Cyber cash

1. Presented by Chitra Lekha.A

2. Definition Registered  trademark of CyberCash Corp. which offers secure means through which credit card information can be exchanged over internet. Cyber cash permits online payments without the fear of cyber fraud, expensive credit card approval equipment, and dedicational telephone lines.

3. Cyber cash has been described as Federal Express of Internet payment business, since it offers safe, efficient and inexpensive delivery of payments across Internet. Cyber cash makes available the software and services needed to exchange payments securely across the Internet with its Secure Internet Payment Service. Using a procedure that incorporates encryption and digital signatures, cyber cash gives consumers a “digital wallet”, and merchants a conduit to Internet payment processing through their own banks. Customers are able to authorize payments out of their digital wallets. The payments are signed and encrypted, then sent through the merchant bank to cyber cash, which in turn passes the transaction to the merchant’s bank for processing. The digital wallet initially supported only credit cards, but now supports digital cash transfers for small dollar amounts for products and services that are too expensive to justify using a credit card.

4. The Credit Card Service lets any consumer with a valid credit card buy from any Cyber Cash enabled merchant. Designed to integrate fully with existing transaction processing systems used by banks and other financial institutions, the service provides automated and instantaneous authentication, enabling order processing to traverse the Internet 24 hours a day, 7 days a week.

5. Cyber Cash's Secure Internet Payment Service CyberCash , Inc. was founded in August 1994. The company is focused on providing Secure Financial Transactions Services over the Internet, including secure credit card transactions, electronic checks and micro transactions.

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. Advantages : CyberCash uses strong encryption for transporting payment information. They claim to be the only Internet payment company granted an export license to use RSA's 786 bit encryption algorithm. The Merchant does not see the buyer's credit card number. Merchants do not have a waiting period for receiving payment, as with First Virtual. The merchant's 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. 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. 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 seller's web-server; It communicates with the customer and the Wallet-software. CyberCash Gateway Servers for banks; It links the seller's server to existing financial networks of the bank in a safe manner for the bank and acts as a firewall.

10. The Purchasing/Payment Process

11. 1. The Customer has decided what it is he/she wishes to purchase, where he/she wants it shipped, etc.... The seller's 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. 3 . The seller's server receives the packet, strips off the order and forwards the still encrypted payment information digitally signed with the seller's private key to the bank's CyberCash gateway-server. The merchant cannot see the consumer's credit card information, since it is encrypted with a key that only the bank's 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 payer's identity, amount to pay and the seller's identity) and forwards it to the seller's bank over dedicated financial networks .

13. 5 . The seller's bank then forwards the authorization request to the issuing (customer's) 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 seller's server sends the customer a digital receipt. A transaction can be captured and posted to the seller's account while the customer is still on-line, or later if you cannot ship the purchased product immediately.

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 payments Merchant 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. Sources http://www.tml.tkk.fi/Studies/Tik-110.350/1997/Ecommerce/sips_4.html http://www.virtualschool.edu/mon/ElectronicProperty/klamond/Cyberpmt.htm http://www.keenertech.com/articles/2006/09/09/credit_cards_and_cybercash

16. Thank You !!!