But credit cards have Their limits. They are not acceptable for purchases of digital content costing significantly less than just a few dollars per transaction micro-payments. The card system is not cost efficient for calculating small payment amounts and oftentimes the minimum transaction amount is about US$10. To market digital Content, a payment system is necessary. Allowing customers to buy items online from a site supported by the supplier that was e-money. But, there has been the prospect of fraud on the part of the e-money suppliers, to whom customers provided their credit-card amounts in exchange for tokens.
A Number of These ancient Tries to make e-money mechanisms for handling micro-payment trades schemas met with company collapse (e.g., ancient micro-payment sellers like Flooz, Benz, Digicash). Even for attainable company cases, the failures frequently occurred because the retailers had to execute extra hardware/software requirements and also the clients had to prepay. It was just too tough to execute and not really worth the (then) small earnings streams on the web.
However, the situation is Much different today. New micro-payment services make it possible for clients to set up online accounts tied to their chequing and savings account, thus reaching a completely new section of customers without credit cards. Micro-payment also has yet another future for a substitute for money to pay for products and services in the stores, cafes, pubs, libraries, printers, pharmacies, sports centers, photocopying and laser-printing stores, in addition to for taxi and bus fares, or for any purchase where coins are utilized.
Which are evolving from The early efforts are 3 different micro-payment schemas:
– The Retail Model Which uses a saved value system
– The Telco Model which leverages the telcos? billing system
– The Financial Model Which utilizes a multi-application smart card having an e-purse
The Retail Model – Stored Value Systems
The principal of this Stored value systems relies upon the micro-payments schema: shop value accounts are linked to your credit card where a customer must load credits so as to generate a buys, or attached to your stored value account which accumulates payments and also makes authorizations based on increments. Having a value that is saved System will need to enroll to your services online or by telephone; load equilibrium and they must supply card payment machine for small business credit card number. For the user the machine should recall her or his advice. Value systems are typical in the service business. Purchases can be produced Online by a card reader that connects to a PC. Safe net Payments might be made as they are.