Digital cash - Payment option

Digital cash is the ability to represent "normal" currency electronically. A client uses special software that communicates with software located on your Web server.

Consumers using digital cash must first load their electronic wallet with money before they can spend it. This process converts the currency from conventional funds to electronic data. Once the buyer with a loaded wallet indicates a willingness to purchase something from the merchant's site, the consumer is then able to transfer a specified portion of the "electronic cash" from himself or herself to the merchant. Merchants can transfer funds from their wallets to their regular bank accounts.
Wallet: The repository for digital cash. Wallet software resides on a client's computer. The client must "fill" a wallet before using it on an e-commerce site. Also, the e-commerce site has to support the particular wallet software the client is using.

Unlike the credit model, transactions using electronic funds are completed immediately, and the transactions have no cost. This immediacy makes the electronic money option attractive for companies conducting high-volume, low-dollar transactions, because many credit card companies require minimum charge amounts. Another advantage of digital money is anonymity for the consumer. Credit card transactions always involve a mechanism for tracing the transaction, and identification must be presented to prevent fraud. Properly implemented, digital money does not leave any trails.
The two primary vendors of digital cash on the Internet are DigiCash and CyberCash. We will look at CyberCash, the method it uses, and its implementation.