DEPOSIT PRODUCTS,OTHER FINANCIAL SERVICES TO CONSUMERS AND INTERNET PAYMENT SYSTEMS

LEILA K. BUENO

E-Commerce Focus In 2003, the U.S. Commerce

Department attributed $8.5 billion worth of sales to the Internet. As part of our ongoing commitment to provide excellent products and solutions to our merchants, have added a number of value-added services designed to help you build your Web presence.

BUSINESS ONLINE BANKING PACKAGE OPTIONS

Realize that different businesses have different needs. That is why Business Online Banking gives you a choice of the different features that you may need. Review the options listed below, the package that fits for each business best.

Products/Services via Online MULTIPLE USER ACCESS

It helps to have a convenient, safe and practical tool to stay on top of your finances. Online Banking gives you the features you want and the control you need to enable multiple employee access to your business accounts. Grant access to as many employees as you want while controlling which accounts they can view and manage

BUSINESS BILL PAYWith Business Bill Pay you get the convenience of bill pay tailored to meet your business requirements. Cutting-edge features and innovative functionality automate the accounts payable process. Receive bills electronically, check the status of pending bills, attach relevant invoice information and schedule recurring payments —all from one online location and in just a few minutes.

Products/Services via Online VIEW ALL YOUR ACCOUNTS

Review all your accounts —even personal accounts— from one convenient screen. And you know just where you stand with "Previous Day's Ending," "Current," and "Available" balances. Plus, you can review transaction history as far back as four months.

CURRENT DAY TRANSACTIONSNeed up-to-the-minute information on your finances? In addition to past transactions, you can view current day transactions on all accounts.

EMPLOYEE DIRECT DEPOSITEmployee Direct Deposit makes payroll or employee reimbursement a snap. You can transfer funds directly to your employees' accounts, make one-time payments, and schedule recurring payments.

Products/Services via Online CHECK IMAGES

With a few mouse clicks, you can view a copy of both the front and back of all your processed checks.

ELECTRONIC TAX PAYMENTS Setting up your electronic tax payments is

easy and ensures all your payments will be on time.

STOP PAYMENTSInitiate a stop payment on a check from anywhere you have Internet access, at any time.

Online Business Transaction/Products in the Philippines(Insight)e.g BPI

view a summary of your accounts and corresponding balances

transfer funds

enroll another person's account and transfer funds to it from your BPI, BPI Family Bank, or BPI Direct account

enroll and pay all your bills listed in the Bills Payment facility

comfort of viewing and paying your bills through the Internet

Online Business Transaction in the Philippines(Insight)e.g BPI enroll additional accounts, be it another Savings or Checking

account, Time Deposit, Auto Loans, Housing Loans, or Credit Card. No need to nominate another User ID and Password.

reload your own or someone else's Globe Handy Phone and Touch Mobile prepaid phones.

apply for, enroll, or reload your Express Cash Card and monitor your card usage and balances

inquire about your Savings or Current account via text messaging

stop a check payment or reorder checkbooks

request for other services 24 hours a day and 7 days a week through a computer with Internet connection and a secure browser.

Direct Response Financial Services Announces Over 160 Internet Affiliate Marketing Partnerstoday announced that its Direct2own

division has established over 160 Internet marketing affiliate relationships to assist it in the direct marketing of its computers and televisions from its web site

" Internet affiliate network is growing each day with the help of Internet consulting group, expect sales through the affiliates to be brisk which will reward existing affiliate partners, but it will also attract other affiliates when they see our sales successes."

Financial Services in an Electronic AgeTechnology is facilitating the

creation of new approaches to service delivery and permitting the introduction of new electronic products. For example, a number of major Canadian financial institutions are now offering financial products and services through the Internet. In many cases, their competitors are scrambling to catch up.

Financial Services in an Electronic AgeThe conduct of financial transactions through the

Internet is not likely to displace other more traditional channels anytime soon. However, financial institutions appear to be drawn by two factors. first is the lower transaction costs associated with transactions conducted electronically as opposed to their branch networks. second attraction is the demographics of customers who are interested in using the Internet to access financial services.

* One American study projected that with respect to the banking industry, each Internet customer is likely to be 50-250% more profitable than the average banking customer.

Financial Services in an Electronic Age

At the same time a number of financial institutions are testing electronic money or "E-money" systems. Canada’s use of direct payment cards indicates a propensity on the part of Canadians towards the acceptance of new financial technology. The speed with which debit cards have taken hold in Canada suggests that electronic cash or stored value cards will achieve rapid acceptance in Canada.

