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+++ b/ED/use-cases/2015-07-15/diff-20150416.html Wed Jul 15 12:10:51 2015 -0700
@@ -0,0 +1,17452 @@
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+</head>
+
+<body class="h-entry" role="document" id="respecDocument">
+<div class="head" role="contentinfo" id="respecHeader">
+<p>
+<a href="http://www.w3.org/">
+<img width="72" height="48" src="https://www.w3.org/Icons/w3c_home" alt="W3C">
+</a>
+</p>
+<h1 class="title p-name" id="title" property="dcterms:title">
+Web
+Payments
+Use
+Cases
+1.0
+</h1>
+<h2 id="w3c-editor-s-draft-15-july-2015">
+<abbr title="World Wide Web Consortium">
+W3C
+</abbr>
+<del class="diff-old">First
+Public
+Working
+</del>
+<ins class="diff-chg">Editor's
+</ins>
+Draft
+<del class="diff-old">16
+April
+</del>
+<time property="dcterms:issued" class="dt-published" datetime="2015-07-15">
+<ins class="diff-chg">15
+July
+</ins>
+2015
+</time>
+</h2>
+<dl>
+<dt>
+This
+version:
+</dt>
+<dd>
+<del class="diff-old">http://www.w3.org/TR/2015/WD-web-payments-use-cases-20150416/
+</del>
+<a class="u-url" href="https://dvcs.w3.org/hg/webpayments/raw-file/default/latest/use-cases/index.html">
+<ins class="diff-chg">https://dvcs.w3.org/hg/webpayments/raw-file/default/latest/use-cases/index.html
+</ins>
+</a>
+</dd>
+<dt>
+Latest
+published
+version:
+</dt>
+<dd>
+<a href="http://www.w3.org/TR/web-payments-use-cases/">
+http://www.w3.org/TR/web-payments-use-cases/
+</a>
+</dd>
+<dt>
+Latest
+editor's
+draft:
+</dt>
+<dd>
+<a href="https://dvcs.w3.org/hg/webpayments/raw-file/default/latest/use-cases/index.html">
+https://dvcs.w3.org/hg/webpayments/raw-file/default/latest/use-cases/index.html
+</a>
+</dd>
+<dt>
+Editors:
+</dt>
+<dd class="p-author h-card vcard" property="bibo:editor" resource="_:editor0">
+<span property="rdf:first" typeof="foaf:Person">
+<meta property="foaf:name" content="Manu Sporny">
+<a class="u-url url p-name fn" property="foaf:homepage" href="https://manu.sporny.org/">
+Manu
+Sporny
+</a>,
+<a property="foaf:workplaceHomepage" class="p-org org h-org h-card" href="http://digitalbazaar.com/">
+Digital
+Bazaar
+</a>
+</span>
+<span property="rdf:rest" resource="_:editor1">
+</span>
+</dd>
+<dd class="p-author h-card vcard" resource="_:editor1">
+<span property="rdf:first" typeof="foaf:Person">
+<meta property="foaf:name" content="Ian Jacobs">
+<a class="u-url url p-name fn" property="foaf:homepage" href="http://www.w3.org/People/Jacobs/">
+Ian
+Jacobs
+</a>,
+<a property="foaf:workplaceHomepage" class="p-org org h-org h-card" href="http://www.w3.org/">
+<abbr title="World Wide Web Consortium">
+W3C
+</abbr>
+</a>
+</span>
+<span property="rdf:rest" resource="rdf:nil">
+</span>
+</dd>
+<dt>
+Authors:
+</dt>
+<dd class="p-author h-card vcard">
+<span property="dc:contributor" typeof="foaf:Person">
+<meta property="foaf:name" content="Ian Jacobs">
+<a class="u-url url p-name fn" property="foaf:homepage" href="http://www.w3.org/People/Jacobs/">
+Ian
+Jacobs
+</a>,
+<a property="foaf:workplaceHomepage" class="p-org org h-org h-card" href="http://www.w3.org/">
+<abbr title="World Wide Web Consortium">
+W3C
+</abbr>
+</a>
+</span>
+</dd>
+<dd class="p-author h-card vcard">
+<span property="dc:contributor" typeof="foaf:Person">
+<meta property="foaf:name" content="Manu Sporny">
+<a class="u-url url p-name fn" property="foaf:homepage" href="https://manu.sporny.org/">
+Manu
+Sporny
+</a>,
+<a property="foaf:workplaceHomepage" class="p-org org h-org h-card" href="http://digitalbazaar.com/">
+Digital
+Bazaar
+</a>
+</span>
+</dd>
+<dd class="p-author h-card vcard">
+<span property="dc:contributor" typeof="foaf:Person">
+<meta property="foaf:name" content="David Ezell">
+<a class="u-url url p-name fn" property="foaf:homepage" href="http://example.org/">
+David
+Ezell
+</a>,
+<a property="foaf:workplaceHomepage" class="p-org org h-org h-card" href="http://www.nacsonline.com/">
+NACS
+</a>
+</span>
+</dd>
+<dd class="p-author h-card vcard">
+<span property="dc:contributor" typeof="foaf:Person">
+<span property="foaf:name" class="p-name fn">
+Qian
+Sun
+</span>,
+<a property="foaf:workplaceHomepage" class="p-org org h-org h-card" href="http://www.alibabagroup.com/">
+Alibaba
+</a>
+</span>
+</dd>
+<dd class="p-author h-card vcard">
+<span property="dc:contributor" typeof="foaf:Person">
+<meta property="foaf:name" content="David Jackson">
+<a class="u-url url p-name fn" property="foaf:homepage" href="https://www.linkedin.com/in/davidjjackson">
+David
+Jackson
+</a>,
+<a property="foaf:workplaceHomepage" class="p-org org h-org h-card" href="http://www.oracle.com/">
+Oracle
+</a>
+</span>
+</dd>
+<dt>
+Version
+control:
+</dt>
+<dd>
+<a href="https://github.com/w3c/webpayments-ig">
+Github
+Repository
+</a>
+</dd>
+<dd>
+<a href="http://www.w3.org/Payments/IG/track/products/2">
+Issues
+</a>
+</dd>
+</dl>
+<p class="copyright">
+<a href="http://www.w3.org/Consortium/Legal/ipr-notice#Copyright">
+Copyright
+</a>
+©
+2015
+<a href="http://www.w3.org/">
+<abbr title="World Wide Web Consortium">
+W3C
+</abbr>
+</a>
+<sup>
+®
+</sup>
+(
+<a href="http://www.csail.mit.edu/">
+<abbr title="Massachusetts Institute of Technology">
+MIT
+</abbr>
+</a>,
+<a href="http://www.ercim.eu/">
+<abbr title="European Research Consortium for Informatics and Mathematics">
+ERCIM
+</abbr>
+</a>,
+<a href="http://www.keio.ac.jp/">
+Keio
+</a>,
+<a href="http://ev.buaa.edu.cn/">
+Beihang
+</a>
+).
+<abbr title="World Wide Web Consortium">
+W3C
+</abbr>
+<a href="http://www.w3.org/Consortium/Legal/ipr-notice#Legal_Disclaimer">
+liability
+</a>,
+<a href="http://www.w3.org/Consortium/Legal/ipr-notice#W3C_Trademarks">
+trademark
+</a>
+and
+<a href="http://www.w3.org/Consortium/Legal/copyright-documents">
+document
+use
+</a>
+rules
+apply.
+</p>
+<hr>
+</div>
+<section id="abstract" class="introductory" property="dc:abstract">
+<h2 id="h-abstract" resource="#h-abstract">
+<span property="xhv:role" resource="xhv:heading">
+Abstract
+</span>
+</h2>
+<p>
+This
+document
+is
+a
+prioritized
+list
+of
+Web
+payments
+use
+cases.
+Guided
+by
+these
+use
+cases,
+the
+<abbr title="World Wide Web Consortium">
+W3C
+</abbr>
+Web
+Payments
+Interest
+Group
+plans
+to
+derive
+architecture
+and
+associated
+technology
+requirements
+to
+integrate
+payments
+into
+the
+Open
+Web
+Platform.
+That
+work
+will
+form
+the
+basis
+of
+conversations
+with
+<abbr title="World Wide Web Consortium">
+W3C
+</abbr>
+groups
+and
+the
+broader
+payments
+industry
+about
+what
+standards
+(from
+<abbr title="World Wide Web Consortium">
+W3C
+</abbr>
+or
+other
+organizations)
+will
+be
+necessary
+to
+fulfill
+the
+use
+cases
+and
+make
+payments
+over
+the
+Web
+easier
+and
+more
+secure.
+</p>
+</section>
+<section id="sotd" class="introductory">
+<h2 id="h-sotd" resource="#h-sotd">
+<span property="xhv:role" resource="xhv:heading">
+Status
+of
+This
+Document
+</span>
+</h2>
+<p>
+<em>
+This
+section
+describes
+the
+status
+of
+this
+document
+at
+the
+time
+of
+its
+publication.
+Other
+documents
+may
+supersede
+this
+document.
+A
+list
+of
+current
+<abbr title="World Wide Web Consortium">
+W3C
+</abbr>
+publications
+and
+the
+latest
+revision
+of
+this
+technical
+report
+can
+be
+found
+in
+the
+<a href="http://www.w3.org/TR/">
+<abbr title="World Wide Web Consortium">
+W3C
+</abbr>
+technical
+reports
+index
+</a>
+at
+http://www.w3.org/TR/.
+</em>
+</p>
+<p>
+This
+document
+is
+a
+work
+in
+progress
+and
+is
+being
+released
+early
+and
+often
+using
+an
+agile
+process;
+it
+is
+incomplete.
+</p>
+<p>
+The
+Web
+Payments
+IG
+has
+only
+had
+the
+opportunity
+to
+review
+a
+handful
+of
+the
+40+
+use
+cases,
+120+
+requirements,
+hundreds
+of
+pages
+of
+payments
+research
+submitted
+to
+the
+group
+via
+various
+other
+standards
+group
+output
+such
+as
+ISO20022,
+research
+documents
+from
+X9
+and
+the
+US
+Federal
+Reserve,
+documents
+from
+the
+Web
+Payments
+Community
+Group,
+and
+input
+from
+the
+general
+public.
+Our
+desire
+is
+to
+align
+with
+the
+larger
+payments
+industry
+when
+it's
+possible
+to
+do
+so.
+Expect
+this
+document
+to
+be
+rapidly
+iterated
+upon
+with
+that
+desire
+in
+mind.
+</p>
+<p>
+This
+document
+was
+published
+by
+the
+<a href="http://www.w3.org/blog/wpig/">
+Web
+Payments
+Interest
+Group
+</a>
+as
+<del class="diff-old">a
+First
+Public
+Working
+</del>
+<ins class="diff-chg">an
+Editor's
+</ins>
+Draft.
+<del class="diff-old">This
+document
+is
+intended
+to
+become
+a
+W3C
+Recommendation.
+</del>
+If
+you
+wish
+to
+make
+comments
+regarding
+this
+document,
+please
+send
+them
+to
+<a href="mailto:public-webpayments-comments@w3.org">
+public-webpayments-comments@w3.org
+</a>
+(
+<a href="mailto:public-webpayments-comments-request@w3.org?subject=subscribe">
+subscribe
+</a>,
+<a href="http://lists.w3.org/Archives/Public/public-webpayments-comments/">
+archives
+</a>
+).
+All
+comments
+are
+welcome.
+</p>
+<p>
+Publication
+as
+<del class="diff-old">a
+First
+Public
+Working
+</del>
+<ins class="diff-chg">an
+Editor's
+</ins>
+Draft
+does
+not
+imply
+endorsement
+by
+the
+<abbr title="World Wide Web Consortium">
+W3C
+</abbr>
+Membership.
+This
+is
+a
+draft
+document
+and
+may
+be
+updated,
+replaced
+or
+obsoleted
+by
+other
+documents
+at
+any
+time.
+It
+is
+inappropriate
+to
+cite
+this
+document
+as
+other
+than
+work
+in
+progress.
+</p>
+<p>
+This
+document
+was
+produced
+by
+a
+group
+operating
+under
+the
+<a id="sotd_patent" property="w3p:patentRules" href="http://www.w3.org/Consortium/Patent-Policy-20040205/">
+5
+February
+2004
+<abbr title="World Wide Web Consortium">
+W3C
+</abbr>
+Patent
+Policy
+</a>.
+<abbr title="World Wide Web Consortium">
+W3C
+</abbr>
+maintains
+a
+<a href="http://www.w3.org/2004/01/pp-impl/73816/status" rel="disclosure">
+public
+list
+of
+any
+patent
+disclosures
+</a>
+made
+in
+connection
+with
+the
+deliverables
+of
+the
+group;
+that
+page
+also
+includes
+instructions
+for
+disclosing
+a
+patent.
+An
+individual
+who
+has
+actual
+knowledge
+of
+a
+patent
+which
+the
+individual
+believes
+contains
+<a href="http://www.w3.org/Consortium/Patent-Policy-20040205/#def-essential">
+Essential
+Claim(s)
+</a>
+must
+disclose
+the
+information
+in
+accordance
+with
+<a href="http://www.w3.org/Consortium/Patent-Policy-20040205/#sec-Disclosure">
+section
+6
+of
+the
+<abbr title="World Wide Web Consortium">
+W3C
+</abbr>
+Patent
+Policy
+</a>.
+</p>
+<p>
+This
+document
+is
+governed
+by
+the
+<a id="w3c_process_revision" href="http://www.w3.org/2014/Process-20140801/">
+1
+August
+2014
+<abbr title="World Wide Web Consortium">
+W3C
+</abbr>
+Process
+Document
+</a>.
+</p>
+</section>
+<section id="toc">
+<h2 class="introductory" id="h-toc" resource="#h-toc">
+<span property="xhv:role" resource="xhv:heading">
+Table
+of
+Contents
+</span>
+</h2>
+<ul class="toc" role="directory" id="respecContents">
+<li class="tocline">
+<a href="#introduction" class="tocxref">
+<span class="secno">
+1.
+</span>
+Introduction
+</a>
+<ul class="toc">
+<li class="tocline">
+<a href="#why-this-work-is-important" class="tocxref">
+<span class="secno">
+1.1
+</span>
+Why
+This
+Work
+is
+Important
+</a>
+</li>
+<li class="tocline">
+<a href="#how-this-document-is-organized" class="tocxref">
+<span class="secno">
+1.2
+</span>
+How
+this
+Document
+is
+Organized
+</a>
+</li>
+</ul>
+</li>
+<li class="tocline">
+<a href="#terminology" class="tocxref">
+<span class="secno">
+2.
+</span>
+Terminology
+</a>
+</li>
+<li class="tocline">
+<a href="#an-overview-of-the-payment-phases" class="tocxref">
+<span class="secno">
+3.
+</span>
+An
+Overview
+of
+the
+Payment
+Phases
+</a>
+<ul class="toc">
+<li class="tocline">
+<a href="#negotiation-of-payment-terms" class="tocxref">
+<span class="secno">
+3.1
+</span>
+Negotiation
+of
+Payment
+Terms
+</a>
+</li>
+<li class="tocline">
+<a href="#negotiation-of-payment-instruments" class="tocxref">
+<span class="secno">
+3.2
+</span>
+Negotiation
+of
+Payment
+Instruments
+</a>
+</li>
+<li class="tocline">
+<a href="#payment-processing" class="tocxref">
+<span class="secno">
+3.3
+</span>
+Payment
+Processing
+</a>
+</li>
+<li class="tocline">
+<a href="#delivery-of-product-receipt-and-refunds" class="tocxref">
+<span class="secno">
+3.4
+</span>
+Delivery
+of
+Product/Receipt
+and
+Refunds
+</a>
+</li>
+</ul>
+</li>
+<li class="tocline">
+<a href="#a-simple-example-of-the-payment-phases" class="tocxref">
+<span class="secno">
+4.
+</span>
+A
+Simple
+Example
+of
+the
+Payment
+Phases
+</a>
+<ul class="toc">
+<li class="tocline">
+<a href="#negotiation-of-purchase-terms" class="tocxref">
+<span class="secno">
+4.1
+</span>
+Negotiation
+of
+Purchase
+Terms
+</a>
+</li>
+<li class="tocline">
+<a href="#negotiation-of-payment-instruments-1" class="tocxref">
+<span class="secno">
+4.2
+</span>
+Negotiation
+of
+Payment
+Instruments
+</a>
+</li>
+<li class="tocline">
+<a href="#payment-processing-1" class="tocxref">
+<span class="secno">
+4.3
+</span>
+Payment
+Processing
+</a>
+</li>
+<li class="tocline">
+<a href="#delivery-of-product-receipt-and-refunds-1" class="tocxref">
+<span class="secno">
+4.4
+</span>
+Delivery
+of
+Product/Receipt
+and
+Refunds
+</a>
+</li>
+</ul>
+</li>
+<li class="tocline">
+<a href="#assumptions" class="tocxref">
+<span class="secno">
+5.
+</span>
+Assumptions
+</a>
+</li>
+<li class="tocline">
+<a href="#use-cases-1" class="tocxref">
+<span class="secno">
+6.
+</span>
+Use
+Cases
+</a>
+<ul class="toc">
+<li class="tocline">
+<a href="#negotiation-of-payment-terms-1" class="tocxref">
+<span class="secno">
+6.1
+</span>
+Negotiation
+of
+Payment
+Terms
+</a>
+<ul class="toc">
+<li class="tocline">
+<a href="#discovery-of-offer" class="tocxref">
+<span class="secno">
+6.1.1
+</span>
+Discovery
+of
+Offer
+</a>
+</li>
+<li class="tocline">
+<a href="#agreement-on-terms" class="tocxref">
+<span class="secno">
+6.1.2
+</span>
+Agreement
+on
+Terms
+</a>
+</li>
+<li class="tocline">
+<a href="#application-of-marketing-elements" class="tocxref">
+<span class="secno">
+6.1.3
+</span>
+Application
+of
+Marketing
+Elements
+</a>
+</li>
+</ul>
+</li>
+<li class="tocline">
+<a href="#negotiation-of-payment-instruments-2" class="tocxref">
+<span class="secno">
+6.2
+</span>
+Negotiation
+of
+Payment
+Instruments
+</a>
+<ul class="toc">
+<li class="tocline">
+<a href="#discovery-of-accepted-schemes" class="tocxref">
+<span class="secno">
+6.2.1
+</span>
+Discovery
+of
+Accepted
+Schemes
+</a>
+</li>
+<li class="tocline">
+<a href="#selection-of-payment-instruments" class="tocxref">
+<span class="secno">
+6.2.2
+</span>
+Selection
+of
+Payment
+Instruments
+</a>
+</li>
+<li class="tocline">
+<a href="#authentication-to-access-instruments" class="tocxref">
+<span class="secno">
+6.2.3
+</span>
+Authentication
+to
+Access
+Instruments
+</a>
+</li>
+</ul>
+</li>
+<li class="tocline">
+<a href="#payment-processing-2" class="tocxref">
+<span class="secno">
+6.3
+</span>
+Payment
+Processing
+</a>
+<ul class="toc">
+<li class="tocline">
+<a href="#initiation-of-processing" class="tocxref">
+<span class="secno">
+6.3.1
+</span>
+Initiation
+of
+Processing
+</a>
+</li>
+<li class="tocline">
+<a href="#verification-of-available-funds" class="tocxref">
+<span class="secno">
+6.3.2
+</span>
+Verification
+of
+Available
+Funds
+</a>
+</li>
+<li class="tocline">
+<a href="#authorization-of-transfer" class="tocxref">
+<span class="secno">
+6.3.3
+</span>
+Authorization
+of
+Transfer
+</a>
+</li>
+<li class="tocline">
+<a href="#completion-of-transfer" class="tocxref">
+<span class="secno">
+6.3.4
+</span>
+Completion
+of
+Transfer
+</a>
+</li>
+</ul>
+</li>
+<li class="tocline">
+<a href="#delivery-of-product-receipt-and-refunds-2" class="tocxref">
+<span class="secno">
+6.4
+</span>
+Delivery
+of
+Product/Receipt
+and
+Refunds
+</a>
+<ul class="toc">
+<li class="tocline">
+<a href="#delivery-of-product" class="tocxref">
+<span class="secno">
+6.4.1
+</span>
+Delivery
+of
+Product
+</a>
+</li>
+<li class="tocline">
+<a href="#delivery-of-receipt" class="tocxref">
+<span class="secno">
+6.4.2
+</span>
+Delivery
+of
+Receipt
+</a>
+</li>
+<li class="tocline">
+<a href="#refunds" class="tocxref">
+<span class="secno">
+6.4.3
+</span>
+Refunds
+</a>
+</li>
+</ul>
+</li>
+</ul>
+</li>
+<li class="tocline">
+<a href="#additional-examples-of-the-payment-phases" class="tocxref">
+<span class="secno">
+7.
+</span>
+Additional
+Examples
+of
+the
+Payment
+Phases
+</a>
+<ul class="toc">
+<li class="tocline">
+<a href="#credit-card-payment-visa-mastercard" class="tocxref">
+<span class="secno">
+7.1
+</span>
+Credit
+Card
+Payment
+(Visa,
+MasterCard)
+</a>
+<ul class="toc">
+</ul>
+</li>
+<li class="tocline">
+<a href="#tokenized-payments-applepay-venmo-cybersource" class="tocxref">
+<span class="secno">
+7.2
+</span>
+Tokenized
+Payments
+(ApplePay
+/
+Venmo
+/
+CyberSource)
+</a>
+<ul class="toc">
+</ul>
+</li>
+<li class="tocline">
+<a href="#three-corner-model-payments-paypal-alipay-google-wallet" class="tocxref">
+<span class="secno">
+7.3
+</span>
+Three
+Corner
+Model
+Payments
+(PayPal
+/
+Alipay
+/
+Google
+Wallet)
+</a>
+<ul class="toc">
+</ul>
+</li>
+<li class="tocline">
+<a href="#cryptocurrency-payment-bitcoin-ripple" class="tocxref">
+<span class="secno">
+7.4
+</span>
+Cryptocurrency
+Payment
+(Bitcoin,
+Ripple)
+</a>
+<ul class="toc">
+</ul>
+</li>
+<li class="tocline">
+<a href="#electronic-check-payment" class="tocxref">
+<span class="secno">
+7.5
+</span>
+Electronic
+<del class="diff-old">Cheque
+</del>
+<ins class="diff-chg">Check
+</ins>
+Payment
+</a>
+</li>
+<li class="tocline">
+<a href="#direct-debit" class="tocxref">
+<span class="secno">
+7.6
+</span>
+<del class="diff-old">Credit
+Transfer
+/
+</del>
+Direct
+Debit
+<ins class="diff-new">(SEPA
+Direct
+Debit)
+</ins>
+</a>
+<ul class="toc">
+</ul>
+</li>
+<li class="tocline">
+<a href="#credit-transfer" class="tocxref">
+<span class="secno">
+<ins class="diff-new">7.7
+</ins></span><ins class="diff-new">
+Credit
+Transfer
+(SEPAmail)
+</ins></a><ul class="toc"></ul>
+</li>
+</ul>
+</li>
+<li class="tocline">
+<a href="#future-work" class="tocxref">
+<span class="secno">
+A.
+</span>
+Future
+Work
+</a>
+</li>
+<li class="tocline">
+<a href="#acknowledgements" class="tocxref">
+<span class="secno">
+B.
+</span>
+Acknowledgements
+</a>
+</li>
+<li class="tocline">
+<a href="#references" class="tocxref">
+<span class="secno">
+C.
+</span>
+References
+</a>
+<ul class="toc">
+<li class="tocline">
+<a href="#informative-references" class="tocxref">
+<span class="secno">
+C.1
+</span>
+Informative
+references
+</a>
+</li>
+</ul>
+</li>
+</ul>
+</section>
+<section id="introduction" typeof="bibo:Chapter" resource="#introduction" property="bibo:hasPart">
+<h2 id="h-introduction" resource="#h-introduction">
+<span property="xhv:role" resource="xhv:heading">
+<span class="secno">
+1.
+</span>
+Introduction
+</span>
+</h2>
+<p>
+ECommerce
+is
+thriving
+and
+continues
+to
+expand.
+However,
+fragmentation
+of
+payment
+systems
+is
+limiting
+the
+growth
+potential
+as
+are
+problems
+—
+both
+real
+and
+perceived
+—
+such
+as
+fraud
+and
+usability.
+</p>
+<p>
+Because
+the
+Web
+is
+ubiquitous,
+strengthening
+support
+for
+Web
+payments
+has
+the
+potential
+to
+create
+new
+opportunities
+for
+businesses
+and
+customers.
+Mobile
+devices
+are
+already
+transforming
+the
+industry
+by
+supplanting
+physical
+payment
+cards
+in
+proximity
+payments,
+voucher
+distribution,
+and
+identification
+when
+people
+authenticate
+to
+a
+scanner,
+point
+of
+sale,
+or
+access
+gate.
+Although
+we
+are
+seeing
+innovation
+in
+mobile
+payment
+systems,
+the
+lack
+of
+standards
+makes
+it
+more
+difficult
+to
+adapt
+to
+new
+payment
+approaches
+or
+integrate
+new
+payment
+providers.
+</p>
+<p>
+The
+<abbr title="World Wide Web Consortium">
+W3C
+</abbr>
+Web
+Payments
+Interest
+Group
+is
+developing
+a
+roadmap
+for
+standards
+to
+improve
+the
+interoperability
+of
+payments
+using
+Web
+technologies
+for
+both
+online
+and
+brick-and-mortar
+(offline)
+scenarios.
+This
+will
+help
+achieve
+greater
+interoperability
+among
+merchants
+and
+their
+customers,
+payment
+providers,
+software
+vendors,
+mobile
+operators,
+native
+mobile
+apps,
+and
+payment
+networks.
+The
+roadmap
+will
+include
+<a title="payment scheme" href="#dfn-payment-scheme" class="internalDFN">
+payment
+schemes
+</a>
+in
+use
+today
+(such
+as
+electronic
+<del class="diff-old">cheques,
+</del>
+<ins class="diff-chg">checks,
+</ins>
+credit
+cards,
+direct
+debit,
+and
+cryptocurrencies)
+and
+those
+of
+the
+future.
+The
+roadmap
+will
+be
+derived
+from
+the
+use
+cases
+listed
+below.
+</p>
+<section id="why-this-work-is-important" typeof="bibo:Chapter" resource="#why-this-work-is-important" property="bibo:hasPart">
+<h3 id="h-why-this-work-is-important" resource="#h-why-this-work-is-important">
+<span property="xhv:role" resource="xhv:heading">
+<span class="secno">
+1.1
+</span>
+Why
+This
+Work
+is
+Important
+</span>
+</h3>
+<p>
+The
+Web
+Payments
+work
+is
+not
+just
+about
+making
+payments
+easier,
+faster,
+more
+secure,
+and
+more
+innovative.
+There
+are
+many
+people
+around
+the
+world
+that
+today's
+financial
+system
+does
+not
+reach.
+These
+people
+are
+called
+the
+world's
+unbanked
+(or
+underbanked).
+The
+unbanked
+often
+live
+<del class="diff-old">pay
+cheque
+</del>
+<ins class="diff-chg">paycheck
+</ins>
+to
+<del class="diff-old">pay
+cheque,
+</del>
+<ins class="diff-chg">paycheck,
+</ins>
+do
+not
+have
+access
+to
+savings
+accounts
+or
+low-fee
+<del class="diff-old">cheque
+</del>
+<ins class="diff-chg">check
+</ins>
+cashing
+services,
+lines
+of
+credit,
+or
+a
+way
+of
+saving
+for
+their
+future.
+Being
+unable
+to
+plan
+for
+one's
+financial
+future
+often
+results
+in
+a
+focus
+on
+the
+short-term,
+which
+creates
+a
+vicious
+cycle
+of
+not
+being
+able
+to
+escape
+one's
+situation.
+Not
+being
+able
+to
+participate
+in
+the
+financial
+system
+creates
+unintended
+inequities
+that
+create
+waste
+and
+result
+in
+a
+net
+loss
+for
+society.
+</p>
+<p>
+However,
+some
+of
+the
+shortcomings
+of
+today's
+financial
+system
+could
+be
+addressed
+via
+technological
+improvements.
+For
+example,
+there
+is
+a
+considerable
+overlap
+between
+the
+unbanked
+and
+underbanked
+population
+and
+access
+to
+advanced
+mobile
+phones
+and
+the
+Web.
+By
+providing
+financial
+services
+to
+people
+with
+mobile
+phones
+in
+a
+standardized
+way
+via
+the
+Web,
+we
+could
+see
+an
+improvement
+in
+the
+financial
+health
+of
+these
+individuals
+and
+their
+families.
+</p>
+<p>
+Extending
+the
+current
+financial
+system
+to
+reach
+further
+helps
+an
+ever
+increasing
+number
+of
+people
+plan
+for
+their
+future,
+focus
+on
+the
+long-term,
+and
+thus
+contributes
+to
+a
+greater
+net
+gain
+for
+society.
+</p>
+</section>
+<section id="how-this-document-is-organized" typeof="bibo:Chapter" resource="#how-this-document-is-organized" property="bibo:hasPart">
+<h3 id="h-how-this-document-is-organized" resource="#h-how-this-document-is-organized">
+<span property="xhv:role" resource="xhv:heading">
+<span class="secno">
+1.2
+</span>
+How
+this
+Document
+is
+Organized
+</span>
+</h3>
+<p>
+This
+document
+is
+organized
+as
+follows:
+</p>
+<ul>
+<li>
+<a href="#terminology">
+Section
+2
+</a>
+defines
+basic
+payment
+terms.
+</li>
+<li>
+<a href="#an-overview-of-the-payment-phases">
+Section
+3
+</a>
+describes
+a
+common
+payment
+flow
+at
+a
+high
+level.
+The
+group
+expects
+to
+work
+on
+additional
+payment
+flows
+in
+future
+work.
+</li>
+<li>
+<a href="#a-simple-example-of-the-payment-phases">
+Section
+4
+</a>
+is
+a
+specific
+narrative,
+labeled
+according
+to
+the
+steps
+of
+section
+3.
+<a href="#additional-examples-of-the-payment-phases">
+Section
+7
+</a>
+describes
+additional
+familiar
+narratives
+to
+give
+a
+more
+complete
+picture
+of
+how
+the
+payment
+phases
+apply.
+</li>
+<li>
+<a href="#assumptions">
+<ins class="diff-new">Section
+5
+</ins></a><ins class="diff-new">
+highlights
+general
+assumptions
+that
+have
+been
+made
+about
+the
+use
+cases.
+</ins></li><li><a href="#use-cases-1">
+Section
+6
+</a>
+lists
+the
+use
+cases
+-
+short
+scenarios
+that
+cover
+diverse
+aspects
+of
+each
+payment
+step.
+</li>
+</ul>
+<p>
+Each
+use
+case
+has:
+</p>
+<ul>
+<li>
+A
+title
+and
+short
+description.
+</li>
+<li>
+<del class="diff-old">Goals.
+How
+</del>
+<ins class="diff-chg">A
+</ins><em><ins class="diff-chg">
+Target
+version
+</ins></em><ins class="diff-chg">
+which
+specifies
+</ins>
+the
+<del class="diff-old">use
+case
+advances
+one
+or
+more
+</del>
+<ins class="diff-chg">intended
+version
+</ins>
+of
+the
+<del class="diff-old">goals
+for
+an
+interoperable
+</del>
+Web
+<del class="diff-old">payments
+framework
+.
+</del>
+<ins class="diff-chg">Payments
+Architecture
+that
+will
+enable
+the
+use
+case.
+</ins>
+</li>
+<li>
+<del class="diff-old">Motivation.
+This
+is
+commentary
+</del>
+<ins class="diff-chg">A
+short
+</ins><em><ins class="diff-chg">
+Motivation
+</ins></em><ins class="diff-chg">
+statement
+</ins>
+to
+help
+explain
+why
+the
+use
+case
+has
+been
+included,
+including
+how
+it
+relates
+to
+similar
+use
+cases.
+</li>
+</ul>
+<p>
+Each
+use
+case
+may
+also
+have
+notes
+on:
+</p>
+<ul>
+<li>
+Security/Privacy.
+Security
+or
+privacy
+issues
+that
+may
+arise
+through
+this
+use
+case.
+</li>
+<li>
+<ins class="diff-new">Accessibility.
+Accessibility
+considerations
+(e.g.,
+in
+multi-factor
+authentication,
+management
+of
+biometrics
+in
+the
+case
+of
+users
+with
+some
+disabilities).
+</ins></li><li><ins class="diff-new">
+Regulatory.
+Regulatory
+considerations
+(e.g.,
+anti-money
+laundering
+clearing,
+suspicious
+activity
+reporting,
+tax
+collection,
+trade
+compliance).
+</ins></li><li>
+Exceptions.
+Considerations
+in
+the
+case
+of
+specific
+exceptions
+(e.g.,
+if
+a
+user
+pays
+with
+a
+voucher
+and
+the
+<a href="#dfn-transaction" class="internalDFN">
+transaction
+</a>
+fails,
+the
+user's
+voucher
+should
+be
+restored).
+</li>
+<del class="diff-old">Accessibility.
+Accessibility
+considerations
+(e.g.,
+in
+multi-factor
+authentication,
+management
+of
+biometrics
+in
+the
+case
+of
+users
+with
+some
+disabilities).
+</del>
+</ul>
+<div class="issue">
+<div class="issue-title" aria-level="4" role="heading" id="h-issue1">
+<span>
+Issue
+1
+</span>
+</div>
+<p class="">
+The
+group
+seeks
+input
+from
+security,
+privacy,
+and
+accessibility
+experts.
+Examples
+of
+desired
+groups
+to
+perform
+these
+reviews
+are,
+but
+are
+not
+limited
+to:
+<abbr title="World Wide Web Consortium">
+W3C
+</abbr>
+Privacy
+Interest
+Group,
+<abbr title="World Wide Web Consortium">
+W3C
+</abbr>
+Security
+Interest
+Group,
+<abbr title="World Wide Web Consortium">
+W3C
+</abbr>
+Web
+Accessibility
+Initiative
+and
+Protocols
+and
+Formats
+Working
+Group,
+US
+Federal
+Reserve
+Security
+Panels,
+X9
+Security
+subgroups,
+and
+ISO
+security
+subgroups.
+</p>
+</div>
+<del class="diff-old">The
+Interest
+Group
+(currently)
+regards
+some
+of
+the
+use
+cases
+as
+"essential"
+to
+addressing
+their
+goals
+and
+others
+as
+"non-essential."
+</del>
+<div class="note">
+<div class="note-title" aria-level="4" role="heading" id="h-note1">
+<span>
+Note
+</span>
+</div>
+<p class="">
+All
+character
+names
+appearing
+in
+this
+document
+are
+fictitious.
+Any
+resemblance
+to
+real
+persons,
+living
+or
+dead,
+is
+purely
+coincidental.
+Some
+organizations,
+products,
+and
+services
+appearing
+in
+this
+document
+are
+real
+and
+are
+included
+purely
+for
+pedagogic
+purposes
+and
+don't
+imply
+endorsement
+or
+approval
+of
+the
+Web
+Payments
+work
+in
+any
+way,
+shape,
+or
+form.
+For
+all
+other
+organizations,
+products,
+or
+services
+appearing
+in
+this
+document,
+any
+resemblance
+to
+real
+entities
+is
+purely
+coincidental.
+</p>
+</div>
+</section>
+</section>
+<section id="terminology" typeof="bibo:Chapter" resource="#terminology" property="bibo:hasPart">
+<h2 id="h-terminology" resource="#h-terminology">
+<span property="xhv:role" resource="xhv:heading">
+<span class="secno">
+2.
+</span>
+Terminology
+</span>
+</h2>
+<div>
+<p>
+This
+document
+attempts
+to
+communicate
+the
+concepts
+outlined
+in
+the
+Web
+Payments
+space
+by
+using
+specific
+terms
+to
+discuss
+particular
+concepts.
+This
+terminology
+is
+included
+below
+and
+linked
+to
+throughout
+the
+document
+to
+aid
+the
+reader:
+</p>
+<dl class="termlist">
+<dt>
+</dt>
+<dt>
+</dt>
+<dt>
+</dt>
+<dt>
+</dt>
+<dt>
+</dt>
+<dt>
+</dt>
+<dt>
+</dt>
+<dt>
+</dt>
+<dt>
+<dfn id="dfn-entity">
+entity
+</dfn>
+</dt>
+<dd>
+A
+person,
+organization,
+or
+software
+agent
+that
+is
+capable
+of
+interacting
+with
+the
+world.
+</dd>
+<dt>
+<dfn id="dfn-four-corner-model">
+<ins class="diff-new">four
+corner
+model
+</ins></dfn></dt><dd><ins class="diff-new">
+A
+</ins><a href="#dfn-payment-scheme" class="internalDFN"><ins class="diff-new">
+payment
+scheme
+</ins></a><ins class="diff-new">
+which
+includes
+the
+following
+stakeholders:
+the
+</ins><a href="#dfn-payer" class="internalDFN"><ins class="diff-new">
+payer
+</ins></a><ins class="diff-new">
+(also
+known
+as
+the
+Cardholder),
+the
+Issuer
+(who
+has
+a
+relationship
+with
+the
+Cardholder),
+the
+Acceptor
+and
+the
+Acquirer
+(which
+has
+a
+relationship
+with
+the
+Acceptor).
+The
+</ins><a href="#dfn-payment-scheme" class="internalDFN"><ins class="diff-new">
+payment
+scheme
+</ins></a><ins class="diff-new">
+defines
+the
+rules
+which
+apply
+to
+all
+parties;
+there
+are
+no
+limitations
+as
+to
+who
+may
+join
+the
+scheme,
+as
+long
+as
+the
+requirements
+of
+the
+scheme
+are
+met.
+</ins></dd><dt></dt><dt></dt><dt></dt><dt>
+<dfn id="dfn-payee">
+payee
+</dfn>
+</dt>
+<dd>
+An
+entity
+that
+receives
+funds
+as
+required
+by
+a
+<del class="diff-old">transaction
+.
+</del>
+<ins class="diff-chg">transaction.
+</ins>
+</dd>
+<dt>
+<dfn id="dfn-payer">
+payer
+</dfn>
+</dt>
+<dd>
+An
+entity
+that
+provides
+a
+source
+of
+funds
+as
+required
+by
+a
+<del class="diff-old">transaction
+.
+</del>
+<ins class="diff-chg">transaction.
+</ins>
+</dd>
+<dt>
+</dt>
+<dt>
+<dfn id="dfn-payment-instrument">
+payment
+instrument
+</dfn>
+</dt>
+<dd>
+A
+mechanism
+used
+to
+transfer
+value
+from
+a
+<a href="#dfn-payer" class="internalDFN">
+payer
+</a>
+to
+a
+<a href="#dfn-payee" class="internalDFN">
+payee
+</a>.
+Examples:
+Corporate
+Visa
+card,
+personal
+Visa
+card,
+a
+bitcoin
+account,
+a
+PayPal
+account,
+<ins class="diff-new">and
+</ins>
+an
+Alipay
+<del class="diff-old">account,
+etc.
+</del>
+<ins class="diff-chg">account.
+[PSD2]
+any
+personalized
+device(s)
+and/or
+set
+of
+procedures
+agreed
+between
+the
+payment
+service
+user
+and
+the
+payment
+service
+provider
+and
+used
+in
+order
+to
+initiate
+a
+payment
+order.
+[ECB]
+a
+tool
+or
+a
+set
+of
+procedures
+enabling
+the
+transfer
+of
+funds
+from
+a
+payer
+to
+a
+payee.
+</ins>
+</dd>
+<dt>
+</dt>
+<dt>
+</dt>
+<dt>
+<dfn id="dfn-payment-processor">
+payment
+processor
+</dfn>
+</dt>
+<dd>
+An
+<a href="#dfn-entity" class="internalDFN">
+entity
+</a>
+that
+submits
+and
+processes
+payments
+using
+a
+particular
+<a href="#dfn-payment-instrument" class="internalDFN">
+payment
+instrument
+</a>
+to
+a
+payment
+network.
+Examples:
+Stripe,
+PayPal,
+Authorize.net,
+Atos,
+FedACH.
+</dd>
+<dt>
+<dfn id="dfn-payment-scheme">
+payment
+scheme
+</dfn>
+</dt>
+<dd>
+Sets
+of
+rules
+and
+technical
+standards
+for
+the
+execution
+of
+payment
+<a title="transaction" href="#dfn-transaction" class="internalDFN">
+transactions
+</a>
+that
+have
+to
+be
+followed
+by
+adhering
+entities
+(
+<a title="payment processor" href="#dfn-payment-processor" class="internalDFN">
+payment
+processors
+</a>,
+<a title="payer" href="#dfn-payer" class="internalDFN">
+payers
+</a>
+and
+<a title="payee" href="#dfn-payee" class="internalDFN">
+payees
+</a>
+).
+Examples:
+Visa,
+MasterCard,
+Bitcoin,
+Ripple,
+PayPal,
+Google
+Pay,
+Alipay,
+Yandex
+money,
+ACH,
+SEPA.
+<ins class="diff-new">[ECB]
+a
+set
+of
+interbank
+rules,
+practices
+and
+standards
+necessary
+for
+the
+functioning
+of
+payment
+services.
