Electronic Cheque – modern means of payment in online commerce
When electronic data processing was still in its infancy, cashless payment transactions were handled by check deposits. Those days are long gone; today, the electronic check serves as the main means of payment for cashless transactions. The advantages are obvious: both in terms of time and cost, this method is significantly cheaper.
Payment transactions on the Internet
Cashless payment transactions via the Internet are carried out using Electronic Cheque according to a well-secured system. All important data relevant to the transfer of funds is stored on the chip card, which serves as an electronic checkbook. The basic requirement for using Electronic Cheque is that both parties must have an account. Registration and identification is done via a protected password. Once the instruction to pay a certain amount is triggered, the sum is transferred to the recipient’s account and the customer’s liquidity is checked via a server network. Overall, the payment procedure with Electronic Cheque is similar to payment with conventional checks, only the medium is different. Electronic checks also require the issuer’s account number, the recipient, the amount and currency, and a signature.
Security in digital payment transactions with Electronic Cheque
To ensure a secure money transfer, sophisticated and well-secured encryption systems are used for data transmission. Furthermore, the appropriate client software must be installed at both the sender and the receiver. A special network service is used for authentication – attacks from outside are virtually impossible. To ensure that the system remains easy to use despite all the security requirements, automatic encryption is used. The payment partners are clearly identified via the digital signature, which is transferred in the form of cryptographic encryption. Another instrument that secures payment transactions via electronic check is the Kerberos system, which verifies the authenticity of business participants.
Efficiency and cost savings through e-commerce
With the NetCheque system, a pre-paid payment system has been developed that offers maximum security for customers and merchants when making online purchases. Only after the transfer has been made and checked for authenticity and liquidity does the merchant or online retailer deliver the goods. Constant further development has increasingly simplified and accelerated the system, so that its use in e-commerce is readily accepted and can increase customers’ buying pleasure in the long term.
