Design of E-Check System

1. Design of E-Check System Date : Apr. 11, 2001 Course Title : Computer Security and Electronic Payment System  Team Members : 최미진, 김민지, 박정호, 전우석

2. Content • What are E-Checks? • Why E-Checks? • Differences • E-Check Concept • E-Check Signatures and Endorsement • E-Checkbook Distribution & PKI • Trend of Research • Putting E-Checks to work

3. 1.What are E-Checks? • Checks, sans paper • eChecks work just like paper checks • Same legal treatment as paper checks • An all-electronic, end-to-end payment instrument • Digitally signed promises to pay • Signatures on echeck, endorsed when deposited • Support for multiple signatures • Bank payments, safe enough for the Internet • Inherit sound practices for processing checks • Add strong public key cryptography

4. 2. Why E-Checks? • Deliver clear benefits for all parties(faster, lower costs, fewer errors) • Support multiple business models • Leverage current banking system • Blend current business practices with the latest technologies and the Internet • Serve business and consumer interests(half of all paper checks are business-to-business) • Facilitate commerce in general……including ecommerce!

5. 3. Differences

6. 4. E-Check Concept Payer Payee Invoice Accounts Receivable Accounts Payable E-Mail or WWW Electronic Checkbook Invoice Invoice Check Electronic Checkbook Signature Check Certificates Signature Certificates E-Mail Endorsement Deposit Signature Certificates Clear and settle echeck Check Signature Certificates Payer’s Bank debit account Payee’s Bank credit account

7. 5. E-Check Signatures and Endorsement Deposit Endorsement Check action action action deposit endorsement check depositor’s signature endorser’s signature payer’s signature depositor’s account endorser’s account payer’s account depositor’s cert endorser’s cert payer’s cert depositor’s bank’s signature endorser’s bank’s signature attachment depositor’s bank’s cert endorser’s bank’s cert invoice payer’s bank’s signature signatures public key references signatures payer’s bank’s cert public key references signatures public key references

8. 6. E-Checkbook Distribution & PKI 5. Public key, certificate request, account block request Customer Bank Certification Authority 8. PIN mailer Card initialization 9. Electronic checkbook, smart card reader, software, instructions 6. X.509 certificates, account block 7. X.509 certificates and account blocks 1. Sales contact 12. CRL 2. Account agreement and customer data 10. Card sent notification 4. Electronic checkbook issuance instructions Marketing and sales 11. Account activation Bank echeck server 3. Echeck account information Bank account administrative systems

9. 7. Trend of Research • Financial Services Technology Consortium (FSTC) • E-Check exchangeable between users without a server • Utilizing fully existing ACH, ECP • http://www.fstc.org • Net Cheque • Using authentication standard, Kerberos, based on DES • http://www.netcheque.org • Net Bill • Payment System of E-check or Electronic Debit Card • http://www.netbill.com • Others • NetChex (http://www.netchex.com), • ECheque (http://mkn.co.uk) • KAIST ( e-check using Expert Systems and agent tech)

10. Many obstacles of introducing SET Need more secure payment system Exponential market size Less impact on existing system E-Check for Korean Market 8. Putting E-Checks to work