Summary of Electronic Payment Systems (EPSs)

EPS
Type of System
Target Market
Security & Privacy
Merchant Risk
Outlook
DigiCash
(Cyberbucks)
Debit Small-scale nickel & dime purchases and fund transfers Neither the bank nor the merchant can track consumer purchases Immediate payment; little risk Pilot stage; long-term goal is to create the digital equivalent of cash; less expensive than credit cards, but gov't regualations may prove problematic
CyberCash Credit Home banking and catalog sales, recently added small-scale nickel & dime transaction system Customer's bank receives detailed info on each transaction, but customer retains anonymity Payment is guaranteed before any product is shipped; liable for credit card transaction fraud Currently planning a debit system, recently introducted minifyment system for small transactions
Open Market Credit Can handle any kind of transaction, from pennies to thousands of dollars OpenMarket keeps detailed records, but maintains customer anonymity Merchants can choose their preferred method of payment; liable for credit card transaction fraud Flexible system; currently developing an online business community centered around a bank
First VirtualCredit Ideally suited for low to moderately priced info sales First Virtual keeps detailed records, but maintains customer anonymity Merchant is never the consumer; because the customer gets the product before paying for it, however, merchant gets a delayed payment thru an automated chearinghouse Minimal risk to the e-mail system, but is cumbersome
Checkfree Credit Anything practical to sell using a credit card Both merchant and bank can track purchases made by consumer Merchant is liable for credit card transactions Future plans are to expand CheckFree Wallet for check and electronic cash purchases
NetCash Debit Mainly for info products under $100 Neither bank nor merchant can track consumer purchases Merchants have a choice of assuming risk & accepting "pending" coupons, or of assuming no risk and accepting only "valid" coupons. Requires correct change for each transaction, which, while automated is a hassle
NetChex Debit Products & Services as well as bill paying Non-anonymous transactions Merchants assume all the risk for bounced checks, & they do not receive immediate payment (payment received within 24 hrs.) Reaches a wide domestic audience, but expensive for merchants; not totally net-based
MondexDebit Handles both large & small transactions Completely anonymous immediate value transfer; electronic money can be exchanged for gov't currency at any time. No per-transaction charge, not global Designed to be a global payment system
Netscape Secure Commerce Server Credit Credit Card Transaction type sales Merchant risk - same as credit card transaction for getting paid Non-anonymous, uses RSA technology & SSL Strategic player, also working on Smart Cards

Please note that developments in Electronic Commerce are happening rapidly so some of the above could quickly become outdated. Links to the EPS Providers are included to get the most current and additional information.

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