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Cash Check Credit - Model

A digital wallet refers to an electronic device that allows an individual to make electronic transactions. This can include purchasing items on-line with a computer or using a smartphone to purchase something at a store. An individual's bank account can also be linked to the digital wallet. In addition, a person might also have their driver's license, health insurance and other ID documents stored on the phone. The credentials can be passed to a merchant's terminal wirelessly by means of (NFC) near field communication .
Increasingly, digital wallets are being made not just for basic financial transactions but to also authenticate the holder's credentials. The system has gained popularity in Japan, where digital wallets are known as "wallet mobiles".

The buyer (consumer) buys the digital equivalent of money from an established bank and deposits it in a digital wallet, which is stored on the PC. When he or she makes a purchase from a website that accepts e-cash, the order software automatically deducts the correct amount from the consumer's digital wallet.

A digitized check is encrypted (we will discuss security in a later module). The Web storefront verifies the check through its financial institution, which in turn consults the consumer's financial institution to ensure that funds are available.

A consumer enters credit card information on a Web order form which is delivered to an authorization server. From there on, the transaction is similar to traditional commerce assuming that authorization was granted and there are enough funds in the consumer's account, a capture transfers the funds from the consumer's bank to the merchant's account.