THE INTERNET AND FINANCIAL SERVICES

International – The increasing use of the Internet by international financial institutions raises unique challenges for Canadian financial services policy makers and regulators.

Domestic - The advent of Internet delivery of financial services also brings into sharper focus the different powers

ELECTRONIC MONEY

Another area of growing interest to financial institutions is electronic cash.

Electronic cash or "E-money" may take the form of stored value smart cards (such as Mondex and VISA Cash). Many of the major players are involved with field trials. These are forms of multi-purpose cards or open systems in which a card can be used to buy goods or services from several providers or transfer e-money from one cardholder to another cardholder.

Electronic cash may also take the form of the more private "digital money" variety. These are forms of single purpose or closed systems where the card can be used to purchase the goods or services from one supplier or a limited number of services.

 Essentials for success with Internet bankingToday, as the next generation of

Internet banking unfolds, meeting those unrealized promises is a priority. "It says about the driving your internet banking success: Internet banking success is more than just feature/functionality. Your Internet banking solution should be flexible.

 The Anatomy of an AnomalyMost banks compare the

profitability of their on-line users to their off-line users. And it's become widely accepted that on-line users generally carry higher balances, buy more products from their banks and are less likely to leave than their off-line counterparts.

Internet Banking: Developments and Prospects

This report addresses significant gaps in knowledge about the Internet banking landscape. Among institutions offering Internet banking, large banks are more likely than small ones to offer a broad range of services on the Internet. Internet banking tended to rely less on interest-yielding activities and deposits than non-Internet banks

Internet Banking in the US - Landscape , Prospects & Industry Information Describes the current state of

Internet banking in the U.S. and discusses its implications for the banking industry. In addition to affecting the way customers receive banking services, Internet banking may become an important influence on banking industry structure.

Electronic Payment Systems for E-commerce/Online Transaction

ACH Datasoft allows online payment from a US bank account using the automated clearing house (ACH) bank network.

Achex allows money transfer between two US checking accounts, using SSL to protect the request.

Anonymous Internet Mercantile Protocol (Postscript paper).

Automated Transaction Services provide real-time credit card processing and electronic checking services.

Authorizenet processes credit card and checking account transactions.

Bank Internet Payment System (BIPS) from the FSTC, is a non-proprietary protocol for enabling payment through banks over the Internet.

Electronic Payment Systems for E-commerce/Online Transaction

BankNet offer an electronic cheque system in Sterling. In the future it will also incorporate the SET protocols.

Beenz is an account-based Web loyalty points system, often called a Web currency.

BidPay allows person-to-person payments, by accepting a credit card payment from the payer, and sending a money order to the payee.

BillPoint allows person-to-person payments from a credit card. Originally targeted at eBay customers.

BizPay from Consygen. Brand's Cash: The PhD work of Stefan Brands on electronic cash

payment mechanisms. C2it, also known as AOL Quickcash, from Citibank, is an account

based payment system, with e-mail notification of payments received.

CashBox , from Intertrader is a payment management system which supports Internet loading and spending of a variety of Internet payment types including Mondex.

Electronic Payment Systems for E-commerce/Online Transaction

Checkfree provide payment and billing solutions. CheckSpace is a user-to-user account based scheme,

linked to a US bank account, with a check-like Web interface. Targeted at small businesses, it allows e-mail payment requests/invoices.

Ching , from Mediais, is an account based payment and loyalty scheme, linked to a credit/debit card.

1ClickCharge is an account based micropayment scheme for the Web, allowing charges to be made with a single click.

Clickshare is a publishing system to to track movements and settle charges for digital transactions.

Credit Card Network have a credit card authorization system using SSL.

Electronic Payment Systems for E-commerce/Online Transaction

CurrencyOne from ArticWeb is an SSL based credit card solution. It is used in Bank of Ireland's Clikpay credit card payment system. ArticWeb also have a voice authenticated payment system.

CybaCard from CybaCom, is an anonymous Mastercard account that can be used online, with purchases charged to a normal payment card.

Cybank is a Web payment system, where purchases are charged against funds held in a Cybank account.

CyberCash offer secure credit card transactions, and electronic checks over the Internet. CyberCoin, their micropayment solution, is no longer supported. Here is the initial protocol specification for their credit card payment system. Plans were to migrate to SET for credit card payments. Also available are an abstract from a CyberCash paper presented at INET'95.