+</ins></dd><dt></dt><dt><dfn id="dfn-pull-payment"><ins class="diff-new">
+pull
+payment
+</ins></dfn><ins class="diff-new">
+or
+</ins><dfn id="dfn-payee-initiated-payment"><ins class="diff-new">
+payee-initiated
+payment
+</ins></dfn></dt><dd><ins class="diff-new">
+A
+type
+of
+</ins><a href="#dfn-transaction" class="internalDFN"><ins class="diff-new">
+transaction
+</ins></a><ins class="diff-new">
+where
+the
+</ins><a href="#dfn-payee" class="internalDFN"><ins class="diff-new">
+payee
+</ins></a><ins class="diff-new">
+initiates
+the
+funds
+transfer
+from
+the
+</ins><a href="#dfn-payee" class="internalDFN"><ins class="diff-new">
+payee
+</ins></a>.<ins class="diff-new">
+A
+credit
+card
+payment
+is
+an
+example
+of
+a
+pull
+payment.
+</ins>
+</dd>
+<dt>
+<dfn id="dfn-purchase">
+purchase
+</dfn>
+</dt>
+<dd>
+Activities
+surrounding
+and
+including
+a
+transaction
+(e.g.,
+discovery
+of
+an
+offer,
+negotiation
+of
+terms,
+selection
+of
+payment
+<del class="diff-old">instrument
+,
+</del>
+<ins class="diff-chg">instrument,
+</ins>
+delivery,
+etc.).
+</dd>
+<dt>
+<del class="diff-old">transaction
+</del>
+<dfn id="dfn-push-payment">
+<ins class="diff-chg">push
+payment
+</ins></dfn><ins class="diff-chg">
+or
+</ins><dfn id="dfn-payer-initiated-payment"><ins class="diff-chg">
+payer-initiated
+payment
+</ins>
+</dfn>
+</dt>
+<dd>
+<del class="diff-old">An
+exchange
+</del>
+<ins class="diff-chg">A
+type
+</ins>
+of
+<del class="diff-old">value
+(e.g.,
+buying
+or
+selling
+something)
+</del>
+<a href="#dfn-transaction" class="internalDFN">
+<ins class="diff-chg">transaction
+</ins></a><ins class="diff-chg">
+where
+the
+</ins><a href="#dfn-payer" class="internalDFN"><ins class="diff-chg">
+payer
+</ins></a><ins class="diff-chg">
+initiates
+the
+funds
+transfer
+to
+the
+</ins><a href="#dfn-payee" class="internalDFN"><ins class="diff-chg">
+payee
+</ins></a>.<ins class="diff-chg">
+PayPal
+is
+an
+example
+of
+a
+push
+payment.
+</ins>
+</dd>
+<dt>
+</dt>
+<dt>
+<del class="diff-old">Note
+</del>
+</dt>
+<dt>
+</dt>
+<dt>
+<del class="diff-old">There
+are
+</del>
+<dfn id="dfn-transaction">
+<ins class="diff-chg">transaction
+</ins></dfn></dt><dd><ins class="diff-chg">
+An
+economic
+exchange
+between
+</ins>
+a
+<del class="diff-old">number
+of
+financial
+industry
+standards
+(such
+as
+ISO20022,
+ISO12812,
+various
+X9
+standards,
+PCI
+DSS,
+</del>
+<a href="#dfn-payer" class="internalDFN">
+<ins class="diff-chg">payer
+</ins></a>
+and
+<del class="diff-old">others)
+that
+define
+payment
+terms.
+The
+Web
+Payments
+Interest
+Group
+has
+as
+</del>
+<ins class="diff-chg">one
+or
+more
+</ins><a title="payee" href="#dfn-payee" class="internalDFN"><ins class="diff-chg">
+payees
+</ins></a>.<ins class="diff-chg">
+An
+agreement,
+communication,
+or
+movement
+carried
+out
+between
+</ins>
+a
+<del class="diff-old">goal
+to
+make
+use
+of
+industry-defined
+terms
+in
+its
+deliverables.
+At
+the
+same
+time,
+the
+group
+has
+as
+</del>
+<ins class="diff-chg">buyer
+and
+</ins>
+a
+<del class="diff-old">goal
+that
+these
+use
+cases
+may
+be
+understood
+by
+both
+</del>
+<ins class="diff-chg">seller
+to
+exchange
+an
+asset
+for
+</ins>
+payment
+<del class="diff-old">industry
+professionals
+and
+</del>
+</dd>
+<dt>
+<dfn id="dfn-transfer-order">
+<ins class="diff-chg">transfer
+order
+</ins></dfn></dt><dd><ins class="diff-chg">
+[ECB]
+an
+order
+or
+message
+requesting
+</ins>
+the
+<del class="diff-old">broader
+Web
+community.
+Thus,
+our
+definitions
+are
+simplified
+and
+few
+in
+number
+here,
+but
+</del>
+<ins class="diff-chg">transfer
+of
+assets
+(e.g.
+funds,
+securities,
+other
+financial
+instruments
+or
+commodities)
+from
+</ins>
+the
+<del class="diff-old">group
+is
+also
+developing
+a
+more
+complete
+glossary
+with
+detailed
+definitions
+and
+mappings
+</del>
+<ins class="diff-chg">debtor
+</ins>
+to
+<del class="diff-old">industry-defined
+terms.
+</del>
+<ins class="diff-chg">the
+creditor
+</ins></dd><dt></dt></dl>
+</div>
+</section>
+<section id="an-overview-of-the-payment-phases" typeof="bibo:Chapter" resource="#an-overview-of-the-payment-phases" property="bibo:hasPart">
+<h2 id="h-an-overview-of-the-payment-phases" resource="#h-an-overview-of-the-payment-phases">
+<span property="xhv:role" resource="xhv:heading">
+<span class="secno">
+3.
+</span>
+An
+Overview
+of
+the
+Payment
+Phases
+</span>
+</h2>
+<p>
+There
+are
+many
+types
+of
+<a href="#dfn-transaction" class="internalDFN">
+transaction
+</a>
+s
+in
+the
+world
+of
+payments,
+including
+person-to-business,
+business-to-business,
+business-to-person,
+government-to-person,
+person-to-government,
+and
+person-to-person.
+In
+this
+document
+we
+focus
+on
+the
+interactions
+between
+a
+<a href="#dfn-payer" class="internalDFN">
+payer
+</a>
+and
+a
+<a href="#dfn-payee" class="internalDFN">
+payee
+</a>,
+either
+of
+which
+could
+be
+a
+person,
+business,
+government,
+or
+software
+agent),
+which
+we
+organize
+into
+four
+phases:
+</p>
+<div class="issue">
+<div class="issue-title" aria-level="3" role="heading" id="h-issue2">
+<span>
+Issue
+2
+</span>
+</div>
+<p class="">
+The
+group
+would
+like
+feedback
+related
+to
+the
+general
+structure
+of
+the
+payment
+phases
+from
+individuals
+that
+worked
+on
+ISO20022,
+ISO12812,
+the
+European
+Payment
+Commission,
+and
+various
+X9
+documents
+to
+ensure
+that
+the
+phases
+reflect
+business
+processes
+outlined
+in
+financial
+standardization
+initiatives.
+Feedback
+from
+the
+general
+public
+is
+also
+requested
+to
+see
+if
+non-payment
+professionals
+can
+navigate
+and
+understand
+the
+document
+without
+prior
+payment
+industry
+knowledge.
+</p>
+</div>
+<ol>
+<li>
+Negotiation
+of
+Payment
+Terms
+</li>
+<li>
+Negotiation
+of
+Payment
+Instruments
+</li>
+<li>
+Payment
+Processing
+</li>
+<li>
+Delivery
+of
+Product/Receipt
+and
+Refunds
+</li>
+</ol>
+<p>
+The
+descriptions
+below
+only
+discuss
+the
+interactions
+between
+the
+<a href="#dfn-payer" class="internalDFN">
+payer
+</a>
+and
+the
+<a href="#dfn-payee" class="internalDFN">
+payee
+</a>.
+We
+do
+not
+expose
+the
+low-level
+exchanges
+between
+banks,
+card
+associations,
+or
+other
+back-end
+"payment
+clearing"
+parties
+in
+a
+<a href="#dfn-transaction" class="internalDFN">
+transaction
+</a>.
+Those
+details
+will
+be
+discussed
+in
+the
+Interest
+Group's
+work
+on
+architecture
+and
+requirements.
+</p>
+<p>
+Each
+phase
+below
+consists
+of
+a
+series
+of
+steps.
+The
+details
+of
+each
+step
+vary
+by
+<a href="#dfn-payment-scheme" class="internalDFN">
+payment
+scheme
+</a>.
+Some
+steps
+may
+not
+be
+relevant
+at
+certain
+times
+(e.g.,
+depending
+on
+<a href="#dfn-payment-scheme" class="internalDFN">
+payment
+scheme
+</a>
+or
+<a href="#dfn-transaction" class="internalDFN">
+transaction
+</a>
+specifics).
+For
+example,
+some
+<a title="purchase" href="#dfn-purchase" class="internalDFN">
+purchases
+</a>
+do
+not
+involve
+a
+proof
+of
+funds
+or
+proof
+of
+hold.
+ACH
+and
+SEPA
+<a title="payment scheme" href="#dfn-payment-scheme" class="internalDFN">
+payment
+schemes
+</a>
+generally
+do
+not
+support
+the
+verification
+of
+available
+funds,
+thus
+in
+these
+<a title="payment scheme" href="#dfn-payment-scheme" class="internalDFN">
+payment
+schemes
+</a>
+the
+particular
+proof
+of
+funds
+step
+is
+skipped.
+In
+some
+cases,
+steps
+may
+happen
+in
+a
+slightly
+different
+order
+than
+described
+below.
+</p>
+<p>
+It
+is
+also
+important
+to
+note
+that
+these
+phases
+and
+steps
+may
+be
+interrupted
+at
+various
+times
+(e.g.,
+one
+party
+drops
+out,
+or
+exceptions
+occur
+like
+insufficient
+funds
+or
+a
+regulatory
+block).
+While
+these
+phases
+are
+an
+approximation
+of
+the
+general
+flow
+of
+all
+payments,
+they
+are
+helpful
+in
+structuring
+the
+use
+cases
+such
+that
+it
+is
+easy
+to
+figure
+out
+to
+which
+part
+of
+the
+payment
+process
+a
+particular
+use
+case
+belongs.
+</p>
+<p>
+While
+these
+four
+phases
+may
+apply
+more
+or
+less
+well
+to
+a
+variety
+of
+other
+payment
+scenarios
+such
+as
+person-to-person
+payments,
+those
+topics
+are
+not
+the
+current
+focus
+of
+the
+group.
+We
+plan
+to
+address
+them
+directly
+in
+<a href="#future-work">
+future
+work
+</a>.
+</p>
+<section id="negotiation-of-payment-terms" typeof="bibo:Chapter" resource="#negotiation-of-payment-terms" property="bibo:hasPart">
+<h3 id="h-negotiation-of-payment-terms" resource="#h-negotiation-of-payment-terms">
+<span property="xhv:role" resource="xhv:heading">
+<span class="secno">
+3.1
+</span>
+Negotiation
+of
+Payment
+Terms
+</span>
+</h3>
+<p>
+In
+the
+first
+phase
+of
+the
+payment
+process,
+the
+<a href="#dfn-payer" class="internalDFN">
+payer
+</a>
+and
+the
+<a href="#dfn-payee" class="internalDFN">
+payee
+</a>
+negotiate
+the
+terms
+of
+the
+payment.
+</p>
+<ul>
+<li>
+<strong>
+Discovery
+of
+Offer
+</strong>.
+The
+<a href="#dfn-payer" class="internalDFN">
+payer
+</a>
+discovers
+the
+<a title="payee" href="#dfn-payee" class="internalDFN">
+payee's
+</a>
+offer
+(e.g.,
+by
+browsing
+a
+Web
+page
+or
+from
+a
+native
+application).
+</li>
+<li>
+<strong>
+Agreement
+on
+Terms
+</strong>.
+The
+<a href="#dfn-payer" class="internalDFN">
+payer
+</a>
+and
+the
+<a href="#dfn-payee" class="internalDFN">
+payee
+</a>
+agree
+to
+what
+will
+be
+purchased,
+for
+how
+much,
+in
+what
+currency,
+which
+<a title="payment scheme" href="#dfn-payment-scheme" class="internalDFN">
+payment
+schemes
+</a>
+or
+loyalty
+programs
+are
+acceptable,
+etc.
+The
+<a href="#dfn-payee" class="internalDFN">
+payee
+</a>
+may
+require
+the
+<a href="#dfn-payer" class="internalDFN">
+payer
+</a>
+to
+authenticate
+themselves.
+The
+<a href="#dfn-payee" class="internalDFN">
+payee
+</a>
+may
+generate
+an
+invoice
+for
+the
+<a href="#dfn-payer" class="internalDFN">
+payer
+</a>.
+</li>
+<li>
+<strong>
+Application
+of
+Marketing
+Elements
+</strong>.
+The
+<a href="#dfn-payer" class="internalDFN">
+payer
+</a>
+discovers
+and
+applies
+any
+loyalty
+programs,
+coupons,
+and
+other
+special
+offers
+to
+the
+payment
+terms.
+</li>
+</ul>
+</section>
+<section id="negotiation-of-payment-instruments" typeof="bibo:Chapter" resource="#negotiation-of-payment-instruments" property="bibo:hasPart">
+<h3 id="h-negotiation-of-payment-instruments" resource="#h-negotiation-of-payment-instruments">
+<span property="xhv:role" resource="xhv:heading">
+<span class="secno">
+3.2
+</span>
+Negotiation
+of
+Payment
+Instruments
+</span>
+</h3>
+<p>
+In
+the
+second
+phase
+of
+the
+payment
+process,
+<a href="#dfn-payer" class="internalDFN">
+payer
+</a>
+and
+<a href="#dfn-payee" class="internalDFN">
+payee
+</a>
+determine
+which
+<a title="payment instrument" href="#dfn-payment-instrument" class="internalDFN">
+payment
+instruments
+</a>
+the
+<a href="#dfn-payer" class="internalDFN">
+payer
+</a>
+will
+use
+to
+transfer
+funds
+to
+the
+<a href="#dfn-payee" class="internalDFN">
+payee
+</a>.
+</p>
+<ul>
+<li>
+<strong>
+Discovery
+of
+Accepted
+Schemes
+</strong>.
+The
+<a href="#dfn-payer" class="internalDFN">
+payer
+</a>
+discovers
+the
+<a title="payment instrument" href="#dfn-payment-instrument" class="internalDFN">
+payment
+instruments
+</a>
+that
+are
+accepted
+by
+the
+<a href="#dfn-payee" class="internalDFN">
+payee
+</a>.
+</li>
+<li>
+<strong>
+Selection
+of
+Payment
+Instruments
+</strong>.
+The
+<del class="diff-old">payee
+</del>
+<a href="#dfn-payer" class="internalDFN">
+<ins class="diff-chg">payer
+</ins>
+</a>
+selects
+one
+or
+more
+<a title="payment instrument" href="#dfn-payment-instrument" class="internalDFN">
+payment
+instruments
+</a>
+that
+are
+available
+to
+the
+<a href="#dfn-payer" class="internalDFN">
+payer
+</a>
+and
+are
+accepted
+by
+the
+<a href="#dfn-payee" class="internalDFN">
+payee
+</a>.
+</li>
+<li>
+<strong>
+Authentication
+to
+Access
+Instruments
+</strong>.
+The
+<a title="payer" href="#dfn-payer" class="internalDFN">
+payer's
+</a>
+access
+to
+the
+<a href="#dfn-payment-instrument" class="internalDFN">
+payment
+instrument
+</a>
+is
+authenticated.
+The
+<a href="#dfn-payer" class="internalDFN">
+payer
+</a>
+consents
+to
+pay.
+Note:
+This
+authentication
+with
+the
+<a href="#dfn-payment-processor" class="internalDFN">
+payment
+processor
+</a>
+is
+distinct
+from
+any
+authentication
+required
+by
+the
+<a href="#dfn-payee" class="internalDFN">
+payee
+</a>
+(such
+as
+when
+a
+merchant
+requires
+a
+customer
+to
+have
+an
+account
+and
+log
+in
+to
+the
+merchant's
+Web
+site).
+</li>
+</ul>
+</section>
+<section id="payment-processing" typeof="bibo:Chapter" resource="#payment-processing" property="bibo:hasPart">
+<h3 id="h-payment-processing" resource="#h-payment-processing">
+<span property="xhv:role" resource="xhv:heading">
+<span class="secno">
+3.3
+</span>
+Payment
+Processing
+</span>
+</h3>
+<p>
+The
+third
+phase
+of
+the
+payment
+process
+is
+used
+to
+initiate
+the
+transfer
+of
+funds.
+Depending
+on
+the
+<a href="#dfn-payment-instrument" class="internalDFN">
+payment
+instrument
+</a>,
+the
+transfer
+of
+funds
+may
+be
+verified
+immediately
+or
+only
+after
+several
+days.
+</p>
+<ul>
+<li>
+<strong>
+Initiation
+of
+Processing
+</strong>.
+Depending
+on
+the
+<a href="#dfn-payment-instrument" class="internalDFN">
+payment
+instrument
+</a>,
+the
+<a href="#dfn-payer" class="internalDFN">
+payer
+</a>
+(e.g.,
+when
+using
+PayPal
+or
+Yandex
+Money),
+the
+<a href="#dfn-payee" class="internalDFN">
+payee
+</a>
+(e.g.,
+when
+using
+a
+credit
+card),
+or
+other
+party
+(e.g.,
+bank)
+initiates
+processing.
+</li>
+<li>
+<strong>
+Verification
+of
+Available
+Funds
+</strong>.
+The
+<del class="diff-old">payee
+</del>
+<a href="#dfn-payer" class="internalDFN">
+<ins class="diff-chg">payer
+</ins>
+</a>
+may
+need
+to
+provide
+a
+proof
+of
+funds
+or
+a
+proof
+of
+hold
+to
+the
+<del class="diff-old">payer
+</del>
+<a href="#dfn-payee" class="internalDFN">
+<ins class="diff-chg">payee
+</ins>
+</a>
+before
+finalizing
+payment
+and
+delivery
+of
+the
+product.
+</li>
+<li>
+<strong>
+Authorization
+of
+Transfer
+</strong>.
+The
+<a href="#dfn-payee" class="internalDFN">
+payee
+</a>
+receives
+proof
+that
+the
+transfer
+of
+funds
+has
+been
+authorized.
+</li>
+<li>
+<strong>
+Completion
+of
+Transfer
+</strong>.
+The
+<a href="#dfn-payment-scheme" class="internalDFN">
+payment
+scheme
+</a>
+determines
+the
+details
+of
+payment
+clearing
+and
+settlement.
+Transfer
+times
+may
+vary
+from
+near-realtime
+to
+multiple
+days.
+The
+<a href="#dfn-payee" class="internalDFN">
+payee
+</a>,
+the
+<a href="#dfn-payer" class="internalDFN">
+payer
+</a>,
+and/or
+third
+parties
+(such
+as
+regulatory
+bodies)
+may
+be
+notified
+as
+each
+stage
+of
+the
+clearing
+and
+settlement
+process
+is
+completed.
+</li>
+</ul>
+</section>
+<section id="delivery-of-product-receipt-and-refunds" typeof="bibo:Chapter" resource="#delivery-of-product-receipt-and-refunds" property="bibo:hasPart">
+<h3 id="h-delivery-of-product-receipt-and-refunds" resource="#h-delivery-of-product-receipt-and-refunds">
+<span property="xhv:role" resource="xhv:heading">
+<span class="secno">
+3.4
+</span>
+Delivery
+of
+Product/Receipt
+and
+Refunds
+</span>
+</h3>
+<p>
+In
+the
+fourth
+phase
+of
+the
+payment
+process,
+the
+<a href="#dfn-transaction" class="internalDFN">
+transaction
+</a>
+is
+completed
+by
+providing
+the
+<a href="#dfn-payer" class="internalDFN">
+payer
+</a>
+with
+a
+receipt
+and/or
+the
+product
+that
+was
+purchased.
+</p>
+<ul>
+<li>
+<strong>
+Delivery
+of
+Product
+</strong>.
+The
+<a href="#dfn-payer" class="internalDFN">
+payer
+</a>
+receives
+goods
+or
+services
+immediately,
+at
+a
+later
+date,
+automatically
+on
+a
+recurring
+basis,
+etc.
+depending
+on
+the
+terms
+of
+the
+<a href="#dfn-purchase" class="internalDFN">
+purchase
+</a>.
+A
+digital
+proof
+of
+payment
+may
+be
+required
+to
+access
+the
+product.
+</li>
+<li>
+<strong>
+Delivery
+of
+Receipt
+</strong>.
+Depending
+on
+the
+<a title="payment scheme" href="#dfn-payment-scheme" class="internalDFN">
+payment
+scheme(s)
+</a>
+chosen,
+there
+are
+various
+ways
+and
+times
+that
+a
+receipt
+may
+be
+delivered
+(e.g.,
+credit
+card
+receipt,
+digital
+proof
+of
+<a href="#dfn-purchase" class="internalDFN">
+purchase
+</a>,
+<ins class="diff-new">or
+</ins>
+encrypted
+line-item
+<del class="diff-old">receipt,
+etc.).
+</del>
+<ins class="diff-chg">receipt).
+</ins>
+</li>
+<li>
+<strong>
+Refunds
+</strong>.
+At
+<del class="diff-old">time
+</del>
+<ins class="diff-chg">times
+</ins>
+exceptions
+may
+occur
+(e.g.,
+defective
+<del class="diff-old">product,
+</del>
+<ins class="diff-chg">product
+or
+</ins>
+application
+of
+store
+return
+<del class="diff-old">policy,
+etc.).
+</del>
+<ins class="diff-chg">policy).
+</ins>
+In
+this
+case,
+the
+<a href="#dfn-payee" class="internalDFN">
+payee
+</a>
+initiates
+payment
+to
+the
+<a href="#dfn-payer" class="internalDFN">
+payer
+</a>.
+The
+refund
+may
+take
+different
+forms,
+including
+a
+refund
+to
+the
+<a title="payer" href="#dfn-payer" class="internalDFN">
+payer's
+</a>
+payment
+instrument,
+a
+refund
+using
+a
+different
+payment
+scheme,
+or
+store
+credit.
+</li>
+</ul>
+</section>
+</section>
+<section id="a-simple-example-of-the-payment-phases" typeof="bibo:Chapter" resource="#a-simple-example-of-the-payment-phases" property="bibo:hasPart">
+<h2 id="phases-overview" resource="#phases-overview">
+<span property="xhv:role" resource="xhv:heading">
+<span class="secno">
+4.
+</span>
+A
+Simple
+Example
+of
+the
+Payment
+Phases
+</span>
+</h2>
+<p>
+The
+following
+scenario
+is
+provided
+to
+aid
+the
+reader
+in
+understanding
+how
+the
+phases
+of
+the
+payment
+process
+apply
+to
+a
+real
+world
+situation.
+In
+this
+scenario,
+we
+follow
+Jill,
+who
+seeks
+a
+new
+outfit
+for
+a
+party.
+She
+selects
+items
+from
+PayToParty,
+which
+is
+a
+brick-and-mortar
+store
+with
+an
+online
+presence.
+She
+chooses
+how
+to
+pay
+and
+the
+items
+are
+delivered
+to
+her
+home
+on
+the
+following
+day.
+</p>
+<p>
+See
+the
+appendix
+for
+<a href="#additional-examples">
+additional
+examples
+of
+the
+payment
+phases
+</a>.
+</p>
+<div class="issue">
+<div class="issue-title" aria-level="3" role="heading" id="h-issue3">
+<span>
+Issue
+3
+</span>
+</div>
+<p class="">
+General
+feedback
+is
+requested
+<del class="diff-old">as
+to
+</del>
+<ins class="diff-chg">on
+</ins>
+whether
+<del class="diff-old">or
+not
+</del>
+this
+section
+is
+<del class="diff-old">helpful
+in
+grounding
+</del>
+<ins class="diff-chg">helpful.
+We
+are
+attempting
+to
+ground
+</ins>
+the
+payment
+phases
+and
+steps
+in
+a
+real
+world
+use
+<del class="diff-old">case
+is
+helpful
+this
+early
+in
+the
+document.
+</del>
+<ins class="diff-chg">case.
+</ins>
+An
+alternative
+would
+be
+removing
+this
+section
+entirely
+if
+the
+preceding
+section
+suffices,
+or
+moving
+this
+narrative
+to
+section
+7
+with
+<ins class="diff-new">the
+</ins>
+other
+examples.
+</p>
+</div>
+<section id="negotiation-of-purchase-terms" typeof="bibo:Chapter" resource="#negotiation-of-purchase-terms" property="bibo:hasPart">
+<h3 id="h-negotiation-of-purchase-terms" resource="#h-negotiation-of-purchase-terms">
+<span property="xhv:role" resource="xhv:heading">
+<span class="secno">
+4.1
+</span>
+Negotiation
+of
+Purchase
+Terms
+</span>
+</h3>
+<ul>
+<li>
+<strong>
+Discovery
+of
+Offer
+</strong>:
+Jill
+begins
+her
+<a href="#dfn-purchase" class="internalDFN">
+purchase
+</a>
+at
+home
+on
+her
+laptop,
+where
+she
+browses
+the
+items
+on
+the
+PayToParty
+Web
+site.
+On
+the
+way
+to
+work
+the
+next
+morning,
+she
+explores
+the
+catalog
+further
+from
+a
+native
+app
+on
+her
+smart
+phone.
+Jill
+can't
+decide
+whether
+the
+dress
+displayed
+online
+is
+<a href="https://en.wikipedia.org/wiki/The_dress_(viral_phenomenon)">
+blue
+with
+black
+stripes
+or
+white
+with
+gold
+<del class="diff-old">stripes,
+</del>
+<ins class="diff-chg">stripes
+</ins></a>,
+so
+during
+her
+lunch
+break,
+she
+drops
+into
+the
+PayToParty
+store
+near
+her
+office.
+She
+spots
+a
+few
+more
+items
+that
+she
+thinks
+she'd
+like
+to
+<a href="#dfn-purchase" class="internalDFN">
+purchase
+</a>,
+but
+decides
+to
+wait
+until
+later
+to
+make
+the
+<a href="#dfn-purchase" class="internalDFN">
+purchase
+</a>.
+</li>
+<li>
+<strong>
+Agreement
+on
+Terms
+</strong>:
+That
+same
+evening
+at
+home,
+Jill
+logs
+into
+her
+account
+on
+the
+PayToParty
+Web
+site,
+adding
+her
+<del class="diff-old">preferred
+</del>
+<ins class="diff-chg">chosen
+</ins>
+items
+to
+her
+shopping
+cart.
+The
+total
+price
+appears
+on
+the
+page.
+</li>
+<li>
+<strong>
+Application
+of
+Marketing
+Elements
+</strong>:
+As
+Jill
+prepares
+to
+check
+out,
+PayToParty
+<del class="diff-old">offers
+</del>
+<ins class="diff-chg">notifies
+</ins>
+her
+<ins class="diff-new">of
+</ins>
+a
+discount
+<del class="diff-old">of
+</del>
+<ins class="diff-chg">for
+</ins>
+10%
+if
+she
+uses
+the
+store's
+loyalty
+card
+to
+pay.
+</li>
+</ul>
+</section>
+<section id="negotiation-of-payment-instruments-1" typeof="bibo:Chapter" resource="#negotiation-of-payment-instruments-1" property="bibo:hasPart">
+<h3 id="h-negotiation-of-payment-instruments-1" resource="#h-negotiation-of-payment-instruments-1">
+<span property="xhv:role" resource="xhv:heading">
+<span class="secno">
+4.2
+</span>
+Negotiation
+of
+Payment
+Instruments
+</span>
+</h3>
+<ul>
+<li>
+<strong>
+Discovery
+of
+Accepted
+Schemes
+</strong>:
+Given
+where
+Jill
+lives,
+PayToParty
+<del class="diff-old">offers
+her
+</del>
+<ins class="diff-chg">accepts
+</ins>
+payment
+by
+credit
+card,
+debit
+card,
+the
+PayToParty
+loyalty
+card,
+and
+PayPal,
+but
+not
+Jill's
+favorite
+cryptocurrency
+(which
+she
+uses
+on
+other
+sites).
+</li>
+<li>
+<strong>
+Selection
+of
+Payment
+Instruments
+</strong>:
+Jill
+pushes
+the
+"Pay
+Now
+to
+Party!"
+button
+and
+is
+presented
+with
+a
+number
+of
+options
+to
+pay,
+including
+her
+credit
+card,
+her
+PayToParty
+loyalty
+card
+(which
+is
+highlighted
+to
+remind
+her
+of
+the
+discount),
+and
+a
+PayPal
+account.
+There
+is
+also
+a
+gift
+card
+from
+PayToParty
+that
+she
+received
+for
+her
+birthday,
+but
+she
+chooses
+not
+to
+use
+it
+for
+this
+<a href="#dfn-purchase" class="internalDFN">
+purchase
+</a>.
+</li>
+<li>
+<strong>
+Authentication
+to
+Access
+Instruments
+</strong>:
+Jill
+selects
+the
+PayToParty
+loyalty
+card,
+<ins class="diff-new">the
+use
+of
+</ins>
+which
+<del class="diff-old">she
+enabled
+with
+theft-protection,
+</del>
+<ins class="diff-chg">is
+protected
+by
+two-factor
+authentication,
+</ins>
+and
+is
+asked
+to
+input
+a
+code
+that
+is
+sent
+to
+her
+phone
+before
+the
+<a href="#dfn-purchase" class="internalDFN">
+purchase
+</a>
+can
+be
+completed.
+</li>
+</ul>
+</section>
+<section id="payment-processing-1" typeof="bibo:Chapter" resource="#payment-processing-1" property="bibo:hasPart">
+<h3 id="h-payment-processing-1" resource="#h-payment-processing-1">
+<span property="xhv:role" resource="xhv:heading">
+<span class="secno">
+4.3
+</span>
+Payment
+Processing
+</span>
+</h3>
+<ul>
+<li>
+<strong>
+Initiation
+of
+Processing
+</strong>.
+PayToParty
+receives
+a
+message
+from
+Jill's
+device
+authorizing
+the
+payment.
+PayToParty
+submits
+the
+message
+to
+their
+<a href="#dfn-payment-processor" class="internalDFN">
+payment
+processor
+</a>,
+requesting
+a
+proof
+of
+hold
+for
+the
+funds.
+</li>
+<li>
+<strong>
+Verification
+of
+Available
+Funds
+</strong>.
+PayToParty
+receives
+a
+proof
+of
+hold
+on
+Jill's
+funds
+for
+the
+<a href="#dfn-purchase" class="internalDFN">
+purchase
+</a>
+price
+of
+the
+goods.
+The
+PayToParty
+night-shift
+employees
+begin
+packing
+her
+purchased
+items
+for
+delivery
+the
+next
+day.
+</li>
+<li>
+<strong>
+Authorization
+of
+Transfer
+</strong>.
+Once
+Jill's
+package
+is
+ready
+to
+go,
+PayToParty
+exchanges
+the
+proof
+of
+hold
+for
+a
+proof
+of
+payment
+by
+re-submitting
+the
+request
+to
+the
+payment
+network.
+They
+receive
+a
+proof
+of
+payment
+from
+the
+<a href="#dfn-payment-processor" class="internalDFN">
+payment
+processor
+</a>.
+</li>
+<li>
+<strong>
+Completion
+of
+Transfer
+</strong>.
+Since
+Jill's
+PayToParty
+loyalty
+card
+operates
+as
+a
+credit
+card,
+PayToParty
+will
+receive
+the
+funds
+in
+their
+normal
+end
+of
+week
+settlement.
+</li>
+</ul>
+</section>
+<section id="delivery-of-product-receipt-and-refunds-1" typeof="bibo:Chapter" resource="#delivery-of-product-receipt-and-refunds-1" property="bibo:hasPart">
+<h3 id="h-delivery-of-product-receipt-and-refunds-1" resource="#h-delivery-of-product-receipt-and-refunds-1">
+<span property="xhv:role" resource="xhv:heading">
+<span class="secno">
+4.4
+</span>
+Delivery
+of
+Product/Receipt
+and
+Refunds
+</span>
+</h3>
+<ul>
+<li>
+<strong>
+Delivery
+of
+Receipt
+</strong>.
+Jill's
+cloud-based
+wallet
+receives
+a
+detailed
+line-item
+digital
+receipt
+for
+the
+<a href="#dfn-purchase" class="internalDFN">
+purchase
+</a>.
+</li>
+<li>
+<strong>
+Delivery
+of
+Product
+</strong>.
+Jill's
+package
+goes
+out
+by
+courier
+the
+next
+morning
+and
+is
+on
+her
+doorstep
+before
+she
+leaves
+for
+work.
+</li>
+</ul>
+</section>
+</section>
+<section id="assumptions" typeof="bibo:Chapter" resource="#assumptions" property="bibo:hasPart">
+<h2 id="h-assumptions" resource="#h-assumptions">
+<span property="xhv:role" resource="xhv:heading">
+<span class="secno">
+5.
+</span>
+Assumptions
+</span>
+</h2>
+<p>
+The
+use
+cases
+below
+rely
+on
+a
+number
+of
+assumptions
+that
+are
+not
+detailed
+in
+the
+use
+cases
+but
+that
+will
+be
+explored
+in
+more
+detail
+in
+the
+architecture
+and
+requirements
+documents.
+</p>
+<ul>
+<li>
+<strong>
+Connectivity
+</strong>.
+Connectivity
+requirements
+vary
+according
+to
+use
+case.
+The
+types
+of
+connections
+a
+device
+may
+<del class="diff-old">utilize
+</del>
+<ins class="diff-chg">use
+</ins>
+include
+Internet
+connectivity,
+proxied
+connections
+through
+short-range
+radio
+transmissions,
+and
+proximity
+connections
+over
+a
+technology
+such
+as
+Near-Field
+Communication
+(NFC)
+or
+Bluetooth
+Low
+Energy
+(BTLE).
+Some
+use
+cases
+assume
+no
+connectivity
+(e.g.,
+user
+is
+temporarily
+unable
+to
+connect
+to
+a
+mobile
+phone
+network
+or
+a
+WiFi
+hotspot).
+</li>
+<li>
+<strong>
+Registered
+Payment
+Instruments
+</strong>.
+In
+order
+for
+the
+<a href="#dfn-payer" class="internalDFN">
+payer
+</a>
+to
+select
+and
+utilize
+<a title="payment instrument" href="#dfn-payment-instrument" class="internalDFN">
+payment
+instruments
+</a>,
+they
+must
+be
+registered
+in
+some
+way
+and
+discoverable
+by
+a
+browser,
+native
+application,
+or
+other
+software.
+</li>
+<li>
+<strong>
+Security
+</strong>.
+Keys,
+encryption,
+and
+other
+security
+technology
+must
+be
+used
+to
+secure
+sensitive
+information.
+It
+is
+important
+that
+sensitive
+information
+is
+not
+transmitted
+to
+parties
+that
+do
+not
+absolutely
+need
+to
+know
+the
+information
+in
+order
+to
+complete
+the
+<a href="#dfn-transaction" class="internalDFN">
+transaction
+</a>.
+</li>
+<li>
+<strong>
+Identity
+</strong>.
+There
+will
+be
+<del class="diff-old">a
+consistent,
+</del>
+<ins class="diff-chg">an
+</ins>
+interoperable
+identifier
+used
+to
+identify
+the
+participants
+and
+accounts
+in
+a
+Web
+Payments
+transaction.
+</li>
+</ul>
+</section>
+<section id="use-cases-1" typeof="bibo:Chapter" resource="#use-cases-1" property="bibo:hasPart">
+<h2 id="use-cases" resource="#use-cases">
+<span property="xhv:role" resource="xhv:heading">
+<span class="secno">
+6.
+</span>
+Use
+Cases
+</span>
+</h2>
+<p>
+This
+section
+examines
+the
+phases
+of
+payment,
+and
+the
+steps
+involved
+in
+each
+phase,
+through
+a
+variety
+of
+use
+cases.
+The
+purpose
+of
+this
+section
+is
+to
+elaborate
+on
+the
+variety
+of
+scenarios
+present
+in
+each
+step
+of
+the
+payment
+process.
+</p>
+<div class="issue">
+<div class="issue-title" aria-level="3" role="heading" id="h-issue4">
+<span>
+Issue
+4
+</span>
+</div>
+<p class="">
+General
+feedback
+is
+requested
+related
+to
+the
+general
+structure
+of
+the
+use
+case
+snippets
+below.
+Are
+they
+focused
+enough
+to
+convey
+each
+topic
+listed?
+Is
+there
+information
+that
+should
+be
+added
+to
+each
+use
+case
+in
+general?
+Would
+more
+elaborate
+use
+cases
+be
+helpful?
+Would
+an
+attempt
+to
+minimize
+each
+existing
+use
+further
+be
+helpful
+in
+scanning
+the
+document
+more
+quickly?
+</p>
+</div>
+<section id="negotiation-of-payment-terms-1" typeof="bibo:Chapter" resource="#negotiation-of-payment-terms-1" property="bibo:hasPart">
+<h3 id="h-negotiation-of-payment-terms-1" resource="#h-negotiation-of-payment-terms-1">
+<span property="xhv:role" resource="xhv:heading">
+<span class="secno">
+6.1
+</span>
+Negotiation
+of
+Payment
+Terms
+</span>
+</h3>
+<p>
+</p>
+<section id="discovery-of-offer" typeof="bibo:Chapter" resource="#discovery-of-offer" property="bibo:hasPart">
+<h4 id="h-discovery-of-offer" resource="#h-discovery-of-offer">
+<span property="xhv:role" resource="xhv:heading">
+<span class="secno">
+6.1.1
+</span>
+Discovery
+of
+Offer
+</span>
+</h4>
+<dl id="uc-website" class="dl-horizontal">
+<dt>
+Website
+</dt>
+<dd>
+Penny
+uses
+the
+HobbyCo
+website
+to
+select
+a
+$15
+model
+train
+for
+<a href="#dfn-purchase" class="internalDFN">
+purchase
+</a>.
+</dd>
+<dt>
+<del class="diff-old">Goals
+</del>
+<ins class="diff-chg">Target
+version
+</ins>
+</dt>
+<dd>
+<del class="diff-old">rapid,
+widespread
+adoption.
+</del>
+<ins class="diff-chg">1.0
+</ins>
+</dd>
+<dt>
+Motivation
+</dt>
+<dd>
+<del class="diff-old">This
+</del>
+<ins class="diff-chg">A
+human
+being
+seeing
+a
+visual
+offer
+of
+sale
+on
+a
+website
+</ins>
+is
+the
+most
+common
+<del class="diff-old">type
+of
+offer
+</del>
+<ins class="diff-chg">way
+offers
+are
+discovered
+</ins>
+on
+the
+Web
+<del class="diff-old">circa
+2015
+and
+is
+included
+for
+the
+sake
+of
+completeness.
+</del>
+<ins class="diff-chg">today
+(2015).
+</ins>
+</dd>
+</dl>
+<dl id="uc-pos-kiosk" class="dl-horizontal">
+<dt>
+Point
+of
+Sale
+Kiosk
+</dt>
+<dd>
+Cory
+shops
+for
+groceries
+at
+his
+local
+ChowMart,
+scans
+<ins class="diff-new">his
+loyalty
+card
+and
+</ins>
+all
+of
+the
+items
+he
+wants
+to
+<a href="#dfn-purchase" class="internalDFN">
+purchase
+</a>
+at
+the
+automated
+kiosk,
+<ins class="diff-new">requests
+a
+cash
+back
+amount,
+</ins>
+and
+is
+presented
+with
+a
+total
+amount.
+</dd>
+<dt>
+<del class="diff-old">Goals
+</del>
+<ins class="diff-chg">Target
+version
+</ins>
+</dt>
+<dd>
+<del class="diff-old">Improved
+user
+experience,
+and
+rapid,
+widespread
+adoption.
+</del>
+<ins class="diff-chg">Uncategorized
+</ins>
+</dd>
+<dt>
+Motivation
+</dt>
+<dd>
+Unifying
+<del class="diff-old">POS
+</del>
+<ins class="diff-chg">point
+of
+sale
+</ins>
+interaction
+w/
+the
+Web
+Payments
+architecture
+is
+vital
+for
+the
+success
+of
+this
+work.
+</dd>
+<dt>
+<ins class="diff-new">Accessibility
+</ins></dt><dd><ins class="diff-new">
+At
+present
+kiosks
+are
+rarely
+accessible
+to
+blind
+people,
+people
+with
+low
+vision,
+people
+who
+use
+wheelchairs,
+or
+people
+with
+restricted
+mobility
+that
+makes
+touch
+interaction
+difficult
+or
+impossible.
+They
+don’t
+tend
+to
+offer
+speech
+output,
+any
+ability
+to
+zoom
+or
+customise
+colours,
+may
+be
+difficult
+to
+reach
+from
+a
+wheelchair/sitting
+position,
+and
+do
+not
+accept
+voice
+commands.
