- UNIT-I
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Architecture of the Internet
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Extranet products & services
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Electronic Payments & Protocols
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Managerial Issues
Stored – value Cards and E-Cash
A stored-value card is a type of electronic bank debit card. Stored-value cards have a specific dollar value programmed into them. Banks provide these cards as a service for customers who cannot open a checking or other deposit accounts.
Stored-value cards come in two major categories. Closed-loop cards have a one-time limit, such as merchant gift cards and prepaid phone cards.
E-Cash
a simple definition of eCash, also known as electronic cash, it is a digital money product that provides a way to pay for products and services without resorting to paper or coin currency. Two models emerged for e-cash transactions:
- The online form of eCash, which was introduced by the now-defunct DigiCash, worked for all types of Internet transactions.
- The offline form of e-cash involved a digitally encoded card that replaced paper money. Mondex developed and tested this model with different banks, but the company has now transitioned into the development and management of smart cards also used for financial transactions.
An electronic version or representation of a paper cheque. The account holder writes an e-check (or e-cheque) using a computer or other type of electronic device and transmits the e-cheque to the payee electronically. Like paper cheques, e-checks are signed by the payer and endorsed by the payee. Rather than handwritten or machine-stamped signatures, however, e-checks are affixed with digital signatures, using a combination of smart cards and digital certificates. The payee deposits the e-check, receives credit, and the payee's bank clears the e-check to the paying bank. The paying bank validates the e-check and then charges the cheque writer's account for the cheque.
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