Cybergold allows you to earn, and spend, money online.

Electronic Payment Systems for E-commerce/Online Transaction

CyberSource offer real-time credit card processing and other electronic commerce services.

DataCash, based in the UK, provide secure credit card authorization over SSL.

Digital Silk Road is a proposed payment system for extremely low cost activities such as delivering and routing packets.

Downtown Anywhere has a system using account numbers, and personal payment passwords.

Ecash is a fully anonymous electronic cash system, using Chaum's blind signatures. Originally from DigiCash (until Nov'98), acquired by eCash Technolgies in August 1999.

eCharge Phone allows purchases to be charged to a local telephone bill. eCharge also have an account based payment system.

eCheck Secure accepts check details over the Internet, and clears them via the ACH network.

Electronic Payment Systems for E-commerce/Online Transaction E-coin is a token-based micropayment system, which uses a client

wallet plugin. Free tokens are currently available. eComm is an implementation of the SET protocol with extensions for

the French B0' banking smart cards. There is a further extension to allow small payments, which are aggregated as a single SET transaction.

Ecount is an account based person-to-person debit system, that allows account value to be spent wherever a credit card is accepted. Value can also be transferred to another account holder.

Econnect provide a card-present payment system which uses a swipe card reader, the ECashPad, to read (debit/credit/smart) card details which are sent only to the bank. More research can be found here.

E-gold allows payments in gold (silver, platinum, or palladium) to be made from customer to customer using an account-based system.

Efficient Electronic Cash: New Notions and Techniques, by Yiannis Tsiounis.

Electronic Funds Clearinghouse provide payment transmission and intake conduits over the Internet. Here's a quick summary.

Electronic Payment Systems for E-commerce/Online Transaction

Electronic Lottery Tickets as micropayments, proposed by Ron Rivest.

E-lysium provide an account based payment scheme and EBPP solutions.

eMoneyMail , from Bank One, allows person to person payments, using a credit card or checking account.

eScrip is electronic scrip (gift vouchers) for specific merchants, sold as fundraising for schools.

ExchangePath is an account based payment scheme, funded with a credit/debit card, and with group billing capabilities.

Fairtunes allows digital music consumers to voluntarily send money to music artists, and is based on credit card payments, PayPal, and E-gold.

First Bank of Internet (FBOI) (Now defunct). First Virtual Internet Payment System. (now defunct) Flexible Internet Secure Transactions Based on Collaborative

Domains. Appeared at the Security Protocol Workshop'97.

Electronic Payment Systems for E-commerce/Online Transaction Flooz is a central account based payment system allowing user-to-user

payments. FSTC Electronic Check Project Fundamo is an account based mobile commerce architecture which

allows mobile users to make and receive payments, initially over GSM. GlobalCollect, a payment provider based in the Netherlands, provide

cross border collection of consumer payments made using local payment cards, bank transfers and check payment options.

Globe ID credit and debit card based payment systems. GMoney is an account based group payment scheme, which allows

payment amounts to be split between group members. HashCash is a token based postage scheme using partial hash

collisions. iBill provides credit card and check processing. iCanBuy allows parental control of online spending. Parents fund a

child's online account using a credit card and can specify where and how the funds may be spent.

i-Escrow is a third party which holds a buyers money in trust, until a vendor delivers purchased goods.

Electronic Payment Systems for E-commerce/Online Transaction

iKP: A Family of Secure Payment Protocols from IBM, and the full iKP paper

InterCoin is an on-line billing service, with a try-before-you-buy attitude.

InternetCash is a prepaid card that is purchased from a real-world store and spent on-line. A temporary anonymous account is setup from the unique card ID (which looks something like: 3842 F932 J283 7832 PRXZ), and its value is decremented as purchases (as small as 50 cents) are made on-line.

Internet Dollar Internet Secure ATM Payments (ISAP) is a NACHA Internet Council

project, which allows ATM/debit card purchases to be authenticated with a user digital signature.

IPAY draft from the IETF Payment Working Group. (now defunct) iPIN is an account based system, that aggregates purchases and

charges them monthly to your ISP bill. iTransact provide credit card, check and EFT payment processing. iWinpak is a PGP credit card application for Windows.

Electronic Payment Systems for E-commerce/Online Transaction Jalda is an account based system for making both

micropayments and macropayments from any IP device. Using digital certs and SSL encryption it was designed by Ericsson Hewlett Packard Telecommunications.

