hardware company Digital - which is now part of Compaq
    - the old millicent site not working in 2003
    A Japanese user can purchase MilliCent scrip (with a credit card) from KCOM's NetCoin Center in units of 1,000 yen (CAD13.6). The scrip value is stored in the user's MilliCent Wallet, which can hold a maximim scrip value of 3,000 yen (CAD40.8).  The cost of a user's digital content downloads is automatically deducted from the MilliCent Wallet and credited to the merchant's account. . Each participating merchant sells its own scrip (self made currency) to a broker at a discount. Brokers receive payment from consumers who buy the scrip with a credit card. . .
    .
     
    What the
    customer does
    What the
    vendor does
    Third party
    involvement
    Security Pros and Cons
    Electronic Wallets
    Electronic Wallets (more commonly known as e-wallets) are free and easy to set up, and provide a safe storage place for credit card numbers, and personal information. The wallet allows consumers the ability to store information such as their name, address, payment information, etc. Wallets support many types of credit cards, digital cash, paper and digital checks, and purchase orders. 
     

    Derek
    Mark

    Through client software it allows the client to store credit card data on their own desktop to perform secure transactions over the Internet. no special programming required for Electronic Wallets to work. No involvement supports SET and uses encryption. Good for frequent online buyers.
    Forms are automatically completed when requested.
    Requires installation of software which may be beyond the capabilities of some clients. Requires entering credit information into a software which may be new to a client and as a result may cause the client to have a lack of trust.

    Links of interest:

    ZDnet: EWallet 

    Programmer Information

    .
     
     
    What the
    customer does
    What the
    vendor does
    Pros and Cons
    Microsoft Wallet
    came preinstalled in I.E. 4.0 and higher

    web site the old Wallet site is no connected to

    www.passport.net
    Microsoft claims since its launch in 1999, .NET Passport has become  one of the largest online authentication systems in the world, with more than 200 million accounts
    Martin, Sarkis
    Bart, Jessica

    It functions the same as other electronic wallets by automatically completing order forms when yourequest it to do so. listing of the merchant sites that accept Microsoft's system (called "Passport Wallet") All the personal data you enter is encrypted and password protected

    more details from their site

    .
     
     
     
    re: prepaid micropayments What the
    customer does
    What the
    vendor does
    Pros and Cons
    AT&T and
    Accenture
    April 2003
    AT&T has teamed with Accenture to launch what  it calls the AT&T PrePaid Web Cents service
    consumers  buy digital content using cards purchased in real-world retail outlets, including various convenience stores and gas stations.

    To use the Web Cents card, a consumer logs on to the content provider's Web site directly or through the AT&T PrePaid  Web Cents site. The consumer is prompted to enter the serial number and PIN printed on the back of the card to begin  purchasing digital content.

    Each content provider in the AT&T network has its own cards, which are good only on their sites. They're priced from  $9.99 to $29.99. Pre-paid weekly, monthly or annual subscriptions also will be made available.  This really is just another flavor of the merchant-specific gift card," said Rob Leathern, an analyst at Jupiter Research.
       "Already you can buy third-party gift cards (Nordstrom, Home Depot, etc.) at the supermarket, the only difference here is  that it will be specific to an online content company.
    .
    .
     
     
    The entities listed below are no longer active in Electronic Payment Systems
    .
     
    What the
    customer does
    What the
    vendor does
    Third party
    involvement
    Security Pros and Cons
    The entities listed below are no longer active in Electronic Payment Systems
    First Virtual
    web site
    3rd party authorization mechanism 
    electronic tokens
    post-paid 
    mechanism

    http://www.fv.com was not active in Jan 2000

    customer gets the product before paying for it 
    some say cumbersome email process

    (current information on First Virtual was not found in Jan 2000)
    (1998 article says First Virtual shed its on-line financial business to focus on interactive messaging)

    merchant gets a delayed payment through an automated clearing 
    house
    FV is involved in confirming the orders placed via encrypted emails with customers they keep detailed records but maintain customer anonymity 

    they DO NOT use encryption

    cumbersome email process
    .
    What the
    customer does
    What the
    vendor does
    Third party
    involvement
    Security Pros and Cons
    The entities listed below are no longer active in Electronic Payment Systems
    Digi Cash
    E-Cash
    web site
    electronic digital cash
    (filed for bankruptcy in since this table was first created)
    customers can use this to make micro-payments immediate payment; 
    little risk
    There is not a central system accumulating information on "where you buy", "when you buy", and "what you buy".  neither the bank nor the merchant can track consumer purchases difficult to prevent forgery - duplication of currency.
    Details
    .
     
    NetCash What the
    customer does
    What the
    vendor does
    Third party
    involvement
    Security Pros and Cons
    The entities listed below are no longer active in Electronic Payment Systems
    NetCash
    web site
    website was down when we checked March 2003
    mostly for info products under $100 
    requires correct change for each transaction. 
    Customer buys coupons
    merchants have choice of assuming risk and accepting "pending" coupons, or assuming no risk and accepting only "valid" coupons consumer buys coupons from NetCash neither bank nor merchant can track consumer purchases Exact change required or merchant needs to refund in coupons of exact denominatons
    variety of enominations on their hard drive. 
    delay in getting paid
    .
     
    What the
    customer does
    What the
    vendor does
    Third party
    involvement
    Security Pros and Cons
    Beenz  no longer active in Electronic Payment Systems
    Beenz
    www.beenz.com
    beenz closed their business in 2001, a month after competitor flooz closed
    Matthew, Eric
    Christine, I-Yin

    Customer must download software for collecting beenz and for checking account status. They must also agree to the terms and conditions of Beenz. 

    To earn beenz you must visit participating 
    websites. 

