#30unit 2e commerce payment system

Digital checking payment system

Electronic checks that debit bank accounts.

Unit 2E-Commerce Payment SystemTopic #30Published

Digital checking payment system

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A digital checking payment system extends the traditional paper check to the online environment by enabling electronic cheques (e-checks) that debit the consumer's bank account directly, bypassing the credit card network. Services like Dwolla and Electronic Billing Presentment and Payment (EBPP) systems are examples.

  • Define a digital checking payment system.
  • Explain how e-checks debit a bank account directly.
  • Identify the role of EBPP and services like Dwolla.
  • Compare digital checking with card-based and stored value systems.