E-cash

E-cash &mdash; a method of online payment &mdash; is a digital representation of real money that can be placed on a computer hard drive, smart card, other devices with memory, (including cellular phones and other electronic communication devices), or in an online repository. Consumers purchase e-cash from an authorized provider. These funds can then be transferred among vendors and individuals using compatible electronic systems, in some cases without resorting to banks or other financial intermediaries. When customers spend the e-cash, it is credited to the retailer’s e-cash account and later transferred to the retailer’s regular bank account.