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A Layered Protocol Model. A three layer model is looked upon to compare payments schemes. Policy: The linguistics of the payment scheme. It includes refunds policies, and the liabilities incurred by users, merchants as well as for financial institutions. Data flow: Very vital steps from online transactions parse, it includes data flow fro payments, refunds, account enquiries and settlement also. Mechanism: The process which endeavor is to achieve security requirements for messages and stored data Payment Protocol Models. Payment Protocol Models includes following instruments which have been introduced in aforesaid discussion: a. Cash: Cash consists of a token which doesn’t need much authenticity it’s usually achieved through use of self authenticating tokens or tamper proof hardware.  b. Cheque: Cheque are payment tool whose validity requires reference to the issuer.  c. Card: Card payment schemes provide a payments procedure through the existing credit card payment set-u

Now, let’s start rolling the e- related stuff! The twenty-first century way to pay is by electronic or digital cash (or one can say virtual cash also), which allows consumers to pay for goods/ services by transmitting a number from one computer to another. These numbers function much like the serial numbers on "real money”, they are unique and represent a specific amount of actual cash. Unlike credit-card transactions, electronic-cash transactions are anonymous. E-cash works just like paper cash. Once it is withdrawn from an account it does not leave a trail of digital crumbs. E-cash by its nature is portable and therefore more convenient for mobile commerce (Internet-capable cell phones and personal digital assistants). Couple of well known players in industry on this domain: Pay Pal - A U.S.-based system that allows individuals in the United States to send money to each other via email. First-E - A European, Internet-only bank. Mondex - Electronic cash that is made availab

     Electronic cash and payment schemes-Internet monetary and payment schemes,   Payment and Purchase order process, on line    electronic cash Now its time to know more about   E-Payments.  Basics Before jumping to e-com related jargons, let’s spend a while on basics on banking /payment systems. Banking originated in ancient era, where royal palaces, temples were used as secure place for safekeeping of grain and other commodities. Receipts for stored commodities were used for transfers not only to the original depositors but also to third parties, including tax gatherers and traders. Bank notes were introduced during 1694 by Bank of England as central banking system On following steps during 1775 continental congress issued paper money to finance revolutionary war. Thereafter in 1800s and early 1900 saw issuance of state bank notes, gold certificates. And finally in 1913 Federal Reserve act was created to further structure roadmap. Cheque: Its written order on a bank or other

a.  Security Without iota of thought it’s on mind of everyone who even thinks to do business online. Today hackers have become so personal, that it takes minutes to conquer / take over website having loop holes. Firewall, IDS, encryptions, digital signatures all have same endeavor to provide secure and peaceful life over internet cloud! b. Scalability It relates to your capability to run show, no matter what how large business gets. Usually new players/ freshers to e-commerce community don’t have strong vision. Most silly mistake players do, they under-estimate growth rate, never forget your playground is spread across globe. From day one, you should keep your seats belts tighten. One example in past, where we saw failure was “alladvantage.com” They failed to anticipate the network effect, and the company found its business model did not scale with unanticipated customer growth. They added one million customers within three months of launch; their revenue model was based on selling