Online Payment services include several schemes for credit card, electronic cheque , electronic money, electronic purse and micro payment. Online Payment makes e-commerce easy and also security issues are incorporated.

In this hub, Credit card schemes and electronic money are discussed. SET , iKP, Cybercash and First Virtual are famous online credit card schemes.

SET:

Simple electronic transaction is the acronym of SET. Using SET specification, VISA is launching a pilot project in Europe with named SEC. SET uses RSA public key cryptography algorithm. SET ensures lot of privacy so there is no place for anonymity and intractability.

Cost per transaction is not clear in SET. It requires special softwares to be installed on client side, merchants and payment gateways. SET uses the same regulations as that of internationally acceptable credit card standard. VISA and Mastercard had developed specifications.

iKP:

Internet Keyed Payment is the acronym of iKP. First prototype of iKP has been developed and it is named as Zurich iKP. It uses RSA algorithm as similar as SET. As far as financial information is concerned, SET assures privacy and also no anonymity here. iKP is platform independent. It means any browser; server and platform can support iKP. Cost per transaction is not defined in iKP too. iKP has been designed by IBM and follows same regulation of credit card.

Cybercash :

It is another scheme that uses RSA algorithm along with DES cryptography algorithm. Privacy is supported when account information and transaction details are considered. Cost per transaction is determined by banks and Merchants. Complete time for a Transaction would take hardly one minute, however it depends on bandwidth availability too.

Cybercash insists special software for merchants and server, but Client can use any browser. CyberCash has established relationships with 19 acquiring banks; CyberCash payment system is connected with most major credit card processors.

First Virtual

It uses Green Commerce model that is publicly available. An authorization from the First virtual is needed, but confirmation is done through email. No cryptography algorithm is used here. But for payment verification, virtual signature is verified. Privacy is not supported here.

Setting up an account is 2 dollars for the customer as well as renewing a credit card number due to expiration date. The merchant is charged 10 dollars for setting up an account. Transaction costs differ from vendor to vendor.

Ecash and Netcash :

They are familiar, legally admitted electronic money schemes. Netcash has already been commercially explored whereas Ecash is still operational. Ecash uses public key cryptography whereas Netcash uses Pretty Good Privacy Technique (PGP).

Ecash supports user anonymity, privacy and untracability but everything is auditable in Netcash. Even we can say blind signatures are used in Ecash. Cost factor impacts Merchant and Payer for every transaction.

Netcash converts 2% of the amount to US dollars whereas it is not done in Ecash. Ecash will not consume any delay in transaction. In Netcash, Delay in transaction is dependent on reply of the merchant. Digicash is special software required for Ecash.

Digicash is supportable in Windows and Mac Clients and Windows and Linux server. Netcash does not require any special software and hardware. In order to issue Ecash, license should be bought from Digicash.

Payment schemes in Netcash are best suited to US. Mark Twain Bank (USA), Deutsche Bank, Merita Bank/EUNet, Posten and Advance Bank have been supporting Ecash.

As Netcash is in the form of payment coupens, no banks are supporting it yet, but it is expected that banks in US would support. Other online payment schemes like electronic cheque, electronic purse and micro payment will be discussed in forthcoming hub