    Customer can use beenz for pruchases online or transfer credits (minimum b1,100) to Mastercard for regular purchases. 

    Customer enters password to make a purchase using beenz.

    Sponsor vendor rewards customers with beenz for visiting their website.

    Merchant of each vending site (+ Beenz itself) lets you download beenz software to collect beenz at participating web sites.

    Vendors accept beenz as payment for online shopping.

    Participating e-merchants who have an aggrement with beenz to offer you products and services. Head for beenzworld to find out where and on what you can spend them.

    Business and technology alliances include: Mondex, Mastercard, Oracle, Exodus communications, Kataweb, New World CyberBase Limited, Softbank e-Commerce and Hikari Tsushin.

    Customer accounts are password protected.

    To make a purchase using beenz customer must enter their password.

    Beenz offers customer the choice of withholding your personal information from other businesses.

    Pros
    Free sign-up, beenz, download
    Easy to use
    Accessible in many countries
    Good and credible alliances

    Cons
    Websites for earning and spending beenz are different.
    Beenz doesn't guarantee accuracy of information from vendors.
    Beenz cannot be transferred to others.

    Flooz

     was www.flooz.com
    flooz.com no longer working in Sept 2003
    Aaron
    Tracy
    Calvin
    Customers purchased desired amount of Flooz "currency" and redeems or donates it at participating e-merchants or charities, respectively.

    Flooz can also be "gifted" from another person.

    Flooz must be purchased using a credit card or money order.

    Products can be purchased in combination with Flooz "currency" and credit cards (this ensures that you can use up all your Flooz).

    Flooz e-mails you or the specified recipient a Flooz number. You use this number in transactions to identify yourself in order to accumulate and or redeem Flooz. Participating e-merchants have an agreement with Flooz.com to offer you products.

    Selected charities had an agreement with Flooz.com that allow customers to donate remaining Flooz.
     

    Flooz.com used secure sockets layer (SSL) technology to protect the customers security and privacy. 

    All information  provided to Flooz.com is encrypted prior to its transmission.

    Flooz covers up to $50 in fraudulent credit card charges.

    Security? Cookies are used to monitor Flooz use at participating merchants web sites.

    PROS
    Enables users to send Flooz as a gift, promotes e-commerce.

    Do not rent or sell user names to third parties.

    Part of of the TRUSTe Privacy Program.

    No service charge to send Flooz.

    CONS
    Unused Flooz "currency" expires one year from the date of issue or one year from 
    the date of the last Flooz deposited.

    .
    .
     
    Net Bill
    web site
    electronic checks
    post-paid 
    mechanism
    - sponsored by Carnegie Mellon Univ
    (nothing on their web site was dated more recently than 1998)
    - checked Oct 2002 - and March 2003 nothing updated
    - this is a theorectical system, not a system which seems to be publically in use
    Install client software and regester. buy from any Net Bill service providers FAQ Net Bill acts as a 3rd party for authentication and clearing. provides with unique User ID and it generates the RSA public key pair.
    Details
    very low transaction cost
    certified delivery mechanism
    .
    Net Chex

    www.netchex.com
    The first Internet Debit Card System for the eCommerce Industry.

    Targets people who want to pay without a credit card

    could not find information on them in 2002 and their web site did not appear to be up

    In Sept 2003 the site was back up.
    NetchexSM looks exactly like a paper check - except your customer fills it out online. Universal Payment Solutions then converts the information that your customers enter online into an ACH transaction. Your customer's account is debited and your account is credited. It's that easy.

  • large and small transactions.
  • Choose between Cardholder, Merchant or Reseller account.
  • Gives information including checking account info, Social Security Number and check writing history online or by fax.

  •  
  • Sends proprietary software to customer.
  • Agrees to use customer information for its own business needs.
  • Offers online account statements, transaction history and secure email.
  • NCX will offer its customers a unique combination of convenience, customization, shopping enhancements, and online customer support.
  • an-anonymous transactions

  • merchants pay 3 to 5 % of each transaction.
  • The banks that NetChex deals with directly.
  • Dynamic generation of encryption keys using 128 bit technology.
  • Hardware-based identification.
  • Proprietary software
  • Automatic disabling of tampered accounts.
  • 99% uptime.
  • Reliable and direct links to banks and processors.
  • Secured email service
  • Pros
  • It will kill impulse shopper purchase. 
  • No credit, debit, checking account numbers are transferred.
  • Rewards (points based) that can be used to obtain goods and services.
  • SmartBuys service searchs for bargains.
  • No cost to sign up or maintain annually.
  • No credit limitation.

  • Cons
  • Limited to U.S.

  •  
    .
    This link http://ntrg.cs.tcd.ie/mepeirce/Project/oninternet.htmlgoes to a long long alphabetically ordered list of all kinds of payment systems - it does not describe them, it merely provides a link to the website for that system. I believe the editor of this list, Michael Peirce,  last updated it in 2001.
    NTRG is Networks and Telecommunications Research Group of Ireland.
     

    .


    The coordination of building the info in this table was initially done by Mr. Ameen Damani. Mr. Damani was a participant in the IEC Program at Seneca in 1999. Part of the information for filling in this table was also obtained from Gary Schneider and James Perry's book Electronic Commerce

    Further information to build this page first came from the students of IEC 802 in June 1999 who directly contacting some of the entities identified herein, as well as some information was taken from the following web sites http://www.backe.com/criter.html
    http://www.backe.com/epssum.html. 
    Additional updates were made by students in IEC 719 in Sept 2000.

    The Professor for the course is Tim Richardson.

    www.witiger.com

     

    .
    see also  http://www.wilsonweb.com/wct5/epayment_compare.htm found by Tom Kwan in BCS 555
     
     
    witiger.com
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