There are two main types of debit payment systems: electronic checks and electronic money.
Electronic check is an order of the payer (buyer) to his / her Bank to transfer funds from his / her account to the account of the payee.
Electronic checks are analogous to paper checks, but they are issued in electronic form. On a regular check the payer puts his signature on the electronic signature is a code (a sequence of one or more specific characters), which is analogous to the traditional.
Electronic checks are most often used in THE B2B model.
Scheme of the payment process with the help of electronic checks submitted essay:
1. The payer writes an electronic check, puts a digital signature and sends it to the recipient with the possible encryption of the check account number;
2. The check is transferred to the payment system.
3. The electronic signature is verified by the payment system or by the Bank serving the payee.
4. In case of a positive result of the check, the payer is provided with the goods or service, and money is transferred from his account to the account of the payee.
Electronic money is a system of payment for goods and services by transferring numerical data from one computer to another.
Both electronic checks and electronic money are analogous to real means of payment, in this case – cash. The scheme of circulation of electronic money is as follows
1. The payer generates the number of the future banknote, signs it with his key and sends it to the Bank with the requirement to create a banknote of a certain denomination (the Bank has a set of keys for coupons with different denominations);
2. The Bank removes the signature of the payer, signs the hidden number of the banknote with its signature defined for this denomination, and sends the banknote to the buyer;
3. The buyer (payer) opens the banknote number with his / her own key, while the signature of the Bank remains true;
4. In case of purchase, the buyer transfers the required number of banknotes to the seller’s server;
5. The seller provides the money to the Issuer, who checks the compliance of the electronic seal and signature and repays the electronic money.
The most common electronic cash systems in the world are CyberCash and DigiCash. In Russia there are powerful systems WebMoney and PayCash. The analogue of the latter was created in Ukraine. Debit payment systems also include PayPal, NETPAY, NetBill, NetCash, GoldMoney
The advantages of debit payment systems include convenience for making micropayments (payments of small amounts)at the expense of low interest during transactions and ensuring the anonymity of payments, ease of transfer of electronic funds. The main disadvantages are the inability to provide credit and the need to pre-purchase electronic money. Also, such systems are not supported by reputable companies, but in the future they can really compete with credit payment systems.