Cyber Cash: Vivek Birla

Cyber Cash
Vivek Birla
 The CyberCash Secure Payment
System is a complete system for
conducting financial transactions on
the Internet. It accepts both credit
card payments and cash/coin
transactions. The CyberCash system
is a great solution for any Web site
that wants to accept electronic
payment for goods or services.
Overview -
 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.
 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.
 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.
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.
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.
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.
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.
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.
The Purchasing/Payment Process
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.
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

packet, thetakes the transaction behind its
firewall andoff the Internet, unwraps the
data, reformats the transaction (the payer's identity,
amount to payand the seller'sidentity) and
forwards it to the seller's bank over
dedicated financial networks.
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.
Cyber Cash Methodology Used -
 CyberCash's CashRegister software offers three methods

for authorizing consumer purchases and actually billing
the consumer's credit card: online capturing, post-
authorization capturing, and batch capturing.
 The processing method a merchant uses is dictated by
how products are delivered to consumers. Merchants
selling products or services that are being delivered
online or that are guaranteed to ship the same day will
use online capturing. On the other hand, because of mail
order laws, merchants selling products that are shipped
after the order is taken may choose post-authorization
capturing or batch capturing.
Online Capture:
 With online capturing, transactions
are captured and charged to the
consumer's credit card as soon as
they are authorized. This method is
appropriate for merchants selling
on-line services, information, or
software that is being delivered
immediately to the consumer over
the Internet. It also appropriate for
merchants who can guarantee
shipment of material goods on the
same day that they are ordered.
Post-Authorization Capture:
 With post-authorization capturing, the

merchant uses CashRegister's administrative
server to capture individual transactions
using a post-authorization message that is
sent to the processing bank. This message
tells the bank to capture the transaction and
charge the transaction to the consumer's
credit card. This method is appropriate for
merchants shipping merchandise more than a
day after the consumer has ordered it.
Batch Capture:
 Batch capturing is a variant of post-authorization

capturing. The merchant uses the CashRegister
administrative server to capture transactions using
a batch capture model where the merchant saves
up the authorizations and submits them in a batch
to the processing bank. The batch data contains
all of the authorized transactions that the bank
needs to reconcile your merchant account and
transfer funds. If a merchant is processing a lot of
orders, this procedure is probably more efficient
than using post-authorization capture for each
transaction.
Getting Started :
Merchant Go online
Account Public Key live
Cyber Cash Test

Registration Transcation
s
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

Cyber Cash: Vivek Birla

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Cyber Cash

 Registered trademark of CyberCash

CyberCoin-- The CyberCoin service enables small cash

2. If everything is OK, the customer clicks on the "Pay" Button

4. CyberCash gateway-server receives

6. CyberCash gateway-server then returns the approval or denial

To complete the transaction, the seller's server sends the

 CyberCash's CashRegister software offers three methods

 With post-authorization capturing, the

 Batch capturing is a variant of post-authorization

Cyber Cash Test

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