An e-check is a one-time electronic debit made from your checking account. So, your checking account statement would reflect an electronic funds transfer. Under electronic check conversion, your check is simply used to obtain information -- bank routing number, check number, etc. -- to process your purchase or payment. All that information is used to make an electronic withdrawal from your account using the Automated Clearing House network (ACH).
Instead of replacing the credit card, mobile payments will evolve in two directions: managing transactions for small digital purchases and, in the long term, being integrated with credit cards so that phone users can trigger a larger credit card purchase from their phone. In this way mobile payments will complement, not replace the credit card model.
Allen has turned his DRF presentation into an article titled Payments 2004: The Merchant Perspective that is now available on the Glenbrook web site.
AOL is offering AOL PassCode as a premium service to AOL members for a one-time cost of $9.95 for each device plus an additional $1.95 - $4.95 per month, depending on the number of screen names on the account that are secured to an AOL PassCode device.
Separately, Symantec is releasing the latest update of its Internet Security Threat Report today. Of particular concern is the increasing use of bot networks of compromised PC's in perpetrating various attacks.
So-called SmartMeters require motorists to walk as far as 100 feet from their cars to pay for a receipt to stick on the vehicle window. But the solar-powered machines have proved a hit in Portland, city officials say, because they take debit and credit cards -- the option chosen by more than half the Portland parkers given the choice.
Experts can't predict specifically when smart cards will be in wide use in place of traditional magnetic stripe credit and debit cards, but they say that improving technology and the expanding list of uses for such cards bring that day ever closer.