1. Electronic Cash

2. Digicash: Ecash u “With ecash you can pay for access to a database, buy software ora newsletter by email,play a computer game over the net, receive $5 owed to you by a friend, or just order a pizza.”

3. Ecash Details u Must obtain ecash from an entity, which will give encrypted “coin” to individual to spend u Entity will agree to “cash” back the coin u Only customer has the serial number of the coin, but the bank has the key to the encrypted message u Anonymous, private (Mark Twain Bank)

4. NetBank: NetCash u Coupons of differing denomination are sent to purchaser with serial number u When spent at participating merchants, message sent to NetBank, that confirms coupon, and tells purchaser of such u No anonymity, no encryption u Dependant upon bank as intermediary

5. CyberCash: CyberCoin u “Consumer wallet” software u allows for micropayments u tied directly to an account at a bank u encrypted message transfers value by notational system, i.e. debit from consumer’s account and credit to merchant’s account u safety, less anonymity

6. Electronic Checks u Simple systems (most now) actually print and send physical check through regular banking system (example: Netchex, ABS Web Checks) u BankNet Electronic Banking Service offers “live” electronic checks, using encryption and digital signatures

7. Credit Cards u Theoretically need no particular system, could give out information as over the telephone u CyberCash offers free software tht uses encryption and imposes Cybercash as the intermediary in the transaction (possessing the key to decrypt the credit card info passed to the merchant)

8. Smartcards u Imprecise definition between smartcard and stored value card u Card which, by computer chip or magnetic tape, can transfer information which indicates right to payment u Used much more broadly in Europe than in U.S.

9. Mondex u Uses card reader hooked up to computer terminals u May be used either on or off line u Can accept up to 5 different currencies u Encryption and digital signatures

10. Applicable laws u Money: US Constitution does not allow states to mint money u Checks: Mostly by UCC Article 3 and 4; also Federal Regulations u Credit Cards: Private Agreements and Federal Truth in Lending Act u Electronic Payments: EFTA and Article 4A

11. Checks u Banks would suffer the loss for forgery, unless the customer’s negligence contributed to the loss