+Enabling
+as
+much
+of
+the
+payment
+interaction
+to
+move
+to
+a
+customer-held
+device
+with
+accessibility
+features
+would
+help
+alleviate
+a
+number
+of
+barriers
+that
+exist
+today.
+</ins></dd><dt>
+Privacy
+</dt>
+<dd>
+Cory
+should
+exercise
+control
+over
+how
+much
+he
+wants
+the
+merchant
+to
+be
+able
+to
+track
+his
+activities.
+Programs
+like
+loyalty
+cards
+will
+likely
+involve
+agreement
+to
+more
+data
+with
+the
+merchant.
+<br>
+<ins class="diff-new">Making
+kiosks
+that
+are
+used
+for
+financial
+transactions
+accessible
+introduces
+several
+challenges.
+Speech
+output
+may
+be
+overheard
+by
+people
+nearby,
+increased
+text
+size
+and/or
+visibility
+of
+content
+may
+make
+it
+easier
+for
+other
+people
+to
+read,
+and
+voice
+commands
+may
+also
+be
+overheard.
+</ins>
+</dd>
+</dl>
+<dl id="uc-mobile" class="dl-horizontal">
+<dt>
+Mobile
+</dt>
+<dd>
+<del class="diff-old">Daniel
+</del>
+<ins class="diff-chg">A
+mobile
+device
+can
+be
+used
+to
+discover
+an
+offer
+in
+a
+variety
+of
+ways:
+</ins><ul><li><ins class="diff-chg">
+Hani
+</ins>
+takes
+a
+taxi
+from
+the
+airport
+to
+his
+hotel.
+The
+taxi
+driver
+displays
+the
+total
+with
+his
+mobile
+<del class="diff-old">device
+</del>
+<ins class="diff-chg">device.
+Hani
+</ins>
+and
+<del class="diff-old">offers
+</del>
+<ins class="diff-chg">the
+taxi
+driver
+touch
+their
+mobile
+devices
+to
+each
+other.
+The
+total
+appears
+on
+Hani's
+mobile
+device.
+</ins></li><li><ins class="diff-chg">
+There
+is
+</ins>
+a
+<del class="diff-old">tap-to-pay
+option.
+</del>
+<ins class="diff-chg">Quick
+Response
+Code
+(QR
+Code)
+printed
+on
+the
+bottom
+of
+a
+cup
+that
+Donna
+wants
+to
+buy.
+Donna
+uses
+her
+mobile
+phone
+app
+to
+capture
+the
+QR
+Code,
+view
+the
+price
+of
+the
+item,
+and
+add
+it
+to
+the
+list
+of
+items
+that
+she
+is
+buying
+from
+the
+store.
+</ins></li></ul>
+</dd>
+<dt>
+<del class="diff-old">Goals
+</del>
+<ins class="diff-chg">Target
+version
+</ins>
+</dt>
+<dd>
+<del class="diff-old">Improved
+user
+experience,
+Greater
+security,
+Innovation,
+Automatability,
+and
+rapid,
+widespread
+adoption.
+</del>
+<ins class="diff-chg">Uncategorized
+</ins>
+</dd>
+<dt>
+Motivation
+</dt>
+<dd>
+Unifying
+the
+way
+<del class="diff-old">tap-to-pay
+</del>
+<ins class="diff-chg">proximity
+mobile
+</ins>
+offers
+work
+with
+the
+Web
+Payments
+architecture
+would
+help
+ensure
+ubiquity.
+</dd>
+<dt>
+<ins class="diff-new">Accessibility
+</ins></dt><dd><ins class="diff-new">
+An
+auditory
+cue
+notifying
+people
+that
+have
+low
+vision
+or
+are
+blind
+that
+a
+payment
+offer/invoice
+is
+awaiting
+their
+response
+as
+well
+as
+providing
+guidance
+on
+how
+close
+their
+payment
+device
+is
+to
+the
+payment
+terminal
+would
+be
+helpful.
+</ins></dd><dt>
+Exceptions
+</dt>
+<dd>
+No
+mobile
+phone
+connectivity
+<del class="diff-old">(visiting
+</del>
+<ins class="diff-chg">(e.g.
+visiting
+</ins>
+a
+different
+<del class="diff-old">country,
+</del>
+<ins class="diff-chg">country
+or
+</ins>
+trip
+occurs
+outside
+the
+range
+of
+a
+mobile
+<del class="diff-old">network,
+etc.)
+</del>
+<ins class="diff-chg">network).
+</ins>
+</dd>
+</dl>
+<dl id="uc-freemium" class="dl-horizontal">
+<dt>
+Freemium
+</dt>
+<dd>
+<del class="diff-old">Ricki
+</del>
+<ins class="diff-chg">Chaoxiang
+</ins>
+plays
+his
+favorite
+native
+app
+game
+and
+wants
+to
+upgrade
+his
+avatar
+with
+a
+few
+extra
+<del class="diff-old">"power-ups."
+</del>
+<ins class="diff-chg">"power-ups".
+</ins>
+Clicking
+on
+a
+power-up
+displays
+the
+price.
+</dd>
+<dt>
+<del class="diff-old">Goals
+</del>
+<ins class="diff-chg">Target
+version
+</ins>
+</dt>
+<dd>
+<del class="diff-old">Improved
+user
+experience,
+Innovation,
+and
+Transparency.
+</del>
+<ins class="diff-chg">Uncategorized
+</ins>
+</dd>
+<dt>
+Motivation
+</dt>
+<dd>
+Many
+of
+the
+very
+successful
+games
+these
+days
+run
+on
+the
+freemium
+model,
+but
+are
+tied
+to
+specific
+app
+stores.
+Providing
+an
+app-store
+agnostic
+mechanism
+to
+pay
+for
+items
+in
+freemium
+games
+would
+give
+players
+and
+developers
+more
+choices.
+</dd>
+</dl>
+<del class="diff-old">6.1.1.1
+Non-Essential
+Use
+Cases
+</del>
+<dl id="uc-email" class="dl-horizontal">
+<dt>
+<del class="diff-old">E-mail
+</del>
+<ins class="diff-chg">Email
+</ins>
+</dt>
+<dd>
+A
+GroupBuyCo
+customer
+receives
+an
+offer
+by
+email
+to
+<a href="#dfn-purchase" class="internalDFN">
+purchase
+</a>
+the
+deal
+of
+the
+day.
+</dd>
+<dt>
+<del class="diff-old">Goals
+</del>
+<ins class="diff-chg">Target
+version
+</ins>
+</dt>
+<dd>
+<del class="diff-old">Improved
+user
+experience,
+and
+Automatability.
+</del>
+<ins class="diff-chg">Uncategorized
+</ins>
+</dd>
+<dt>
+Motivation
+</dt>
+<dd>
+Unifying
+how
+people
+initiate
+payments
+from
+email,
+at
+a
+<del class="diff-old">Point
+</del>
+<ins class="diff-chg">point
+</ins>
+of
+<del class="diff-old">Sale,
+</del>
+<ins class="diff-chg">sale,
+</ins>
+and
+via
+a
+Web
+site
+will
+help
+ensure
+the
+ubiquity
+of
+the
+Web
+payment
+technology
+platform.
+</dd>
+<dt>
+Privacy
+/
+Security
+</dt>
+<dd>
+It
+is
+important
+to
+recognize
+that
+initiating
+a
+payment
+from
+within
+an
+email
+application
+could
+lead
+to
+a
+wholly
+new
+category
+of
+phishing/fraud.
+</dd>
+</dl>
+<dl id="uc-hold-funds" class="dl-horizontal">
+<dt>
+Hold
+Funds
+</dt>
+<dd>
+Renne
+checks
+into
+a
+hotel
+and
+is
+asked
+for
+a
+deposit
+for
+any
+damages
+to
+the
+room.
+</dd>
+<dt>
+<del class="diff-old">Goals
+</del>
+<ins class="diff-chg">Target
+version
+</ins>
+</dt>
+<dd>
+<del class="diff-old">Improved
+user
+experience,
+Increased
+user
+choice,
+and
+rapid,
+widespread
+adoption.
+</del>
+<ins class="diff-chg">Uncategorized
+</ins>
+</dd>
+<dt>
+Motivation
+</dt>
+<dd>
+<del class="diff-old">By
+design,
+some
+</del>
+<ins class="diff-chg">Some
+</ins>
+<a title="transaction" href="#dfn-transaction" class="internalDFN">
+transactions
+</a>,
+<ins class="diff-chg">such
+as
+a
+hold
+of
+funds,
+</ins>
+do
+not
+<ins class="diff-new">always
+</ins>
+reach
+<del class="diff-old">completion.
+Some
+</del>
+<ins class="diff-chg">completion
+and
+</ins>
+are
+<del class="diff-old">merely
+there
+</del>
+<ins class="diff-chg">primarily
+used
+</ins>
+to
+protect
+the
+<a href="#dfn-payee" class="internalDFN">
+payee
+</a>
+<del class="diff-old">(e.g.,
+in
+</del>
+<ins class="diff-chg">from
+negligence
+on
+</ins>
+the
+<del class="diff-old">event
+</del>
+<ins class="diff-chg">part
+</ins>
+of
+<del class="diff-old">questionable
+judgment
+by
+</del>
+the
+<a href="#dfn-payer" class="internalDFN">
+payer
+</a>
+<del class="diff-old">).
+</del>
+<ins class="diff-chg">(e.g.,
+such
+as
+a
+</ins><a href="#dfn-payer" class="internalDFN"><ins class="diff-chg">
+payer
+</ins></a><ins class="diff-chg">
+damaging
+a
+hotel
+room).
+</ins>
+</dd>
+<dt>
+Exceptions
+</dt>
+<dd>
+Software
+acting
+on
+the
+<a title="payer" href="#dfn-payer" class="internalDFN">
+payer's
+</a>
+behalf
+may
+keep
+track
+of
+exactly
+how
+much
+money
+the
+<a href="#dfn-payer" class="internalDFN">
+payer
+</a>
+has
+<ins class="diff-new">available
+</ins>
+and
+not
+allow
+them
+to
+process
+the
+offer.
+</dd>
+</dl>
+<dl id="uc-preauth" class="dl-horizontal">
+<dt>
+Pre-authorization
+</dt>
+<dd>
+<del class="diff-old">George
+</del>
+<ins class="diff-chg">Krishna
+</ins>
+pulls
+up
+to
+a
+pump
+at
+a
+petrol
+station.
+His
+in-vehicle
+application
+recognizes
+the
+station
+location
+and
+the
+pump.
+The
+pump
+communicates
+which
+fuels
+it
+has
+and
+their
+price
+in
+an
+offer.
+<del class="diff-old">George's
+</del>
+<ins class="diff-chg">Krishna's
+</ins>
+car
+asks
+if
+he
+wants
+to
+approve
+a
+fill
+up
+for
+up
+to
+€35.
+</dd>
+<dt>
+<del class="diff-old">Goals
+</del>
+<ins class="diff-chg">Target
+version
+</ins>
+</dt>
+<dd>
+<del class="diff-old">Improved
+user
+experience,
+Greater
+security,
+Innovation,
+Transparency,
+Automatability,
+and
+rapid,
+widespread
+adoption.
+</del>
+<ins class="diff-chg">Uncategorized
+</ins>
+</dd>
+<dt>
+Motivation
+</dt>
+<dd>
+Some
+offers
+are
+not
+aware
+of
+the
+final
+price
+but
+would
+rather
+set
+limits
+on
+the
+amount
+of
+the
+<a href="#dfn-purchase" class="internalDFN">
+purchase
+</a>
+before
+a
+particular
+metered
+good
+or
+service
+is
+delivered.
+</dd>
+<dt>
+Privacy
+</dt>
+<dd>
+Due
+to
+the
+sensitivity
+of
+location
+data,
+individuals
+should
+be
+able
+to
+make
+small
+fuel
+<a title="purchase" href="#dfn-purchase" class="internalDFN">
+purchases
+</a>
+in
+a
+way
+that
+respects
+their
+privacy.
+</dd>
+<dt>
+Security
+</dt>
+<dd>
+Automated
+<a title="purchase" href="#dfn-purchase" class="internalDFN">
+purchases
+</a>
+(e.g,.
+by
+a
+vehicle)
+<del class="diff-old">should
+</del>
+<ins class="diff-chg">may
+</ins>
+involve
+increased
+<ins class="diff-new">logging
+and
+</ins>
+security
+(e.g.,
+a
+second
+factor
+of
+authentication).
+</dd>
+<dt>
+<ins class="diff-new">Regulatory
+</ins></dt><dd><ins class="diff-new">
+If
+a
+pre-authorization
+is
+initiated
+by
+a
+software
+agent
+(such
+as
+a
+vehicle)
+due
+to
+a
+</ins><a title="payer" href="#dfn-payer" class="internalDFN"><ins class="diff-new">
+payer's
+</ins></a><ins class="diff-new">
+negligence,
+the
+regulatory
+environment
+may
+assert
+that
+the
+software
+manufacturer
+is
+liable
+if
+the
+proper
+consent
+notifications
+were
+not
+displayed
+when
+the
+pre-authorization
+rule
+was
+activated.
+</ins></dd>
+</dl>
+<dl id="uc-machine-readability" class="dl-horizontal">
+<dt>
+Machine
+Readability
+</dt>
+<dd>
+BigBoxCo
+expresses
+their
+entire
+product
+catalog
+online
+as
+machine-readable
+information
+so
+that
+SearchCo
+may
+index
+their
+content
+more
+easily
+and
+direct
+more
+customer
+traffic
+to
+BigBoxCo's
+website.
+</dd>
+<dt>
+<del class="diff-old">Goals
+</del>
+<ins class="diff-chg">Target
+version
+</ins>
+</dt>
+<dd>
+<del class="diff-old">Increased
+user
+choice,
+Improved
+user
+experience,
+Innovation,
+Lower
+Costs,
+Transparency,
+Automatability,
+Portability,
+Monetization,
+and
+rapid,
+widespread
+adoption.
+</del>
+<ins class="diff-chg">Uncategorized
+</ins>
+</dd>
+<dt>
+Motivation
+</dt>
+<dd>
+Machine-readable
+offers
+will
+have
+a
+direct
+positive
+impact
+on
+store
+sales
+if
+they
+are
+indexed
+by
+search
+engines.
+</dd>
+</dl>
+<dl id="uc-live-prices" class="dl-horizontal">
+<dt>
+Live
+Market
+Prices
+</dt>
+<dd>
+EnergyCo
+lists
+barrels
+of
+refined
+oil
+for
+sale
+on
+their
+website
+based
+on
+an
+algorithm
+that
+uses
+the
+cost
+of
+coal
+and
+crude
+oil
+as
+inputs.
+EnergyCo
+guarantees
+their
+prices
+for
+up
+to
+24
+hours
+from
+the
+posting
+date.
+</dd>
+<dt>
+<del class="diff-old">Goals
+</del>
+<ins class="diff-chg">Target
+version
+</ins>
+</dt>
+<dd>
+<del class="diff-old">Increased
+user
+choice,
+Improved
+user
+experience,
+Innovation,
+Transparency,
+and
+Automatability
+</del>
+<ins class="diff-chg">Uncategorized
+</ins>
+</dd>
+<dt>
+Motivation
+</dt>
+<dd>
+The
+ability
+to
+express
+a
+non-repudiable
+offer
+as
+the
+basis
+of
+a
+legally
+enforceable
+contract
+will
+reduce
+<a href="#dfn-transaction" class="internalDFN">
+transaction
+</a>
+friction.
+</dd>
+<dt>
+<ins class="diff-new">Regulatory
+</ins></dt><dd><ins class="diff-new">
+Listing
+inaccurate
+prices
+or
+not
+honoring
+prices
+could
+be
+prosecuted
+under
+certain
+regulatory
+regimes.
+</ins></dd>
+</dl>
+<dl id="uc-trialware" class="dl-horizontal">
+<dt>
+<del class="diff-old">Trial-ware
+</del>
+<ins class="diff-chg">Trialware
+</ins>
+</dt>
+<dd>
+Amantha
+downloads
+the
+latest
+version
+of
+her
+favorite
+game
+and
+beats
+the
+first
+level.
+The
+game
+asks
+her
+if
+she'd
+like
+to
+buy
+the
+full
+game
+to
+play
+further
+levels.
+</dd>
+<dt>
+<del class="diff-old">Goals
+</del>
+<ins class="diff-chg">Target
+version
+</ins>
+</dt>
+<dd>
+<del class="diff-old">Improved
+user
+experience,
+Monetization,
+and
+rapid,
+widespread
+adoption.
+</del>
+<ins class="diff-chg">Uncategorized
+</ins>
+</dd>
+<dt>
+Motivation
+</dt>
+<dd>
+There
+is
+a
+fairly
+large
+<del class="diff-old">trial-ware
+</del>
+<ins class="diff-chg">trialware
+</ins>
+industry
+that
+could
+benefit
+from
+a
+simple
+way
+of
+executing
+a
+payment
+without
+requiring
+redirection
+to
+another
+site
+to
+enter
+account
+and
+payment
+details.
+</dd>
+</dl>
+<dl id="uc-vehicle" class="dl-horizontal">
+<dt>
+In-vehicle
+</dt>
+<dd>
+Jeff
+listens
+to
+a
+lot
+of
+music
+on
+the
+way
+to
+work.
+The
+music
+station
+serves
+a
+digital
+offer
+along
+with
+the
+music
+stream.
+This
+enables
+Jeff
+to
+easily
+buy
+music
+that
+he
+really
+likes.
+</dd>
+<dt>
+<del class="diff-old">Goals
+</del>
+<ins class="diff-chg">Target
+version
+</ins>
+</dt>
+<dd>
+<del class="diff-old">Improved
+user
+experience,
+Innovation,
+Monetization,
+and
+rapid,
+widespread
+adoption.
+</del>
+<ins class="diff-chg">Uncategorized
+</ins>
+</dd>
+<dt>
+Motivation
+</dt>
+<dd>
+Car
+manufacturers
+and
+the
+entertainment
+industry
+may
+be
+interested
+in
+extending
+their
+sales
+channels
+into
+vehicles.
+</dd>
+<dt>
+Accessibility
+</dt>
+<dd>
+For
+safety
+reasons,
+the
+interface
+used
+to
+interact
+with
+the
+digital
+offer
+must
+not
+<del class="diff-old">distract
+</del>
+<ins class="diff-chg">lead
+to
+an
+increase
+in
+vehicle
+accidents.
+</ins></dd><dt><ins class="diff-chg">
+Regulatory
+</ins></dt><dd><ins class="diff-chg">
+It
+may
+be
+illegal
+to
+provide
+services
+such
+as
+this
+if
+the
+vehicle
+is
+in
+motion
+or
+if
+it
+requires
+</ins>
+the
+driver
+<del class="diff-old">of
+</del>
+<ins class="diff-chg">to
+look
+away
+from
+</ins>
+the
+<del class="diff-old">vehicle.
+Voice
+controls
+</del>
+<ins class="diff-chg">road.
+</ins></dd></dl><dl id="uc-memorable-ids" class="dl-horizontal"><dt><ins class="diff-chg">
+Memorable
+Ids
+</ins></dt><dd><ins class="diff-chg">
+Vern
+sends
+money
+to
+his
+friend
+Milena
+by
+typing
+in
+Milena's
+mobile
+phone
+number
+</ins>
+and
+<del class="diff-old">other
+techniques
+</del>
+<ins class="diff-chg">the
+amount
+he
+wants
+to
+send.
+</ins></dd><dt><ins class="diff-chg">
+Target
+version
+</ins></dt><dd><ins class="diff-chg">
+Uncategorized
+</ins></dd><dt><ins class="diff-chg">
+Motivation
+</ins></dt><dd><ins class="diff-chg">
+Some
+countries,
+like
+the
+United
+Kingdom,
+maintain
+registries
+that
+map
+memorable
+identifiers
+like
+mobile
+phone
+numbers
+to
+bank
+accounts.
+These
+memorable
+payment
+identifiers
+</ins>
+can
+be
+used
+to
+<del class="diff-old">reduce
+driver
+distraction.
+</del>
+<ins class="diff-chg">transmit
+money
+from
+person
+to
+person
+using
+direct
+bank
+to
+bank
+transfers.
+</ins>
+</dd>
+</dl>
+</section>
+<section id="agreement-on-terms" typeof="bibo:Chapter" resource="#agreement-on-terms" property="bibo:hasPart">
+<h4 id="h-agreement-on-terms" resource="#h-agreement-on-terms">
+<span property="xhv:role" resource="xhv:heading">
+<span class="secno">
+6.1.2
+</span>
+Agreement
+on
+Terms
+</span>
+</h4>
+<p>
+</p>
+<dl id="uc-one-time-payment" class="dl-horizontal">
+<dt>
+<ins class="diff-chg">One-time
+Payment
+</ins></dt><dd><ins class="diff-chg">
+Jamie
+wishes
+to
+pay
+for
+a
+single
+article
+from
+a
+market
+analyst.
+</ins></dd><dt><ins class="diff-chg">
+Target
+version
+</ins></dt><dd><ins class="diff-chg">
+1.0
+</ins></dd><dt><ins class="diff-chg">
+Motivation
+</ins></dt><dd><ins class="diff-chg">
+It
+should
+be
+clear
+to
+a
+</ins><a title="payer" href="#dfn-payer" class="internalDFN"><ins class="diff-chg">
+payer
+</ins></a><ins class="diff-chg">
+whether
+a
+</ins><a href="#dfn-purchase" class="internalDFN"><ins class="diff-chg">
+purchase
+</ins></a><ins class="diff-chg">
+is
+one-time
+or
+recurring,
+prior
+to
+initiation
+of
+the
+payment.
+</ins></dd></dl><dl id="uc-registrationless" class="dl-horizontal"><dt><ins class="diff-chg">
+Registration-less
+</ins></dt><dd><ins class="diff-chg">
+Some
+</ins><a title="payee" href="#dfn-payee" class="internalDFN"><ins class="diff-chg">
+payees
+</ins></a><ins class="diff-chg">
+would
+rather
+not
+require
+a
+</ins><a href="#dfn-payer" class="internalDFN"><ins class="diff-chg">
+payer
+</ins></a><ins class="diff-chg">
+to
+register
+at
+their
+site
+before
+initiating
+a
+purchase:
+</ins><ul><li><ins class="diff-chg">
+Sven
+wants
+to
+view
+a
+pay
+to
+read
+article
+and
+does
+so
+without
+needing
+to
+pre-register
+with
+the
+website.
+</ins></li><li><ins class="diff-chg">
+Reiko
+finds
+a
+blowtorch
+for
+sale
+at
+a
+local
+digital
+resale
+website
+and
+places
+money
+into
+escrow
+without
+needing
+to
+register
+with
+the
+website.
+</ins></li><li><ins class="diff-chg">
+Olaseni
+is
+listening
+to
+music
+in
+a
+local
+coffee
+shop
+and
+likes
+a
+song
+he
+hears.
+He
+initiates
+a
+purchase
+of
+the
+song
+from
+the
+local
+"music
+beacon"
+without
+needing
+to
+register
+with
+the
+coffee
+shop
+or
+the
+music
+service.
+</ins></li></ul></dd><dt><ins class="diff-chg">
+Target
+version
+</ins></dt><dd><ins class="diff-chg">
+1.0
+</ins></dd><dt><ins class="diff-chg">
+Motivation
+</ins></dt><dd><ins class="diff-chg">
+There
+are
+a
+large
+number
+of
+"paywall"
+websites
+on
+the
+Web
+that
+require
+a
+customer
+to
+register
+before
+they
+may
+use
+the
+website.
+In
+many
+cases,
+if
+the
+site
+isn't
+regularly
+visited
+by
+the
+customer,
+they
+abandon
+the
+transaction
+when
+they
+see
+the
+paywall
+requirement.
+Providing
+a
+mechanism
+to
+sell
+an
+inexpensive
+item
+to
+a
+customer
+without
+requiring
+registration
+would
+be
+of
+great
+benefit
+to
+not
+only
+the
+merchants
+selling
+goods
+and
+services,
+but
+customers
+that
+would
+like
+to
+avoid
+lengthy
+registration
+processes.
+</ins></dd><dt><ins class="diff-chg">
+Accessibility
+</ins></dt><dd><ins class="diff-chg">
+People
+who
+are
+on
+the
+Autistic
+spectrum
+may
+require
+trust
+with
+the
+merchant
+to
+be
+established
+through
+a
+more
+formal
+means
+to
+prevent
+distress
+and
+abandonment
+of
+the
+transaction.
+</ins></dd></dl><dl id="uc-subscription" class="dl-horizontal"><dt><ins class="diff-chg">
+Subscription
+</ins></dt><dd><ins class="diff-chg">
+Larissa
+subscribes
+to
+a
+site
+that
+provides
+a
+monthly
+analysis
+of
+the
+world
+of
+finance.
+</ins></dd><dt><ins class="diff-chg">
+Target
+version
+</ins></dt><dd><ins class="diff-chg">
+1.0
+(if
+time
+permits)
+</ins></dd><dt><ins class="diff-chg">
+Motivation
+</ins></dt><dd><a title="payer" href="#dfn-payer" class="internalDFN"><ins class="diff-chg">
+Payers
+</ins></a><ins class="diff-chg">
+should
+be
+able
+to
+understand
+if
+a
+particular
+</ins><a href="#dfn-purchase" class="internalDFN"><ins class="diff-chg">
+purchase
+</ins></a><ins class="diff-chg">
+is
+a
+recurring
+payment
+prior
+to
+initiating
+the
+payment.
+</ins></dd><dt><ins class="diff-chg">
+Regulatory
+</ins></dt><dd><ins class="diff-chg">
+Some
+regulations
+may
+require
+that
+subscriptions
+should
+be
+automatically
+canceled
+after
+the
+subscription
+time
+span
+unless
+explicitly
+renewed
+by
+a
+</ins><a href="#dfn-payer" class="internalDFN"><ins class="diff-chg">
+payer
+</ins></a>.</dd></dl><dl id="uc-credentials" class="dl-horizontal">
+<dt>
+Credentials
+</dt>
+<dd>
+At
+times
+it
+is
+necessary
+to
+transmit
+personally
+identifiable
+information
+(e.g.,
+about
+a
+qualification,
+achievement,
+personal
+quality,
+aspect
+of
+an
+<a href="#dfn-entity" class="internalDFN">
+entity
+</a>
+'s
+background,
+or
+verifiable
+statement
+by
+an
+entity
+about
+another
+entity)
+in
+order
+to
+be
+cleared
+to
+make
+a
+purchase:
+<ul>
+<li>
+PharmCo
+will
+only
+sell
+regulated
+drugs
+to
+someone
+with
+proof
+of
+an
+active
+pharmacist's
+license.
+</li>
+<li>
+WineCo
+will
+only
+sell
+wine
+to
+someone
+with
+proof
+of
+being
+over
+the
+age
+of
+21.
+</li>
+<li>
+BoomCo
+will
+only
+ship
+industrial
+explosives
+to
+a
+business
+that
+can
+provide
+evidence
+of
+construction
+permits,
+a
+contractor's
+license,
+and
+an
+explosives
+handling
+license.
+</li>
+<li>
+HomeLoanCo
+will
+not
+finalize
+a
+quote
+for
+a
+home
+mortgage
+without
+a
+credit
+score
+report
+and
+an
+audited
+finances
+report.
+</li>
+</ul>
+</dd>
+<dt>
+<del class="diff-old">Goals
+</del>
+<ins class="diff-chg">Target
+version
+</ins>
+</dt>
+<dd>
+<del class="diff-old">Improved
+user
+experience,
+Greater
+security,
+Regulatory
+acceptance,
+Innovation,
+Transparency,
+Automatability,
+and
+Portability.
+</del>
+<ins class="diff-chg">Uncategorized
+</ins>
+</dd>
+<dt>
+Motivation
+</dt>
+<dd>
+There
+are
+certain
+types
+of
+<a title="purchase" href="#dfn-purchase" class="internalDFN">
+purchases
+</a>
+that
+cannot
+be
+initiated
+without
+a
+proper
+set
+of
+credentials.
+While
+this
+isn't
+fundamental
+to
+the
+payment
+process,
+it
+is
+an
+integral
+part
+of
+some
+<a href="#dfn-transaction" class="internalDFN">
+transaction
+</a>
+processes.
+</dd>
+<dt>
+Privacy
+/
+Security
+</dt>
+<dd>
+It
+is
+important
+that
+people
+retain
+control
+over
+when
+and
+how
+their
+credentials
+are
+shared.
+</dd>
+<dt>
+<ins class="diff-new">Regulatory
+</ins></dt><dd><ins class="diff-new">
+There
+are
+a
+large
+number
+of
+regulations
+covering
+the
+collection,
+storage,
+and
+usage
+of
+personally
+identifiable
+information.
+Any
+system
+designed
+to
+transmit
+or
+collect
+credentials
+must
+conform
+to
+all
+local
+and
+federal
+regulations
+related
+to
+identity
+and
+privacy.
+</ins></dd><dt>
+Exceptions
+</dt>
+<dd>
+A
+<a href="#dfn-transaction" class="internalDFN">
+transaction
+</a>
+may
+fail
+if
+a
+required
+credential
+is
+not
+available.
+</dd>
+</dl>
+<dl id="uc-privacy" class="dl-horizontal">
+<dt>
+Privacy
+Protection
+</dt>
+<dd>
+Tibor
+orders
+<del class="diff-old">assorted
+</del>
+chocolates
+from
+CandyCo.
+CandyCo
+<del class="diff-old">only
+needs
+</del>
+<ins class="diff-chg">requests
+</ins>
+Tibor's
+<del class="diff-old">verified
+</del>
+<ins class="diff-chg">tokenized
+</ins>
+shipping
+address
+to
+send
+him
+the
+<del class="diff-old">chocolates.
+</del>
+<ins class="diff-chg">candy.
+</ins>
+With
+Tibor's
+authorization,
+his
+payment
+software
+transmits
+<del class="diff-old">only
+his
+</del>
+<ins class="diff-chg">a
+tokenized
+</ins>
+shipping
+address
+to
+<del class="diff-old">CandyCo.
+</del>
+<ins class="diff-chg">BoomCo
+that
+the
+shipper
+can
+decipher.
+</ins>
+Tibor's
+privacy
+is
+protected
+from
+the
+candy
+store,
+which
+did
+not
+require
+<del class="diff-old">Tibor's
+name,
+email
+address,
+or
+</del>
+any
+<del class="diff-old">other
+</del>
+personally
+identifying
+information
+to
+complete
+the
+<a href="#dfn-transaction" class="internalDFN">
+transaction
+</a>.
+</dd>
+<dt>
+<del class="diff-old">Goals
+</del>
+<ins class="diff-chg">Target
+version
+</ins>
+</dt>
+<dd>
+<del class="diff-old">Improved
+user
+experience,
+and
+Greater
+security.
+</del>
+<ins class="diff-chg">Uncategorized
+</ins>
+</dd>
+<dt>
+Motivation
+</dt>
+<dd>
+Certain
+low-value
+<a href="#dfn-transaction" class="internalDFN">
+transaction
+</a>
+s
+shouldn't
+require
+the
+<a href="#dfn-payer" class="internalDFN">
+payer
+</a>
+to
+divulge
+personal
+information
+that
+is
+not
+necessary
+to
+complete
+the
+<a href="#dfn-transaction" class="internalDFN">
+transaction
+</a>.
+</dd>
+<dt>
+Privacy
+</dt>
+<dd>
+Non-essential,
+personally
+identifiable
+data
+should
+be
+anonymized
+and
+protected
+throughout
+the
+process.
+</dd>
+</dl>
+<dl id="uc-need-to-know" class="dl-horizontal">
+<dt>
+Need
+to
+Know
+</dt>
+<dd>
+<del class="diff-old">PayCo
+</del>
+<ins class="diff-chg">PayCo,
+a
+payment
+processor,
+</ins>
+is
+required
+to
+keep
+a
+certain
+amount
+of
+information
+on
+their
+customers
+for
+anti-money
+laundering
+/
+know
+your
+customer
+regulatory
+purposes.
+When
+a
+<a href="#dfn-payer" class="internalDFN">
+payer
+</a>
+performs
+a
+<a href="#dfn-transaction" class="internalDFN">
+transaction
+</a>
+with
+a
+<a href="#dfn-payee" class="internalDFN">
+payee
+</a>,
+PayCo
+would
+like
+to
+reduce
+the
+amount
+of
+information
+that's
+transmitted
+to
+the
+<a href="#dfn-payee" class="internalDFN">
+payee
+</a>
+while
+ensuring
+that
+PayCo
+complies
+with
+regulations.
+</dd>
+<dt>
+<del class="diff-old">Goals
+</del>
+<ins class="diff-chg">Target
+version
+</ins>
+</dt>
+<dd>
+<del class="diff-old">Greater
+security,
+and
+Regulatory
+acceptance.
+</del>
+<ins class="diff-chg">Uncategorized
+</ins>
+</dd>
+<dt>
+Motivation
+</dt>
+<dd>
+There
+are
+types
+of
+information,
+such
+as
+personally
+identifiable
+information,
+that
+<a title="payee" href="#dfn-payee" class="internalDFN">
+payees
+</a>
+do
+not
+need
+to
+know
+for
+some
+transactions.
+Limiting
+sensitive
+information
+to
+be
+transmitted
+to
+entities
+involved
+in
+a
+payment
+on
+a
+purely
+need-to-know
+basis
+increases
+security
+while
+ensuring
+regulatory
+compliance.
+</dd>
+</dl>
+<del class="diff-old">One-time
+Payment
+Jamie
+wishes
+to
+pay
+for
+a
+single
+article
+from
+a
+market
+analyst.
+Goals
+Improved
+user
+experience
+</del>
+<dl id="uc-invoices" class="dl-horizontal">
+<dt>
+<del class="diff-old">Motivation
+</del>
+<ins class="diff-chg">Invoices
+</ins>
+</dt>
+<dd>
+<del class="diff-old">It
+should
+be
+clear
+to
+a
+payer
+whether
+</del>
+<ins class="diff-chg">There
+are
+</ins>
+a
+<del class="diff-old">purchase
+is
+one-time
+or
+recurring,
+prior
+to
+initiation
+</del>
+<ins class="diff-chg">large
+variety
+</ins>
+of
+<ins class="diff-new">invoices
+that
+are
+used
+in
+</ins>
+the
+<del class="diff-old">payment.
+Invoices
+Will
+</del>
+<ins class="diff-chg">world:
+</ins><ul><li><ins class="diff-chg">
+Sunan
+</ins>
+goes
+to
+SuperVoices
+to
+download
+a
+voiceover
+that
+he
+commissioned
+for
+his
+new
+pet
+sitting
+service.
+SuperVoices
+generates
+a
+detailed
+invoice
+for
+the
+service
+and
+provides
+it
+to
+<del class="diff-old">Will.
+</del>
+<ins class="diff-chg">Sunan.
+</ins></li><li><ins class="diff-chg">
+João
+is
+given
+an
+electronic
+</ins><a href="https://en.wikipedia.org/wiki/Boleto"><ins class="diff-chg">
+Boleto
+</ins></a><ins class="diff-chg">
+by
+a
+technology
+website
+to
+pay
+for
+a
+new
+laptop.
+</ins></li></ul>
+</dd>
+<dt>
+<del class="diff-old">Goals
+</del>
+<ins class="diff-chg">Target
+version
+</ins>
+</dt>
+<dd>
+<del class="diff-old">Improved
+user
+experience,
+Greater
+security,
+Transparency,
+Automatability,
+Portability,
+and
+Monetization.
+</del>
+<ins class="diff-chg">Uncategorized
+</ins>
+</dd>
+<dt>
+Motivation
+</dt>
+<dd>
+For
+certain
+<a title="payment scheme" href="#dfn-payment-scheme" class="internalDFN">
+payment
+schemes
+</a>,
+the
+<a href="#dfn-payer" class="internalDFN">
+payer
+</a>
+will
+have
+to
+provide
+the
+payment
+service
+with
+a
+detailed
+digital
+invoice
+from
+the
+<a href="#dfn-payee" class="internalDFN">
+payee
+</a>
+in
+order
+to
+initiate
+payment
+to
+the
+<a href="#dfn-payee" class="internalDFN">
+payee
+</a>.
+</dd>
+</dl>
+<del class="diff-old">6.1.2.1
+Non-essential
+Use
+Cases
+Subscription
+Jeff
+subscribes
+to
+a
+site
+that
+provides
+a
+monthly
+analysis
+of
+the
+world
+of
+finance.
+Goals
+Improved
+user
+experience,
+Transparency,
+and
+Automatability.
+Motivation
+Payers
+should
+be
+able
+to
+understand
+if
+a
+particular
+purchase
+is
+a
+recurring
+payment
+prior
+to
+initiating
+the
+payment.
+Registration-less
+Some
+payees
+would
+rather
+not
+require
+a
+payer
+to
+register
+at
+their
+site
+before
+initiating
+a
+purchase:
+Sven
+wants
+to
+view
+a
+pay
+to
+read
+article
+and
+does
+so
+without
+needing
+to
+pre-register
+with
+the
+website.
+Reiko
+finds
+a
+blowtorch
+for
+sale
+at
+a
+local
+digital
+resale
+website
+and
+places
+money
+into
+escrow
+without
+needing
+to
+register
+with
+the
+website.
+Benny
+is
+listening
+to
+music
+in
+a
+local
+coffee
+shop
+and
+likes
+a
+song
+he
+hears.
+He
+initiates
+a
+purchase
+of
+the
+song
+from
+the
+local
+"music
+beacon"
+without
+needing
+to
+register
+with
+the
+coffee
+shop
+or
+the
+music
+service.
+Goals
+Improved
+user
+experience,
+Greater
+security,
+Innovation,
+and
+Automatability
+Motivation
+There
+are
+a
+large
+number
+of
+"paywall"
+websites
+on
+the
+Web
+that
+require
+a
+customer
+to
+register
+before
+they
+may
+use
+the
+website.
+In
+many
+cases,
+if
+the
+site
+isn't
+regularly
+visited
+by
+the
+customer,
+they
+abandon
+the
+transaction
+when
+they
+see
+the
+paywall
+requirement.
+Providing
+a
+mechanism
+to
+sell
+an
+inexpensive
+item
+to
+a
+customer
+without
+requiring
+registration
+would
+be
+of
+great
+benefit
+to
+not
+only
+the
+merchants
+selling
+goods
+and
+services,
+but
+customers
+that
+would
+like
+to
+avoid
+lengthy
+registration
+processes.
+</del>
+<dl id="uc-full-disclosure" class="dl-horizontal">
+<dt>
+Full
+Disclosure
+</dt>
+<dd>
+Marge
+wishes
+to
+renew
+her
+passport
+online
+which
+requires
+transmission
+of
+a
+fee
+and
+a
+great
+deal
+of
+information
+about
+her
+real-world
+identity.
+</dd>
+<dt>
+<del class="diff-old">Goals
+</del>
+<ins class="diff-chg">Target
+version
+</ins>
+</dt>
+<dd>
+<del class="diff-old">Improved
+user
+experience.
+</del>
+<ins class="diff-chg">Uncategorized
+</ins>
+</dd>
+<dt>
+Motivation
+</dt>
+<dd>
+Some
+<a href="#dfn-transaction" class="internalDFN">
+transaction
+</a>
+s
+will
+require
+very
+sensitive
+personally
+identifiable
+information
+to
+be
+transmitted
+by
+the
+<a href="#dfn-payer" class="internalDFN">
+payer
+</a>.
+</dd>
+<dt>
+Privacy
+/
+Security
+</dt>
+<dd>
+We
+must
+ensure
+adequate
+security
+for
+these
+highly
+sensitive
+transactions
+to
+reduce
+the
+likelihood
+of
+phishing
+attacks.
+</dd>
+</dl>
+</section>
+<section id="application-of-marketing-elements" typeof="bibo:Chapter" resource="#application-of-marketing-elements" property="bibo:hasPart">
+<h4 id="h-application-of-marketing-elements" resource="#h-application-of-marketing-elements">
+<span property="xhv:role" resource="xhv:heading">
+<span class="secno">
+6.1.3
+</span>
+Application
+of
+Marketing
+Elements
+</span>
+</h4>
+<p>
+</p>
+<dl id="uc-coupons" class="dl-horizontal">
+<dt>
+Coupons
+</dt>
+<dd>
+JustPopcorn
+sends
+Marco
+a
+special
+discount
+offer
+given
+Marco's
+past
+<a title="purchase" href="#dfn-purchase" class="internalDFN">
+purchases
+</a>.
+The
+offer
+takes
+the
+form
+of
+a
+coupon
+that
+may
+be
+applied
+during
+payment.
+</dd>
+<dt>
+<del class="diff-old">Goals
+</del>
+<ins class="diff-chg">Target
+version
+</ins>
+</dt>
+<dd>
+<del class="diff-old">Automatability
+and
+Portability.
+</del>
+<ins class="diff-chg">Uncategorized
+</ins>
+</dd>
+<dt>
+Motivation
+</dt>
+<dd>
+Providing
+a
+mechanism
+to
+apply
+digital
+coupons
+before
+a
+payment
+is
+initiated
+helps
+price-conscious
+customers
+as
+well
+as
+merchants
+attempting
+to
+research
+price
+sensitivity.