The Java Electronic Commerce Framework (JECF) is not an actual payment protocol, but will provide a framework for other payment protocols including SET, smart cards, micro-transactions, electronic checks and other tokens-based schemes.

Kagi aggregates credit card payments on behalf of individual product vendors.

LETSystems (Local Exchange Trading System) and community currencies.

Magex, backed by NatWest Bank, is an account based payment system for encrypted content.

Magic Money description. MagnaCash is an online account management and money

transfer system, a former division of Cybergold.

Electronic Payment Systems for E-commerce/Online Transaction MBroker, from MoreMagic, provides user billing/payment

transaction management for chargable network services. Micro Gateway, from Auric, is an account based micropayment

system. Micro Payment Transfer Protocol (MPTP) from the W3C Electronic

Payments group. The W3C continue their work on micropayments by producing a micropayments markup and micropayments API.

Millicent from Compaq (originally DEC) was designed to support purchases costing less than a cent. Millicent is now live in Japan since mid 1999. There have been a few academic prototypes using Millicent, namely MiniMark and Minstrel.

Mojo Nation uses accounts and micropayments to allow payment for use and provision of unused online resources. Reputations are used as a means of preventing double spending.

Mondex smart card based payment scheme. MoneyZap from Western Union/First Data allows person to person

payments, to and from traditional payment instruments.

Electronic Payment Systems for E-commerce/Online Transaction Mon-e is an account based system which is funded using a

real-world prepaid card. Movilpago, allows payments to be made from GSM mobile

phones. From Spain, a venture between Telefonia and BBVA. NACHA , have a number of Internet electronic payment

initiatives including Internet Secure ATM Payments (ISAP) , where a user digital signature authenticates debit card holders, and DirectPay , which allows Internet initiated ACH credits.

NetBill Electronic Commerce Project, and related publications including a good introduction to NetBill.

NetCard is a hash-chain based micropayment scheme, as part of the NetCard Project at Cambridge University.

NetCash ,an introductory article and the NetCash Home Page. NetChex , a debit card based scheme.

Electronic Payment Systems for E-commerce/Online Transaction NetPay is a micropayment system based on PayWord, which

allows partially unspent chains to be transferred between vendors.

NETeller is an account based payment system with merchant accounts.

Netscape Communications sell Netsite Commerce Server for conducting Internet commerce.

NewGenPay is an IBM Research spin-off, that provide a micropayments solution, for "pay cent per click" applications, originally known as Mini-Pay.

Oakington provide an online account-based payment transaction system, where any party can create and manage their own currency.

O-Card , from Orbiscom, uses a one-time credit card number, which is linked to an original credit card, per transaction. The merchant clears the number through the credit card network in the usual manner.

Online Check Systems allows checks to be accepted online.

Electronic Payment Systems for E-commerce/Online Transaction Open Market have a Web Payment Scheme. PayByCheck.com processes U.S. checks online, depositing

funds into a merchant's account. PayCash the fully anonymous electronic cash system from

Russia. Paylinx provide payment servers for credit card processing. PayMe , as presented at the 4th WWW Conference , Boston,

Dec.95 by me! Payme.com is a user to user central account based system. Payment Online provide a credit card payment processing

service, called SecureGate. PayMyBills.com is an account based bill payment service. PayPal allows user to user payments, where the payer uses a

credit card to pay money into another user's account.

Uniform Money Services Act Covers Stored Value and Other Internet-Based Payment Mechanisms

The National Conference of Commissioners on Uniform State Laws ("NCCUSL") approved the Uniform Money Services Act (the "UMSA") (formerly known as the Uniform Money Services Business Act)

Background of UMSA

Traditionally, money service businesses were used by consumers without an established banking relationship. These consumers could cash their pay checks and use the proceeds to purchase checks or money orders to send to their creditors. Consumers also used these services to wire money within the United States or abroad. Many well established companies such as Western Union have provided these types of services for years.     Over the past few years, traditional money service businesses have rapidly grown.

Coverage of UMSAIn general, Internet-based

payment mechanisms are included within the scope of the UMSA to the extent that such services involved the sale and issuance of monetary value or the transmission of monetary value by a non-bank, if the non-bank also holds a customer's money for its own account prior to redemption

Coverage of UMSAThe inclusion of Internet-based

payment mechanisms was accomplished by the following changes:

(a) introducing the new concept of "monetary value,"

(b) revising the definition of "stored value," and (c) revising the definition of "money transmitter."

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