all types of plastic cards that consumers use to make purchases
Debit, Banking
Credit, Visa/Mastercard etc.
Change, Amex and Discover Card, Closed Loop
1. Consumer protection from fraud
2. Worldwide acceptance
3. Currency Convergence handled
4. Merchant protection (authorization/verification)
5. Merchant assurance from issuing companies
1. Cost to merchants: per transaction or a monthly fee
2. Cost to consumers: annual fees
EMV standard
30-day shipping requirement
Merchant accounts required to accept credit cards
General Payment Service Providers, icVerify
Online Payment Service Providers, InternetSecure, PaymentOnline, PayPal merchants, Reg.Net for DRM
Figure 11.3, Customer Logs into the Internet on an HTTPS, Payment Authorization is done by merchant - check balance to see that payment is a go, Issuing bank, ACH network, Merchant bank
any value storage and exchange system created by a private entity that does not use paper documents or coins
1. good for micro payments (<$1) and small transactions (<$10)
2. readily exchanged for real cash (unlike scrip)
3. useful for those who cannot get credit cards
4. no need for authorizations, as required by payment cards
5. Independence: unrelated to any proprietary network or storage device
6. portability: freely transferable between two parties (across borders)
7. convenience: does not require any special hard/software
1. not standardized or universall accepted
2. no audit trail, due to independence and privacy
3. security issues: potential for "double-spending" and "money laundering"
4. security issues: susceptible to forgery
holds credit card numbers, electronic cash, owner identification, and owner contact information and provides that information at an electronic commerce site's check out counter
Bileo services
Microsoft Passport
Yahoo Wallet
Information stored on clients' personal computers with various computer softwares
One card for everything
Benefits over magnetic cards