CyberCash: Accepting Online Payments
Getting started doing business on the Internet requires a few necessities, such as a Web site — a.k.a. your “electronic storefront.” This usually means finding a good Web developer who will handle the design, development and systems integration for your site, and who can also find an Internet Service Provider to host the site.
You also need a method of receiving payments over the ‘Net. One of the best ways of doing this is by using the CyberCash CashRegister.
The CyberCash CashRegister is the software component in the CyberCash Secure Internet Payment Service, which lets you accept credit cards and CyberCoins for merchandise or services offered for sale on your Web site. Understanding how this system works is a good way to understand the whole area of cyber-payments in general.
The CashRegister is part of a payment network that has four primary components: the Customer Wallet, Merchant CashRegister, CyberCash Gateway and Banking Network. Consumers browse your Web site, and select items to purchase. They use the Wallet to send payment to your CashRegister for the goods or services selected.
The CashRegister runs on your server, and lets you receive and process payments. The CyberCash Gateway is used to verify the customer’s credit information, or to transfer money from the customer’s bank account to the Wallet, depending on the payment service that the customer uses.
The Wallet is used for what are called “micropayments,” or payments generally too small for a credit card. The customer will send a request to the CyberCash Gateway to load money into the Wallet. Using the banking network supported by Bank One, the Gateway will ascertain that the required funds are available in the bank account or credit card account furnished by the customer. It will then either decline the transaction or load credit in $20 increments into the Wallet. (While credit card funds are available immediately, bank transfers can take from three to five days to complete.) The customer can then spend the money — CyberCoins — in the Wallet at the Web site.
Credit card transactions are handled in a conventional manner for instant approval or rejection. For security, all customer payment information is encrypted, so that you, the merchant, never actually see the customer’s credit card, bank account or other identification numbers.
The CyberCash CashRegister system lets you accept two types of payment from Internet customers, CyberCoins and credit cards. You can offer one or both of the payment options, depending on the type and price of the merchandise that is for sale.
CyberCoins are used for low-cost items for sale over the Internet, such as online games and entertainment, information, and other “soft” goods requiring only micropayments — such as one dollar a game, or 25 cents a document. You can then use the merchant Wallet to transfer money from the CashRegister directly into your business bank account, or schedule a regular time to automatically unload funds from the CashRegister to your bank.
Bank One supports the CyberCash CashRegister. Click here for more information about using CyberCash for your online business.
