The first edition of this book, published in 1997, won a best-seller award in its category, and for good reason. Such an award may seem unusual, because the book is not aimed toward the general public or those without knowledge of computers or networks. Instead, it is intended for researchers and industry professionals, those who wish to understand how payment can be incorporated into trading systems.

The style of writing is consistent and lucid throughout, something not always found in books with multiple authors. The rather arcane topics are clearly explained with the aid of helpful diagrams.

Chapter 1 explains the motivation for e-payments, and chapter 2 is a brief, bird’s eye view of the characteristics of current payment systems. For those who wish a better understanding of encryption systems, chapter 3 will be very helpful. There are sufficient references and enough information here to allow those constructing e-systems to make an informed choice. Encryption is of primary concern, for as the authors point out, in many cases, loss of confidentiality in data transmission is secondary to the possibility of altering the data stream in transit.

Those wishing to understand how charge cards, credit cards, prepaid cards, and debit (ATM) cards work will find chapter 4 enlightening. It may surprise readers to find how many different security systems are in use governing credit cards; chapter 4 describes how they work in some detail. The authors explain the widely adopted Secure Socket Layer (SSL), and compare it to the more secure but less popular Secure Electronic Transactions (SET).

The traditional payment method of paper checks is cumbersome, costly, and time consuming. Electronic transfer of funds is highly desirable, and chapter 5 explains various ways in which funds can be electronically transferred between customers and merchants, with a centralized, web-based bank consortium and online accounts. Several security schemes are discussed, as well as the advantages of the anticipated use of credit card readers as part of all networked computer hardware, and the possibility of expanding e-commerce, specifically, moving the ATM to the Internet. Several encryption schemes and transfer methods are explained. Cash transactions have many advantages and are the preferred method of payment worldwide, but electronic cash that is widely acceptable, guaranteed, without transaction charges and anonymous would be very attractive. However, the price of security and anonymity is high, and chapter 6 explains the considerable problems of virtual money, as well as several methods for its implementation. The chapter deals with check handling infrastructures for various architectures, and protocols for transfer of funds. Its scope is broad, including methods not widely implemented.

Pennies can be a nuisance. But there are entire classes of transactions requiring fractions of a cent, including banner advertising on the web. E-commerce systems that permit micro-payments face a host of problems that must be balanced against each other. Small amounts cannot incur processing expenses that exceed the amounts, and large numbers of transactions require speed and bookkeeping. Therefore, micro-payment systems must sacrifice some security in transactions. Solutions, tradeoffs, and problems with costs, fraud, double spending, forgery, validation, anonymity and related topics are discussed in chapter 7.

Mobile phones and handheld devices offer the next step in e-commerce expansion. The most widespread system in use is the Global System for Mobiles (GSM). Mobile e-commerce, with the Internet “always on,” is rapidly expanding, and promises to be a major factor in e-commerce. Currently, the field suffers from narrow bandwidth problems and a technology that is in its infancy, and not yet stabilized. Chapter 8 provides an overview of the current progress and status of mobile commerce in the United States and worldwide.

It is difficult to stay abreast of the changes in this rapidly evolving technology, and the authors finish the book with their expert assessment of what the future might hold.

The index is good, and most chapters have helpful summaries. For some readers, a simplified table of comparisons at the end of chapters might be appreciated. Non-specialists may find sections of the book to be overly detailed, particularly the message protocols and formats.

The book is on target, easy to follow, and as up to date as possible, although some mention of Electronic Data Interchange (EDI), and links to relevant Web sites would have been nice. Given the current state of flux in e-commerce, rapid technological advances, and the heightened awareness that the Internet is not secure, the next edition of this book should be very interesting.