Open AccessElectronic Payments of Small Amounts
Author(s) -
Torben Pedersen
Publication year - 1995
Publication title -
daimi pb
Language(s) - English
Resource type - Journals
eISSN - 2245-9316
pISSN - 0105-8517
DOI - 10.7146/dpb.v24i495.7023
Subject(s) - payment , database transaction , cash , computer science , electronic cash , payment system , payment service provider , phone , business , computer security , finance , database , world wide web , linguistics , philosophy
This note considers the application of electronic cash to transactions in which many small amounts must be paid to the same payee and in which it is not possible to just pay the total amount afterwards. The most notable example of such a transaction is payment for phone calls. If currently published electronic cash systems are used and a full payment protocol is executed for each of the small amounts, the overall complexity of the system will be prohibitively large (time, storage and communication). This note describes how such payments can be handled in a wide class of payment systems. The solution is very easy to adapt as it only influences the payment and deposit transactions involving such payments. Furthermore, making and verifying each small payment requires very little computation and communication, and the total complexity of both transactions is comparable to that of a payment of a fixed amount.