Cyber cash

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Cyber cash

  1. 1. Presented byChitra Lekha.A
  2. 2. Definition Registered trademark of CyberCash Corp. which offerssecure means through which credit card information can beexchanged over internet. Cyber cash permits online paymentswithout the fear of cyber fraud, expensive credit card approvalequipment, and dedicational telephone lines.
  3. 3. Cyber cash has been described as Federal Expressof Internet payment business, since it offers safe, efficient andinexpensive delivery of payments across Internet. Cyber cashmakes available the software and services needed to exchangepayments securely across the Internet with its Secure InternetPayment Service. Using a procedure that incorporatesencryption and digital signatures, cyber cash gives consumersa “digital wallet”, and merchants a conduit to Internet paymentprocessing through their own banks. Customers are able toauthorize payments out of their digital wallets. The paymentsare signed and encrypted, then sent through the merchant bankto cyber cash, which in turn passes the transaction to themerchant’s bank for processing. The digital wallet initiallysupported only credit cards, but now supports digital cashtransfers for small dollar amounts for products and servicesthat are too expensive to justify using a credit card.
  4. 4. The Credit Card Service lets any consumer with a validcredit card buy from any Cyber Cash enabled merchant.Designed to integrate fully with existing transaction processingsystems used by banks and other financial institutions, theservice provides automated and instantaneousauthentication, enabling order processing to traverse theInternet 24 hours a day, 7 days a week.
  5. 5. Cyber Cashs Secure Internet Payment Service CyberCash, Inc. was founded in August 1994. Thecompany is focused on providing Secure FinancialTransactions Services over the Internet, including secure creditcard transactions, electronic checks and micro transactions.
  6. 6. Features of Cybercash• Secure Internet credit card (macro-level) transactions since April 1995.• Thousands of transactions processed daily.• Over 500,000 CyberCash Customer-Wallets in the distribution channel, including CyberCash, Checkfree, and Compuserve wallets.• Connected to 80% of the banks in the U.S CyberCoin-- The CyberCoin service enables small cash payments for instantaneous electronic delivery of information, products and services.
  7. 7. Advantages:• CyberCash uses strong encryption for transporting payment information. – They claim to be the only Internet payment company granted an export license to use RSAs 786 bit encryption algorithm.• The Merchant does not see the buyers credit card number.• Merchants do not have a waiting period for receiving payment, as with First Virtual. The merchants bank account is credited within in the normal time frame for credit card transactions.Disadvantages:• Potential buyers and merchants must both install extra software in order to use the system. This makes the system harder to use for people with little computer experience.• Merchants need to have an account with an acquiring bank that accepts CyberCash Secure Internet Payments.
  8. 8. Players• Merchant: The first player is the merchant, the organization that wants to sell products online.• Acquiring Financial Institution: This is the bank where the Merchant has set up a merchant account and hopes lots of money will eventually be deposited.• CyberCash: This organization functions as a gateway. CyberCash facilitates credit card transactions by interacting with other organizations to handle credit card authorizations and captures.• Cardholder Financial Institution: This organization issues the credit card to the consumer and maintains the account from which funds will be deducted if the transaction succeeds.• Third-Party Processor: Banks that often outsource various merchant services to a separate company. This organization may handle services such as settlement, billing, authorization, and reporting. There may or may not be a third-party processor involved in the transaction process.
  9. 9. The CyberCash Credit Card Purchasing/Payment System The CyberCash credit card payment system consists of three parts :• The CyberCash Wallet-software distributed free to consumers (Windows or Mac-based)• The Secure Merchant Payment System (SMPS) for the sellers web-server; It communicates with the customer and the Wallet-software.• CyberCash Gateway Servers for banks; It links the sellers server to existing financial networks of the bank in a safe manner for the bank and acts as a firewall.
  10. 10. The Purchasing/Payment Process
  11. 11. 1. The Customer has decided what it is he/she wishes to purchase, where he/she wants it shipped, etc.... The sellers server returns a summary of the item, price, transaction ID, etc. to consumer.2. If everything is OK, the customer clicks on the "Pay" Button which launches the CyberCash, Checkfree or Compuserve Wallet. The customer chooses the credit card from their "wallet" with which he/she wishes to pay with and clicks OK to forward the order and encrypted payment information to the seller.
  12. 12. 3. The sellers server receives the packet, strips off the order and forwards the still encrypted payment information digitally signed with the sellers private key to the banks CyberCash gateway-server. The merchant cannot see the consumers credit card information, since it is encrypted with a key that only the banks CyberCash gateway can decrypt.4. CyberCash gateway-server receives the packet, takes the transaction behind its firewall and off the Internet, unwraps the data, reformats the transaction (the payers identity, amount to pay and the sellers identity) and forwards it to the sellers bank over dedicated financial networks.
  13. 13. 5. The sellers bank then forwards the authorization request to the issuing (customers) bank via the card associations or directly to American Express or Discover in those cases (this is applicable only to the USA). The approval or denial code then is sent back to CyberCash gateway-server.6. CyberCash gateway-server then returns the approval or denial code to the seller who then passes it on to the customer. To complete the transaction, the sellers server sends the customer a digital receipt. A transaction can be captured and posted to the sellers account while the customer is still on- line, or later if you cannot ship the purchased product immediately.
  14. 14. Consumers Benefits:• Safe, private and easy to use. Protected by the highest allowed levels of Internet encryption with assured authentication.• Use existing Visa, MasterCard, American Express or Discover. No special credit cards are necessary.• Complete on-line paymentsMerchant Benefits:• Real-time authorization and settlement• Receive payments instantly and secure• No need to maintain expensive phone or fax operations• Open 24 hours a day
  15. 15. Sources• http://www.tml.tkk.fi/Studies/Tik- 110.350/1997/Ecommerce/sips_4.html• http://www.virtualschool.edu/mon/ElectronicP roperty/klamond/Cyberpmt.htm• http://www.keenertech.com/articles/2006/09/0 9/credit_cards_and_cybercash
  16. 16. Thank You !!!

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