ECash payment system

 

  • Payment by instruction. This is a credit card transaction where the payer orders their bank or financial institution to take funds from their bank account and transfer it into a payee’s account.
  • Prepaid electronic cash. Essentially this is the electronic form of cash where a card or account is debited immediately and can be reloaded with electronic cash.
  • On-line. This is a payment protocol between the payer and payee that also involves a third party, such as a bank or credit card.
  • Off-line. This payment protocol does not involve a third party.
  • Secret key. Payment protocols must be verified. With cryptography, the transaction is authenticated. A secret key is where the payer and payee have shared a key that is only between them.
  • Public key authentication. Unlike secret keys, this form of authentication is available to the public, such as EMV. EMV stands for Europay, MasterCard, and Visa. The company that now manages these companies is called EMVCo, with even control split between about six different companies.
  • Counters. This is where a specific amount of eCash is stored on a card in the form of counters.
  • Coins. Just like ordinary money, or coins, this form of eCash has a fixed denomination for each coin.
  • Software-only. This is a low-cost system that can be placed on any computer in order to exchange funds electronically.
  • Tamper-resistant hardware. If security is a concern, then using special hardware that stores and uses a secret key can be used.