Comparative evaluation of electronic payment systems

This paper evaluates 3 types of credit card payment systems – an e-check system and 2 digital cash systems – from the viewpoints of: 1. privacy, 2. traceability, 3. transaction cost, and 4. the ability to build up the customer's purchasing pattern. It also evaluates their advantages and disadvantages to the customer, the merchant, the e-payment service provider and the financial institution. These systems employ cryptography to provide security, however many consumers are still reluctant to purchase over the Internet because they are concerned about hackers accessing their financial information. The paper concludes with a description of a new system, which is designed to relieve that concern by allowing payments over the telephone network for purchases made over the Internet.