+</dd>
+</dl>
+<dl id="uc-loyalty" class="dl-horizontal">
+<dt>
+Loyalty
+Cards
+</dt>
+<dd>
+Terry
+uses
+his
+FoodCo
+loyalty
+card
+when
+purchasing
+his
+weekly
+groceries,
+which
+gives
+him
+a
+discount
+on
+gas
+<a title="purchase" href="#dfn-purchase" class="internalDFN">
+purchases
+</a>
+performed
+at
+the
+FoodCo
+gas
+station.
+</dd>
+<dt>
+<del class="diff-old">Goals
+</del>
+<ins class="diff-chg">Target
+version
+</ins>
+</dt>
+<dd>
+<del class="diff-old">Improved
+user
+experience
+and
+Portability.
+</del>
+<ins class="diff-chg">Uncategorized
+</ins>
+</dd>
+<dt>
+Motivation
+</dt>
+<dd>
+Loyalty
+cards
+may
+be
+used
+at
+multiple
+locations
+to
+effect
+the
+price
+of
+a
+particular
+good.
+</dd>
+</dl>
+<dl id="uc-store-credit" class="dl-horizontal">
+<dt>
+Store
+Credit
+</dt>
+<dd>
+When
+<del class="diff-old">Rick
+</del>
+<ins class="diff-chg">Fjörleif
+</ins>
+arrives
+as
+the
+self-checkout
+kiosk,
+<del class="diff-old">he
+</del>
+<ins class="diff-chg">she
+</ins>
+scans
+five
+dress
+shirts
+and
+two
+new
+pairs
+of
+<del class="diff-old">slacks.
+</del>
+<ins class="diff-chg">dress
+pants.
+</ins>
+The
+kiosk
+mentions
+that
+<del class="diff-old">Rick
+</del>
+<ins class="diff-chg">Fjörleif
+</ins>
+could
+save
+15%
+off
+of
+<del class="diff-old">his
+</del>
+<ins class="diff-chg">her
+</ins>
+<a href="#dfn-purchase" class="internalDFN">
+purchase
+</a>
+if
+<del class="diff-old">he
+</del>
+<ins class="diff-chg">she
+</ins>
+makes
+the
+<a href="#dfn-purchase" class="internalDFN">
+purchase
+</a>
+using
+store
+credit.
+<del class="diff-old">He
+</del>
+<ins class="diff-chg">She
+</ins>
+accepts
+the
+offer
+and
+a
+new
+store
+credit
+card
+is
+placed
+in
+<del class="diff-old">his
+</del>
+<ins class="diff-chg">her
+</ins>
+payment
+application
+on
+<del class="diff-old">his
+</del>
+<ins class="diff-chg">her
+</ins>
+mobile
+phone.
+</dd>
+<dt>
+<del class="diff-old">Goals
+</del>
+<ins class="diff-chg">Target
+version
+</ins>
+</dt>
+<dd>
+<del class="diff-old">Increased
+user
+choice,
+Improved
+user
+experience,
+Automatability,
+Portability,
+Monetization,
+and
+rapid,
+widespread
+adoption.
+</del>
+<ins class="diff-chg">Uncategorized
+</ins>
+</dd>
+<dt>
+Motivation
+</dt>
+<dd>
+Merchants
+often
+provide
+discounts
+to
+customers
+if
+they
+sign
+up
+for
+a
+store-specific
+line
+of
+credit.
+</dd>
+</dl>
+</section>
+</section>
+<section id="negotiation-of-payment-instruments-2" typeof="bibo:Chapter" resource="#negotiation-of-payment-instruments-2" property="bibo:hasPart">
+<h3 id="h-negotiation-of-payment-instruments-2" resource="#h-negotiation-of-payment-instruments-2">
+<span property="xhv:role" resource="xhv:heading">
+<span class="secno">
+6.2
+</span>
+Negotiation
+of
+Payment
+Instruments
+</span>
+</h3>
+<p>
+</p>
+<section id="discovery-of-accepted-schemes" typeof="bibo:Chapter" resource="#discovery-of-accepted-schemes" property="bibo:hasPart">
+<h4 id="h-discovery-of-accepted-schemes" resource="#h-discovery-of-accepted-schemes">
+<span property="xhv:role" resource="xhv:heading">
+<span class="secno">
+6.2.1
+</span>
+Discovery
+of
+Accepted
+Schemes
+</span>
+</h4>
+<p>
+</p>
+<dl id="uc-ubiquitous" class="dl-horizontal">
+<dt>
+Ubiquitous
+Schemes
+</dt>
+<dd>
+A
+game
+store
+Web
+site
+accepts
+payment
+via
+credit
+card,
+<del class="diff-old">e-cheque,
+</del>
+<ins class="diff-chg">e-check,
+</ins>
+and
+operator
+billing.
+</dd>
+<dt>
+<del class="diff-old">Goals
+</del>
+<ins class="diff-chg">Target
+version
+</ins>
+</dt>
+<dd>
+<del class="diff-old">Increased
+user
+choice,
+Improved
+user
+experience,
+Minimal
+standardization,
+Lower
+Costs,
+Automatability,
+and
+rapid,
+widespread
+adoption.
+</del>
+<ins class="diff-chg">1.0
+</ins>
+</dd>
+<dt>
+Motivation
+</dt>
+<dd>
+<del class="diff-old">We
+have
+a
+goal
+for
+the
+Web
+payment
+architecture
+to
+support
+existing
+ubiquitous
+</del>
+<ins class="diff-chg">Ubiquitous
+</ins>
+<a title="payment scheme" href="#dfn-payment-scheme" class="internalDFN">
+payment
+schemes
+</a>
+<ins class="diff-new">should
+be
+supported
+</ins>
+without
+changes
+to
+how
+<del class="diff-old">they
+</del>
+<ins class="diff-chg">the
+schemes
+or
+payment
+instruments
+</ins>
+operate.
+</dd>
+<dt>
+<ins class="diff-new">Regulatory
+</ins></dt><dd><ins class="diff-new">
+Often
+payment
+schemes
+have
+their
+own
+internal
+regulations
+as
+well
+as
+regulations
+at
+the
+local
+and
+federal
+level
+that
+cover
+the
+usage
+of
+the
+scheme.
+</ins></dd>
+</dl>
+<dl id="uc-emerging" class="dl-horizontal">
+<dt>
+Emerging
+Schemes
+</dt>
+<dd>
+CrowdFundCo
+supports
+Bitcoin,
+Ripple,
+Google
+Wallet,
+and
+PayPal.
+</dd>
+<dt>
+<del class="diff-old">Goals
+</del>
+<ins class="diff-chg">Target
+version
+</ins>
+</dt>
+<dd>
+<del class="diff-old">Increased
+user
+choice,
+Improved
+user
+experience,
+Minimal
+standardization,
+Lower
+Costs,
+Automatability,
+and
+rapid,
+widespread
+adoption.
+</del>
+<ins class="diff-chg">Uncategorized
+</ins>
+</dd>
+<dt>
+Motivation
+</dt>
+<dd>
+The
+same
+mechanism
+used
+to
+support
+existing
+<a title="payment scheme" href="#dfn-payment-scheme" class="internalDFN">
+payment
+schemes
+</a>
+should
+also
+support
+emerging
+<a title="payment scheme" href="#dfn-payment-scheme" class="internalDFN">
+payment
+schemes
+</a>.
+</dd>
+</dl>
+</section>
+<section id="selection-of-payment-instruments" typeof="bibo:Chapter" resource="#selection-of-payment-instruments" property="bibo:hasPart">
+<h4 id="h-selection-of-payment-instruments" resource="#h-selection-of-payment-instruments">
+<span property="xhv:role" resource="xhv:heading">
+<span class="secno">
+6.2.2
+</span>
+Selection
+of
+Payment
+Instruments
+</span>
+</h4>
+<p>
+</p>
+<dl id="uc-discovery" class="dl-horizontal">
+<dt>
+Discovery
+</dt>
+<dd>
+Yanos
+has
+a
+multiple
+digital
+wallets:
+one
+on
+his
+mobile
+phone,
+two
+in
+the
+cloud
+(but
+on
+different
+websites),
+and
+one
+on
+his
+smart
+watch.
+Each
+one
+has
+a
+credit
+card
+that
+he
+may
+want
+to
+use
+for
+a
+credit
+card-based
+<a href="#dfn-purchase" class="internalDFN">
+purchase
+</a>.
+</dd>
+<dt>
+<del class="diff-old">Goals
+</del>
+<ins class="diff-chg">Target
+version
+</ins>
+</dt>
+<dd>
+<del class="diff-old">Increased
+user
+choice,
+Improved
+user
+experience,
+Automatability,
+Portability,
+and
+rapid,
+widespread
+adoption.
+</del>
+<ins class="diff-chg">1.0
+</ins>
+</dd>
+<dt>
+Motivation
+</dt>
+<dd>
+A
+<a href="#dfn-payer" class="internalDFN">
+payer
+</a>
+will
+most
+likely
+use
+multiple
+digital
+wallets
+over
+time.
+It
+is
+important
+to
+ensure
+that
+the
+wallets
+that
+they
+use
+are
+presented
+to
+them
+in
+a
+consistent
+manner
+across
+devices.
+<span class="issue">
+<ins class="diff-new">The
+amount
+of
+wallet/payment
+instrument
+discovery
+flexibility
+that
+version
+1.0
+should
+support
+is
+currently
+unknown.
+</ins></span></dd><dt><ins class="diff-new">
+Accessibility
+</ins></dt><dd><ins class="diff-new">
+The
+consistent
+presentation
+of
+digital
+wallet
+interfaces
+also
+includes
+consistent
+accessibility
+hints
+that
+are
+exposed
+in
+an
+interoperable
+fashion
+so
+that
+devices
+that
+are
+accessability-aware
+can
+easily
+integrate
+with
+the
+transaction
+process.
+</ins>
+</dd>
+<dt>
+Privacy
+/
+Security
+</dt>
+<dd>
+Discovery
+of
+digital
+wallets
+must
+be
+done
+in
+such
+a
+way
+as
+to
+ensure
+privacy
+protection.
+</dd>
+</dl>
+<dl id="uc-payer-privacy" class="dl-horizontal">
+<dt>
+<ins class="diff-chg">Payer
+Privacy
+</ins></dt><dd><ins class="diff-chg">
+We
+anticipate
+a
+range
+of
+privacy
+scenarios:
+</ins><ul><li><ins class="diff-chg">
+Lucio
+sends
+information
+about
+instruments
+he
+is
+willing
+to
+use
+to
+TrustedMerchant,
+who
+provides
+a
+discount
+for
+access
+to
+his
+information.
+</ins></li><li><ins class="diff-chg">
+Carla
+does
+not
+want
+to
+share
+information
+about
+the
+</ins><a title="payment instrument" href="#dfn-payment-instrument" class="internalDFN"><ins class="diff-chg">
+payment
+instruments
+</ins></a><ins class="diff-chg">
+she
+uses
+with
+any
+merchants,
+so
+that
+information
+is
+not
+shared
+with
+any
+online
+merchants.
+</ins></li></ul></dd><dt><ins class="diff-chg">
+Target
+version
+</ins></dt><dd><ins class="diff-chg">
+1.0
+</ins></dd><dt><ins class="diff-chg">
+Motivation
+</ins></dt><dd><ins class="diff-chg">
+Sharing
+or
+protecting
+data
+on
+the
+sorts
+of
+</ins><a title="payment instrument" href="#dfn-payment-instrument" class="internalDFN"><ins class="diff-chg">
+payment
+instruments
+</ins></a><ins class="diff-chg">
+available
+to
+a
+</ins><a href="#dfn-payer" class="internalDFN"><ins class="diff-chg">
+payer
+</ins></a><ins class="diff-chg">
+should
+be
+a
+decision
+made
+by
+the
+</ins><a href="#dfn-payer" class="internalDFN"><ins class="diff-chg">
+payer
+</ins></a>.</dd><dt><ins class="diff-chg">
+Privacy
+/
+Security
+</ins></dt><dd><ins class="diff-chg">
+The
+types
+of
+</ins><a title="payment instrument" href="#dfn-payment-instrument" class="internalDFN"><ins class="diff-chg">
+payment
+instruments
+</ins></a><ins class="diff-chg">
+available
+to
+a
+</ins><a href="#dfn-payer" class="internalDFN"><ins class="diff-chg">
+payer
+</ins></a><ins class="diff-chg">
+could
+be
+used
+to
+digitally
+fingerprint
+a
+</ins><a href="#dfn-payer" class="internalDFN"><ins class="diff-chg">
+payer
+</ins></a><ins class="diff-chg">
+even
+if
+they
+were
+using
+an
+pseudo-anonymous
+payment
+mechanism.
+Merchants
+and
+</ins><a href="#dfn-payee" class="internalDFN"><ins class="diff-chg">
+payee
+</ins></a><ins class="diff-chg">
+s
+may
+be
+legally
+obligated
+to
+protect
+this
+kind
+of
+</ins><a href="#dfn-payer" class="internalDFN"><ins class="diff-chg">
+payer
+</ins></a><ins class="diff-chg">
+payment
+information.
+</ins></dd></dl><dl id="uc-manual-selection" class="dl-horizontal">
+<dt>
+Manual
+Selection
+</dt>
+<dd>
+In
+many
+cases,
+the
+<a href="#dfn-payer" class="internalDFN">
+payer
+</a>
+will
+select
+a
+payment
+instrument
+manually:
+<ul>
+<li>
+Marie
+has
+credit
+cards
+from
+three
+different
+institutions:
+one
+for
+work
+(from
+BankA),
+one
+personal
+card
+(from
+BankB),
+and
+one
+retail
+card
+(from
+PayCo).
+She
+wants
+to
+choose
+the
+right
+one
+depending
+on
+the
+context
+of
+her
+purchase.
+</li>
+<li>
+Claire
+has
+one
+debit
+card
+and
+multiple
+credit
+cards
+from
+the
+same
+bank.
+</li>
+<li>
+Veronique
+wants
+to
+use
+a
+cryptocurrency
+in
+some
+cases
+(e.g.,
+peer-to-peer
+payments).
+</li>
+<li>
+Seth
+participates
+in
+a
+loyalty
+program
+with
+his
+local
+grocery
+store
+and
+can
+apply
+a
+variety
+of
+digital
+coupons
+when
+he
+visits
+the
+store.
+<span class="issue">
+Is
+a
+loyalty
+card
+a
+payment
+instrument,
+or
+a
+credential?
+</span>
+</li>
+<li>
+David
+wants
+to
+be
+able
+to
+manually
+arrange
+available
+<a title="payment instrument" href="#dfn-payment-instrument" class="internalDFN">
+payment
+instruments
+</a>
+when
+they
+are
+presented
+to
+him.
+<span class="issue">
+Why
+does
+this
+need
+to
+be
+standardized?
+Isn't
+this
+just
+a
+part
+of
+the
+wallet
+UI?
+</span>
+</li>
+<li>
+<ins class="diff-new">Fergus
+wants
+to
+pay
+for
+a
+meal
+using
+two
+different
+payment
+instruments:
+cash
+and
+a
+company
+credit
+card.
+He'd
+like
+to
+pay
+$20.24
+with
+the
+company
+credit
+card
+and
+provide
+a
+$5
+tip
+with
+digital
+cash.
+</ins></li>
+</ul>
+</dd>
+<dt>
+<del class="diff-old">Goals
+</del>
+<ins class="diff-chg">Target
+version
+</ins>
+</dt>
+<dd>
+<del class="diff-old">Increased
+user
+choice,
+Improved
+user
+experience,
+Innovation,
+Transparency,
+Portability,
+and
+rapid,
+widespread
+adoption.
+</del>
+<ins class="diff-chg">1.0
+</ins>
+</dd>
+<dt>
+Motivation
+</dt>
+<dd>
+There
+are
+scenarios,
+such
+as
+the
+first
+interaction/use
+of
+a
+payment
+instrument,
+where
+selection
+of
+the
+payment
+instrument
+won't
+be
+able
+to
+be
+performed
+automatically.
+</dd>
+</dl>
+<dl id="uc-automatic-selection" class="dl-horizontal">
+<dt>
+Automatic
+Selection
+</dt>
+<dd>
+When
+a
+<a title="payer" href="#dfn-payer" class="internalDFN">
+payer's
+</a>
+personal
+preferences
+are
+known,
+it
+becomes
+possible
+to
+make
+selections
+for
+them
+automatically.
+<ul>
+<li>
+Jonny's
+payment
+software
+on
+his
+smart
+watch
+chooses
+the
+payment
+instrument
+that
+will
+provide
+him
+with
+the
+biggest
+cost
+savings
+for
+each
+<a href="#dfn-purchase" class="internalDFN">
+purchase
+</a>
+he
+makes
+throughout
+the
+week.
+</li>
+<li>
+PayCo
+wants
+Elizabeth
+to
+know
+that
+if
+she
+pays
+with
+the
+debit
+card
+preferred
+by
+PayCo
+(because
+of
+a
+lower
+<a href="#dfn-transaction" class="internalDFN">
+transaction
+</a>
+fee
+for
+PayCo),
+she
+will
+benefit
+from
+a
+discount.
+</li>
+<li>
+Whenever
+Mary
+shops
+at
+BigFreshGrocery
+she
+uses
+the
+same
+credit
+card.
+She
+wants
+payment
+to
+happen
+automatically
+with
+that
+card
+when
+she
+puts
+her
+phone
+near
+the
+checkout
+terminal
+as
+well
+as
+when
+purchasing
+groceries
+online
+from
+BigFreshGrocery.
+</li>
+<li>
+Lalana
+does
+not
+like
+to
+scroll.
+She
+wants
+the
+instruments
+she
+uses
+most
+often
+to
+appear
+at
+top
+of
+the
+displayed
+list
+of
+available
+payment
+instruments.
+</li>
+</ul>
+</dd>
+<dt>
+<del class="diff-old">Goals
+</del>
+<ins class="diff-chg">Target
+version
+</ins>
+</dt>
+<dd>
+<del class="diff-old">Increased
+user
+choice,
+Improved
+user
+experience,
+Innovation,
+Lower
+Costs,
+Transparency,
+Automatability,
+and
+rapid,
+widespread
+adoption.
+</del>
+<ins class="diff-chg">Uncategorized
+</ins>
+</dd>
+<dt>
+Motivation
+</dt>
+<dd>
+Payment
+solutions
+providers
+can
+make
+payments
+easier
+and
+faster
+through
+automation.
+</dd>
+</dl>
+</section>
+<section id="authentication-to-access-instruments" typeof="bibo:Chapter" resource="#authentication-to-access-instruments" property="bibo:hasPart">
+<h4 id="h-authentication-to-access-instruments" resource="#h-authentication-to-access-instruments">
+<span property="xhv:role" resource="xhv:heading">
+<span class="secno">
+<ins class="diff-chg">6.2.3
+</ins></span><ins class="diff-chg">
+Authentication
+to
+Access
+Instruments
+</ins></span></h4><p></p><dl id="uc-password" class="dl-horizontal">
+<dt>
+<del class="diff-old">Payer
+Privacy
+</del>
+<ins class="diff-chg">Password
+Auth
+</ins>
+</dt>
+<dd>
+<del class="diff-old">We
+anticipate
+a
+range
+of
+privacy
+scenarios:
+Lucio
+sends
+information
+about
+instruments
+</del>
+<ins class="diff-chg">When
+Suresh
+attempts
+to
+pay
+online,
+</ins>
+he
+is
+<del class="diff-old">willing
+to
+use
+to
+TrustedMerchant,
+who
+provides
+a
+discount
+</del>
+<ins class="diff-chg">asked
+</ins>
+for
+<del class="diff-old">access
+to
+</del>
+<ins class="diff-chg">a
+username
+and
+password
+by
+</ins>
+his
+<del class="diff-old">information.
+Carla
+does
+not
+want
+to
+share
+information
+about
+</del>
+<ins class="diff-chg">payment
+service
+provider
+before
+</ins>
+the
+payment
+<del class="diff-old">instruments
+she
+uses
+with
+any
+merchants,
+so
+that
+information
+</del>
+is
+<del class="diff-old">not
+shared
+with
+any
+online
+merchants.
+</del>
+<ins class="diff-chg">approved.
+</ins>
+</dd>
+<dt>
+<del class="diff-old">Goals
+</del>
+<ins class="diff-chg">Target
+version
+</ins>
+</dt>
+<dd>
+<del class="diff-old">Increased
+user
+choice,
+Improved
+user
+experience,
+Innovation,
+and
+Monetization.
+</del>
+<ins class="diff-chg">1.0
+</ins>
+</dd>
+<dt>
+Motivation
+</dt>
+<dd>
+<del class="diff-old">Sharing
+or
+</del>
+<ins class="diff-chg">The
+most
+common
+mechanism
+for
+</ins>
+protecting
+<del class="diff-old">data
+on
+the
+sorts
+of
+</del>
+<ins class="diff-chg">access
+to
+</ins>
+payment
+instruments
+<del class="diff-old">available
+to
+a
+payer
+should
+be
+a
+decision
+made
+by
+</del>
+<ins class="diff-chg">on
+</ins>
+the
+<del class="diff-old">payer
+.
+Privacy
+/
+Security
+The
+types
+</del>
+<ins class="diff-chg">Web
+in
+2015
+is
+the
+use
+</ins>
+of
+<del class="diff-old">payment
+instruments
+available
+to
+a
+payer
+could
+be
+used
+to
+digitally
+fingerprint
+</del>
+a
+<del class="diff-old">payer
+even
+if
+they
+were
+using
+an
+pseudo-anonymous
+payment
+mechanism.
+Merchants
+</del>
+<ins class="diff-chg">username
+</ins>
+and
+<del class="diff-old">payee
+s
+may
+be
+legally
+obligated
+to
+protect
+this
+kind
+of
+payer
+payment
+information.
+</del>
+<ins class="diff-chg">password.
+</ins>
+</dd>
+</dl>
+<del class="diff-old">6.2.3
+Authentication
+to
+Access
+Instruments
+</del>
+<dl id="uc-multifactor" class="dl-horizontal">
+<dt>
+Multi-Factor
+</dt>
+<dd>
+We
+anticipate
+a
+range
+of
+authentication
+scenarios,
+leveraging
+a
+wide
+variety
+of
+approaches
+and
+device
+capabilities:
+<ul>
+<li>
+When
+Ian
+selects
+his
+debit
+card,
+he
+is
+prompted
+for
+a
+PIN.
+</li>
+<li>
+<ins class="diff-new">Horace
+presses
+the
+biometric
+fingerprint
+reader
+on
+his
+phone
+to
+authorize
+a
+purchase.
+</ins></li><li><ins class="diff-new">
+An
+authentication
+code
+is
+sent
+to
+Tony's
+mobile
+phone
+as
+a
+text
+message
+to
+ensure
+that
+he
+is
+the
+one
+that
+initiated
+the
+payment.
+Once
+he
+enters
+the
+authentication
+code,
+the
+payment
+proceeds.
+</ins></li><li>
+Wes
+has
+configured
+his
+debit
+card
+to
+require
+a
+fingerprint
+scan
+from
+his
+mobile
+device
+and
+a
+Universal
+Two
+Factor
+(U2F)
+device
+to
+be
+used
+when
+performing
+a
+<a href="#dfn-purchase" class="internalDFN">
+purchase
+</a>
+over
+$1,000.
+</li>
+<li>
+Frederic
+taps
+his
+phone
+at
+the
+grocery
+store
+to
+pay,
+and
+BankA
+sends
+him
+a
+one-time
+password
+(OTP)
+on
+his
+mobile
+phone
+that
+he
+enters
+using
+a
+keypad
+at
+the
+checkout
+counter.
+</li>
+<li>
+Nadia's
+bank
+asks
+her
+to
+use
+her
+two-factor
+authentication
+device
+and
+at
+least
+one
+of
+their
+in-branch
+retinal
+scanners
+or
+palm-vein
+readers
+before
+she
+is
+allowed
+to
+withdraw
+$25,000.
+</li>
+</ul>
+</dd>
+<dt>
+<del class="diff-old">Goals
+</del>
+<ins class="diff-chg">Target
+version
+</ins>
+</dt>
+<dd>
+<del class="diff-old">Increased
+user
+choice,
+Improved
+user
+experience,
+Greater
+security,
+Minimal
+standardization,
+Regulatory
+acceptance,
+Innovation,
+and
+rapid,
+widespread
+adoption.
+</del>
+<ins class="diff-chg">1.0
+</ins>
+</dd>
+<dt>
+Motivation
+</dt>
+<dd>
+The
+payments
+architecture
+should
+support
+the
+authentication
+devices
+available
+today
+for
+multi-factor
+authentication,
+as
+well
+as
+those
+of
+the
+future.
+</dd>
+<dt>
+Accessibility
+</dt>
+<dd>
+Not
+everyone
+can
+provide
+fingerprints
+or
+detailed
+iris
+scans.
+Therefore,
+it
+is
+important
+to
+offer
+multiple
+forms
+of
+biometric
+verification
+to
+improve
+<del class="diff-old">accessibility.
+</del>
+<ins class="diff-chg">accessibility
+in
+addition
+to
+providing
+alternatives
+to
+biometric
+verification,
+such
+as
+strong
+two-factor
+verification.
+</ins>
+</dd>
+</dl>
+<dl id="uc-kyc" class="dl-horizontal">
+<dt>
+<del class="diff-old">Regulatory
+Blocks
+</del>
+<ins class="diff-chg">KYC
+</ins>
+</dt>
+<dd>
+<del class="diff-old">PayCo
+</del>
+<ins class="diff-chg">A
+number
+of
+Know
+Your
+Customer
+(KYC)
+requirements
+</ins>
+must
+<ins class="diff-new">be
+met
+when
+a
+financial
+service
+provider
+authorizes
+access
+to
+a
+particular
+</ins><a href="#dfn-payment-instrument" class="internalDFN"><ins class="diff-new">
+payment
+instrument
+</ins></a>:<ul><li><ins class="diff-new">
+BigBank
+performs
+KYC
+clearing
+on
+a
+continuous
+basis
+to
+</ins>
+ensure
+that
+their
+customers
+<del class="diff-old">do
+not
+appear
+on
+any
+regulatory
+blacklists
+when
+performing
+transaction
+s
+above
+</del>
+<ins class="diff-chg">are
+properly
+vetted
+before
+participating
+in
+financial
+transactions.
+</ins></li><li><ins class="diff-chg">
+Multigen,
+</ins>
+a
+<ins class="diff-new">wealth
+management
+company,
+must
+ensure
+that
+their
+customer's
+are
+accredited
+investors
+before
+allowing
+them
+to
+directly
+manage
+</ins>
+certain
+<del class="diff-old">monetary
+amount.
+</del>
+<ins class="diff-chg">investments
+in
+their
+account.
+</ins></li><li><ins class="diff-chg">
+The
+Central
+Bank
+of
+Pakistan
+enables
+independent
+mobile
+resellers
+to
+perform
+minimal
+thumbprint-based
+KYC
+clearing
+in
+remote
+regions
+of
+the
+country.
+</ins></li><li><ins class="diff-chg">
+Pharmaxis,
+a
+medical
+drug
+reseller,
+requires
+that
+a
+customer
+is
+licensed
+to
+practice
+medicine
+and
+write
+prescriptions
+for
+Class
+2
+medications
+(highly
+addictive
+drugs
+with
+a
+known
+medical
+use)
+before
+a
+purchase
+is
+allowed
+to
+proceed.
+</ins></li><li><ins class="diff-chg">
+Dr.
+Kubo
+provides
+a
+set
+of
+explosives
+expert
+KYC
+credentials
+at
+the
+time
+of
+transaction
+to
+meet
+transaction
+requirements
+managed
+by
+the
+financial
+institution
+and
+merchant.
+</ins></li></ul>
+</dd>
+<dt>
+<del class="diff-old">Goals
+</del>
+<ins class="diff-chg">Target
+version
+</ins>
+</dt>
+<dd>
+<del class="diff-old">Regulatory
+acceptance,
+and
+Automatability.
+</del>
+<ins class="diff-chg">Uncategorized
+</ins>
+</dd>
+<dt>
+Motivation
+</dt>
+<dd>
+<del class="diff-old">Easing
+compliance
+</del>
+<ins class="diff-chg">Authorization
+to
+access
+an
+instrument
+depends
+on
+more
+than
+just
+authenticating
+</ins>
+with
+<del class="diff-old">Know
+Your
+Customer
+(KYC)
+</del>
+<ins class="diff-chg">the
+payment
+service
+provider,
+it
+may
+also
+require
+the
+</ins><a href="#dfn-payee" class="internalDFN"><ins class="diff-chg">
+payee
+</ins></a><ins class="diff-chg">
+to
+have
+other
+provable
+qualities
+before
+the
+transaction
+can
+proceed.
+</ins></dd><dt><ins class="diff-chg">
+Regulation
+</ins></dt><dd><ins class="diff-chg">
+In
+many
+countries,
+a
+variety
+of
+regulations
+exist
+that
+require
+merchants
+and
+financial
+service
+providers
+to
+prove
+that
+they
+have
+vetted
+their
+customers
+before
+allowing
+a
+transaction
+to
+proceed.
+</ins></dd></dl><dl id="uc-" class="dl-horizontal"><dt><ins class="diff-chg">
+AML
+</ins></dt><dd><ins class="diff-chg">
+Financial
+service
+providers,
+</ins>
+and
+<ins class="diff-new">some
+merchants,
+are
+required
+to
+adhere
+to
+</ins>
+Anti-Money
+Laundering
+(AML)
+regulations
+<del class="diff-old">will
+ensure
+safer
+</del>
+<ins class="diff-chg">by
+blocking
+transactions
+involving
+known
+bad
+actors
+or
+by
+reporting
+suspicious
+activity
+related
+to
+financial
+transactions:
+</ins><ul><li><ins class="diff-chg">
+Corresponda
+Bank's
+AML
+system
+notices
+an
+outgoing
+payment
+to
+an
+account
+listed
+as
+frozen
+by
+FinCEN
+</ins>
+and
+<del class="diff-old">faster
+</del>
+<ins class="diff-chg">prevents
+the
+</ins>
+payment
+<del class="diff-old">schemes
+.
+</del>
+<ins class="diff-chg">from
+proceeding.
+</ins></li><li><ins class="diff-chg">
+FasterPay,
+a
+payment
+service
+provider,
+notices
+tens
+of
+thousands
+of
+small
+transactions
+flowing
+from
+high-risk
+foreign
+accounts
+into
+a
+previously
+dormant
+domestic
+account
+and
+automatically
+files
+a
+Suspicious
+Activity
+Report.
+</ins></li><li><ins class="diff-chg">
+Eastern
+Group,
+an
+international
+remittance
+system,
+verifies
+that
+both
+the
+sender
+and
+a
+recipient
+of
+an
+international
+remittance
+are
+not
+on
+a
+watch
+list
+and
+have
+known
+accounts
+at
+the
+source
+and
+destination
+of
+funds
+before
+authorizing
+the
+transaction.
+</ins></li><li><ins class="diff-chg">
+The
+Flamingo,
+a
+casino,
+automatically
+files
+a
+Currency
+Transaction
+Report
+when
+one
+of
+its
+systems
+detects
+a
+customer
+withdrawing
+over
+$10,000
+USD
+in
+winnings
+over
+the
+course
+of
+a
+day.
+</ins></li></ul></dd><dt><ins class="diff-chg">
+Target
+version
+</ins></dt><dd><ins class="diff-chg">
+Uncategorized
+</ins></dd><dt><ins class="diff-chg">
+Motivation
+</ins></dt><dd><ins class="diff-chg">
+Financial
+service
+providers,
+and
+some
+merchants,
+are
+required
+to
+adhere
+to
+Anti-Money
+Laundering
+(AML)
+regulations
+by
+reporting
+suspicious
+activity
+related
+to
+financial
+transactions
+or
+by
+blocking
+transactions
+involving
+known
+bad
+actors.
+</ins>
+</dd>
+<dt>
+Exceptions
+</dt>
+<dd>
+If
+a
+<a href="#dfn-payee" class="internalDFN">
+payee
+</a>
+detects
+that
+a
+<a href="#dfn-payer" class="internalDFN">
+payer
+</a>
+is
+on
+an
+applicable
+blacklist,
+the
+transaction
+must
+not
+proceed.
+</dd>
+</dl>
+<del class="diff-old">6.2.3.1
+Non-essential
+Use
+Cases
+</del>
+<dl id="uc-biometric" class="dl-horizontal">
+<dt>
+Biometric
+</dt>
+<dd>
+In
+current
+online
+and
+offline
+payment
+<a href="#dfn-transaction" class="internalDFN">
+transaction
+</a>
+s,
+biometric
+authentication
+can
+be
+used
+instead
+of
+password-based
+authentication:
+<ul>
+<li>
+John
+registers
+his
+fingerprint
+with
+his
+payment
+provider
+so
+that
+he
+can
+just
+use
+a
+fingerprint
+to
+pay
+for
+low-value
+items.
+</li>
+<li>
+<del class="diff-old">Sarah
+</del>
+<ins class="diff-chg">Ruba
+</ins>
+registers
+her
+voiceprint
+and
+face
+with
+her
+payment
+provider
+for
+use
+in
+<a href="#dfn-transaction" class="internalDFN">
+transaction
+</a>
+s
+greater
+than
+$1,000.
+</li>
+<li>
+Rico
+buys
+a
+$5,000
+car
+for
+his
+daughter
+through
+an
+online
+dealership.
+His
+<a href="#dfn-payment-processor" class="internalDFN">
+payment
+processor
+</a>
+requires
+a
+password
+plus
+two
+forms
+of
+biometric
+identification.
+Rico
+doesn't
+have
+hands,
+so
+he
+uses
+a
+face
+and
+iris
+scan
+to
+perform
+the
+authentication.
+</li>
+</ul>
+</dd>
+<dt>
+<del class="diff-old">Goals
+</del>
+<ins class="diff-chg">Target
+version
+</ins>
+</dt>
+<dd>
+<del class="diff-old">Increased
+user
+choice,
+Improved
+user
+experience,
+Greater
+security,
+Minimal
+standardization,
+Regulatory
+acceptance,
+Innovation,
+and
+rapid,
+widespread
+adoption.
+</del>
+<ins class="diff-chg">Uncategorized
+</ins>
+</dd>
+<dt>
+Motivation
+</dt>
+<dd>
+Biometrics
+can
+be
+utilized
+on
+<del class="diff-old">Point
+</del>
+<ins class="diff-chg">point
+</ins>
+of
+<del class="diff-old">Sale
+</del>
+<ins class="diff-chg">sale
+</ins>
+terminals,
+mobile,
+and
+wearable
+devices.
+Web
+payment
+systems
+based
+on
+biometrics
+could
+achieve
+more
+reliable
+information
+security
+and
+convenience.
+Some
+forms
+of
+biometric
+authentication,
+like
+facial
+recognition,
+can
+also
+be
+used
+to
+augment
+password-based
+authentication
+mechanisms.
+</dd>
+<dt>
+Security
+/
+Privacy
+</dt>
+<dd>
+<ul>
+<li>
+An
+individual's
+privacy
+should
+be
+protected
+when
+performing
+any
+sort
+of
+biometric
+authentication.
+</li>
+<li>
+Important
+data,
+such
+as
+the
+fingerprint
+template
+and
+private
+key,
+and
+sensitive
+code
+should
+be
+stored
+and
+executed
+in
+a
+Trusted
+Execution
+Environment
+(TEE).
+</li>
+<li>
+The
+fingerprint
+authentication
+protocol,
+which
+is
+capable
+of
+transmitting
+a
+proof
+of
+fingerprint
+authentication
+credential,
+should
+not
+contain
+any
+personal
+fingerprint
+data.
+</li>
+</ul>
+</dd>
+<dt>
+Accessibility
+</dt>
+<dd>
+Not
+everyone
+can
+provide
+fingerprints
+or
+detailed
+iris
+scans.
+Therefore,
+it
+is
+important
+to
+offer
+multiple
+forms
+<ins class="diff-new">of
+</ins>
+biometric
+verification
+to
+<del class="diff-old">improev
+accessibility.
+</del>
+<ins class="diff-chg">improve
+accessibility
+in
+addition
+to
+providing
+alternatives
+to
+biometric
+verification,
+such
+as
+strong
+two-factor
+verification.
+</ins></dd></dl><dl id="uc-risk-monitoring" class="dl-horizontal"><dt><ins class="diff-chg">
+Risk
+Monitoring
+</ins></dt><dd><ins class="diff-chg">
+Gao's
+payment
+processor
+service
+continuously
+monitor's
+his
+daily
+spending
+limit,
+daily
+withdrawal
+limit,
+and
+typical
+spending
+behavior
+and
+alerts
+him
+when
+a
+suspicious
+payment
+has
+been
+requested.
+</ins></dd><dt><ins class="diff-chg">
+Target
+version
+</ins></dt><dd><ins class="diff-chg">
+Uncategorized
+</ins></dd><dt><ins class="diff-chg">
+Motivation
+</ins></dt><dd><ins class="diff-chg">
+As
+financial
+services
+have
+moved
+online,
+the
+number
+of
+Internet-based
+attacks
+on
+</ins><a href="#dfn-payer" class="internalDFN"><ins class="diff-chg">
+payer
+</ins></a><ins class="diff-chg">
+financial
+accounts
+have
+increased.
+One
+way
+to
+protect
+against
+these
+sorts
+of
+attacks
+is
+to
+perform
+continous
+risk
+monitoring.
+</ins></dd></dl><dl id="uc-joint" class="dl-horizontal"><dt><ins class="diff-chg">
+Joint
+Accounts
+</ins></dt><dd><ins class="diff-chg">
+ArcheryCorp's
+manufacturing
+division
+has
+a
+joint
+expense
+account
+that
+is
+shared
+among
+multiple
+employees
+to
+make
+purchases.
+The
+account
+is
+protected
+by
+an
+access
+control
+list
+as
+well
+as
+limits
+on
+the
+amount
+that
+each
+employee
+can
+spend
+without
+authorization
+by
+management.
+</ins></dd><dt><ins class="diff-chg">
+Target
+version
+</ins></dt><dd><ins class="diff-chg">
+Uncategorized
+</ins></dd><dt><ins class="diff-chg">
+Motivation
+</ins></dt><dd><ins class="diff-chg">
+There
+are
+many
+types
+of
+accounts
+that
+are
+accessed
+via
+different
+payment
+instruments
+that
+can
+be
+shared
+in
+an
+organization.
+Access
+to
+the
+accounts
+are
+typically
+protected
+by
+one
+or
+more
+sets
+of
+authorization
+rules.
+</ins>
+</dd>
+</dl>
+</section>
+</section>
+<section id="payment-processing-2" typeof="bibo:Chapter" resource="#payment-processing-2" property="bibo:hasPart">
+<h3 id="h-payment-processing-2" resource="#h-payment-processing-2">
+<span property="xhv:role" resource="xhv:heading">
+<span class="secno">
+6.3
+</span>
+Payment
+Processing
+</span>
+</h3>
+<p>
+</p>
+<section id="initiation-of-processing" typeof="bibo:Chapter" resource="#initiation-of-processing" property="bibo:hasPart">
+<h4 id="h-initiation-of-processing" resource="#h-initiation-of-processing">
+<span property="xhv:role" resource="xhv:heading">
+<span class="secno">
+6.3.1
+</span>
+Initiation
+of
+Processing
+</span>
+</h4>
+<p>
+</p>
+<div class="note">
+<div class="note-title" aria-level="5" role="heading" id="h-note2">
+<span>
+Note
+</span>
+</div>
+<p class="">
+Before
+subjecting
+a
+person
+or
+organization
+to
+any
+financial
+<a href="#dfn-transaction" class="internalDFN">
+transaction
+</a>
+commitment
+(such
+as
+a
+web
+payment),
+they
+should
+be
+presented
+with
+the
+option
+of
+reversing,
+checking,
+or
+confirming
+their
+choice
+or
+submission.
+It
+should
+also
+be
+noted
+that
+this
+does
+not
+preclude
+certain
+<a href="#dfn-transaction" class="internalDFN">
+transaction
+</a>
+operations
+from
+being
+automated
+once
+they
+have
+been
+authorized
+by
+an
+<a href="#dfn-entity" class="internalDFN">
+entity
+</a>.
+For
+more
+details,
+see
+the
+section
+on
+<a href="http://www.w3.org/TR/2008/REC-WCAG20-20081211/#minimize-error-reversible">
+Error
+Prevention
+(Legal,
+Financial,
+Data)
+</a>
+in
+[
+<cite>
+<a class="bibref" href="#bib-WCAG20">
+WCAG20
+</a>
+</cite>
+].
+</p>
+</div>
+<dl id="uc-payee-initiated" class="dl-horizontal">
+<dt>
+Payee-initiated
+</dt>
+<dd>
+Some
+payments
+are
+initiated
+by
+the
+payee:
+<ul>
+<li>
+Richard
+choses
+to
+pay
+using
+a
+credit
+card
+at
+FlowerFriends.
