26 © Copyright 2004, Credentica General drawbacks of account-based systems Account-based AKA book-entry systems: Bank transfers funds from payer to payee account Cheques, credit cards, debit cards, … General drawbacks: Unsuitable for low-value e-payments No privacy for Customers nor for Merchants Payments must be cleared on-line – Not an option in many situations / locations – Delays transactions, may result in unavailability – Adds cost (on-line connection costs money) – Bank must install hardware to cope with peak load – Denial of service attack on clearing/authorization process Payment process requires delay to identify and correct undesirable conditions (e.g., bounced cheques)
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