Define each of the following terms:

Question

a) digital cash
b) peer-to-peer payment
c) Wells Fargo
d) e-wallet
e) micropayments
f) EBPP
g) merchant account
h) smart card

Answer 1

a) Digital Cash is similar to regular cash, except that it is electronic. Consumers can store digital cash securely within
a bank account or digital wallet and use it to make purchases over the Web.
b) Peer-to-peer payment is often used within auction and bartering sites. It allows users to buy and sell products and
services on an e-commerce site.
c) Wells Fargo is a traditional bank that has established a strong presence on the Web. They are one of the first major
banks to do this.
d) An E-wallet gives an online consumer the ability to make purchases quickly and securely by transferring personal
and payment information directly onto the site without making the user fill out lengthy registration forms.
e) Micropayments are small sums of money that are used to make purchases on the Web. Micropayments benefit mer-
chants by preventing fees associated with small credit card purchases.
f) Electronic Bill Presentment and Payment allows companies to present clients’ bills over the Web. Clients can review
their bills and make payments securely from any computer.
g) A merchant account enables an online merchant to accept credit card payment on their Web site.
h) Smart cards are designed to facilitate purchases over the Web. Many include a digital wallet that stores the smart
card holder’s personal information.