+FlowerFriends
+initiates
+payment
+processing
+using
+their
+<a href="#dfn-payment-processor" class="internalDFN">
+payment
+processor
+</a>
+to
+contact
+the
+acquiring
+bank
+that
+handles
+credit
+card
+payments
+for
+FlowerFriends.
+</li>
+<li>
+Pitir
+has
+authorized
+RentSeekers
+to
+pull
+money
+out
+of
+his
+bank
+account
+on
+a
+monthly
+basis
+in
+order
+to
+pay
+his
+rent.
+RentSeekers
+initiates
+a
+payment
+using
+the
+ACH
+network
+to
+pull
+money
+from
+Pitir's
+bank
+account.
+</li>
+<li>
+<ins class="diff-new">Fiona
+shows
+a
+QR
+Code,
+which
+contains
+her
+payment
+details,
+to
+a
+cashier
+when
+she
+is
+checking
+out.
+The
+cashier
+scans
+the
+QR
+Code
+and
+initiates
+a
+payment
+using
+the
+details
+in
+the
+QR
+Code.
+</ins></li>
+</ul>
+</dd>
+<dt>
+<del class="diff-old">Goals
+</del>
+<ins class="diff-chg">Target
+version
+</ins>
+</dt>
+<dd>
+<del class="diff-old">Automatability,
+and
+rapid,
+widespread
+adoption.
+</del>
+<ins class="diff-chg">1.0
+</ins>
+</dd>
+<dt>
+Motivation
+</dt>
+<dd>
+Payee-initiated
+payments,
+also
+known
+as
+"pull
+payments"
+or
+"four
+corner
+model
+payments",
+are
+widely
+deployed
+and
+utilized
+today.
+</dd>
+<dt>
+Privacy
+/
+Security
+</dt>
+<dd>
+One
+of
+the
+biggest
+security
+flaws
+of
+<a href="#dfn-payee" class="internalDFN">
+payee
+</a>
+-initiated
+payments
+is
+that
+all
+the
+information
+necessary
+to
+initiate
+a
+<a href="#dfn-transaction" class="internalDFN">
+transaction
+</a>
+from
+the
+<a title="payer" href="#dfn-payer" class="internalDFN">
+payer's
+</a>
+financial
+account
+is
+typically
+transmitted
+to
+the
+<a href="#dfn-payee" class="internalDFN">
+payee
+</a>.
+For
+example,
+credit
+card
+information
+along
+with
+expiration
+date,
+name,
+and
+CVV2
+code
+are
+transmitted
+and
+could
+be
+intercepted
+by
+rogue
+software
+running
+on
+the
+<a title="payer" href="#dfn-payer" class="internalDFN">
+payer's
+</a>
+servers.
+Special
+attention
+should
+be
+paid
+to
+ensuring
+that
+this
+risky
+security
+model
+isn't
+supported
+by
+a
+Web
+Payments
+solution.
+For
+example,
+at
+a
+minimum,
+credit
+card
+tokenization
+such
+as
+EMVCo's
+solution
+should
+be
+supported
+alongside
+other
+tokenization
+solutions.
+</dd>
+</dl>
+<dl id="uc-payer-initiated" class="dl-horizontal">
+<dt>
+Payer-initiated
+</dt>
+<dd>
+Some
+payments
+are
+initiated
+by
+the
+payer:
+<ul>
+<li>
+Once
+Sally
+has
+signed
+into
+PayPal
+to
+pay,
+PayPal
+initiates
+payment
+processing.
+</li>
+<li>
+Joakim
+uses
+his
+Bitcoin
+wallet
+to
+send
+money
+to
+his
+friend.
+</li>
+<li>
+Carson
+(in
+New
+York
+City)
+sends
+money
+to
+<del class="diff-old">Vladamir
+</del>
+<ins class="diff-chg">Vladimir
+</ins>
+(in
+Moscow)
+using
+his
+Ripple
+client,
+which
+converts
+the
+currency
+from
+US
+Dollars
+to
+Rubels
+in
+transit.
+</li>
+</ul>
+</dd>
+<dt>
+<del class="diff-old">Goals
+</del>
+<ins class="diff-chg">Target
+version
+</ins>
+</dt>
+<dd>
+<del class="diff-old">Improved
+user
+experience,
+Greater
+security,
+Innovation,
+and
+Automatability.
+</del>
+<ins class="diff-chg">1.0
+</ins>
+</dd>
+<dt>
+Motivation
+</dt>
+<dd>
+Payer-initiated
+payments,
+also
+known
+as
+"push
+payments",
+<del class="diff-old">"three-corner
+</del>
+<ins class="diff-chg">"three
+corner
+</ins>
+model
+payments",
+or
+"peer-to-peer
+payments",
+are
+fundamentally
+more
+secure
+as
+no
+information
+is
+given
+to
+the
+<a href="#dfn-payee" class="internalDFN">
+payee
+</a>
+that
+would
+allow
+them
+or
+an
+attacker
+to
+replay
+the
+<a href="#dfn-transaction" class="internalDFN">
+transaction
+</a>
+for
+a
+different
+amount
+or
+to
+a
+different
+<a href="#dfn-payee" class="internalDFN">
+payee
+</a>
+at
+a
+later
+date.
+</dd>
+<dt>
+<ins class="diff-new">Regulatory
+</ins></dt><dd><ins class="diff-new">
+There
+are
+a
+number
+of
+regulations
+that
+cover
+the
+protection
+of
+confidential
+customer
+data
+both
+from
+a
+payment
+scheme
+perspective
+as
+well
+as
+a
+federal
+level.
+</ins></dd>
+</dl>
+</section>
+<section id="verification-of-available-funds" typeof="bibo:Chapter" resource="#verification-of-available-funds" property="bibo:hasPart">
+<h4 id="h-verification-of-available-funds" resource="#h-verification-of-available-funds">
+<span property="xhv:role" resource="xhv:heading">
+<span class="secno">
+6.3.2
+</span>
+Verification
+of
+Available
+Funds
+</span>
+</h4>
+<p>
+</p>
+<dl id="uc-hold-verification" class="dl-horizontal">
+<dt>
+Hold
+Verification
+</dt>
+<dd>
+Renne
+checks
+into
+a
+hotel
+and
+is
+asked
+for
+a
+deposit
+for
+any
+damages
+to
+the
+room.
+She
+uses
+her
+phone
+to
+provide
+a
+proof-of-hold
+until
+she
+checks
+out
+of
+the
+hotel,
+at
+which
+time
+the
+hold
+on
+her
+funds
+will
+be
+released.
+</dd>
+<dt>
+<del class="diff-old">Goals
+</del>
+<ins class="diff-chg">Target
+version
+</ins>
+</dt>
+<dd>
+<del class="diff-old">Improved
+user
+experience,
+and
+Transparency.
+</del>
+<ins class="diff-chg">Uncategorized
+</ins>
+</dd>
+<dt>
+Motivation
+</dt>
+<dd>
+Delivering
+services
+or
+products
+that
+are
+difficult
+to
+"undo,"
+such
+as
+performing
+an
+oil
+change,
+dispensing
+fuel,
+or
+renting
+a
+car
+or
+hotel
+room
+are
+examples
+of
+situations
+which
+may
+require
+a
+two-part
+<a href="#dfn-transaction" class="internalDFN">
+transaction
+</a>.
+</dd>
+</dl>
+<del class="diff-old">6.3.2.1
+Non-essential
+Use
+Cases
+</del>
+<dl id="uc-funds-verification" class="dl-horizontal">
+<dt>
+Funds
+Verification
+</dt>
+<dd>
+When
+Mario
+wishes
+to
+<a href="#dfn-purchase" class="internalDFN">
+purchase
+</a>
+a
+race
+car
+through
+the
+manufacturer,
+the
+company
+that
+makes
+the
+car
+requires
+a
+proof
+of
+funds
+from
+Mario's
+bank
+in
+order
+for
+the
+customization
+of
+the
+car
+to
+proceed.
+</dd>
+<dt>
+<del class="diff-old">Goals
+</del>
+<ins class="diff-chg">Target
+version
+</ins>
+</dt>
+<dd>
+<del class="diff-old">Greater
+security
+and
+Transparency.
+</del>
+<ins class="diff-chg">Uncategorized
+</ins>
+</dd>
+<dt>
+Motivation
+</dt>
+<dd>
+A
+<a href="#dfn-payee" class="internalDFN">
+payee
+</a>
+may
+want
+to
+limit
+access
+to
+certain
+services
+to
+only
+those
+who
+they
+know
+can
+afford
+the
+good
+or
+service
+because
+the
+act
+of
+<del class="diff-old">engaging
+</del>
+<ins class="diff-chg">providing
+an
+acceptable
+level
+of
+service
+to
+</ins>
+the
+<del class="diff-old">payer
+</del>
+<a href="#dfn-payee" class="internalDFN">
+<ins class="diff-chg">payee
+</ins>
+</a>
+<ins class="diff-new">during
+the
+pre-sale
+phase
+</ins>
+may
+be
+costly.
+</dd>
+</dl>
+</section>
+<section id="authorization-of-transfer" typeof="bibo:Chapter" resource="#authorization-of-transfer" property="bibo:hasPart">
+<h4 id="h-authorization-of-transfer" resource="#h-authorization-of-transfer">
+<span property="xhv:role" resource="xhv:heading">
+<span class="secno">
+6.3.3
+</span>
+Authorization
+of
+Transfer
+</span>
+</h4>
+<p>
+</p>
+<dl id="uc-proofs" class="dl-horizontal">
+<dt>
+Proofs
+</dt>
+<dd>
+Goods
+and
+services
+may
+be
+released
+at
+different
+times
+depending
+on
+the
+type
+of
+<a href="#dfn-transaction" class="internalDFN">
+transaction
+</a>
+being
+performed:
+<ul>
+<li>
+<ins class="diff-new">Sung-hyun
+provides
+a
+proof
+of
+initiation
+of
+funds
+transfer
+to
+get
+access
+to
+an
+online
+streaming
+music
+service.
+</ins></li><li>
+Zhang
+Wei
+orders
+10
+large
+boxes
+of
+envelopes
+from
+an
+online
+shop
+in
+Tianjin.
+He
+uses
+an
+escrow
+service
+to
+provide
+a
+proof
+of
+escrow
+to
+the
+online
+shop
+in
+order
+to
+get
+them
+to
+initiate
+the
+shipment.
+</li>
+<li>
+To
+protect
+Tibor's
+privacy
+when
+he
+<a title="purchase" href="#dfn-purchase" class="internalDFN">
+purchases
+</a>
+candy
+online,
+the
+store
+asks
+only
+for
+Tibor's
+verified
+shipping
+address
+and
+a
+proof
+of
+payment
+to
+send
+him
+the
+chocolates.
+</li>
+<li>
+RockinRadio,
+SmoothSounds,
+and
+classicallyClassic
+are
+independent,
+specialized
+music
+streaming
+services.
+They
+accept
+proof
+of
+<a href="#dfn-purchase" class="internalDFN">
+purchase
+</a>
+from
+each
+other
+to
+provide
+a
+track
+that
+is
+in
+their
+online
+streaming
+catalogue
+even
+if
+it
+was
+originally
+bought
+from
+another
+provider.
+</li>
+</ul>
+</dd>
+<dt>
+<del class="diff-old">Goals
+</del>
+<ins class="diff-chg">Target
+version
+</ins>
+</dt>
+<dd>
+<del class="diff-old">Increased
+user
+choice,
+Improved
+user
+experience,
+Greater
+security,
+Regulatory
+acceptance,
+Innovation,
+Transparency,
+Automatability,
+and
+rapid,
+widespread
+adoption.
+</del>
+<ins class="diff-chg">1.0
+</ins>
+</dd>
+<dt>
+Motivation
+</dt>
+<dd>
+At
+times,
+it
+is
+safe
+to
+release
+a
+good
+when
+the
+payment
+network
+acknowledges
+that
+the
+funds
+are
+on
+their
+way.
+At
+other
+times,
+it's
+not
+safe
+to
+release
+a
+good
+or
+service
+until
+it
+has
+been
+proven
+that
+the
+funds
+are
+sitting
+in
+the
+<a title="payee" href="#dfn-payee" class="internalDFN">
+payee's
+</a>
+financial
+account.
+</dd>
+<dt>
+Exceptions
+</dt>
+<dd>
+If
+a
+particular
+expected
+proof
+is
+not
+provided,
+the
+<a href="#dfn-transaction" class="internalDFN">
+transaction
+</a>
+will
+most
+likely
+fail
+or
+transition
+into
+an
+alternate
+path.
+</dd>
+</dl>
+</section>
+<section id="completion-of-transfer" typeof="bibo:Chapter" resource="#completion-of-transfer" property="bibo:hasPart">
+<h4 id="h-completion-of-transfer" resource="#h-completion-of-transfer">
+<span property="xhv:role" resource="xhv:heading">
+<span class="secno">
+6.3.4
+</span>
+Completion
+of
+Transfer
+</span>
+</h4>
+<p>
+</p>
+<dl id="uc-delay-variation" class="dl-horizontal">
+<dt>
+Variation
+of
+Delay
+</dt>
+<dd>
+When
+a
+<a href="#dfn-transaction" class="internalDFN">
+transaction
+</a>
+occurs,
+the
+time
+it
+takes
+to
+transmit
+and
+receive
+funds
+often
+vary
+according
+to
+the
+<a href="#dfn-payment-scheme" class="internalDFN">
+payment
+scheme
+</a>:
+<ul>
+<li>
+<del class="diff-old">Sophie
+</del>
+<ins class="diff-chg">Eman
+</ins>
+uses
+a
+credit
+card
+to
+buy
+some
+gifts
+for
+her
+parents.
+The
+shop
+has
+access
+to
+the
+funds
+in
+three
+days.
+</li>
+<li>
+Frank
+uses
+an
+electronic
+<del class="diff-old">cheque
+</del>
+<ins class="diff-chg">check
+</ins>
+to
+pay
+his
+rent.
+The
+rental
+agency
+has
+access
+to
+the
+funds
+in
+7
+days.
+</li>
+<li>
+Felicity
+has
+chosen
+Bitcoin
+to
+pay
+for
+glasses
+online.
+The
+store
+that
+sells
+the
+glasses
+has
+almost
+guaranteed
+access
+to
+the
+funds
+within
+15
+minutes.
+</li>
+<li>
+Vanessa
+uses
+Ripple
+to
+<a href="#dfn-purchase" class="internalDFN">
+purchase
+</a>
+a
+new
+work
+outfit
+in
+US
+Dollars.
+Funds
+in
+Euros
+are
+available
+to
+OnlineWorkClothes
+within
+a
+few
+minutes.
+</li>
+</ul>
+</dd>
+<dt>
+<del class="diff-old">Goals
+</del>
+<ins class="diff-chg">Target
+version
+</ins>
+</dt>
+<dd>
+<del class="diff-old">Increased
+user
+choice,
+Improved
+user
+experience,
+Transparency,
+Automatability,
+and
+rapid,
+widespread
+adoption.
+</del>
+<ins class="diff-chg">Uncategorized
+</ins>
+</dd>
+<dt>
+Exceptions
+</dt>
+<dd>
+If
+the
+funds
+are
+sent
+but
+never
+received,
+then
+the
+<a href="#dfn-payee" class="internalDFN">
+payee
+</a>
+will
+select
+a
+recourse
+mechanism
+that
+is
+included
+in
+the
+last
+<a href="#dfn-transaction" class="internalDFN">
+transaction
+</a>
+message.
+</dd>
+</dl>
+<del class="diff-old">6.3.4.1
+Non-essential
+Use
+Cases
+</del>
+<dl id="uc-escrow" class="dl-horizontal">
+<dt>
+<ins class="diff-chg">Escrow
+</ins></dt><dd><ins class="diff-chg">
+There
+are
+a
+number
+of
+considerations
+when
+providing
+escrow
+services
+to
+both
+</ins><a title="payer" href="#dfn-payer" class="internalDFN"><ins class="diff-chg">
+payers
+</ins></a><ins class="diff-chg">
+and
+</ins><a title="payee" href="#dfn-payee" class="internalDFN"><ins class="diff-chg">
+payees
+</ins></a>:<ul><li><ins class="diff-chg">
+Jack
+has
+established
+an
+online
+store
+on
+a
+trusted
+third
+party
+website
+to
+sell
+pants.
+Mary
+wants
+to
+buy
+a
+pair
+of
+pants
+from
+Jack's
+online
+store.
+Mary
+doesn't
+trust
+Jack
+because
+she
+has
+never
+met
+him
+nor
+has
+she
+done
+business
+with
+him
+before.
+Jack
+doesn't
+trust
+Mary
+because
+he
+doesn't
+know
+if
+he
+will
+be
+paid
+after
+shipping
+the
+pants
+to
+Mary.
+Mary
+makes
+a
+purchase,
+selecting
+to
+put
+her
+money
+in
+escrow
+at
+the
+trusted
+third
+party.
+Jack
+is
+notified
+that
+the
+funds
+have
+been
+received
+by
+the
+trusted
+third
+party.
+Jack
+sends
+the
+pants
+to
+Mary
+via
+Express
+Mail.
+When
+Mary
+gets
+the
+pants,
+she
+will
+tell
+the
+trusted
+third
+party
+and
+they
+will
+move
+the
+funds
+to
+Jack's
+account.
+</ins></li><li><ins class="diff-chg">
+Escrow
+services
+in
+China
+sometimes
+provide
+a
+virtual
+financial
+account
+to
+</ins><a title="payer" href="#dfn-payer" class="internalDFN"><ins class="diff-chg">
+payers
+</ins></a>.<ins class="diff-chg">
+Money
+is
+typically
+transferred
+from
+the
+</ins><a title="payer" href="#dfn-payer" class="internalDFN"><ins class="diff-chg">
+payer's
+</ins></a><ins class="diff-chg">
+bank
+account
+to
+the
+escrow
+service
+provider's
+bank
+to
+hold,
+but
+where
+the
+funds
+are
+still
+legally
+owned
+by
+the
+</ins><a href="#dfn-payer" class="internalDFN"><ins class="diff-chg">
+payer
+</ins></a>.<ins class="diff-chg">
+When
+Hung
+transfers
+funds
+to
+an
+escrow
+service
+provider,
+his
+rights
+and
+responsibilities
+are
+exchanged
+with
+the
+escrow
+service
+provider
+at
+the
+same
+time
+as
+well
+as
+how
+various
+parties
+involved
+with
+the
+account
+can
+access
+and
+use
+the
+funds.
+</ins></li></ul></dd><dt><ins class="diff-chg">
+Target
+version
+</ins></dt><dd><ins class="diff-chg">
+Uncategorized
+</ins></dd><dt><ins class="diff-chg">
+Motivation
+</ins></dt><dd><ins class="diff-chg">
+A
+trusted
+third
+party
+is
+typically
+helpful
+for
+non-instant
+transactions
+where
+neither
+the
+</ins><a href="#dfn-payer" class="internalDFN"><ins class="diff-chg">
+payer
+</ins></a><ins class="diff-chg">
+or
+the
+</ins><a href="#dfn-payee" class="internalDFN"><ins class="diff-chg">
+payee
+</ins></a><ins class="diff-chg">
+have
+an
+existing
+relationship.
+A
+trusted
+third
+party
+protects
+the
+</ins><a href="#dfn-payer" class="internalDFN"><ins class="diff-chg">
+payer
+</ins></a><ins class="diff-chg">
+by
+ensuring
+that
+the
+</ins><a href="#dfn-payee" class="internalDFN"><ins class="diff-chg">
+payee
+</ins></a><ins class="diff-chg">
+has
+been
+vetted
+and
+by
+guaranteeing
+product
+or
+a
+refund.
+The
+trusted
+third
+party
+protects
+the
+</ins><a href="#dfn-payee" class="internalDFN"><ins class="diff-chg">
+payee
+</ins></a><ins class="diff-chg">
+by
+ensuring
+that
+funds
+from
+the
+</ins><a href="#dfn-payer" class="internalDFN"><ins class="diff-chg">
+payer
+</ins></a><ins class="diff-chg">
+have
+been
+verified
+before
+releasing
+the
+product
+to
+them.
+</ins></dd><dt><ins class="diff-chg">
+Regulatory
+</ins></dt><dd><ins class="diff-chg">
+The
+use
+of
+money
+held
+in
+escrow
+accounts
+by
+the
+escrow
+service
+provider
+is
+covered
+by
+a
+number
+of
+consumer
+protection
+laws
+that
+restrict
+what
+the
+escrow
+service
+provider
+can
+do
+with
+the
+money.
+Expressing
+these
+restrictions
+in
+a
+way
+that
+enhances
+interoperability
+is
+desirable.
+</ins></dd></dl><dl id="uc-notifications" class="dl-horizontal">
+<dt>
+Notifications
+</dt>
+<dd>
+Gavin
+sends
+an
+electronic
+<del class="diff-old">cheque
+</del>
+<ins class="diff-chg">check
+</ins>
+to
+WaveMart.
+WaveMart
+receives
+a
+notification
+that
+payment
+has
+been
+initiated
+almost
+immediately.
+Four
+days
+later,
+WaveMart
+receives
+a
+notification
+from
+their
+bank
+that
+payment
+has
+been
+received.
+</dd>
+<dt>
+<del class="diff-old">Goals
+</del>
+<ins class="diff-chg">Target
+version
+</ins>
+</dt>
+<dd>
+<del class="diff-old">Innovation,
+Automatability,
+and
+rapid,
+widespread
+adoption.
+</del>
+<ins class="diff-chg">Uncategorized
+</ins>
+</dd>
+<dt>
+Motivation
+</dt>
+<dd>
+It
+is
+difficult
+for
+an
+organization
+to
+know
+when
+a
+payment
+has
+been
+received
+without
+depending
+on
+proprietary
+software.
+</dd>
+<dt>
+Exceptions
+</dt>
+<dd>
+It
+may
+also
+be
+important
+to
+be
+notified
+when
+a
+payment
+that
+was
+initiated
+has
+not
+been
+received,
+or
+when
+a
+payment
+has
+been
+reversed
+after
+it
+had
+been
+received.
+</dd>
+</dl>
+</section>
+</section>
+<section id="delivery-of-product-receipt-and-refunds-2" typeof="bibo:Chapter" resource="#delivery-of-product-receipt-and-refunds-2" property="bibo:hasPart">
+<h3 id="h-delivery-of-product-receipt-and-refunds-2" resource="#h-delivery-of-product-receipt-and-refunds-2">
+<span property="xhv:role" resource="xhv:heading">
+<span class="secno">
+6.4
+</span>
+Delivery
+of
+Product/Receipt
+and
+Refunds
+</span>
+</h3>
+<section id="delivery-of-product" typeof="bibo:Chapter" resource="#delivery-of-product" property="bibo:hasPart">
+<h4 id="h-delivery-of-product" resource="#h-delivery-of-product">
+<span property="xhv:role" resource="xhv:heading">
+<span class="secno">
+6.4.1
+</span>
+Delivery
+of
+Product
+</span>
+</h4>
+<p>
+</p>
+<dl id="uc-physical-goods" class="dl-horizontal">
+<dt>
+Physical
+Goods
+</dt>
+<dd>
+Giralt
+orders
+a
+bicycle
+for
+his
+daughter
+through
+BikeSmart
+<del class="diff-old">online.
+The
+bicycle
+is
+delivered
+a
+few
+days
+later
+with
+a
+QRCode
+attached
+</del>
+<ins class="diff-chg">online
+and
+has
+it
+shipped
+</ins>
+to
+<del class="diff-old">the
+package
+that
+only
+Giralt
+can
+access.
+</del>
+<ins class="diff-chg">his
+home
+address.
+</ins>
+</dd>
+<dt>
+<del class="diff-old">Goals
+</del>
+<ins class="diff-chg">Target
+version
+</ins>
+</dt>
+<dd>
+<del class="diff-old">rapid,
+widespread
+adoption.
+</del>
+<ins class="diff-chg">1.0
+</ins>
+</dd>
+<dt>
+Motivation
+</dt>
+<dd>
+The
+<a href="#dfn-purchase" class="internalDFN">
+purchase
+</a>
+and
+delivery
+of
+physical
+goods
+via
+an
+online
+marketplace
+is
+one
+of
+the
+cornerstones
+of
+online
+commerce.
+</dd>
+</dl>
+<dl id="uc-virtual-goods" class="dl-horizontal">
+<dt>
+Virtual
+Goods
+</dt>
+<dd>
+When
+Lilith
+buys
+music
+from
+a
+band
+at
+MusicBox
+and
+then
+goes
+to
+their
+Web
+site
+to
+download
+additional
+content,
+no
+registration
+is
+required,
+just
+a
+proof
+of
+<a href="#dfn-purchase" class="internalDFN">
+purchase
+</a>
+that
+is
+sent
+to
+the
+band's
+website,
+after
+which
+MusicBox
+provides
+Lilith
+a
+link
+to
+download
+the
+additional
+content.
+</dd>
+<dt>
+<del class="diff-old">Goals
+</del>
+<ins class="diff-chg">Target
+version
+</ins>
+</dt>
+<dd>
+<del class="diff-old">Improved
+user
+experience,
+Greater
+security,
+Minimal
+standardization,
+Innovation,
+Automatability,
+Portability,
+and
+Monetization.
+</del>
+<ins class="diff-chg">1.0
+</ins>
+</dd>
+<dt>
+Motivation
+</dt>
+<dd>
+Delivery
+of
+product
+can
+happen
+on
+any
+site
+that
+accepts
+a
+proof
+of
+purchase
+that
+contains
+a
+recognized
+product
+identifier.
+</dd>
+</dl>
+<dl id="uc-dropshipping" class="dl-horizontal">
+<dt>
+<ins class="diff-new">Dropshipping
+</ins></dt><dd><ins class="diff-new">
+Takeru
+orders
+a
+new
+backpack
+online
+and
+has
+it
+shipped
+to
+a
+nearby
+department
+store
+for
+pickup.
+</ins></dd><dt><ins class="diff-new">
+Target
+version
+</ins></dt><dd><ins class="diff-new">
+Uncategorized
+</ins></dd><dt><ins class="diff-new">
+Motivation
+</ins></dt><dd><ins class="diff-new">
+It
+is
+common
+in
+Japan
+and
+the
+United
+Kingdom
+to
+purchase
+items
+online
+and
+then
+have
+them
+shipped
+to
+a
+nearby
+department
+store
+to
+save
+on
+shipping.
+</ins></dd></dl>
+</section>
+<section id="delivery-of-receipt" typeof="bibo:Chapter" resource="#delivery-of-receipt" property="bibo:hasPart">
+<h4 id="h-delivery-of-receipt" resource="#h-delivery-of-receipt">
+<span property="xhv:role" resource="xhv:heading">
+<span class="secno">
+6.4.2
+</span>
+Delivery
+of
+Receipt
+</span>
+</h4>
+<dl id="uc-electronic-receipts" class="dl-horizontal">
+<dt>
+Electronic
+Receipts
+</dt>
+<dd>
+<del class="diff-old">George
+</del>
+<ins class="diff-chg">Ashraf
+</ins>
+pulls
+up
+to
+a
+pump
+at
+a
+petrol
+station.
+He
+pays
+electronically
+using
+a
+credit
+card
+(via
+his
+phone).
+<del class="diff-old">An
+</del>
+<ins class="diff-chg">A
+machine-readable
+</ins>
+electronic
+receipt
+for
+the
+<a href="#dfn-purchase" class="internalDFN">
+purchase
+</a>
+from
+the
+gas
+station
+is
+<ins class="diff-new">transferred
+to
+his
+phone
+and
+</ins>
+displayed
+<del class="diff-old">on
+</del>
+<ins class="diff-chg">using
+</ins>
+his
+<del class="diff-old">phone.
+</del>
+<ins class="diff-chg">favorite
+expense
+tracking
+software.
+</ins>
+</dd>
+<dt>
+<del class="diff-old">Goals
+</del>
+<ins class="diff-chg">Target
+version
+</ins>
+</dt>
+<dd>
+<del class="diff-old">Improved
+user
+experience,
+Greater
+security,
+Innovation,
+Automatability,
+</del>
+<ins class="diff-chg">1.0
+(very
+basic
+receipt
+container
+</ins>
+and
+<del class="diff-old">Portability.
+</del>
+<ins class="diff-chg">delivery
+protocol)
+</ins>
+</dd>
+<dt>
+Motivation
+</dt>
+<dd>
+<del class="diff-old">Electronic
+</del>
+<ins class="diff-chg">Standardized,
+machine-readable
+electronic
+</ins>
+receipts
+<del class="diff-old">will
+</del>
+make
+it
+easier
+to
+track
+expenses,
+prove
+that
+certain
+<a title="purchase" href="#dfn-purchase" class="internalDFN">
+purchases
+</a>
+were
+made,
+file
+tax
+returns,
+and
+simplify
+management
+of
+unnecessary
+paper.
+</dd>
+<dt>
+Privacy
+<del class="diff-old">/
+Security
+</del>
+</dt>
+<dd>
+Many
+merchants
+want
+to
+ensure
+that
+receipts
+are
+not
+readable
+by
+any
+party
+between
+them
+and
+their
+customer.
+</dd>
+<dt>
+<ins class="diff-new">Security
+</ins></dt><dd><ins class="diff-new">
+Electronic
+receipts
+should
+be
+tamperproof
+such
+that
+the
+information
+can
+be
+verified
+to
+have
+come
+from
+the
+merchant
+issuing
+the
+receipt.
+One
+mechanism
+that
+could
+be
+employed
+would
+be
+the
+use
+of
+digital
+signatures
+over
+the
+contents
+of
+the
+electronic
+receipt.
+</ins></dd><dt><ins class="diff-new">
+Accessibility
+</ins></dt><dd><ins class="diff-new">
+Protecting
+digital
+receipts
+may
+have
+the
+unintended
+consequence
+of
+degrading
+or
+preventing
+their
+use
+with
+accessibility
+technology.
+It
+is
+important
+that
+protection
+measures
+do
+not
+prevent
+accessibility
+technology
+from
+reading
+pertinent
+information
+about
+the
+transaction.
+</ins></dd>
+</dl>
+<dl id="uc-physical-receipts" class="dl-horizontal">
+<dt>
+Physical
+Receipts
+</dt>
+<dd>
+Bongani
+reserves
+a
+bus
+ticket
+online
+using
+his
+mobile
+phone.
+At
+the
+bus
+terminal
+he
+taps
+his
+phone
+to
+a
+kiosk
+and
+receives
+a
+printed
+physical
+receipt
+that
+he
+can
+use
+on
+the
+bus.
+</dd>
+<dt>
+<del class="diff-old">Goals
+</del>
+<ins class="diff-chg">Target
+version
+</ins>
+</dt>
+<dd>
+<del class="diff-old">Improved
+user
+experience,
+Innovation,
+Portability,
+and
+rapid,
+widespread
+adoption.
+</del>
+<ins class="diff-chg">Uncategorized
+</ins>
+</dd>
+<dt>
+Motivation
+</dt>
+<dd>
+There
+will
+be
+a
+transition
+period
+from
+the
+use
+of
+physical
+receipts
+and
+tickets
+to
+digital
+receipts.
+In
+some
+cases,
+physical
+receipts
+may
+never
+be
+replaced,
+so
+it
+is
+important
+to
+ensure
+that
+digital
+receipts
+have
+a
+mechanism
+to
+be
+transformed
+to
+physical
+receipts.
+</dd>
+<dt>
+Privacy
+/
+Security
+</dt>
+<dd>
+Physical
+receipts
+should
+ensure
+that
+private
+information
+is
+not
+exposed
+on
+the
+receipt.
+</dd>
+<dt>
+Accessibility
+</dt>
+<dd>
+Implementations
+should
+ensure
+that
+people
+who
+have
+visual
+disabilities
+have
+options
+such
+as
+Braille
+output
+for
+physical
+receipts
+alongside
+high-contrast
+/
+large
+print
+lettering.
+</dd>
+</dl>
+</section>
+<section id="refunds" typeof="bibo:Chapter" resource="#refunds" property="bibo:hasPart">
+<h4 id="h-refunds" resource="#h-refunds">
+<span property="xhv:role" resource="xhv:heading">
+<span class="secno">
+6.4.3
+</span>
+Refunds
+</span>
+</h4>
+<dl id="uc-refund" class="dl-horizontal">
+<dt>
+<del class="diff-old">Common
+Refunds
+</del>
+<ins class="diff-chg">Basic
+Refund
+</ins>
+</dt>
+<dd>
+At
+times,
+it
+becomes
+necessary
+to
+refund
+a
+<a title="payer" href="#dfn-payer" class="internalDFN">
+payer's
+</a>
+payment:
+<ul>
+<li>
+Pele
+buys
+a
+slice
+of
+pizza
+with
+a
+credit
+card
+at
+a
+local
+restaurant
+and
+is
+accidentally
+charged
+for
+five
+slices
+of
+pizza.
+He
+notices
+the
+mistake
+after
+he
+pays
+and
+requests
+a
+refund,
+which
+the
+restaurant
+manager
+approves.
+The
+overcharged
+funds
+are
+returned
+to
+his
+account.
+</li>
+<li>
+Teo
+claims
+that
+a
+blender
+<del class="diff-old">they
+</del>
+<ins class="diff-chg">he
+</ins>
+purchased
+online
+was
+faulty
+and
+returns
+the
+product
+to
+the
+merchant.
+The
+merchant
+provides
+the
+customer
+with
+a
+refund
+in
+the
+form
+of
+store
+credit
+based
+on
+the
+return
+policy.
+</li>
+<li>
+<span class="issue">
+Should
+we
+include
+a
+scenario
+where
+the
+refund
+is
+to
+a
+different
+payment
+scheme,
+e.g.,
+cash?
+</span>
+</li>
+<li>
+A
+financial
+crimes
+regulator
+identifies
+a
+criminal
+syndicate
+that
+is
+operating
+via
+a
+number
+of
+fake
+identities.
+The
+fake
+identities
+are
+flagged
+and
+an
+electronic
+message
+is
+sent
+to
+all
+<a title="payment processor" href="#dfn-payment-processor" class="internalDFN">
+payment
+processors
+</a>
+to
+reverse
+all
+payments
+sent
+to
+the
+fake
+identities.
+</li>
+</ul>
+</dd>
+<dt>
+<del class="diff-old">Goals
+</del>
+<ins class="diff-chg">Target
+version
+</ins>
+</dt>
+<dd>
+<del class="diff-old">Improved
+user
+experience,
+Greater
+security,
+Regulatory
+acceptance,
+Innovation,
+Automatability,
+Portability,
+and
+rapid,
+widespread
+adoption.
+</del>
+<ins class="diff-chg">1.0
+(if
+time
+permits)
+</ins>
+</dd>
+<dt>
+Motivation
+</dt>
+<dd>
+Some
+<a href="#dfn-transaction" class="internalDFN">
+transaction
+</a>
+s
+are
+the
+result
+of
+human
+error
+or
+fault.
+In
+these
+cases,
+it
+is
+helpful
+to
+be
+able
+to
+reverse
+the
+<a href="#dfn-transaction" class="internalDFN">
+transaction
+</a>
+and
+provide
+a
+refund
+to
+the
+customer.
+</dd>
+<dt>
+<ins class="diff-new">Regulatory
+</ins></dt><dd><ins class="diff-new">
+Consumer
+protection
+laws
+and
+regulations
+affect
+the
+ways
+a
+customer
+can
+request
+a
+refund
+for
+a
+defective
+product
+or
+service.
+</ins></dd>
+</dl>
+</section>
+</section>
+</section>
+<section id="additional-examples-of-the-payment-phases" typeof="bibo:Chapter" resource="#additional-examples-of-the-payment-phases" property="bibo:hasPart">
+<h2 id="additional-examples" resource="#additional-examples">
+<span property="xhv:role" resource="xhv:heading">
+<span class="secno">
+7.
+</span>
+Additional
+Examples
+of
+the
+Payment
+Phases
+</span>
+</h2>
+<p>
+Early
+in
+the
+document
+we
+provide
+an
+<a href="#a-simple-example-of-the-payment-phases">
+example
+of
+the
+payment
+phases
+</a>.
+In
+this
+appendix
+we
+provide
+further
+examples
+to
+illustrate
+the
+phase
+steps.
+</p>
+<div class="issue">
+<div class="issue-title" aria-level="3" role="heading" id="h-issue5">
+<span>
+Issue
+5
+</span>
+</div>
+<p class="">
+Input
+is
+requested
+from
+experts
+at
+each
+organization
+providing
+services
+mentioned
+below
+as
+well
+as
+engineers
+and
+designers
+of
+technologies
+used
+below.
+Specifically,
+if
+the
+payment
+flows
+outlined
+below
+contain
+errors
+or
+omissions
+the
+group
+would
+like
+to
+be
+to
+ensure
+that
+the
+oversight
+is
+corrected
+as
+soon
+as
+possible.
+</p>
+</div>
+<section id="credit-card-payment-visa-mastercard" typeof="bibo:Chapter" resource="#credit-card-payment-visa-mastercard" property="bibo:hasPart">
+<h3 id="h-credit-card-payment-visa-mastercard" resource="#h-credit-card-payment-visa-mastercard">
+<span property="xhv:role" resource="xhv:heading">
+<span class="secno">
+7.1
+</span>
+Credit
+Card
+Payment
+(Visa,
+MasterCard)
+</span>
+</h3>
+<p>
+This
+scenario
+outlines
+a
+typical
+card
+purchase
+using
+the
+<del class="diff-old">4
+</del>
+<ins class="diff-chg">"four
+</ins>
+corner
+<del class="diff-old">model.
+</del>
+<ins class="diff-chg">model".
+</ins>
+Janet
+is
+buying
+an
+handbag
+online
+from
+a
+resale
+shop.
+</p>
+<section class="notoc" typeof="bibo:Chapter" resource="#negotiation-of-purchase-terms-1" property="bibo:hasPart">
+<h4 id="negotiation-of-purchase-terms-1" resource="#negotiation-of-purchase-terms-1">
+<span property="xhv:role" resource="xhv:heading">
+Negotiation
+of
+Purchase
+Terms
+</span>
+</h4>
+<ul>
+<li>
+<strong>
+Discovery
+of
+Offer
+</strong>:
+Janet
+searches
+her
+favorite
+resale
+shop
+online
+to
+discover
+a
+gently
+used
+purse
+that
+she
+has
+always
+wanted.
+</li>
+<li>
+<strong>
+Agreement
+on
+Terms
+</strong>:
+Janet
+selects
+the
+purse
+and
+puts
+it
+into
+the
+shopping
+cart
+before
+others
+have
+a
+chance
+to
+buy
+it.
+She
+agrees
+with
+the
+shipping
+terms
+and
+adds
+an
+extended
+warranty
+for
+the
+product.
+</li>
+<li>
+<strong>
+Application
+of
+Marketing
+Elements
+</strong>:
+At
+the
+time
+of
+reviewing
+the
+shopping
+cart,
+she
+is
+asked
+if
+she
+would
+like
+the
+scarf
+which
+goes
+with
+the
+purse.
+</li>
+</ul>
+</section>
+<section class="notoc" typeof="bibo:Chapter" resource="#negotiation-of-payment-instruments-3" property="bibo:hasPart">
+<h4 id="negotiation-of-payment-instruments-3" resource="#negotiation-of-payment-instruments-3">
+<span property="xhv:role" resource="xhv:heading">
+Negotiation
+of
+Payment
+Instruments
+</span>
+</h4>
+<ul>
+<li>
+<strong>
+Discovery
+of
+Accepted
+Schemes
+</strong>:
+The
+site
+takes
+Discover,
+MasterCard,
+Visa,
+and
+debit
+cards
+along
+with
+secured
+money
+order,
+Bitcoin,
+Google
+Wallet,
+and
+ApplePay.
+</li>
+<li>
+<strong>
+Selection
+of
+Payment
+Instruments
+</strong>:
+Janet
+selects
+her
+Discover
+<del class="diff-old">points
+</del>
+<ins class="diff-chg">rewards
+credit
+</ins>
+card
+that
+<ins class="diff-new">is
+</ins>
+highlighted
+by
+default
+because
+she
+had
+used
+it
+for
+a
+previous
+purchase
+with
+the
+merchant.
+</li>
+<li>
+<strong>
+Authentication
+to
+Access
+Instruments
+</strong>:
+The
+merchant
+asks
+Janet
+for
+her
+zip
+code
+and
+the
+verification
+code
+on
+the
+back
+of
+the
+card.
+</li>
+</ul>
+</section>
+<section class="notoc" typeof="bibo:Chapter" resource="#payment-processing-3" property="bibo:hasPart">
+<h4 id="payment-processing-3" resource="#payment-processing-3">
+<span property="xhv:role" resource="xhv:heading">
+Payment
+Processing
+</span>
+</h4>
+<ul>
+<li>
+<strong>
+Initiation
+of
+Processing
+</strong>:
+The
+merchant
+initiates
+an
+payment
+authorization
+request
+to
+their
+<a href="#dfn-payment-processor" class="internalDFN">
+payment
+processor
+</a>.
+</li>
+<li>
+<strong>
+Verification
+of
+Available
+Funds
+</strong>:
+The
+payment
+authorization
+request
+is
+successful
+and
+the
+<a href="#dfn-payment-processor" class="internalDFN">
+payment
+processor
+</a>
+sends
+a
+response
+to
+the
+merchant
+acknowledging
+that
+the
+funds
+are
+now
+held
+until
+the
+merchant
+finalizes
+the
+payment.
