Page 657 - Introduction to Business

CHAPTER 18 The Digital Enterprise 631

Employees at Amazon.com’s distri-
bution warehouse in Seattle,
Washington, fill orders for the
Christmas season.

screens. The use of handheld devices for purchasing goods and services has been
termed mobile commerce or simply m-commerce. mobile commerce or m-commerce The
use of handheld devices for purchasing
goods and services over the Internet
Electronic Payment Systems
An electronic payment system is the use of digital technologies to pay for goods electronic payment system A system
and services electronically. Electronic payment systems for e-business include dig- that uses digital technologies to pay for
goods and services electronically
ital credit cards, digital cash, digital wallets, and digital checks.
A digital credit card extends the functionality of regular credit cards to protect digital credit card An electronic
the information transmitted among customers, merchant sites, and processing payment system that extends the
functionality of regular credit cards to
banks. Digital credit cards provide mechanisms for authentication of the pur-
protect the information transmitted
chaser’s credit card to make sure it is valid and arrange for the bank that issued the among customers, merchant sites, and
card to deposit money for the amount of the purchase into the seller’s bank processing banks
account.
Digital cash, also called electronic cash or e-cash, is currency represented in digital cash An electronic payment
electronic form that moves outside the normal network of money (paper currency, system that represents currency in an
electronic form that moves outside the
coins, checks, and credit cards). Users are supplied with client software and can normal network of money
exchange money with another e-cash user over the Internet or with a retailer
accepting e-cash. ECoin and InternetCash.com are examples of digital cash
services.
A digital wallet is software that stores credit card and owner identification infor- digital wallet An electronic payment
mation and provides these data automatically during e-business transactions. The system that stores credit card and
owner identification information and
digital wallet enters the shopper’s name, credit card number, and shipping infor-
provides these data automatically
mation automatically when invoked to complete the purchase. Gator and America during e-business transactions
Online’s Quick Checkout are examples of a digital wallet. digital checking An electronic payment
Digital checking extends the functionality of regular checking accounts so that system that extends the functionality of
existing checking accounts so that they
they can be used for online shopping payments. Digital checks are less expensive
can be used for online shopping
than credit cards and much faster than traditional paper-based checking. Digital payments

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