PROPERTIES OF E-MONEY
ACID TEST
ATOMICITY CONSISTENCY ISOLATION DURABILITY
ATOMICITY
• Transaction must occur completely or not at all.
• No points of failure.
• A transfer of 100 must result in amount credited from account &
debited to another.
• If one action fails, the whole transaction should be aborted.
CONSISTENCY
• All parties involved in the transaction must agree to the exchange
• In a customer-retailer relationship involving purchase, the customer must agree to purchase good for specific price &
merchant must agree to sell it at that price, otherwise there is no basis for exchange.
• Before X buys a product from Y, X must agree to buy it for 100 and Y must agree to sell it at 100.
ISOLATION
• Each transaction must be independent of any other transaction.
• Each transaction is treated as a stand-alone episode
DURABILITY
• It must always be possible to recover the last consistent state or reverse the facts of the exchange.
• Reversing charges in the event customer changes his or her mind.
• If customer is not happy with the product, the merchant should refund him.
ICES TEST
INTEROPERABILITY CONSERVATION ECONOMY SCALABILITY
INTEROPERABILITY
• It is the ability to ove back nd forth between different operating systems.
• Whichever operating system or version customer is using , he should not find any discomfort in using e-money.
CONSERVATION
• How well money holds its value over time. ( temporal consistency)
• How easy money is to store and access. ( temporal durability)
ECONOMY
• Cost of processing the transaction should be zero or minimum.
• Relative to size of transaction.
• If the users have to pay a higher transaction cost they may switch to other payment product or prefer cash where processing cost is zero.
• Paying charge of 10 to process 10,0000 transaction is acceptable.
• However, it is not acceptable if the transaction being processed is of 10.
SCALABILITY
• Ability of the system to handle multiple users at the same time.
• Must be easily scalable to handle new intake.
Evaluation of Payment Methods on ACID &
ICES
• There is no method of e-money or e-payment that satisfies both ACID and ICES test.
• Cash does not satisfy the conservation property of ACID test. It loses its value over a period of time due to inflation.
• Credit card & debit card do not satisfy economy property of ICES. The processing cost generally is higher.
• Cheques do not fulfil the isolation property of ACID test because drawer of the cheque can always stop the payment of cheque before it is
cleared.
• Cheques do not fulfil conservation and economy property of ICES test
Evaluation of Payment Methods on ACID &
ICES
Other Properties of E-Money
SECURITY
• Proper
authentication and encryption rules
ANONYMITY
• System must protect the
identity of buyers and sellers over the open
network.
EASE OF USE AND Interactive
interface
• Making payment online should be as easy as offline
• Interface should be user friendly.
Wide Acceptability
• Should be widely acceptable across all transactions all the time.
Integration
• Payment system should work across all operating systems.
TYPES OF E-MONEY
Buyer is clearly identified
Card is validated by issuing bank
Credit/debit card
IDENTIFIED
& ONLINE Merchant
verifies the
identity of buyer through I-card
Transaction is carried offline
Payment made by cheque
IDENTIFIED
& OFFLINE
TYPES OF E-MONEY
Identity of person is anonymous
Though, payment is made online.
Metro card ANONYMOUS
& ONLINE
Identity of person is anonymous
Transaction is carried offline
Using a credit card at merchant who does not have online connection to Visa/ Maser Card network.
ANONYMOUS
& OFFLINE