+</li>
+<li>
+<strong>
+Authorization
+of
+Transfer
+</strong>:
+After
+the
+merchant
+has
+packed
+the
+bag
+for
+shipping,
+the
+merchant
+sends
+a
+message
+back
+to
+the
+<a href="#dfn-payment-processor" class="internalDFN">
+payment
+processor
+</a>
+to
+finalize
+the
+payment.
+</li>
+<li>
+<strong>
+Completion
+of
+Transfer
+</strong>:
+The
+funds
+are
+immediately
+deducted
+from
+Janet's
+line
+of
+credit.
+The
+funds
+take
+3
+days
+to
+be
+transferred
+to
+the
+merchant's
+bank
+account.
+</li>
+</ul>
+</section>
+<section class="notoc" typeof="bibo:Chapter" resource="#delivery-of-product-receipt-and-refunds-3" property="bibo:hasPart">
+<h4 id="delivery-of-product-receipt-and-refunds-3" resource="#delivery-of-product-receipt-and-refunds-3">
+<span property="xhv:role" resource="xhv:heading">
+Delivery
+of
+Product/Receipt
+and
+Refunds
+</span>
+</h4>
+<ul>
+<li>
+<strong>
+Delivery
+of
+Receipt
+</strong>:
+The
+seller
+sends
+her
+a
+digital
+receipt,
+which
+she
+receives
+by
+email
+and
+directly
+to
+her
+digital
+wallet.
+Her
+digital
+wallet
+forwards
+the
+receipt
+to
+her
+budgeting
+software.
+The
+digital
+wallet
+forwards
+the
+tracking
+number
+embedded
+in
+the
+digital
+receipt
+to
+her
+MyUPS
+Shipping
+Tracker
+mobile
+application.
+</li>
+<li>
+<strong>
+Delivery
+of
+Product
+</strong>:
+The
+merchant's
+shipping
+department
+packs
+and
+delivers
+the
+bag
+to
+the
+shipper,
+which
+then
+sends
+it
+to
+Janet.
+</li>
+</ul>
+</section>
+</section>
+<section id="tokenized-payments-applepay-venmo-cybersource" typeof="bibo:Chapter" resource="#tokenized-payments-applepay-venmo-cybersource" property="bibo:hasPart">
+<h3 id="h-tokenized-payments-applepay-venmo-cybersource" resource="#h-tokenized-payments-applepay-venmo-cybersource">
+<span property="xhv:role" resource="xhv:heading">
+<span class="secno">
+7.2
+</span>
+Tokenized
+Payments
+(ApplePay
+/
+Venmo
+/
+CyberSource)
+</span>
+</h3>
+<p>
+The
+following
+scenario
+outlines
+payment
+using
+a
+mobile
+device
+and
+tokenization.
+The
+merchant
+has
+provided
+a
+mobile
+application
+that
+customers
+can
+download
+in
+the
+example
+below.
+This
+example
+may
+apply
+to
+various
+tokenization
+payment
+systems
+now
+in
+use,
+such
+as
+ApplePay,
+CyberSource,
+Venmo,
+<del class="diff-old">Square,
+etc.
+</del>
+<ins class="diff-chg">and
+Square.
+</ins>
+</p>
+<section class="notoc" typeof="bibo:Chapter" resource="#negotiation-of-purchase-terms-2" property="bibo:hasPart">
+<h4 id="negotiation-of-purchase-terms-2" resource="#negotiation-of-purchase-terms-2">
+<span property="xhv:role" resource="xhv:heading">
+Negotiation
+of
+Purchase
+Terms
+</span>
+</h4>
+<ul>
+<li>
+<strong>
+Discovery
+of
+Offer
+</strong>:
+Tom
+uses
+the
+Terrific-Tools
+mobile
+app
+to
+select
+a
+new
+ax
+to
+purchase
+and
+finds
+a
+hickory
+handled
+model
+like
+the
+one
+his
+father
+had.
+</li>
+<li>
+<strong>
+Agreement
+on
+Terms
+</strong>:
+Tom
+selects
+the
+ax,
+which
+is
+in
+the
+price
+range
+he
+wanted.
+</li>
+<li>
+<strong>
+Application
+of
+Marketing
+Elements
+</strong>:
+<em>
+Not
+applicable
+to
+this
+particular
+use
+case.
+</em>
+</li>
+</ul>
+</section>
+<section class="notoc" typeof="bibo:Chapter" resource="#negotiation-of-payment-instruments-4" property="bibo:hasPart">
+<h4 id="negotiation-of-payment-instruments-4" resource="#negotiation-of-payment-instruments-4">
+<span property="xhv:role" resource="xhv:heading">
+Negotiation
+of
+Payment
+Instruments
+</span>
+</h4>
+<ul>
+<li>
+<strong>
+Discovery
+of
+Accepted
+Schemes
+</strong>:
+The
+mobile
+app
+uses
+tokenized
+<a title="payment instrument" href="#dfn-payment-instrument" class="internalDFN">
+payment
+instruments
+</a>
+and
+the
+Terrific-Tools
+Application
+displays
+the
+options
+available.
+</li>
+<li>
+<strong>
+Selection
+of
+Payment
+Instruments
+</strong>:
+Tom
+chooses
+to
+pay
+with
+his
+tokenization-enabled
+MasterCard.
+</li>
+<li>
+<strong>
+Authentication
+to
+Access
+Instruments
+</strong>:
+Tom
+uses
+the
+fingerprint
+recognition
+feature
+of
+his
+device
+to
+authenticate
+his
+payment.
+</li>
+</ul>
+</section>
+<section class="notoc" typeof="bibo:Chapter" resource="#payment-processing-4" property="bibo:hasPart">
+<h4 id="payment-processing-4" resource="#payment-processing-4">
+<span property="xhv:role" resource="xhv:heading">
+Payment
+Processing
+</span>
+</h4>
+<ul>
+<li>
+<strong>
+Initiation
+of
+Processing
+</strong>:
+The
+mobile
+app
+creates
+an
+encrypted
+transaction
+and
+sends
+it
+to
+the
+payment
+processor.
+The
+payment
+processor
+decrypts
+the
+information
+and
+processes
+the
+transaction.
+</li>
+<li>
+<strong>
+Verification
+of
+Available
+Funds
+</strong>:
+<em>
+Not
+applicable
+to
+this
+particular
+use
+case.
+</em>
+</li>
+<li>
+<strong>
+Authorization
+of
+Transfer
+</strong>:
+The
+payment
+processor
+responds
+back
+to
+the
+mobile
+app
+with
+an
+approval.
+</li>
+<li>
+<strong>
+Completion
+of
+Transfer
+</strong>:
+The
+payment
+processor
+sends
+a
+transaction
+receipt
+to
+Terrific-Tools.
+</li>
+</ul>
+</section>
+<section class="notoc" typeof="bibo:Chapter" resource="#delivery-of-product-receipt-and-refunds-4" property="bibo:hasPart">
+<h4 id="delivery-of-product-receipt-and-refunds-4" resource="#delivery-of-product-receipt-and-refunds-4">
+<span property="xhv:role" resource="xhv:heading">
+Delivery
+of
+Product/Receipt
+and
+Refunds
+</span>
+</h4>
+<ul>
+<li>
+<strong>
+Delivery
+of
+Receipt
+</strong>:
+Terrific-Tools
+sends
+a
+transaction
+receipt
+to
+the
+mobile
+app.
+</li>
+<li>
+<strong>
+Delivery
+of
+Product
+</strong>:
+<del class="diff-old">Terrific-Tools,
+Inc.
+</del>
+<ins class="diff-chg">Terrific-Tools
+</ins>
+ships
+the
+ax
+to
+Tom.
+</li>
+</ul>
+</section>
+</section>
+<section id="three-corner-model-payments-paypal-alipay-google-wallet" typeof="bibo:Chapter" resource="#three-corner-model-payments-paypal-alipay-google-wallet" property="bibo:hasPart">
+<h3 id="h-three-corner-model-payments-paypal-alipay-google-wallet" resource="#h-three-corner-model-payments-paypal-alipay-google-wallet">
+<span property="xhv:role" resource="xhv:heading">
+<span class="secno">
+7.3
+</span>
+Three
+Corner
+Model
+Payments
+(PayPal
+/
+Alipay
+/
+Google
+Wallet)
+</span>
+</h3>
+<p>
+The
+following
+scenario
+outlines
+an
+ideal
+payment
+experience
+using
+a
+<a href="#dfn-payer" class="internalDFN">
+payer
+</a>
+-initiated
+payment,
+also
+known
+as
+a
+"push-payment"
+or
+"three
+corner
+model
+payment".
+In
+this
+scenario,
+<del class="diff-old">Anna
+</del>
+<ins class="diff-chg">Meihui
+</ins>
+is
+buying
+an
+airline
+ticket
+from
+a
+booking
+website
+and
+during
+the
+payment
+process
+she
+uses
+her
+fingerprint
+instead
+of
+a
+password
+to
+authorize
+the
+payment.
+</p>
+<section class="notoc" typeof="bibo:Chapter" resource="#negotiation-of-purchase-terms-3" property="bibo:hasPart">
+<h4 id="negotiation-of-purchase-terms-3" resource="#negotiation-of-purchase-terms-3">
+<span property="xhv:role" resource="xhv:heading">
+Negotiation
+of
+Purchase
+Terms
+</span>
+</h4>
+<ul>
+<li>
+<strong>
+Discovery
+of
+Offer
+</strong>:
+<del class="diff-old">Anna
+</del>
+<ins class="diff-chg">Meihui
+</ins>
+searches
+for
+a
+flight
+on
+the
+booking
+website.
+She
+finds
+a
+flight
+for
+the
+ideal
+price
+and
+time.
+</li>
+<li>
+<strong>
+Agreement
+on
+Terms
+</strong>:
+<del class="diff-old">Anna
+</del>
+<ins class="diff-chg">Meihui
+</ins>
+selects
+the
+flight
+and
+agrees
+to
+the
+terms
+and
+service
+associated
+with
+the
+ticket.
+</li>
+<li>
+<strong>
+Application
+of
+Marketing
+Elements
+</strong>:
+<em>
+Not
+applicable
+to
+this
+particular
+use
+case.
+</em>
+</li>
+</ul>
+</section>
+<section class="notoc" typeof="bibo:Chapter" resource="#negotiation-of-payment-instruments-5" property="bibo:hasPart">
+<h4 id="negotiation-of-payment-instruments-5" resource="#negotiation-of-payment-instruments-5">
+<span property="xhv:role" resource="xhv:heading">
+Negotiation
+of
+Payment
+Instruments
+</span>
+</h4>
+<ul>
+<li>
+<strong>
+Discovery
+of
+Accepted
+Schemes
+</strong>:
+The
+booking
+website
+takes
+Alipay,
+Visa,
+MasterCard,
+and
+China
+UnionPay
+for
+payment.
+</li>
+<li>
+<strong>
+Selection
+of
+Payment
+Instruments
+</strong>:
+<del class="diff-old">Anna
+</del>
+<ins class="diff-chg">Meihui
+</ins>
+chooses
+Alipay
+for
+payment.
+</li>
+<li>
+<strong>
+Authentication
+to
+Access
+Instruments
+</strong>:
+<del class="diff-old">Anna
+</del>
+<ins class="diff-chg">Meihui
+</ins>
+logs
+in
+the
+Alipay
+with
+her
+account
+name
+and
+password.
+<del class="diff-old">Anna
+</del>
+<ins class="diff-chg">Meihui
+</ins>
+is
+told
+that
+she
+will
+pay
+for
+the
+airline
+ticket
+with
+<del class="diff-old">600RMB
+</del>
+<ins class="diff-chg">3,500
+RMB
+</ins>
+and
+she
+confirms
+it.
+<del class="diff-old">Anna
+</del>
+<ins class="diff-chg">Meihui
+</ins>
+uses
+her
+fingerprint
+to
+approve
+the
+payment.
+</li>
+</ul>
+</section>
+<section class="notoc" typeof="bibo:Chapter" resource="#payment-processing-5" property="bibo:hasPart">
+<h4 id="payment-processing-5" resource="#payment-processing-5">
+<span property="xhv:role" resource="xhv:heading">
+Payment
+Processing
+</span>
+</h4>
+<ul>
+<li>
+<strong>
+Initiation
+of
+Processing
+</strong>:
+<del class="diff-old">Anna's
+</del>
+<ins class="diff-chg">Meihui's
+</ins>
+Alipay
+wallet
+initiates
+the
+<a href="#dfn-transaction" class="internalDFN">
+transaction
+</a>.
+</li>
+<li>
+<strong>
+Verification
+of
+Available
+Funds
+</strong>:
+<em>
+Not
+applicable
+to
+this
+particular
+use
+case.
+</em>
+</li>
+<li>
+<strong>
+Authorization
+of
+Transfer
+</strong>:
+Alipay
+initiates
+the
+payment
+to
+the
+booking
+website
+based
+on
+<del class="diff-old">Anna's
+</del>
+<ins class="diff-chg">Meihui's
+</ins>
+prior
+fingerprint-based
+authorization.
+</li>
+<li>
+<strong>
+Completion
+of
+Transfer
+</strong>:
+The
+booking
+website
+gets
+a
+message
+from
+Alipay
+that
+the
+transfer
+is
+complete.
+</li>
+</ul>
+</section>
+<section class="notoc" typeof="bibo:Chapter" resource="#delivery-of-product-receipt-and-refunds-5" property="bibo:hasPart">
+<h4 id="delivery-of-product-receipt-and-refunds-5" resource="#delivery-of-product-receipt-and-refunds-5">
+<span property="xhv:role" resource="xhv:heading">
+Delivery
+of
+Product/Receipt
+and
+Refunds
+</span>
+</h4>
+<ul>
+<li>
+<strong>
+Delivery
+of
+Receipt
+</strong>:
+The
+booking
+website
+sees
+that
+<del class="diff-old">Anna's
+</del>
+<ins class="diff-chg">Meihui's
+</ins>
+airline
+ticket
+order
+has
+been
+paid
+and
+sends
+a
+receipt
+message
+to
+her
+digital
+wallet.
+</li>
+<li>
+<strong>
+Delivery
+of
+Product
+</strong>:
+The
+booking
+website
+sends
+an
+email
+to
+<del class="diff-old">Anna
+</del>
+<ins class="diff-chg">Meihui
+</ins>
+with
+the
+flight
+information
+including
+the
+airline,
+flight
+number,
+departure
+time,
+and
+gate
+number.
+</li>
+</ul>
+</section>
+</section>
+<section id="cryptocurrency-payment-bitcoin-ripple" typeof="bibo:Chapter" resource="#cryptocurrency-payment-bitcoin-ripple" property="bibo:hasPart">
+<h3 id="h-cryptocurrency-payment-bitcoin-ripple" resource="#h-cryptocurrency-payment-bitcoin-ripple">
+<span property="xhv:role" resource="xhv:heading">
+<span class="secno">
+7.4
+</span>
+Cryptocurrency
+Payment
+(Bitcoin,
+Ripple)
+</span>
+</h3>
+<p>
+The
+following
+scenario
+outlines
+an
+ideal
+payment
+experience
+using
+Bitcoin,
+or
+a
+Bitcoin-like
+cryptocurrency.
+In
+this
+scenario,
+Lenne
+is
+buying
+a
+pair
+of
+alpaca
+socks
+from
+an
+online
+retailer
+using
+a
+"buy
+one,
+get
+one
+free"
+coupon.
+The
+socks
+are
+shipped
+to
+her
+home
+address.
+</p>
+<section class="notoc" typeof="bibo:Chapter" resource="#negotiation-of-purchase-terms-4" property="bibo:hasPart">
+<h4 id="negotiation-of-purchase-terms-4" resource="#negotiation-of-purchase-terms-4">
+<span property="xhv:role" resource="xhv:heading">
+Negotiation
+of
+Purchase
+Terms
+</span>
+</h4>
+<ul>
+<li>
+<strong>
+Discovery
+of
+Offer
+</strong>:
+Lenne
+searches
+for
+"warm
+socks,
+locally
+sourced"
+in
+her
+favorite
+search
+engine.
+A
+pair
+of
+Alpaca
+socks
+come
+up
+as
+the
+first
+hit
+as
+the
+Alpaca's
+are
+nearby
+where
+she
+lives
+and
+the
+online
+store
+(AlpacaToesCo)
+provides
+local
+delivery.
+She
+has
+a
+coupon
+in
+her
+digital
+wallet
+for
+the
+store,
+but
+forgot
+long
+ago
+that
+it
+is
+there.
+</li>
+<li>
+<strong>
+Agreement
+on
+Terms
+</strong>:
+Lenne
+goes
+to
+AlpacaToesCo
+and
+puts
+the
+socks
+in
+her
+online
+shopping
+cart
+and
+is
+shown
+the
+price.
+Lenne
+provides
+her
+shipping
+address
+to
+AlpacaToes.
+</li>
+<li>
+<strong>
+Application
+of
+Marketing
+Elements
+</strong>:
+When
+Lenne
+puts
+the
+socks
+in
+her
+online
+shopping
+cart,
+she's
+reminded
+of
+the
+"buy
+one,
+get
+one
+free"
+coupon
+she
+has
+in
+her
+wallet.
+She
+adds
+another
+pair
+of
+socks
+and
+continues
+with
+the
+checkout
+process.
+</li>
+</ul>
+</section>
+<section class="notoc" typeof="bibo:Chapter" resource="#negotiation-of-payment-instruments-6" property="bibo:hasPart">
+<h4 id="negotiation-of-payment-instruments-6" resource="#negotiation-of-payment-instruments-6">
+<span property="xhv:role" resource="xhv:heading">
+Negotiation
+of
+Payment
+Instruments
+</span>
+</h4>
+<ul>
+<li>
+<strong>
+Discovery
+of
+Accepted
+Schemes
+</strong>:
+The
+website
+takes
+Visa,
+Ripple,
+and
+Bitcoin
+for
+payment.
+</li>
+<li>
+<strong>
+Selection
+of
+Payment
+Instruments
+</strong>:
+Lenne
+has
+a
+Visa
+card
+as
+well
+as
+a
+local
+Ripple
+wallet
+and
+a
+cloud-based
+Bitcoin
+wallet.
+Lenne
+selects
+her
+cloud-based
+Bitcoin
+wallet.
+</li>
+<li>
+<strong>
+Authentication
+to
+Access
+Instruments
+</strong>:
+Since
+the
+value
+of
+the
+payment
+is
+less
+than
+$50,
+Lenne
+isn't
+asked
+for
+her
+two-factor
+authentication
+device
+to
+approve
+the
+<a href="#dfn-purchase" class="internalDFN">
+purchase
+</a>.
+</li>
+</ul>
+</section>
+<section class="notoc" typeof="bibo:Chapter" resource="#payment-processing-6" property="bibo:hasPart">
+<h4 id="payment-processing-6" resource="#payment-processing-6">
+<span property="xhv:role" resource="xhv:heading">
+Payment
+Processing
+</span>
+</h4>
+<ul>
+<li>
+<strong>
+Initiation
+of
+Processing
+</strong>:
+Lenne's
+cloud-based
+Bitcoin
+wallet
+provider
+initiates
+the
+<a href="#dfn-transaction" class="internalDFN">
+transaction
+</a>.
+</li>
+<li>
+<strong>
+Verification
+of
+Available
+Funds
+</strong>:
+<em>
+Not
+applicable
+to
+this
+particular
+use
+case.
+</em>
+</li>
+<li>
+<strong>
+Authorization
+of
+Transfer
+</strong>:
+AlpacaToesCo
+is
+sent
+a
+message
+from
+the
+Bitcoin
+cloud
+wallet
+notifying
+them
+that
+the
+transfer
+has
+been
+initiated.
+Lenne
+is
+told
+that
+she
+will
+receive
+a
+notification
+when
+the
+item
+is
+shipped.
+</li>
+<li>
+<strong>
+Completion
+of
+Transfer
+</strong>:
+AlpacaToesCo
+gets
+a
+message
+from
+the
+Bitcoin
+cloud
+wallet
+that
+the
+transfer
+is
+complete.
+A
+Bitcoin
+<a href="#dfn-transaction" class="internalDFN">
+transaction
+</a>
+ID
+is
+included
+in
+the
+message
+so
+that
+AlpacaToesCo
+can
+release
+the
+product
+when
+the
+appropriate
+number
+of
+verifications
+are
+made
+on
+the
+<a href="#dfn-transaction" class="internalDFN">
+transaction
+</a>.
+</li>
+</ul>
+</section>
+<section class="notoc" typeof="bibo:Chapter" resource="#delivery-of-product-receipt-and-refunds-6" property="bibo:hasPart">
+<h4 id="delivery-of-product-receipt-and-refunds-6" resource="#delivery-of-product-receipt-and-refunds-6">
+<span property="xhv:role" resource="xhv:heading">
+Delivery
+of
+Product/Receipt
+and
+Refunds
+</span>
+</h4>
+<ul>
+<li>
+<strong>
+Delivery
+of
+Receipt
+</strong>:
+AlpacaToesCo
+sees
+6
+verifications
+on
+the
+transaction
+in
+the
+Bitcoin
+blockchain
+and
+sends
+a
+receipt
+of
+sale
+to
+Lenne's
+cloud
+wallet.
+The
+store
+notifies
+Lenne
+that
+they
+have
+shipped
+her
+package.
+</li>
+<li>
+<strong>
+Delivery
+of
+Product
+</strong>:
+AlpacaToesCo
+ships
+the
+package
+of
+socks
+to
+Lenne
+and
+she
+receives
+them
+the
+next
+day.
+</li>
+</ul>
+</section>
+</section>
+<section id="electronic-check-payment" typeof="bibo:Chapter" resource="#electronic-check-payment" property="bibo:hasPart">
+<h3 id="h-electronic-check-payment" resource="#h-electronic-check-payment">
+<span property="xhv:role" resource="xhv:heading">
+<span class="secno">
+7.5
+</span>
+Electronic
+<del class="diff-old">Cheque
+</del>
+<ins class="diff-chg">Check
+</ins>
+Payment
+</span>
+</h3>
+<p>
+<em>
+To
+be
+completed
+</em>.
+</p>
+</section>
+<section id="direct-debit" typeof="bibo:Chapter" resource="#direct-debit" property="bibo:hasPart">
+<h3 id="h-direct-debit" resource="#h-direct-debit">
+<span property="xhv:role" resource="xhv:heading">
+<span class="secno">
+7.6
+</span>
+<del class="diff-old">Credit
+Transfer
+/
+</del>
+Direct
+Debit
+<ins class="diff-new">(SEPA
+Direct
+Debit)
+</ins>
+</span>
+</h3>
+<p>
+<ins class="diff-new">The
+following
+scenario
+outlines
+an
+ideal
+payment
+experience
+using
+a
+Direct
+Debit
+(
+</ins><a href="#dfn-payee-initiated-payment" class="internalDFN"><ins class="diff-new">
+payee-initiated
+payment
+</ins></a><ins class="diff-new">
+),
+also
+known
+as
+a
+</ins><a href="#dfn-pull-payment" class="internalDFN"><ins class="diff-new">
+pull
+payment
+</ins></a><ins class="diff-new">
+in
+the
+context
+of
+a
+</ins><a href="#dfn-four-corner-model" class="internalDFN"><ins class="diff-new">
+four
+corner
+model
+</ins></a><ins class="diff-new">
+payment.
+In
+this
+scenario,
+Anna
+is
+signing
+up
+for
+electricity
+service
+via
+the
+service's
+website.
+During
+the
+payment
+process
+she
+will
+validate
+an
+electronic
+direct
+debit
+mandate.
+</ins></p><section class="notoc" typeof="bibo:Chapter" resource="#negotiation-of-purchase-terms-5" property="bibo:hasPart"><h4 id="negotiation-of-purchase-terms-5" resource="#negotiation-of-purchase-terms-5">
+<span property="xhv:role" resource="xhv:heading">
+<ins class="diff-new">Negotiation
+of
+Purchase
+Terms
+</ins></span></h4><ul><li><strong><ins class="diff-new">
+Discovery
+of
+Offer
+</ins></strong>:<ins class="diff-new">
+Anna
+connects
+to
+a
+utility
+website.
+She
+wants
+to
+setup
+this
+new
+utility
+immediately
+before
+she
+moves
+in
+to
+a
+new
+flat.
+</ins></li><li><strong><ins class="diff-new">
+Agreement
+on
+Terms
+</ins></strong>:<ins class="diff-new">
+Anna
+selects
+the
+contract
+she
+wants
+and
+agrees
+to
+the
+terms
+and
+service
+associated
+with
+the
+delivery
+of
+electricity.
+</ins></li><li><strong><ins class="diff-new">
+Application
+of
+Marketing
+Elements
+</ins></strong>:
+<em>
+<del class="diff-old">To
+</del>
+<ins class="diff-chg">Not
+applicable
+to
+this
+particular
+use
+case.
+</ins></em></li></ul></section><section class="notoc" typeof="bibo:Chapter" resource="#negotiation-of-payment-instruments-7" property="bibo:hasPart"><h4 id="negotiation-of-payment-instruments-7" resource="#negotiation-of-payment-instruments-7"><span property="xhv:role" resource="xhv:heading"><ins class="diff-chg">
+Negotiation
+of
+Payment
+Instruments
+</ins></span></h4><ul><li><strong><ins class="diff-chg">
+Discovery
+of
+Accepted
+Schemes
+</ins></strong>:<ins class="diff-chg">
+The
+utility
+website
+takes
+Visa,
+MasterCard,
+and
+SEPA
+Direct
+Debit
+for
+payment.
+</ins></li><li><strong><ins class="diff-chg">
+Selection
+of
+Payment
+Instruments
+</ins></strong>:<ins class="diff-chg">
+Anna
+chooses
+SEPA
+Direct
+Debit
+for
+payment.
+</ins></li><li><strong><ins class="diff-chg">
+Authentication
+to
+Access
+Instruments
+</ins></strong>:<ins class="diff-chg">
+Anna
+provides
+all
+the
+mandatory
+data
+required
+for
+a
+valid
+electronic
+SEPA
+Direct
+Debit
+Mandate
+as
+well
+as
+the
+IBAN
+number
+associated
+with
+Anna's
+account.
+Anna
+is
+told
+that
+she
+is
+setting
+up
+a
+recurring
+payment
+with
+the
+utility
+and
+the
+payment
+will
+</ins>
+be
+<del class="diff-old">completed
+.
+</del>
+<ins class="diff-chg">automatically
+withdrawn
+at
+the
+end
+of
+the
+month
+based
+on
+her
+electricity
+consumption.
+She
+agrees
+to
+the
+automatic
+transfer
+by
+entering
+her
+secret
+PIN.
+</ins></li></ul></section><section class="notoc" typeof="bibo:Chapter" resource="#payment-processing-7" property="bibo:hasPart"><h4 id="payment-processing-7" resource="#payment-processing-7"><span property="xhv:role" resource="xhv:heading"><ins class="diff-chg">
+Payment
+Processing
+</ins></span></h4><ul><li><strong><ins class="diff-chg">
+Initiation
+of
+Processing
+</ins></strong>:<ins class="diff-chg">
+At
+the
+end
+of
+the
+month
+the
+utility
+invoice
+system
+will
+initiate
+the
+payment
+by
+sending
+an
+invoice
+by
+email
+that
+will
+be
+sent
+directly
+to
+Anna's
+payment
+service
+provider.
+</ins></li><li><strong><ins class="diff-chg">
+Verification
+of
+Available
+Funds
+</ins></strong>:<em><ins class="diff-chg">
+Not
+applicable
+to
+this
+particular
+use
+case.
+</ins></em></li><li><strong><ins class="diff-chg">
+Authorization
+of
+Transfer
+</ins></strong>:<ins class="diff-chg">
+Anna's
+payment
+service
+provider
+authorizes
+the
+transfer
+based
+on
+the
+reference
+ID
+that
+was
+validated
+by
+Anna
+during
+the
+</ins><strong><ins class="diff-chg">
+Authentication
+to
+Access
+Instruments
+</ins></strong><ins class="diff-chg">
+phase.
+</ins></li><li><strong><ins class="diff-chg">
+Completion
+of
+Transfer
+</ins></strong>:<ins class="diff-chg">
+The
+utility
+website
+gets
+a
+message
+from
+its
+payment
+service
+provider
+that
+the
+transfer
+has
+been
+completed.
+</ins></li></ul></section><section class="notoc" typeof="bibo:Chapter" resource="#delivery-of-product-receipt-and-refunds-7" property="bibo:hasPart"><h4 id="delivery-of-product-receipt-and-refunds-7" resource="#delivery-of-product-receipt-and-refunds-7"><span property="xhv:role" resource="xhv:heading"><ins class="diff-chg">
+Delivery
+of
+Product/Receipt
+and
+Refunds
+</ins></span></h4><ul><li><strong><ins class="diff-chg">
+Delivery
+of
+Receipt
+</ins></strong>:<ins class="diff-chg">
+The
+utility
+website
+sees
+that
+Anna's
+direct
+debit
+mandate
+has
+been
+validated
+and
+sends
+a
+receipt
+message
+to
+her
+digital
+wallet.
+</ins></li><li><strong><ins class="diff-chg">
+Delivery
+of
+Product
+</ins></strong>:<ins class="diff-chg">
+The
+utility
+website
+sends
+an
+email
+to
+Anna
+with
+the
+contract
+information
+based
+on
+the
+email
+provided
+in
+the
+Completion
+of
+Transfer
+message
+sent
+to
+her
+payment
+service
+provider.
+</ins></li><li><strong><ins class="diff-chg">
+Refunds
+</ins></strong>:<ins class="diff-chg">
+Anna
+could
+request
+a
+refund
+by
+contacting
+her
+bank
+if
+something
+goes
+wrong
+with
+the
+Direct
+Debit.
+</ins></li></ul></section></section><section id="credit-transfer" typeof="bibo:Chapter" resource="#credit-transfer" property="bibo:hasPart"><h3 id="h-credit-transfer" resource="#h-credit-transfer"><span property="xhv:role" resource="xhv:heading"><span class="secno"><ins class="diff-chg">
+7.7
+</ins></span><ins class="diff-chg">
+Credit
+Transfer
+(SEPAmail)
+</ins></span></h3><p><ins class="diff-chg">
+The
+following
+scenario
+outlines
+an
+ideal
+payment
+experience
+using
+a
+</ins><a href="#dfn-payer-initiated-payment" class="internalDFN"><ins class="diff-chg">
+payer-initiated
+payment
+</ins></a>,<ins class="diff-chg">
+also
+known
+as
+a
+</ins><a href="#dfn-push-payment" class="internalDFN"><ins class="diff-chg">
+push
+payment
+</ins></a><ins class="diff-chg">
+in
+the
+context
+of
+a
+</ins><a href="#dfn-four-corner-model" class="internalDFN"><ins class="diff-chg">
+four
+corner
+model
+</ins></a><ins class="diff-chg">
+payment.
+In
+this
+scenario,
+Anna
+is
+buying
+a
+very
+expensive
+piece
+of
+furniture
+that
+costs
+far
+more
+than
+the
+maximum
+amount
+allowed
+by
+her
+payment
+card.
+She
+pays
+using
+her
+bank
+account
+via
+her
+bank's
+website.
+</ins>
+</p>
+<section class="notoc" typeof="bibo:Chapter" resource="#negotiation-of-purchase-terms-6" property="bibo:hasPart">
+<h4 id="negotiation-of-purchase-terms-6" resource="#negotiation-of-purchase-terms-6">
+<span property="xhv:role" resource="xhv:heading">
+<ins class="diff-new">Negotiation
+of
+Purchase
+Terms
+</ins></span></h4><ul><li><strong><ins class="diff-new">
+Discovery
+of
+Offer
+</ins></strong>:<ins class="diff-new">
+Anna
+browses
+a
+Furniture
+website.
+She
+wants
+to
+buy
+a
+desk
+for
+her
+new
+flat.
+</ins></li><li><strong><ins class="diff-new">
+Agreement
+on
+Terms
+</ins></strong>:<ins class="diff-new">
+Anna
+selects
+a
+heavy
+oak
+antique
+desk
+from
+the
+17th
+century.
+</ins></li><li><strong><ins class="diff-new">
+Application
+of
+Marketing
+Elements
+</ins></strong>:<em><ins class="diff-new">
+Not
+applicable
+to
+this
+particular
+use
+case.
+</ins></em></li></ul></section><section class="notoc" typeof="bibo:Chapter" resource="#negotiation-of-payment-instruments-8" property="bibo:hasPart"><h4 id="negotiation-of-payment-instruments-8" resource="#negotiation-of-payment-instruments-8"><span property="xhv:role" resource="xhv:heading"><ins class="diff-new">
+Negotiation
+of
+Payment
+Instruments
+</ins></span></h4><ul><li><strong><ins class="diff-new">
+Discovery
+of
+Accepted
+Schemes
+</ins></strong>:<ins class="diff-new">
+The
+furniture
+website
+takes
+Visa,
+MasterCard,
+and
+SEPA
+"Credit
+Transfer
+via
+SEPAmail"
+for
+payment.
+</ins></li><li><strong><ins class="diff-new">
+Selection
+of
+Payment
+Instruments
+</ins></strong>:<ins class="diff-new">
+Anna
+chooses
+"Credit
+Transfer
+via
+SEPAmail"
+for
+payment
+and
+provides
+a
+tokenized
+version
+of
+her
+IBAN
+account
+number.
+The
+furniture
+website
+sends
+a
+"payment
+request"
+to
+its
+payment
+service
+provider
+which
+will
+forward
+it
+to
+Anna’s
+bank.
+</ins></li><li><strong><ins class="diff-new">
+Authentication
+to
+Access
+Instruments
+</ins></strong>:<ins class="diff-new">
+Anna
+connects
+to
+her
+bank's
+website
+where
+the
+payment
+request
+is
+pending
+approval.
+</ins></li></ul></section><section class="notoc" typeof="bibo:Chapter" resource="#payment-processing-8" property="bibo:hasPart"><h4 id="payment-processing-8" resource="#payment-processing-8"><span property="xhv:role" resource="xhv:heading"><ins class="diff-new">
+Payment
+Processing
+</ins></span></h4><ul><li><strong><ins class="diff-new">
+Initiation
+of
+Processing
+</ins></strong>:<ins class="diff-new">
+Anna
+approves
+the
+payment
+request.
+</ins></li><li><strong><ins class="diff-new">
+Verification
+of
+Available
+Funds
+</ins></strong>:<ins class="diff-new">
+The
+availability
+of
+funds
+is
+verified
+by
+Anna's
+bank.
+</ins></li><li><strong><ins class="diff-new">
+Authorization
+of
+Transfer
+</ins></strong>:<ins class="diff-new">
+The
+funds
+transfer
+is
+automatically
+authorized
+by
+Anna's
+bank.
+</ins></li><li><strong><ins class="diff-new">
+Completion
+of
+Transfer
+</ins></strong>:<ins class="diff-new">
+Anna's
+bank
+sends
+the
+Credit
+Transfer,
+as
+well
+as
+a
+payment
+report
+(analogous
+to
+a
+signed
+receipt)
+to
+the
+furniture
+website's
+payment
+service
+provider.
+The
+furniture
+website
+gets
+a
+message
+(also
+known
+as
+a
+"payment
+advice")
+from
+its
+payment
+service
+provider
+that
+the
+transfer
+is
+complete
+depending
+of
+the
+Scheme
+of
+Credit
+Transfer
+used:
+within
+24
+hours
+for
+a
+SEPA
+Credit
+Transfer,
+often
+longer
+in
+International
+Credit
+Transfer
+outside
+Europe.
+</ins></li></ul></section><section class="notoc" typeof="bibo:Chapter" resource="#delivery-of-product-receipt-and-refunds-8" property="bibo:hasPart"><h4 id="delivery-of-product-receipt-and-refunds-8" resource="#delivery-of-product-receipt-and-refunds-8"><span property="xhv:role" resource="xhv:heading"><ins class="diff-new">
+Delivery
+of
+Product/Receipt
+and
+Refunds
+</ins></span></h4><ul><li><strong><ins class="diff-new">
+Delivery
+of
+Receipt
+</ins></strong>:<ins class="diff-new">
+The
+furniture
+website
+sees
+that
+Anna's
+credit
+transfer
+has
+been
+received
+and
+sends
+a
+receipt
+by
+email
+to
+Anna
+based
+on
+the
+email
+address
+included
+in
+the
+payment
+report.
+</ins></li><li><strong><ins class="diff-new">
+Delivery
+of
+Product
+</ins></strong>:<ins class="diff-new">
+The
+piece
+of
+furniture
+is
+shipped
+to
+Anna.
+</ins></li><li><strong><ins class="diff-new">
+Refunds
+</ins></strong>:<ins class="diff-new">
+Anna
+must
+contact
+the
+furniture
+website
+directly
+since
+the
+credit
+transfer
+cannot
+be
+reversed
+since
+she
+initiated
+it.
+</ins></li></ul></section>
+</section>
+</section>
+<section class="appendix" id="future-work" typeof="bibo:Chapter" resource="#future-work" property="bibo:hasPart">
+<h2 id="h-future-work" resource="#h-future-work">
+<span property="xhv:role" resource="xhv:heading">
+<span class="secno">
+A.
+</span>
+Future
+Work
+</span>
+</h2>
+<ul>
+<li>
+Automatic
+Tax
+Payment
+</li>
+<li>
+Person
+to
+Person
+Cash
+Payment
+</li>
+<li>
+Government
+Entitlement
+Disbursement
+</li>
+</ul>
+</section>
+<section class="appendix" id="acknowledgements" typeof="bibo:Chapter" resource="#acknowledgements" property="bibo:hasPart">
+<h2 id="h-acknowledgements" resource="#h-acknowledgements">
+<span property="xhv:role" resource="xhv:heading">
+<span class="secno">
+B.
+</span>
+Acknowledgements
+</span>
+</h2>
+<p>
+The
+editors
+wish
+to
+thank
+the
+participants
+of
+the
+<a href="http://www.w3.org/Payments/IG/">
+Web
+Payments
+Interest
+Group
+</a>
+for
+discussions
+about
+and
+contributions
+to
+this
+document,
+as
+well
+as
+the
+<a href="https://www.w3.org/community/webpayments/">
+Web
+Payments
+Community
+Group
+</a>
+for
+earlier
+work
+that
+informed
+this
+document.
+</p>
+</section>
+<section id="references" class="appendix" typeof="bibo:Chapter" resource="#references" property="bibo:hasPart">
+<h2 id="h-references" resource="#h-references">
+<span property="xhv:role" resource="xhv:heading">
+<span class="secno">
+C.
+</span>
+References
+</span>
+</h2>
+<section id="informative-references" typeof="bibo:Chapter" resource="#informative-references" property="bibo:hasPart">
+<h3 id="h-informative-references" resource="#h-informative-references">
+<span property="xhv:role" resource="xhv:heading">
+<span class="secno">
+C.1
+</span>
+Informative
+references
+</span>
+</h3>
+<dl class="bibliography" resource="">
+<dt id="bib-WCAG20">
+[WCAG20]
+</dt>
+<dd>
+Ben
+Caldwell;
+Michael
+Cooper;
+Loretta
+Guarino
+Reid;
+Gregg
+Vanderheiden
+et
+al.
+<a href="http://www.w3.org/TR/WCAG20/" property="dc:references">
+<cite>
+Web
+Content
+Accessibility
+Guidelines
+(WCAG)
+2.0
+</cite>
+</a>.
+11
+December
+2008.
+W3C
+Recommendation.
