Subject: Re: Small/Secure Payment Business Models

From: [email-masked]
Date: Mon, 31 Dec 2001 13:29:52 -0700

note that current gift & stored value cards found in large percentage of
the larger retail store check-out counters ... provide a very inexpensive &
succesful "online" small payment model. They currently use magstripe cards
and operate within the same point-of-sale infrastructure as debit & credit.

From a "secure" stand-point with respect to insecure networks ... they
suffer the current downside as debit on the internet. However, x9.59
http://www.garlic.com/~lynn/index.html#x959

is designed to provide strong authentication for all electronic payments
(not just credit, debit, or e-echeck but ALL) in all environments
(point-of-sale, internet, non-internet, etc).

NACHA has already tested an "internet" secure atm/debit with the aads/x9.59
model
http://www.garlic.com/~lynn/index.html#aads

x9.59 is applicable to all the existing point-of-sale online electronic
payment infrastructures and provides the necessary security for their
operation over the internet .... aka X9.59 can be extended to not only
secure credit and secure debit .... but the very same infrastructure can be
extended to secure "stored-value" for small payments (aka there are
existing business process infrastructures that already handle electronic
small payments relatively efficiently .... the issue is the ability to use
the same X9.59 that is design to secure all electronic payments .... to
provide the additional security necessary for operation over untrusted
networks).

some related discussions in crypto mailing list:
http://www.garlic.com/~lynn/aadsm9.htm#cfppki11
http://www.garlic.com/~lynn/aadsm9.htm#cfppki12