+URL:
+<a href="http://www.w3.org/TR/WCAG20/" property="dc:references">
+http://www.w3.org/TR/WCAG20/
+</a>
+</dd>
+</dl>
+</section>
+</section>
+</body>
+</html>
--- /dev/null Thu Jan 01 00:00:00 1970 +0000
+++ b/ED/use-cases/2015-07-15/index.html Wed Jul 15 12:10:51 2015 -0700
@@ -0,0 +1,3313 @@
+<!DOCTYPE html>
+<html lang="en" dir="ltr" typeof="bibo:Document " prefix="bibo: http://purl.org/ontology/bibo/ w3p: http://www.w3.org/2001/02pd/rec54#">
+<head><meta lang="" property="dc:language" content="en">
+ <title>Web Payments Use Cases 1.0</title>
+ <meta http-equiv="Content-Type" content="text/html;charset=utf-8">
+
+
+
+
+
+ <style type="text/css">
+body {
+ line-height: 1.4em;
+}
+h4 {
+ color: #005A9C;
+}
+dl {
+ margin-top: 20px;
+ margin-bottom: 20px;
+}
+dt,
+dd {
+ line-height: 1.42857143;
+}
+dl > dt:first-of-type {
+ font-weight: bold;
+}
+@media (min-width: 768px), print {
+ .dl-horizontal {
+ margin-bottom: 4em;
+ }
+ .dl-horizontal dt {
+ font-weight: normal;
+ float: left;
+ width: 160px;
+ clear: left;
+ overflow: hidden;
+ text-align: right;
+ text-overflow: ellipsis;
+ white-space: nowrap;
+ }
+ .dl-horizontal dd {
+ margin-left: 180px;
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+</style><link rel="stylesheet" href="https://www.w3.org/StyleSheets/TR/W3C-ED"><!--[if lt IE 9]><script src='https://www.w3.org/2008/site/js/html5shiv.js'></script><![endif]--></head>
+<body class="h-entry" role="document" id="respecDocument"><div class="head" role="contentinfo" id="respecHeader">
+ <p>
+
+
+ <a href="http://www.w3.org/"><img width="72" height="48" src="https://www.w3.org/Icons/w3c_home" alt="W3C"></a>
+
+
+ </p>
+ <h1 class="title p-name" id="title" property="dcterms:title">Web Payments Use Cases 1.0</h1>
+
+ <h2 id="w3c-editor-s-draft-15-july-2015"><abbr title="World Wide Web Consortium">W3C</abbr> Editor's Draft <time property="dcterms:issued" class="dt-published" datetime="2015-07-15">15 July 2015</time></h2>
+ <dl>
+
+ <dt>This version:</dt>
+ <dd><a class="u-url" href="https://dvcs.w3.org/hg/webpayments/raw-file/default/latest/use-cases/index.html">https://dvcs.w3.org/hg/webpayments/raw-file/default/latest/use-cases/index.html</a></dd>
+ <dt>Latest published version:</dt>
+ <dd><a href="http://www.w3.org/TR/web-payments-use-cases/">http://www.w3.org/TR/web-payments-use-cases/</a></dd>
+
+
+ <dt>Latest editor's draft:</dt>
+ <dd><a href="https://dvcs.w3.org/hg/webpayments/raw-file/default/latest/use-cases/index.html">https://dvcs.w3.org/hg/webpayments/raw-file/default/latest/use-cases/index.html</a></dd>
+
+
+
+
+
+
+
+
+
+ <dt>Editors:</dt>
+ <dd class="p-author h-card vcard" property="bibo:editor" resource="_:editor0"><span property="rdf:first" typeof="foaf:Person"><meta property="foaf:name" content="Manu Sporny"><a class="u-url url p-name fn" property="foaf:homepage" href="https://manu.sporny.org/">Manu Sporny</a>, <a property="foaf:workplaceHomepage" class="p-org org h-org h-card" href="http://digitalbazaar.com/">Digital Bazaar</a></span>
+<span property="rdf:rest" resource="_:editor1"></span>
+</dd>
+<dd class="p-author h-card vcard" resource="_:editor1"><span property="rdf:first" typeof="foaf:Person"><meta property="foaf:name" content="Ian Jacobs"><a class="u-url url p-name fn" property="foaf:homepage" href="http://www.w3.org/People/Jacobs/">Ian Jacobs</a>, <a property="foaf:workplaceHomepage" class="p-org org h-org h-card" href="http://www.w3.org/"><abbr title="World Wide Web Consortium">W3C</abbr></a></span>
+<span property="rdf:rest" resource="rdf:nil"></span>
+</dd>
+
+
+ <dt>Authors:</dt>
+ <dd class="p-author h-card vcard"><span property="dc:contributor" typeof="foaf:Person"><meta property="foaf:name" content="Ian Jacobs"><a class="u-url url p-name fn" property="foaf:homepage" href="http://www.w3.org/People/Jacobs/">Ian Jacobs</a>, <a property="foaf:workplaceHomepage" class="p-org org h-org h-card" href="http://www.w3.org/"><abbr title="World Wide Web Consortium">W3C</abbr></a></span>
+</dd>
+<dd class="p-author h-card vcard"><span property="dc:contributor" typeof="foaf:Person"><meta property="foaf:name" content="Manu Sporny"><a class="u-url url p-name fn" property="foaf:homepage" href="https://manu.sporny.org/">Manu Sporny</a>, <a property="foaf:workplaceHomepage" class="p-org org h-org h-card" href="http://digitalbazaar.com/">Digital Bazaar</a></span>
+</dd>
+<dd class="p-author h-card vcard"><span property="dc:contributor" typeof="foaf:Person"><meta property="foaf:name" content="David Ezell"><a class="u-url url p-name fn" property="foaf:homepage" href="http://example.org/">David Ezell</a>, <a property="foaf:workplaceHomepage" class="p-org org h-org h-card" href="http://www.nacsonline.com/">NACS</a></span>
+</dd>
+<dd class="p-author h-card vcard"><span property="dc:contributor" typeof="foaf:Person"><span property="foaf:name" class="p-name fn">Qian Sun</span>, <a property="foaf:workplaceHomepage" class="p-org org h-org h-card" href="http://www.alibabagroup.com/">Alibaba</a></span>
+</dd>
+<dd class="p-author h-card vcard"><span property="dc:contributor" typeof="foaf:Person"><meta property="foaf:name" content="David Jackson"><a class="u-url url p-name fn" property="foaf:homepage" href="https://www.linkedin.com/in/davidjjackson">David Jackson</a>, <a property="foaf:workplaceHomepage" class="p-org org h-org h-card" href="http://www.oracle.com/">Oracle</a></span>
+</dd>
+
+
+
+
+
+ <dt>Version control:</dt>
+
+
+
+ <dd>
+ <a href="https://github.com/w3c/webpayments-ig">
+ Github Repository
+ </a>
+ </dd>
+
+
+
+ <dd>
+ <a href="http://www.w3.org/Payments/IG/track/products/2">
+ Issues
+ </a>
+ </dd>
+
+
+
+
+
+
+ </dl>
+
+
+ <p>
+
+ This document is also available in this non-normative format:
+
+ <a rel="alternate" href="diff-20150416.html">diff to previous version</a>
+ </p>
+
+
+
+
+ <p class="copyright">
+ <a href="http://www.w3.org/Consortium/Legal/ipr-notice#Copyright">Copyright</a> ©
+ 2015
+
+ <a href="http://www.w3.org/"><abbr title="World Wide Web Consortium">W3C</abbr></a><sup>®</sup>
+ (<a href="http://www.csail.mit.edu/"><abbr title="Massachusetts Institute of Technology">MIT</abbr></a>,
+ <a href="http://www.ercim.eu/"><abbr title="European Research Consortium for Informatics and Mathematics">ERCIM</abbr></a>,
+ <a href="http://www.keio.ac.jp/">Keio</a>, <a href="http://ev.buaa.edu.cn/">Beihang</a>).
+
+ <abbr title="World Wide Web Consortium">W3C</abbr> <a href="http://www.w3.org/Consortium/Legal/ipr-notice#Legal_Disclaimer">liability</a>,
+ <a href="http://www.w3.org/Consortium/Legal/ipr-notice#W3C_Trademarks">trademark</a> and
+
+ <a href="http://www.w3.org/Consortium/Legal/copyright-documents">document use</a>
+
+ rules apply.
+ </p>
+
+
+ <hr>
+</div>
+
+ <section id="abstract" class="introductory" property="dc:abstract"><h2 id="h-abstract" resource="#h-abstract"><span property="xhv:role" resource="xhv:heading">Abstract</span></h2>
+ <p>
+This document is a prioritized list of Web payments use cases.
+Guided by these use cases, the <abbr title="World Wide Web Consortium">W3C</abbr> Web Payments Interest Group
+plans to derive architecture and associated technology
+requirements to integrate payments into the Open Web
+Platform. That work will form the basis of conversations with <abbr title="World Wide Web Consortium">W3C</abbr>
+groups and the broader payments industry about what standards
+(from <abbr title="World Wide Web Consortium">W3C</abbr> or other organizations) will be necessary to fulfill the
+use cases and make payments over the Web easier and more secure.
+ </p>
+ </section><section id="sotd" class="introductory"><h2 id="h-sotd" resource="#h-sotd"><span property="xhv:role" resource="xhv:heading">Status of This Document</span></h2>
+
+
+
+ <p>
+ <em>This section describes the status of this document at the time of its publication.
+ Other documents may supersede this document. A list of current <abbr title="World Wide Web Consortium">W3C</abbr> publications and the
+ latest revision of this technical report can be found in the <a href="http://www.w3.org/TR/"><abbr title="World Wide Web Consortium">W3C</abbr> technical reports index</a> at
+ http://www.w3.org/TR/.</em>
+ </p>
+
+
+ <p>
+This document is a work in progress and is being released early and often
+using an agile process; it is incomplete.
+ </p>
+ <p>
+The Web Payments IG has only had the opportunity to review a handful of the
+40+ use cases, 120+ requirements, hundreds of pages of
+payments research submitted to the group via various other standards group
+output such as ISO20022, research documents from X9 and the US Federal Reserve,
+documents from the Web Payments Community Group, and input from the
+general public. Our desire is to align with the larger payments industry
+when it's possible to do so. Expect this document to be rapidly iterated upon
+with that desire in mind.
+ </p>
+
+
+ <p>
+ This document was published by the <a href="http://www.w3.org/blog/wpig/">Web Payments Interest Group</a> as an Editor's Draft.
+
+
+ If you wish to make comments regarding this document, please send them to
+ <a href="mailto:public-webpayments-comments@w3.org">public-webpayments-comments@w3.org</a>
+ (<a href="mailto:public-webpayments-comments-request@w3.org?subject=subscribe">subscribe</a>,
+ <a href="http://lists.w3.org/Archives/Public/public-webpayments-comments/">archives</a>).
+
+
+
+
+
+
+ All comments are welcome.
+
+
+ </p>
+
+
+
+ <p>
+ Publication as an Editor's Draft does not imply endorsement by the <abbr title="World Wide Web Consortium">W3C</abbr>
+ Membership. This is a draft document and may be updated, replaced or obsoleted by other
+ documents at any time. It is inappropriate to cite this document as other than work in
+ progress.
+ </p>
+
+
+
+ <p>
+
+ This document was produced by a group operating under the
+ <a id="sotd_patent" property="w3p:patentRules" href="http://www.w3.org/Consortium/Patent-Policy-20040205/">5 February 2004 <abbr title="World Wide Web Consortium">W3C</abbr> Patent
+ Policy</a>.
+
+
+
+
+ <abbr title="World Wide Web Consortium">W3C</abbr> maintains a <a href="http://www.w3.org/2004/01/pp-impl/73816/status" rel="disclosure">public list of any patent
+ disclosures</a>
+
+ made in connection with the deliverables of the group; that page also includes
+ instructions for disclosing a patent. An individual who has actual knowledge of a patent
+ which the individual believes contains
+ <a href="http://www.w3.org/Consortium/Patent-Policy-20040205/#def-essential">Essential
+ Claim(s)</a> must disclose the information in accordance with
+ <a href="http://www.w3.org/Consortium/Patent-Policy-20040205/#sec-Disclosure">section
+ 6 of the <abbr title="World Wide Web Consortium">W3C</abbr> Patent Policy</a>.
+
+
+ </p>
+
+ <p>This document is governed by the <a id="w3c_process_revision" href="http://www.w3.org/2014/Process-20140801/">1 August 2014 <abbr title="World Wide Web Consortium">W3C</abbr> Process Document</a>.
+ </p>
+
+
+
+
+
+</section><section id="toc"><h2 class="introductory" id="h-toc" resource="#h-toc"><span property="xhv:role" resource="xhv:heading">Table of Contents</span></h2><ul class="toc" role="directory" id="respecContents"><li class="tocline"><a href="#introduction" class="tocxref"><span class="secno">1. </span>Introduction</a><ul class="toc"><li class="tocline"><a href="#why-this-work-is-important" class="tocxref"><span class="secno">1.1 </span>Why This Work is Important</a></li><li class="tocline"><a href="#how-this-document-is-organized" class="tocxref"><span class="secno">1.2 </span>How this Document is Organized</a></li></ul></li><li class="tocline"><a href="#terminology" class="tocxref"><span class="secno">2. </span>Terminology</a></li><li class="tocline"><a href="#an-overview-of-the-payment-phases" class="tocxref"><span class="secno">3. </span>An Overview of the Payment Phases</a><ul class="toc"><li class="tocline"><a href="#negotiation-of-payment-terms" class="tocxref"><span class="secno">3.1 </span>Negotiation of Payment Terms</a></li><li class="tocline"><a href="#negotiation-of-payment-instruments" class="tocxref"><span class="secno">3.2 </span>Negotiation of Payment Instruments</a></li><li class="tocline"><a href="#payment-processing" class="tocxref"><span class="secno">3.3 </span>Payment Processing</a></li><li class="tocline"><a href="#delivery-of-product-receipt-and-refunds" class="tocxref"><span class="secno">3.4 </span>Delivery of Product/Receipt and Refunds</a></li></ul></li><li class="tocline"><a href="#a-simple-example-of-the-payment-phases" class="tocxref"><span class="secno">4. </span>A Simple Example of the Payment Phases</a><ul class="toc"><li class="tocline"><a href="#negotiation-of-purchase-terms" class="tocxref"><span class="secno">4.1 </span>Negotiation of Purchase Terms</a></li><li class="tocline"><a href="#negotiation-of-payment-instruments-1" class="tocxref"><span class="secno">4.2 </span>Negotiation of Payment Instruments</a></li><li class="tocline"><a href="#payment-processing-1" class="tocxref"><span class="secno">4.3 </span>Payment Processing</a></li><li class="tocline"><a href="#delivery-of-product-receipt-and-refunds-1" class="tocxref"><span class="secno">4.4 </span>Delivery of Product/Receipt and Refunds</a></li></ul></li><li class="tocline"><a href="#assumptions" class="tocxref"><span class="secno">5. </span>Assumptions</a></li><li class="tocline"><a href="#use-cases-1" class="tocxref"><span class="secno">6. </span>Use Cases</a><ul class="toc"><li class="tocline"><a href="#negotiation-of-payment-terms-1" class="tocxref"><span class="secno">6.1 </span>Negotiation of Payment Terms</a><ul class="toc"><li class="tocline"><a href="#discovery-of-offer" class="tocxref"><span class="secno">6.1.1 </span>Discovery of Offer</a></li><li class="tocline"><a href="#agreement-on-terms" class="tocxref"><span class="secno">6.1.2 </span>Agreement on Terms</a></li><li class="tocline"><a href="#application-of-marketing-elements" class="tocxref"><span class="secno">6.1.3 </span>Application of Marketing Elements</a></li></ul></li><li class="tocline"><a href="#negotiation-of-payment-instruments-2" class="tocxref"><span class="secno">6.2 </span>Negotiation of Payment Instruments</a><ul class="toc"><li class="tocline"><a href="#discovery-of-accepted-schemes" class="tocxref"><span class="secno">6.2.1 </span>Discovery of Accepted Schemes</a></li><li class="tocline"><a href="#selection-of-payment-instruments" class="tocxref"><span class="secno">6.2.2 </span>Selection of Payment Instruments</a></li><li class="tocline"><a href="#authentication-to-access-instruments" class="tocxref"><span class="secno">6.2.3 </span>Authentication to Access Instruments</a></li></ul></li><li class="tocline"><a href="#payment-processing-2" class="tocxref"><span class="secno">6.3 </span>Payment Processing</a><ul class="toc"><li class="tocline"><a href="#initiation-of-processing" class="tocxref"><span class="secno">6.3.1 </span>Initiation of Processing</a></li><li class="tocline"><a href="#verification-of-available-funds" class="tocxref"><span class="secno">6.3.2 </span>Verification of Available Funds</a></li><li class="tocline"><a href="#authorization-of-transfer" class="tocxref"><span class="secno">6.3.3 </span>Authorization of Transfer</a></li><li class="tocline"><a href="#completion-of-transfer" class="tocxref"><span class="secno">6.3.4 </span>Completion of Transfer</a></li></ul></li><li class="tocline"><a href="#delivery-of-product-receipt-and-refunds-2" class="tocxref"><span class="secno">6.4 </span>Delivery of Product/Receipt and Refunds</a><ul class="toc"><li class="tocline"><a href="#delivery-of-product" class="tocxref"><span class="secno">6.4.1 </span>Delivery of Product</a></li><li class="tocline"><a href="#delivery-of-receipt" class="tocxref"><span class="secno">6.4.2 </span>Delivery of Receipt</a></li><li class="tocline"><a href="#refunds" class="tocxref"><span class="secno">6.4.3 </span>Refunds</a></li></ul></li></ul></li><li class="tocline"><a href="#additional-examples-of-the-payment-phases" class="tocxref"><span class="secno">7. </span>Additional Examples of the Payment Phases</a><ul class="toc"><li class="tocline"><a href="#credit-card-payment-visa-mastercard" class="tocxref"><span class="secno">7.1 </span>Credit Card Payment (Visa, MasterCard)</a><ul class="toc"></ul></li><li class="tocline"><a href="#tokenized-payments-applepay-venmo-cybersource" class="tocxref"><span class="secno">7.2 </span>Tokenized Payments (ApplePay / Venmo / CyberSource)</a><ul class="toc"></ul></li><li class="tocline"><a href="#three-corner-model-payments-paypal-alipay-google-wallet" class="tocxref"><span class="secno">7.3 </span>Three Corner Model Payments (PayPal / Alipay / Google Wallet)</a><ul class="toc"></ul></li><li class="tocline"><a href="#cryptocurrency-payment-bitcoin-ripple" class="tocxref"><span class="secno">7.4 </span>Cryptocurrency Payment (Bitcoin, Ripple)</a><ul class="toc"></ul></li><li class="tocline"><a href="#electronic-check-payment" class="tocxref"><span class="secno">7.5 </span>Electronic Check Payment</a></li><li class="tocline"><a href="#direct-debit" class="tocxref"><span class="secno">7.6 </span>Direct Debit (SEPA Direct Debit)</a><ul class="toc"></ul></li><li class="tocline"><a href="#credit-transfer" class="tocxref"><span class="secno">7.7 </span>Credit Transfer (SEPAmail)</a><ul class="toc"></ul></li></ul></li><li class="tocline"><a href="#future-work" class="tocxref"><span class="secno">A. </span>Future Work</a></li><li class="tocline"><a href="#acknowledgements" class="tocxref"><span class="secno">B. </span>Acknowledgements</a></li><li class="tocline"><a href="#references" class="tocxref"><span class="secno">C. </span>References</a><ul class="toc"><li class="tocline"><a href="#informative-references" class="tocxref"><span class="secno">C.1 </span>Informative references</a></li></ul></li></ul></section>
+
+
+
+ <section id="introduction" typeof="bibo:Chapter" resource="#introduction" property="bibo:hasPart">
+ <!--OddPage--><h2 id="h-introduction" resource="#h-introduction"><span property="xhv:role" resource="xhv:heading"><span class="secno">1. </span>Introduction</span></h2>
+
+ <p>
+ECommerce is thriving and continues to expand. However,
+fragmentation of payment systems is limiting the growth potential
+as are problems — both real and perceived — such as
+fraud and usability.
+ </p>
+
+ <p>
+Because the Web is ubiquitous, strengthening support for Web
+payments has the potential to create new opportunities for
+businesses and customers. Mobile devices are already transforming
+the industry by supplanting physical payment cards in proximity
+payments, voucher distribution, and identification when people
+authenticate to a scanner, point of sale, or access gate. Although
+we are seeing innovation in mobile payment systems, the lack of
+standards makes it more difficult to adapt to new payment
+approaches or integrate new payment providers.
+ </p>
+
+ <p>
+The <abbr title="World Wide Web Consortium">W3C</abbr> Web Payments Interest Group is developing a roadmap for standards to
+improve the interoperability of payments using Web technologies for both
+online and brick-and-mortar (offline) scenarios. This will help achieve
+greater interoperability among merchants and their customers,
+payment providers, software vendors, mobile operators, native mobile
+apps, and payment networks. The roadmap will include
+<a title="payment scheme" href="#dfn-payment-scheme" class="internalDFN">payment schemes</a> in use
+today (such as electronic checks, credit cards, direct debit, and
+cryptocurrencies) and those of the future. The roadmap will be derived from
+the use cases listed below.
+ </p>
+
+ <section id="why-this-work-is-important" typeof="bibo:Chapter" resource="#why-this-work-is-important" property="bibo:hasPart">
+ <h3 id="h-why-this-work-is-important" resource="#h-why-this-work-is-important"><span property="xhv:role" resource="xhv:heading"><span class="secno">1.1 </span>Why This Work is Important</span></h3>
+ <p>
+The Web Payments work is not just about making payments easier, faster,
+more secure, and more innovative. There are many people around the world that
+today's financial system does not reach. These people are called the world's
+unbanked (or underbanked). The unbanked often live paycheck to paycheck, do
+not have access to savings accounts or low-fee check cashing services, lines
+of credit, or a way of saving for their future. Being unable to plan for one's
+financial future often results in a focus on the short-term, which creates a
+vicious cycle of not being able to escape one's situation. Not being able to
+participate in the financial system creates unintended inequities that create
+waste and result in a net loss for society.
+ </p>
+ <p>
+However, some of the shortcomings of today's financial system could be
+addressed via technological improvements. For example, there is a considerable
+overlap between the unbanked and underbanked population and access to advanced
+mobile phones and the Web. By providing financial services to people with
+mobile phones in a standardized way via the Web, we could see an improvement
+in the financial health of these individuals and their families.
+ </p>
+ <p>
+Extending the current financial system to reach further helps an ever
+increasing number of people plan for their future, focus on the long-term, and
+thus contributes to a greater net gain for society.
+ </p>
+ </section>
+
+ <section id="how-this-document-is-organized" typeof="bibo:Chapter" resource="#how-this-document-is-organized" property="bibo:hasPart">
+ <h3 id="h-how-this-document-is-organized" resource="#h-how-this-document-is-organized"><span property="xhv:role" resource="xhv:heading"><span class="secno">1.2 </span>How this Document is Organized</span></h3>
+
+ <p>
+This document is organized as follows:
+ </p>
+
+ <ul>
+ <li>
+<a href="#terminology">Section 2</a> defines basic payment terms.
+ </li>
+ <li>
+<a href="#an-overview-of-the-payment-phases">Section 3</a> describes a
+common payment flow at a high level. The group expects to work on additional
+payment flows in future work.
+ </li>
+ <li>
+<a href="#a-simple-example-of-the-payment-phases">Section 4</a> is a specific
+narrative, labeled according to the steps of section 3.
+<a href="#additional-examples-of-the-payment-phases">Section 7</a> describes
+additional familiar narratives to give a more complete picture
+of how the payment phases apply.
+ </li>
+ <li>
+<a href="#assumptions">Section 5</a> highlights general assumptions that have
+been made about the use cases.
+ </li>
+ <li>
+<a href="#use-cases-1">Section 6</a> lists the use cases - short scenarios
+that cover diverse aspects of each payment step.
+ </li>
+ </ul>
+
+ <p>
+Each use case has:
+ </p>
+ <ul>
+ <li>
+A title and short description.
+ </li>
+ <li>
+A <em>Target version</em> which specifies the intended version of the Web
+Payments Architecture that will enable the use case.
+ </li>
+ <li>
+A short <em>Motivation</em> statement to help explain why the use
+case has been included, including how it relates to similar use cases.
+ </li>
+ </ul>
+
+ <p>
+Each use case may also have notes on:
+ </p>
+
+ <ul>
+ <li>
+Security/Privacy. Security or privacy issues that may arise through this use
+case.
+ </li>
+ <li>
+Accessibility. Accessibility considerations (e.g., in multi-factor
+authentication, management of biometrics in the case of users with some
+disabilities).
+ </li>
+ <li>
+Regulatory. Regulatory considerations (e.g., anti-money laundering
+clearing, suspicious activity reporting, tax collection, trade compliance).
+ </li>
+ <li>
+Exceptions. Considerations in the case of specific exceptions (e.g., if a
+user pays with a voucher and the <a href="#dfn-transaction" class="internalDFN">transaction</a> fails, the user's voucher
+should be restored).
+ </li>
+ </ul>
+
+ <div class="issue"><div class="issue-title" aria-level="4" role="heading" id="h-issue1"><span>Issue 1</span></div><p class="">
+The group seeks input from security, privacy, and accessibility experts.
+Examples of desired groups to perform these reviews are, but are not
+limited to: <abbr title="World Wide Web Consortium">W3C</abbr> Privacy Interest Group,
+<abbr title="World Wide Web Consortium">W3C</abbr> Security Interest Group, <abbr title="World Wide Web Consortium">W3C</abbr> Web Accessibility Initiative and
+Protocols and Formats Working Group, US Federal Reserve Security Panels,
+X9 Security subgroups, and ISO security subgroups.
+ </p></div>
+
+ <div class="note"><div class="note-title" aria-level="4" role="heading" id="h-note1"><span>Note</span></div><p class="">
+All character names appearing in this document are fictitious. Any resemblance
+to real persons, living or dead, is purely coincidental. Some organizations,
+products, and services appearing in this document are real and are included
+purely for pedagogic purposes and don't imply endorsement or approval of the
+Web Payments work in any way, shape, or form. For all other organizations,
+products, or services appearing in this document, any resemblance to real
+entities is purely coincidental.
+ </p></div>
+
+ </section>
+
+ </section>
+
+ <section id="terminology" typeof="bibo:Chapter" resource="#terminology" property="bibo:hasPart">
+ <!--OddPage--><h2 id="h-terminology" resource="#h-terminology"><span property="xhv:role" resource="xhv:heading"><span class="secno">2. </span>Terminology</span></h2>
+
+ <div><p>
+This document attempts to communicate the concepts outlined in the Web
+Payments space by using specific terms to discuss particular concepts. This
+terminology is included below and linked to throughout the document to aid
+the reader:
+</p>
+
+<dl class="termlist">
+ <dt></dt>
+
+
+
+ <dt></dt>
+
+
+
+ <dt></dt>
+
+
+
+ <dt></dt>
+
+
+
+ <dt></dt>
+
+
+
+ <dt></dt>
+
+
+
+ <dt></dt>
+
+
+
+ <dt></dt>
+
+
+
+ <dt><dfn id="dfn-entity">entity</dfn></dt>
+
+ <dd>A person, organization, or software agent that is capable of
+ interacting with the world.</dd>
+
+ <dt><dfn id="dfn-four-corner-model">four corner model</dfn></dt>
+
+ <dd>A <a href="#dfn-payment-scheme" class="internalDFN">payment scheme</a> which includes the following stakeholders:
+ the <a href="#dfn-payer" class="internalDFN">payer</a> (also known as the Cardholder), the Issuer (who has a
+ relationship with the Cardholder), the Acceptor and the Acquirer
+ (which has a relationship with the Acceptor). The <a href="#dfn-payment-scheme" class="internalDFN">payment
+ scheme</a> defines the rules which apply to all parties; there are no
+ limitations as to who may join the scheme, as long as the requirements
+ of the scheme are met.</dd>
+
+ <dt></dt>
+
+
+
+ <dt></dt>
+
+
+
+ <dt></dt>
+
+
+
+ <dt><dfn id="dfn-payee">payee</dfn></dt>
+
+ <dd>An entity that receives funds as required by a transaction.</dd>
+
+ <dt><dfn id="dfn-payer">payer</dfn></dt>
+
+ <dd>An entity that provides a source of funds as required by a
+ transaction.</dd>
+
+ <dt></dt>
+
+
+
+ <dt><dfn id="dfn-payment-instrument">payment instrument</dfn></dt>
+
+ <dd>A mechanism used to transfer value from a <a href="#dfn-payer" class="internalDFN">payer</a> to a
+ <a href="#dfn-payee" class="internalDFN">payee</a>. Examples: Corporate Visa card, personal Visa card, a
+ bitcoin account, a PayPal account, and an Alipay account. [PSD2] any
+ personalized device(s) and/or set of procedures agreed between the
+ payment service user and the payment service provider and used in
+ order to initiate a payment order. [ECB] a tool or a set of procedures
+ enabling the transfer of funds from a payer to a payee.</dd>
+
+ <dt></dt>
+
+
+
+ <dt></dt>
+
+
+
+ <dt><dfn id="dfn-payment-processor">payment processor</dfn></dt>
+
+ <dd>An <a href="#dfn-entity" class="internalDFN">entity</a> that submits and processes payments using a
+ particular <a href="#dfn-payment-instrument" class="internalDFN">payment instrument</a> to a payment network. Examples:
+ Stripe, PayPal, Authorize.net, Atos, FedACH.</dd>
+
+ <dt><dfn id="dfn-payment-scheme">payment scheme</dfn></dt>
+
+ <dd>Sets of rules and technical standards for the execution of payment
+ <a title="transaction" href="#dfn-transaction" class="internalDFN">transactions</a> that have to be followed by
+ adhering entities (<a title="payment processor" href="#dfn-payment-processor" class="internalDFN">payment
+ processors</a>, <a title="payer" href="#dfn-payer" class="internalDFN">payers</a> and <a title="payee" href="#dfn-payee" class="internalDFN">payees</a>). Examples: Visa, MasterCard, Bitcoin, Ripple,
+ PayPal, Google Pay, Alipay, Yandex money, ACH, SEPA. [ECB] a set of
+ interbank rules, practices and standards necessary for the functioning
+ of payment services.</dd>
+
+ <dt></dt>
+
+
+
+ <dt><dfn id="dfn-pull-payment">pull payment</dfn> or <dfn id="dfn-payee-initiated-payment">payee-initiated payment</dfn></dt>
+
+ <dd>A type of <a href="#dfn-transaction" class="internalDFN">transaction</a> where the <a href="#dfn-payee" class="internalDFN">payee</a> initiates the
+ funds transfer from the <a href="#dfn-payee" class="internalDFN">payee</a>. A credit card payment is an
+ example of a pull payment.</dd>
+
+ <dt><dfn id="dfn-purchase">purchase</dfn></dt>
+
+ <dd>Activities surrounding and including a transaction (e.g.,
+ discovery of an offer, negotiation of terms, selection of payment
+ instrument, delivery, etc.).</dd>
+
+ <dt><dfn id="dfn-push-payment">push payment</dfn> or <dfn id="dfn-payer-initiated-payment">payer-initiated payment</dfn></dt>
+
+ <dd>A type of <a href="#dfn-transaction" class="internalDFN">transaction</a> where the <a href="#dfn-payer" class="internalDFN">payer</a> initiates the
+ funds transfer to the <a href="#dfn-payee" class="internalDFN">payee</a>. PayPal is an example of a push
+ payment.</dd>
+
+ <dt></dt>
+
+
+
+ <dt></dt>
+
+
+
+ <dt></dt>
+
+
+
+ <dt><dfn id="dfn-transaction">transaction</dfn></dt>
+
+ <dd>An economic exchange between a <a href="#dfn-payer" class="internalDFN">payer</a> and one or more
+ <a title="payee" href="#dfn-payee" class="internalDFN">payees</a>. An agreement, communication, or movement
+ carried out between a buyer and a seller to exchange an asset for
+ payment</dd>
+
+ <dt><dfn id="dfn-transfer-order">transfer order</dfn></dt>
+
+ <dd>[ECB] an order or message requesting the transfer of assets (e.g.
+ funds, securities, other financial instruments or commodities) from
+ the debtor to the creditor</dd>
+
+ <dt></dt>
+
+
+
+</dl></div>
+
+ </section>
+
+ <section id="an-overview-of-the-payment-phases" typeof="bibo:Chapter" resource="#an-overview-of-the-payment-phases" property="bibo:hasPart">
+ <!--OddPage--><h2 id="h-an-overview-of-the-payment-phases" resource="#h-an-overview-of-the-payment-phases"><span property="xhv:role" resource="xhv:heading"><span class="secno">3. </span>An Overview of the Payment Phases</span></h2>
+
+ <p>There are many types of <a href="#dfn-transaction" class="internalDFN">transaction</a>s in the world of payments,
+including person-to-business, business-to-business, business-to-person,
+government-to-person, person-to-government, and
+person-to-person. In this document we focus on the
+interactions between a <a href="#dfn-payer" class="internalDFN">payer</a> and a <a href="#dfn-payee" class="internalDFN">payee</a>,
+either of which could be a person, business, government, or software
+agent), which we organize into four phases:</p>
+
+ <div class="issue"><div class="issue-title" aria-level="3" role="heading" id="h-issue2"><span>Issue 2</span></div><p class="">
+The group would like feedback related to the general structure of the payment
+phases from individuals that worked on ISO20022, ISO12812, the
+European Payment Commission, and
+various X9 documents to ensure that the phases reflect business processes
+outlined in financial standardization initiatives. Feedback from the general
+public is also requested to see if non-payment professionals can navigate and
+understand the document without prior payment industry knowledge.
+ </p></div>
+
+ <ol>
+ <li>
+Negotiation of Payment Terms
+ </li>
+ <li>
+Negotiation of Payment Instruments
+ </li>
+ <li>
+Payment Processing
+ </li>
+ <li>
+Delivery of Product/Receipt and Refunds
+ </li>
+ </ol>
+
+<p>The descriptions below only discuss the interactions between the
+<a href="#dfn-payer" class="internalDFN">payer</a> and the <a href="#dfn-payee" class="internalDFN">payee</a>. We do not expose the low-level exchanges
+between banks, card associations, or other back-end "payment clearing" parties
+in a <a href="#dfn-transaction" class="internalDFN">transaction</a>. Those details will be discussed in the Interest
+Group's work on architecture and
+requirements.</p>
+
+ <p>Each phase below consists of a series of steps.
+The details of each step vary by <a href="#dfn-payment-scheme" class="internalDFN">payment scheme</a>. Some steps may
+not be relevant at certain times (e.g., depending on
+<a href="#dfn-payment-scheme" class="internalDFN">payment scheme</a> or <a href="#dfn-transaction" class="internalDFN">transaction</a> specifics).
+For example, some <a title="purchase" href="#dfn-purchase" class="internalDFN">purchases</a> do not involve a proof of
+funds or proof of hold. ACH and SEPA
+<a title="payment scheme" href="#dfn-payment-scheme" class="internalDFN">payment schemes</a> generally do not support the
+verification of available funds, thus in these
+<a title="payment scheme" href="#dfn-payment-scheme" class="internalDFN">payment schemes</a> the particular proof of funds
+step is skipped.
+In some cases, steps may happen in a slightly different order than described below.
+ </p>
+ <p>
+It is also important to note that these phases and steps may be interrupted
+at various times (e.g., one party drops out, or exceptions occur like
+insufficient funds or a regulatory block). While these phases are an
+approximation of the general flow of all payments, they are helpful in
+structuring the use cases such that it is easy to figure out to which part of
+the payment process a particular use case belongs.
+ </p>
+
+ <p>While these four phases may apply more or less well to a variety
+of other payment scenarios such as person-to-person
+payments, those topics are not the current focus of the group. We
+plan to address them directly in <a href="#future-work">future
+work</a>.</p>
+
+ <section id="negotiation-of-payment-terms" typeof="bibo:Chapter" resource="#negotiation-of-payment-terms" property="bibo:hasPart">
+ <h3 id="h-negotiation-of-payment-terms" resource="#h-negotiation-of-payment-terms"><span property="xhv:role" resource="xhv:heading"><span class="secno">3.1 </span>Negotiation of Payment Terms</span></h3>
+ <p>
+In the first phase of the payment process, the <a href="#dfn-payer" class="internalDFN">payer</a> and the
+<a href="#dfn-payee" class="internalDFN">payee</a> negotiate the terms of the payment.
+ </p>
+
+ <ul>
+ <li>
+<strong>Discovery of Offer</strong>. The <a href="#dfn-payer" class="internalDFN">payer</a> discovers the
+<a title="payee" href="#dfn-payee" class="internalDFN">payee's</a> offer (e.g., by browsing a Web page or
+from a native application).
+ </li>
+ <li>
+<strong>Agreement on Terms</strong>. The <a href="#dfn-payer" class="internalDFN">payer</a> and the
+<a href="#dfn-payee" class="internalDFN">payee</a> agree to what will be purchased, for how much,
+in what currency, which <a title="payment scheme" href="#dfn-payment-scheme" class="internalDFN">payment schemes</a>
+or loyalty programs are acceptable, etc. The <a href="#dfn-payee" class="internalDFN">payee</a> may require the
+<a href="#dfn-payer" class="internalDFN">payer</a> to authenticate themselves. The <a href="#dfn-payee" class="internalDFN">payee</a> may generate an
+invoice for the <a href="#dfn-payer" class="internalDFN">payer</a>.
+ </li>
+ <li>
+<strong>Application of Marketing Elements</strong>. The <a href="#dfn-payer" class="internalDFN">payer</a>
+discovers and applies any loyalty programs, coupons, and other special offers
+to the payment terms.
+ </li>
+ </ul>
+ </section>
+
+ <section id="negotiation-of-payment-instruments" typeof="bibo:Chapter" resource="#negotiation-of-payment-instruments" property="bibo:hasPart">
+ <h3 id="h-negotiation-of-payment-instruments" resource="#h-negotiation-of-payment-instruments"><span property="xhv:role" resource="xhv:heading"><span class="secno">3.2 </span>Negotiation of Payment Instruments</span></h3>
+ <p>
+In the second phase of the payment process, <a href="#dfn-payer" class="internalDFN">payer</a> and
+<a href="#dfn-payee" class="internalDFN">payee</a> determine which
+<a title="payment instrument" href="#dfn-payment-instrument" class="internalDFN">payment instruments</a> the
+<a href="#dfn-payer" class="internalDFN">payer</a> will use to transfer funds to the <a href="#dfn-payee" class="internalDFN">payee</a>.
+ </p>
+
+ <ul>
+ <li>
+<strong>Discovery of Accepted Schemes</strong>. The <a href="#dfn-payer" class="internalDFN">payer</a>
+discovers the <a title="payment instrument" href="#dfn-payment-instrument" class="internalDFN">payment instruments</a> that
+are accepted by the <a href="#dfn-payee" class="internalDFN">payee</a>.
+ </li>
+ <li>
+<strong>Selection of Payment Instruments</strong>. The <a href="#dfn-payer" class="internalDFN">payer</a>
+selects one or more <a title="payment instrument" href="#dfn-payment-instrument" class="internalDFN">payment instruments</a>
+that are available to the <a href="#dfn-payer" class="internalDFN">payer</a> and are accepted by the
+<a href="#dfn-payee" class="internalDFN">payee</a>.
+ </li>
+ <li>
+<strong>Authentication to Access Instruments</strong>. The
+<a title="payer" href="#dfn-payer" class="internalDFN">payer's</a> access to the <a href="#dfn-payment-instrument" class="internalDFN">payment instrument</a>
+is authenticated. The <a href="#dfn-payer" class="internalDFN">payer</a> consents to pay. Note: This authentication
+with the <a href="#dfn-payment-processor" class="internalDFN">payment processor</a> is distinct from any authentication required
+by the <a href="#dfn-payee" class="internalDFN">payee</a> (such as when a merchant requires a customer to
+have an account and log in to the merchant's Web site).
+ </li>
+ </ul>
+ </section>
+
+ <section id="payment-processing" typeof="bibo:Chapter" resource="#payment-processing" property="bibo:hasPart">
+ <h3 id="h-payment-processing" resource="#h-payment-processing"><span property="xhv:role" resource="xhv:heading"><span class="secno">3.3 </span>Payment Processing</span></h3>
+ <p>
+The third phase of the payment process is used to initiate the transfer of
+funds. Depending on the <a href="#dfn-payment-instrument" class="internalDFN">payment instrument</a>, the transfer of funds
+may be verified immediately or only after several days.
+ </p>
+ <ul>
+ <li>
+<strong>Initiation of Processing</strong>. Depending on the
+<a href="#dfn-payment-instrument" class="internalDFN">payment instrument</a>, the <a href="#dfn-payer" class="internalDFN">payer</a> (e.g., when using
+PayPal or Yandex Money), the <a href="#dfn-payee" class="internalDFN">payee</a> (e.g., when using a credit card), or other
+party (e.g., bank) initiates processing.
+ </li>
+ <li>
+<strong>Verification of Available Funds</strong>. The <a href="#dfn-payer" class="internalDFN">payer</a> may
+need to provide a proof of funds or a proof of hold to the <a href="#dfn-payee" class="internalDFN">payee</a>
+before finalizing payment and delivery of the product.
+ </li>
+ <li>
+<strong>Authorization of Transfer</strong>. The <a href="#dfn-payee" class="internalDFN">payee</a> receives
+proof that the transfer of funds has been authorized.
+ </li>
+ <li>
+<strong>Completion of Transfer</strong>. The <a href="#dfn-payment-scheme" class="internalDFN">payment scheme</a>
+determines the details of payment clearing and settlement. Transfer times
+may vary from near-realtime to multiple days. The <a href="#dfn-payee" class="internalDFN">payee</a>,
+the <a href="#dfn-payer" class="internalDFN">payer</a>, and/or third parties (such as regulatory bodies) may be
+notified as each stage of the clearing and settlement process is completed.
+ </li>
+ </ul>
+ </section>
+
+ <section id="delivery-of-product-receipt-and-refunds" typeof="bibo:Chapter" resource="#delivery-of-product-receipt-and-refunds" property="bibo:hasPart">
+ <h3 id="h-delivery-of-product-receipt-and-refunds" resource="#h-delivery-of-product-receipt-and-refunds"><span property="xhv:role" resource="xhv:heading"><span class="secno">3.4 </span>Delivery of Product/Receipt and Refunds</span></h3>
+ <p>
+In the fourth phase of the payment process, the <a href="#dfn-transaction" class="internalDFN">transaction</a> is completed
+by providing the <a href="#dfn-payer" class="internalDFN">payer</a> with a receipt and/or the product that
+was purchased.
+ </p>
+
+ <ul>
+ <li>
+<strong>Delivery of Product</strong>. The <a href="#dfn-payer" class="internalDFN">payer</a> receives goods or
+services immediately, at a later date, automatically on a recurring basis,
+etc. depending on the terms of the <a href="#dfn-purchase" class="internalDFN">purchase</a>. A digital proof of
+payment may be required to access the product.
+ </li>
+ <li>
+<strong>Delivery of Receipt</strong>. Depending on the
+<a title="payment scheme" href="#dfn-payment-scheme" class="internalDFN">payment scheme(s)</a> chosen, there are
+various ways and times that a receipt may be delivered (e.g., credit card
+receipt, digital proof of <a href="#dfn-purchase" class="internalDFN">purchase</a>, or encrypted line-item receipt).
+ </li>
+ <li>
+<strong>Refunds</strong>. At times exceptions may occur (e.g., defective
+product or application of store return policy). In this case, the
+<a href="#dfn-payee" class="internalDFN">payee</a> initiates payment to the <a href="#dfn-payer" class="internalDFN">payer</a>. The refund may
+take different forms, including a refund to the <a title="payer" href="#dfn-payer" class="internalDFN">payer's</a>
+payment instrument, a refund using a different payment scheme, or store credit.
+ </li>
+ </ul>
+ </section>
+
+ </section>
+
+ <section id="a-simple-example-of-the-payment-phases" typeof="bibo:Chapter" resource="#a-simple-example-of-the-payment-phases" property="bibo:hasPart">
+ <!--OddPage--><h2 id="phases-overview" resource="#phases-overview"><span property="xhv:role" resource="xhv:heading"><span class="secno">4. </span>A Simple Example of the Payment Phases</span></h2>
+ <p>
+The following scenario is provided to aid the reader in understanding how the
+phases of the payment process apply to a real world situation. In this scenario,
+we follow Jill, who seeks a new outfit for a party. She selects items from
+PayToParty, which is a brick-and-mortar store with an online presence.
+She chooses how to pay and the items are delivered to her home on the
+following day.
+ </p>
+
+ <p>
+See the appendix for <a href="#additional-examples">additional examples of
+the payment phases</a>.
+ </p>
+
+ <div class="issue"><div class="issue-title" aria-level="3" role="heading" id="h-issue3"><span>Issue 3</span></div><p class="">
+General feedback is requested on whether this section is helpful. We are
+attempting to ground the payment phases and steps in a real world use case.
+An alternative would be removing this section entirely if the preceding
+section suffices, or moving this narrative to section 7 with the other examples.
+ </p></div>
+
+ <section id="negotiation-of-purchase-terms" typeof="bibo:Chapter" resource="#negotiation-of-purchase-terms" property="bibo:hasPart">
+ <h3 id="h-negotiation-of-purchase-terms" resource="#h-negotiation-of-purchase-terms"><span property="xhv:role" resource="xhv:heading"><span class="secno">4.1 </span>Negotiation of Purchase Terms</span></h3>
+ <ul>
+ <li>
+<strong>Discovery of Offer</strong>: Jill begins her <a href="#dfn-purchase" class="internalDFN">purchase</a> at
+home on her laptop, where she browses the items on the PayToParty Web
+site. On the way to work the next morning, she explores the catalog
+further from a native app on her smart phone. Jill can't decide
+whether the dress displayed online is
+<a href="https://en.wikipedia.org/wiki/The_dress_(viral_phenomenon)">
+blue with black stripes or white with gold stripes</a>,
+so during her lunch break, she drops into the
+PayToParty store near her office. She spots a few more items that
+she thinks she'd like to <a href="#dfn-purchase" class="internalDFN">purchase</a>, but decides to wait until later to
+make the <a href="#dfn-purchase" class="internalDFN">purchase</a>.
+ </li>
+
+ <li>
+<strong>Agreement on Terms</strong>: That same evening at home,
+Jill logs into her account on the PayToParty Web site, adding her
+chosen items to her shopping cart. The total price appears on the
+page.
+ </li>
+
+ <li>
+<strong>Application of Marketing Elements</strong>: As Jill prepares to
+check out, PayToParty notifies her of a discount for 10% if she uses
+the store's loyalty card to pay.
+ </li>
+ </ul>
+ </section>
+
+ <section id="negotiation-of-payment-instruments-1" typeof="bibo:Chapter" resource="#negotiation-of-payment-instruments-1" property="bibo:hasPart">
+ <h3 id="h-negotiation-of-payment-instruments-1" resource="#h-negotiation-of-payment-instruments-1"><span property="xhv:role" resource="xhv:heading"><span class="secno">4.2 </span>Negotiation of Payment Instruments</span></h3>
+ <ul>
+ <li>
+<strong>Discovery of Accepted Schemes</strong>: Given where Jill lives,
+PayToParty accepts payment by credit card, debit card, the PayToParty
+loyalty card, and PayPal, but not Jill's favorite cryptocurrency (which she
+uses on other sites).
+ </li>
+
+ <li>
+<strong>Selection of Payment Instruments</strong>: Jill pushes the
+"Pay Now to Party!" button and is presented with a number of options
+to pay, including her
+credit card, her PayToParty loyalty card (which is highlighted to remind her
+of the discount), and a PayPal account. There is also a gift card from
+PayToParty that she received for her birthday, but she chooses not to
+use it for this <a href="#dfn-purchase" class="internalDFN">purchase</a>.
+ </li>
+
+ <li>
+<strong>Authentication to Access Instruments</strong>: Jill selects
+the PayToParty loyalty card, the use of which is protected by two-factor
+authentication, and is asked to input a code that is sent to her phone
+before the <a href="#dfn-purchase" class="internalDFN">purchase</a> can be completed.
+ </li>
+ </ul>
+ </section>
+
+ <section id="payment-processing-1" typeof="bibo:Chapter" resource="#payment-processing-1" property="bibo:hasPart">
+ <h3 id="h-payment-processing-1" resource="#h-payment-processing-1"><span property="xhv:role" resource="xhv:heading"><span class="secno">4.3 </span>Payment Processing</span></h3>
+ <ul>
+ <li>
+<strong>Initiation of Processing</strong>. PayToParty receives a
+message from Jill's device authorizing the payment. PayToParty
+submits the message to their <a href="#dfn-payment-processor" class="internalDFN">payment processor</a>, requesting a
+proof of hold for the funds.
+ </li>
+ <li>
+<strong>Verification of Available Funds</strong>. PayToParty
+receives a proof of hold on Jill's funds for the <a href="#dfn-purchase" class="internalDFN">purchase</a> price of
+the goods. The PayToParty night-shift employees begin packing her purchased
+items for delivery the next day.
+ </li>
+ <li>
+<strong>Authorization of Transfer</strong>. Once Jill's package is ready to
+go, PayToParty exchanges the proof of hold for a proof of payment by
+re-submitting the request to the payment network. They receive a proof of
+payment from the <a href="#dfn-payment-processor" class="internalDFN">payment processor</a>.
+ </li>
+ <li>
+<strong>Completion of Transfer</strong>. Since Jill's PayToParty loyalty card
+operates as a credit card, PayToParty will receive the funds in their normal
+end of week settlement.
+ </li>
+ </ul>
+ </section>
+
+ <section id="delivery-of-product-receipt-and-refunds-1" typeof="bibo:Chapter" resource="#delivery-of-product-receipt-and-refunds-1" property="bibo:hasPart">
+ <h3 id="h-delivery-of-product-receipt-and-refunds-1" resource="#h-delivery-of-product-receipt-and-refunds-1"><span property="xhv:role" resource="xhv:heading"><span class="secno">4.4 </span>Delivery of Product/Receipt and Refunds</span></h3>
+ <ul>
+ <li>
+<strong>Delivery of Receipt</strong>. Jill's cloud-based wallet
+receives a detailed line-item digital receipt for the <a href="#dfn-purchase" class="internalDFN">purchase</a>.
+ </li>
+
+ <li>
+<strong>Delivery of Product</strong>. Jill's package goes out by courier the
+next morning and is on her doorstep before she leaves for work.
+ </li>
+ </ul>
+ </section>
+ </section>
+
+ <section id="assumptions" typeof="bibo:Chapter" resource="#assumptions" property="bibo:hasPart">
+ <!--OddPage--><h2 id="h-assumptions" resource="#h-assumptions"><span property="xhv:role" resource="xhv:heading"><span class="secno">5. </span>Assumptions</span></h2>
+
+ <p>
+The use cases below rely on a number of assumptions that are not
+detailed in the use cases but that will be explored in more detail in
+the architecture and requirements documents.
+ </p>
+
+ <ul>
+ <li>
+<strong>Connectivity</strong>. Connectivity requirements vary according to
+use case. The types of connections a device may use include Internet
+connectivity, proxied connections through short-range radio transmissions,
+and proximity connections over a technology such as Near-Field Communication
+(NFC) or Bluetooth Low Energy (BTLE). Some use cases assume no
+connectivity (e.g., user is temporarily unable to connect to a mobile phone
+network or a WiFi hotspot).
+ </li>
+ <li>
+<strong>Registered Payment Instruments</strong>. In order for the
+<a href="#dfn-payer" class="internalDFN">payer</a> to select and utilize
+<a title="payment instrument" href="#dfn-payment-instrument" class="internalDFN">payment instruments</a>, they must be
+registered in some way and discoverable by a browser, native application,
+or other software.
+ </li>
+ <li>
+<strong>Security</strong>. Keys, encryption, and other security technology
+must be used to secure sensitive information. It is important that sensitive
+information is not transmitted to parties that do not absolutely need to
+know the information in order to complete the <a href="#dfn-transaction" class="internalDFN">transaction</a>.</li>
+ <li>
+<strong>Identity</strong>. There will be an interoperable
+identifier used to identify the participants and accounts in a Web Payments
+transaction.
+ </li>
+ </ul>
+ </section>
+
+ <section id="use-cases-1" typeof="bibo:Chapter" resource="#use-cases-1" property="bibo:hasPart">
+ <!--OddPage--><h2 id="use-cases" resource="#use-cases"><span property="xhv:role" resource="xhv:heading"><span class="secno">6. </span>Use Cases</span></h2>
+
+ <p>
+This section examines the phases of payment, and the steps involved in each
+phase, through a variety of use cases. The purpose of this section is to
+elaborate on the variety of scenarios present in each step of the payment
+process.
+ </p>
+
+ <div class="issue"><div class="issue-title" aria-level="3" role="heading" id="h-issue4"><span>Issue 4</span></div><p class="">
+General feedback is requested related to the general structure of the
+use case snippets below. Are they focused enough to convey each topic listed?
+Is there information that should be added to each use case in general? Would
+more elaborate use cases be helpful? Would an attempt to minimize each existing
+use further be helpful in scanning the document more quickly?
+ </p></div>
+
+ <section id="negotiation-of-payment-terms-1" typeof="bibo:Chapter" resource="#negotiation-of-payment-terms-1" property="bibo:hasPart">
+ <h3 id="h-negotiation-of-payment-terms-1" resource="#h-negotiation-of-payment-terms-1"><span property="xhv:role" resource="xhv:heading"><span class="secno">6.1 </span>Negotiation of Payment Terms</span></h3>
+ <p>
+ </p>
+
+ <section id="discovery-of-offer" typeof="bibo:Chapter" resource="#discovery-of-offer" property="bibo:hasPart">
+ <h4 id="h-discovery-of-offer" resource="#h-discovery-of-offer"><span property="xhv:role" resource="xhv:heading"><span class="secno">6.1.1 </span>Discovery of Offer</span></h4>
+
+ <dl id="uc-website" class="dl-horizontal">
+ <dt>Website</dt>
+ <dd>
+Penny uses the HobbyCo website to select a $15 model train for <a href="#dfn-purchase" class="internalDFN">purchase</a>.
+ </dd>
+ <dt>Target version</dt>
+ <dd>1.0</dd>
+ <dt>Motivation</dt>
+ <dd>
+A human being seeing a visual offer of sale on a website is the most common
+way offers are discovered on the Web today (2015).
+ </dd>
+ </dl>
+
+ <dl id="uc-pos-kiosk" class="dl-horizontal">
+ <dt>Point of Sale Kiosk</dt>
+ <dd>
+Cory shops for groceries at his local ChowMart, scans his loyalty card and
+all of the items he wants to <a href="#dfn-purchase" class="internalDFN">purchase</a> at the automated kiosk, requests
+a cash back amount, and is presented with a total amount.
+ </dd>
+ <dt>Target version</dt>
+ <dd>Uncategorized</dd>
+ <dt>Motivation</dt>
+ <dd>
+Unifying point of sale interaction w/ the Web Payments architecture is
+vital for the success of this work.
+ </dd>
+ <dt>Accessibility</dt>
+ <dd>
+At present kiosks are rarely accessible to blind people, people with low
+vision, people who use wheelchairs, or people with restricted mobility that
+makes touch interaction difficult or impossible. They don’t tend to offer
+speech output, any ability to zoom or customise colours, may be difficult to
+reach from a wheelchair/sitting position, and do not accept voice commands.
+Enabling as much of the payment interaction to move to a customer-held device
+with accessibility features would help alleviate a number of barriers that
+exist today.
+ </dd>
+ <dt>Privacy</dt>
+ <dd>
+Cory should exercise control over how much he wants the merchant
+to be able to track his activities. Programs like loyalty cards will
+likely involve agreement to more data with the merchant.<br>
+Making kiosks that are used for financial transactions accessible introduces
+several challenges. Speech output may be overheard by people nearby, increased
+text size and/or visibility of content may make it easier for other people
+to read, and voice commands may also be overheard.
+ </dd>
+ </dl>
+
+ <dl id="uc-mobile" class="dl-horizontal">
+ <dt>Mobile</dt>
+ <dd>
+A mobile device can be used to discover an offer in a variety of ways:
+ <ul>
+ <li>
+Hani takes a taxi from the airport to his hotel. The taxi driver
+displays the total with his mobile device. Hani and the taxi driver
+touch their mobile devices to each other. The total appears on Hani's mobile
+device.
+ </li>
+ <li>
+There is a Quick Response Code (QR Code) printed on the bottom of a cup that
+Donna wants to buy. Donna uses her mobile phone app to capture the QR Code,
+view the price of the item, and add it to the list of items that she is buying
+from the store.
+ </li>
+ </ul>
+ </dd>
+ <dt>Target version</dt>
+ <dd>Uncategorized</dd>
+ <dt>Motivation</dt>
+ <dd>
+Unifying the way proximity mobile offers work with the Web Payments
+architecture would help ensure ubiquity.
+ </dd>
+ <dt>Accessibility</dt>
+ <dd>
+An auditory cue notifying people that have low vision or are blind
+that a payment offer/invoice is awaiting their response as well as providing
+guidance on how close their payment device is to the payment terminal would
+be helpful.
+ </dd>
+ <dt>Exceptions</dt>
+ <dd>
+No mobile phone connectivity (e.g. visiting a different country or trip occurs
+outside the range of a mobile network).
+ </dd>
+ </dl>
+
+ <dl id="uc-freemium" class="dl-horizontal">
+ <dt>Freemium</dt>
+ <dd>
+Chaoxiang plays his favorite native app game and wants to upgrade his avatar
+with a few extra "power-ups". Clicking on a power-up displays the price.
+ </dd>
+ <dt>Target version</dt>
+ <dd>Uncategorized</dd>
+ <dt>Motivation</dt>
+ <dd>
+Many of the very successful games these days run on the freemium model,
+but are tied to specific app stores. Providing an app-store agnostic
+mechanism to pay for items in freemium games would give players and
+developers more choices.
+ </dd>
+ </dl>
+
+ <dl id="uc-email" class="dl-horizontal">
+ <dt>Email</dt>
+ <dd>
+A GroupBuyCo customer receives an offer by email to <a href="#dfn-purchase" class="internalDFN">purchase</a> the deal
+of the day.
+ </dd>
+ <dt>Target version</dt>
+ <dd>Uncategorized</dd>
+ <dt>Motivation</dt>
+ <dd>
+Unifying how people initiate payments from email, at a point of sale,
+and via a Web site will help ensure the ubiquity of the Web payment
+technology platform.
+ </dd>
+ <dt>Privacy / Security</dt>
+ <dd>
+It is important to recognize that initiating a payment from within an
+email application could lead to a wholly new category of phishing/fraud.
+ </dd>
+ </dl>
+
+ <dl id="uc-hold-funds" class="dl-horizontal">
+ <dt>Hold Funds</dt>
+ <dd>
+Renne checks into a hotel and is asked for a deposit for any damages
+to the room.
+ </dd>
+ <dt>Target version</dt>
+ <dd>Uncategorized</dd>
+ <dt>Motivation</dt>
+ <dd>
+Some <a title="transaction" href="#dfn-transaction" class="internalDFN">transactions</a>, such as a hold of funds,
+do not always reach completion and are primarily used
+to protect the <a href="#dfn-payee" class="internalDFN">payee</a> from negligence on the part of the
+<a href="#dfn-payer" class="internalDFN">payer</a> (e.g., such as a <a href="#dfn-payer" class="internalDFN">payer</a> damaging a hotel room).
+ </dd>
+ <dt>Exceptions</dt>
+ <dd>
+Software acting on the <a title="payer" href="#dfn-payer" class="internalDFN">payer's</a> behalf may keep
+track of exactly how much money the <a href="#dfn-payer" class="internalDFN">payer</a> has available and
+not allow them to process the offer.
+ </dd>
+ </dl>
+
+ <dl id="uc-preauth" class="dl-horizontal">
+ <dt>Pre-authorization</dt>
+ <dd>
+Krishna pulls up to a pump at a petrol station. His in-vehicle application
+recognizes the station location and the pump. The pump communicates which
+fuels it has and their price in an offer. Krishna's car asks if he wants to
+approve a fill up for up to €35.
+ </dd>
+ <dt>Target version</dt>
+ <dd>Uncategorized</dd>
+ <dt>Motivation</dt>
+ <dd>
+Some offers are not aware of the final price but would rather set limits on
+the amount of the <a href="#dfn-purchase" class="internalDFN">purchase</a> before a particular metered good or service is
+delivered.
+ </dd>
+ <dt>Privacy</dt>
+ <dd>
+Due to the sensitivity of location data, individuals should be able to make
+small fuel <a title="purchase" href="#dfn-purchase" class="internalDFN">purchases</a> in a way that respects their privacy.
+ </dd>
+ <dt>Security</dt>
+ <dd>
+Automated <a title="purchase" href="#dfn-purchase" class="internalDFN">purchases</a> (e.g,. by a vehicle) may involve
+increased logging and security (e.g., a second factor of authentication).
+ </dd>
+ <dt>Regulatory</dt>
+ <dd>
+If a pre-authorization is initiated by a software agent (such as a vehicle)
+due to a <a title="payer" href="#dfn-payer" class="internalDFN">payer's</a> negligence, the regulatory environment
+may assert that the software manufacturer is liable if the proper consent
+notifications were not displayed when the pre-authorization rule was activated.
+ </dd>
+ </dl>
+
+ <dl id="uc-machine-readability" class="dl-horizontal">
+ <dt>Machine Readability</dt>
+ <dd>
+BigBoxCo expresses their entire product catalog online as machine-readable
+information so that SearchCo may index their content more easily and direct
+more customer traffic to BigBoxCo's website.
+ </dd>
+ <dt>Target version</dt>
+ <dd>Uncategorized</dd>
+ <dt>Motivation</dt>
+ <dd>
+Machine-readable offers will have a direct positive impact on store sales
+if they are indexed by search engines.
+ </dd>
+ </dl>
+
+ <dl id="uc-live-prices" class="dl-horizontal">
+ <dt>Live Market Prices</dt>
+ <dd>
+EnergyCo lists barrels of refined oil for sale on their website based on an
+algorithm that uses the cost of coal and crude oil as inputs. EnergyCo
+guarantees their prices for up to 24 hours from the posting date.
+ </dd>
+ <dt>Target version</dt>
+ <dd>Uncategorized</dd>
+ <dt>Motivation</dt>
+ <dd>
+The ability to express a non-repudiable offer as the basis of a legally
+enforceable contract will reduce <a href="#dfn-transaction" class="internalDFN">transaction</a> friction.
+ </dd>
+ <dt>Regulatory</dt>
+ <dd>
+Listing inaccurate prices or not honoring prices could be prosecuted under
+certain regulatory regimes.
+ </dd>
+ </dl>
+
+ <dl id="uc-trialware" class="dl-horizontal">
+ <dt>Trialware</dt>
+ <dd>
+Amantha downloads the latest version of her favorite game and beats
+the first level. The game asks her if she'd like to buy the full game
+to play further levels.
+ </dd>
+ <dt>Target version</dt>
+ <dd>Uncategorized</dd>
+ <dt>Motivation</dt>
+ <dd>
+There is a fairly large trialware industry that could benefit from
+a simple way of executing a payment without requiring redirection
+to another site to enter account and payment details.
+ </dd>
+ </dl>
+
+ <dl id="uc-vehicle" class="dl-horizontal">
+ <dt>In-vehicle</dt>
+ <dd>
+Jeff listens to a lot of music on the way to work. The music station
+serves a digital offer along with the music stream. This enables Jeff to
+easily buy music that he really likes.
+ </dd>
+ <dt>Target version</dt>
+ <dd>Uncategorized</dd>
+ <dt>Motivation</dt>
+ <dd>
+Car manufacturers and the entertainment industry may be interested in
+extending their sales channels into vehicles.
+ </dd>
+ <dt>Accessibility</dt>
+ <dd>
+For safety reasons, the interface used to interact with the digital offer
+must not lead to an increase in vehicle accidents.
+ </dd>
+ <dt>Regulatory</dt>
+ <dd>
+It may be illegal to provide services such as this if the vehicle is in
+motion or if it requires the driver to look away from the road.
+ </dd>
+ </dl>
+
+ <dl id="uc-memorable-ids" class="dl-horizontal">
+ <dt>Memorable Ids</dt>
+ <dd>
+Vern sends money to his friend Milena by typing in Milena's mobile phone number
+and the amount he wants to send.
+ </dd>
+ <dt>Target version</dt>
+ <dd>Uncategorized</dd>
+ <dt>Motivation</dt>
+ <dd>
+Some countries, like the United Kingdom, maintain registries that map
+memorable identifiers like mobile phone numbers to bank accounts. These
+memorable payment identifiers can be used to transmit money from person to
+person using direct bank to bank transfers.
+ </dd>
+ </dl>
+
+ </section>
+
+ <section id="agreement-on-terms" typeof="bibo:Chapter" resource="#agreement-on-terms" property="bibo:hasPart">
+ <h4 id="h-agreement-on-terms" resource="#h-agreement-on-terms"><span property="xhv:role" resource="xhv:heading"><span class="secno">6.1.2 </span>Agreement on Terms</span></h4>
+ <p>
+ </p>
+
+ <dl id="uc-one-time-payment" class="dl-horizontal">
+ <dt>One-time Payment</dt>
+ <dd>
+Jamie wishes to pay for a single article from a market analyst.
+ </dd>
+ <dt>Target version</dt>
+ <dd>1.0</dd>
+ <dt>Motivation</dt>
+ <dd>It should be clear to a
+<a title="payer" href="#dfn-payer" class="internalDFN">payer</a> whether a
+<a href="#dfn-purchase" class="internalDFN">purchase</a> is one-time or recurring, prior to initiation of
+the payment.
+ </dd>
+ </dl>
+
+ <dl id="uc-registrationless" class="dl-horizontal">
+ <dt>Registration-less</dt>
+ <dd>
+Some <a title="payee" href="#dfn-payee" class="internalDFN">payees</a> would rather not require a <a href="#dfn-payer" class="internalDFN">payer</a> to
+register at their site before initiating a purchase:
+ <ul>
+ <li>
+Sven wants to view a pay to read article and does so without needing to
+pre-register with the website.
+ </li>
+ <li>
+Reiko finds a blowtorch for sale at a local digital resale website and
+places money into escrow without needing to register with the website.
+ </li>
+ <li>
+Olaseni is listening to music in a local coffee shop and likes a song he hears.
+He initiates a purchase of the song from the local "music beacon" without
+needing to register with the coffee shop or the music service.
+ </li>
+ </ul>
+ </dd>
+ <dt>Target version</dt>
+ <dd>1.0</dd>
+ <dt>Motivation</dt>
+ <dd>
+There are a large number of "paywall" websites on the Web that require a
+customer to register before they may use the website. In many cases, if the
+site isn't regularly visited by the customer, they abandon the transaction
+when they see the paywall requirement. Providing a mechanism to sell an
+inexpensive item to a customer without requiring registration would be of
+great benefit to not only the merchants selling goods and services, but
+customers that would like to avoid lengthy registration processes.
+ </dd>
+ <dt>Accessibility</dt>
+ <dd>
+People who are on the Autistic spectrum may require trust with the merchant
+to be established through a more formal means to prevent distress and
+abandonment of the transaction.
+ </dd>
+ </dl>
+
+ <dl id="uc-subscription" class="dl-horizontal">
+ <dt>Subscription</dt>
+ <dd>
+Larissa subscribes to a site that provides a monthly analysis of the world
+of finance.
+ </dd>
+ <dt>Target version</dt>
+ <dd>1.0 (if time permits)</dd>
+ <dt>Motivation</dt>
+ <dd>
+<a title="payer" href="#dfn-payer" class="internalDFN">Payers</a> should be able to understand if a
+particular <a href="#dfn-purchase" class="internalDFN">purchase</a> is a recurring payment prior to initiating
+the payment.
+ </dd>
+ <dt>Regulatory</dt>
+ <dd>
+Some regulations may require that subscriptions should be automatically
+canceled after the subscription time span unless explicitly renewed by
+a <a href="#dfn-payer" class="internalDFN">payer</a>.
+ </dd>
+ </dl>
+
+ <dl id="uc-credentials" class="dl-horizontal">
+ <dt>Credentials</dt>
+ <dd>
+At times it is necessary to transmit personally identifiable information
+(e.g., about a qualification, achievement, personal quality, aspect of an
+<a href="#dfn-entity" class="internalDFN">entity</a>'s background, or verifiable statement by an entity about
+another entity) in order to be cleared to make a purchase:
+ <ul>
+ <li>
+PharmCo will only sell regulated drugs to someone with proof
+of an active pharmacist's license.
+ </li>
+ <li>
+WineCo will only sell wine to someone with proof of being over the age of 21.
+ </li>
+ <li>
+BoomCo will only ship industrial explosives to a business that can
+provide evidence of construction permits, a contractor's license, and
+an explosives handling license.
+ </li>
+ <li>
+HomeLoanCo will not finalize a quote for a home mortgage without
+a credit score report and an audited finances report.
+ </li>
+ </ul>
+ </dd>
+ <dt>Target version</dt>
+ <dd>Uncategorized</dd>
+ <dt>Motivation</dt>
+ <dd>
+There are certain types of <a title="purchase" href="#dfn-purchase" class="internalDFN">purchases</a> that cannot
+be initiated without a proper set of credentials. While this isn't fundamental
+to the payment process, it is an integral part of some <a href="#dfn-transaction" class="internalDFN">transaction</a>
+processes.
+ </dd>
+ <dt>Privacy / Security</dt>
+ <dd>It is important that people retain control over when
+ and how their credentials are shared.</dd>
+ <dt>Regulatory</dt>
+ <dd>
+There are a large number of regulations covering the collection, storage, and
+usage of personally identifiable information. Any system designed to transmit
+or collect credentials must conform to all local and federal regulations
+related to identity and privacy.
+ </dd>
+ <dt>Exceptions</dt>
+ <dd>A <a href="#dfn-transaction" class="internalDFN">transaction</a> may fail if a required credential is not available.
+ </dd>
+ </dl>
+
+ <dl id="uc-privacy" class="dl-horizontal">
+ <dt>Privacy Protection</dt>
+ <dd>
+Tibor orders chocolates from CandyCo. CandyCo requests Tibor's
+tokenized shipping address to send him the candy. With Tibor's
+authorization, his payment software transmits a tokenized shipping address to
+BoomCo that the shipper can decipher. Tibor's privacy is protected from the
+candy store, which did not require any personally identifying information to
+complete the <a href="#dfn-transaction" class="internalDFN">transaction</a>.
+ </dd>
+ <dt>Target version</dt>
+ <dd>Uncategorized</dd>
+ <dt>Motivation</dt>
+ <dd>
+Certain low-value <a href="#dfn-transaction" class="internalDFN">transaction</a>s shouldn't require the
+<a href="#dfn-payer" class="internalDFN">payer</a> to divulge personal information that is not necessary
+to complete the <a href="#dfn-transaction" class="internalDFN">transaction</a>.
+ </dd>
+ <dt>Privacy</dt>
+ <dd>
+Non-essential, personally identifiable data should be anonymized and
+protected throughout the process.
+ </dd>
+ </dl>
+
+ <dl id="uc-need-to-know" class="dl-horizontal">
+ <dt>Need to Know</dt>
+ <dd>
+PayCo, a payment processor, is required to keep a certain amount of
+information on their customers
+for anti-money laundering / know your customer regulatory purposes. When a
+<a href="#dfn-payer" class="internalDFN">payer</a> performs a <a href="#dfn-transaction" class="internalDFN">transaction</a> with a <a href="#dfn-payee" class="internalDFN">payee</a>, PayCo
+would like to reduce the amount of information that's transmitted to the
+<a href="#dfn-payee" class="internalDFN">payee</a> while ensuring that PayCo complies with regulations.
+ </dd>
+ <dt>Target version</dt>
+ <dd>Uncategorized</dd>
+ <dt>Motivation</dt>
+ <dd>
+There are types of information, such as personally identifiable information,
+that <a title="payee" href="#dfn-payee" class="internalDFN">payees</a> do not need to know for some
+transactions. Limiting sensitive information to be transmitted to entities
+involved in a payment on a purely need-to-know basis increases security
+while ensuring regulatory compliance.
+ </dd>
+ </dl>
+
+ <dl id="uc-invoices" class="dl-horizontal">
+ <dt>Invoices</dt>
+ <dd>
+There are a large variety of invoices that are used in the world:
+<ul>
+ <li>
+Sunan goes to SuperVoices to download a voiceover that he commissioned for
+his new pet sitting service. SuperVoices generates a detailed invoice for the
+service and provides it to Sunan.
+ </li>
+ <li>
+João is given an electronic
+<a href="https://en.wikipedia.org/wiki/Boleto">Boleto</a> by
+a technology website to pay for a new laptop.
+ </li>
+</ul>
+ </dd>
+ <dt>Target version</dt>
+ <dd>Uncategorized</dd>
+ <dt>Motivation</dt>
+ <dd>
+For certain <a title="payment scheme" href="#dfn-payment-scheme" class="internalDFN">payment schemes</a>, the <a href="#dfn-payer" class="internalDFN">payer</a>
+will have to provide the payment service with a detailed digital invoice from
+the <a href="#dfn-payee" class="internalDFN">payee</a> in order to initiate payment to the <a href="#dfn-payee" class="internalDFN">payee</a>.
+ </dd>
+ </dl>
+
+ <dl id="uc-full-disclosure" class="dl-horizontal">
+ <dt>Full Disclosure</dt>
+ <dd>
+Marge wishes to renew her passport online which requires transmission
+of a fee and a great deal of information about her real-world identity.
+ </dd>
+ <dt>Target version</dt>
+ <dd>Uncategorized</dd>
+ <dt>Motivation</dt>
+ <dd>
+Some <a href="#dfn-transaction" class="internalDFN">transaction</a>s will require very sensitive personally identifiable
+information to be transmitted by the <a href="#dfn-payer" class="internalDFN">payer</a>.
+ </dd>
+ <dt>Privacy / Security</dt>
+ <dd>We must ensure adequate security for these highly sensitive
+ transactions to reduce the likelihood of phishing attacks.</dd>
+ </dl>
+
+ </section>
+
+ <section id="application-of-marketing-elements" typeof="bibo:Chapter" resource="#application-of-marketing-elements" property="bibo:hasPart">
+ <h4 id="h-application-of-marketing-elements" resource="#h-application-of-marketing-elements"><span property="xhv:role" resource="xhv:heading"><span class="secno">6.1.3 </span>Application of Marketing Elements</span></h4>
+ <p>
+ </p>
+
+ <dl id="uc-coupons" class="dl-horizontal">
+ <dt>Coupons</dt>
+ <dd>
+JustPopcorn sends Marco a special discount offer given Marco's past
+<a title="purchase" href="#dfn-purchase" class="internalDFN">purchases</a>. The offer takes the form of a coupon that
+may be applied during payment.
+ </dd>
+ <dt>Target version</dt>
+ <dd>Uncategorized</dd>
+ <dt>Motivation</dt>
+ <dd>
+Providing a mechanism to apply digital coupons before a payment is initiated
+helps price-conscious customers as well as merchants attempting to research
+price sensitivity.
+ </dd>
+ </dl>
+
+ <dl id="uc-loyalty" class="dl-horizontal">
+ <dt>Loyalty Cards</dt>
+ <dd>
+Terry uses his FoodCo loyalty card when purchasing his weekly groceries, which
+gives him a discount on gas <a title="purchase" href="#dfn-purchase" class="internalDFN">purchases</a> performed at the
+FoodCo gas station.
+ </dd>
+ <dt>Target version</dt>
+ <dd>Uncategorized</dd>
+ <dt>Motivation</dt>
+ <dd>
+Loyalty cards may be used at multiple locations to effect the price of a
+particular good.
+ </dd>
+ </dl>
+
+ <dl id="uc-store-credit" class="dl-horizontal">
+ <dt>Store Credit</dt>
+ <dd>
+When Fjörleif arrives as the self-checkout kiosk,
+she scans five dress shirts and two new pairs of dress pants.
+The kiosk mentions that Fjörleif could save 15% off of her <a href="#dfn-purchase" class="internalDFN">purchase</a>
+if she makes the <a href="#dfn-purchase" class="internalDFN">purchase</a> using store credit. She accepts the offer and
+a new store credit card is placed in her payment application on her mobile
+phone.
+ </dd>
+ <dt>Target version</dt>
+ <dd>Uncategorized</dd>
+ <dt>Motivation</dt>
+ <dd>
+Merchants often provide discounts to customers if they sign up for a
+store-specific line of credit.
+ </dd>
+ </dl>
+
+ </section>
+
+ </section>
+
+ <section id="negotiation-of-payment-instruments-2" typeof="bibo:Chapter" resource="#negotiation-of-payment-instruments-2" property="bibo:hasPart">
+ <h3 id="h-negotiation-of-payment-instruments-2" resource="#h-negotiation-of-payment-instruments-2"><span property="xhv:role" resource="xhv:heading"><span class="secno">6.2 </span>Negotiation of Payment Instruments</span></h3>
+ <p>
+ </p>
+
+
+ <section id="discovery-of-accepted-schemes" typeof="bibo:Chapter" resource="#discovery-of-accepted-schemes" property="bibo:hasPart">
+ <h4 id="h-discovery-of-accepted-schemes" resource="#h-discovery-of-accepted-schemes"><span property="xhv:role" resource="xhv:heading"><span class="secno">6.2.1 </span>Discovery of Accepted Schemes</span></h4>
+ <p>
+ </p>
+
+ <dl id="uc-ubiquitous" class="dl-horizontal">
+ <dt>Ubiquitous Schemes</dt>
+ <dd>
+A game store Web site accepts payment via credit card, e-check, and
+operator billing.
+ </dd>
+ <dt>Target version</dt>
+ <dd>1.0</dd>
+ <dt>Motivation</dt>
+ <dd>
+Ubiquitous <a title="payment scheme" href="#dfn-payment-scheme" class="internalDFN">payment schemes</a> should be supported
+without changes to how the schemes or payment instruments operate.
+ </dd>
+ <dt>Regulatory</dt>
+ <dd>
+Often payment schemes have their own internal regulations as well as
+regulations at the local and federal level that cover the usage of the
+scheme.
+ </dd>
+ </dl>
+
+ <dl id="uc-emerging" class="dl-horizontal">
+ <dt>Emerging Schemes</dt>
+ <dd>
+CrowdFundCo supports Bitcoin, Ripple, Google Wallet, and PayPal.
+ </dd>
+ <dt>Target version</dt>
+ <dd>Uncategorized</dd>
+ <dt>Motivation</dt>
+ <dd>
+The same mechanism used to support existing
+<a title="payment scheme" href="#dfn-payment-scheme" class="internalDFN">payment schemes</a> should also
+support emerging <a title="payment scheme" href="#dfn-payment-scheme" class="internalDFN">payment schemes</a>.
+ </dd>
+ </dl>
+
+ </section>
+
+ <section id="selection-of-payment-instruments" typeof="bibo:Chapter" resource="#selection-of-payment-instruments" property="bibo:hasPart">
+ <h4 id="h-selection-of-payment-instruments" resource="#h-selection-of-payment-instruments"><span property="xhv:role" resource="xhv:heading"><span class="secno">6.2.2 </span>Selection of Payment Instruments</span></h4>
+ <p>
+ </p>
+
+ <dl id="uc-discovery" class="dl-horizontal">
+ <dt>Discovery</dt>
+ <dd>
+Yanos has a multiple digital wallets: one on his mobile phone, two in the
+cloud (but on different websites), and one on his smart watch. Each one has
+a credit card that he may want to use for a credit card-based <a href="#dfn-purchase" class="internalDFN">purchase</a>.
+ </dd>
+ <dt>Target version</dt>
+ <dd>1.0</dd>
+ <dt>Motivation</dt>
+ <dd>
+A <a href="#dfn-payer" class="internalDFN">payer</a> will most likely use multiple digital wallets over time. It is
+important to ensure that the wallets that they use are presented to them in a
+consistent manner across devices.
+<span class="issue">The amount of wallet/payment instrument discovery
+flexibility that version 1.0 should support is currently unknown.</span>
+ </dd>
+ <dt>Accessibility</dt>
+ <dd>
+The consistent presentation of digital wallet interfaces also includes
+consistent accessibility hints that are exposed in an interoperable fashion so
+that devices that are accessability-aware can easily integrate with the
+transaction process.
+ </dd>
+ <dt>Privacy / Security</dt>
+ <dd>
+Discovery of digital wallets must be done in such a way as to ensure
+privacy protection.
+ </dd>
+ </dl>
+
+ <dl id="uc-payer-privacy" class="dl-horizontal">
+ <dt>Payer Privacy</dt>
+ <dd>We anticipate a range of privacy scenarios:
+ <ul>
+ <li>
+Lucio sends information about instruments he is willing to use to
+TrustedMerchant, who provides a discount for access to his information.
+ </li>
+ <li>
+Carla does not want to share information about the
+<a title="payment instrument" href="#dfn-payment-instrument" class="internalDFN">payment instruments</a> she uses with any
+merchants, so that information is not shared with any online merchants.
+ </li>
+ </ul>
+ </dd>
+ <dt>Target version</dt>
+ <dd>1.0</dd>
+ <dt>Motivation</dt>
+ <dd>
+Sharing or protecting data on the sorts of
+<a title="payment instrument" href="#dfn-payment-instrument" class="internalDFN">payment instruments</a> available to
+a <a href="#dfn-payer" class="internalDFN">payer</a> should be a decision made by the <a href="#dfn-payer" class="internalDFN">payer</a>.
+ </dd>
+ <dt>Privacy / Security</dt>
+ <dd>
+The types of <a title="payment instrument" href="#dfn-payment-instrument" class="internalDFN">payment instruments</a> available
+to a <a href="#dfn-payer" class="internalDFN">payer</a> could be
+used to digitally fingerprint a <a href="#dfn-payer" class="internalDFN">payer</a> even if they were using an
+pseudo-anonymous payment mechanism. Merchants and <a href="#dfn-payee" class="internalDFN">payee</a>s may be legally
+obligated to protect this kind of <a href="#dfn-payer" class="internalDFN">payer</a> payment information.
+ </dd>
+ </dl>
+
+ <dl id="uc-manual-selection" class="dl-horizontal">
+ <dt>Manual Selection</dt>
+ <dd>In many cases, the <a href="#dfn-payer" class="internalDFN">payer</a> will select a payment instrument manually:
+ <ul>
+ <li>
+Marie has credit cards from three different institutions:
+one for work (from BankA), one personal card (from BankB), and one retail card
+(from PayCo). She wants to choose the right one depending on the context of her
+purchase.
+ </li>
+ <li>
+Claire has one debit card and multiple credit cards from the same bank.
+ </li>
+ <li>
+Veronique wants to use a cryptocurrency in some cases (e.g.,
+peer-to-peer payments).
+ </li>
+ <li>
+Seth participates in a loyalty program with his local grocery store and
+can apply a variety of digital coupons when he visits the store.
+<span class="issue">Is a loyalty card a payment instrument, or a credential?
+</span>
+ </li>
+ <li>
+David wants to be able to manually arrange available
+<a title="payment instrument" href="#dfn-payment-instrument" class="internalDFN">payment instruments</a> when they are presented
+to him. <span class="issue">Why does this need to be standardized?
+Isn't this just a part of the wallet UI?</span>
+ </li>
+ <li>
+Fergus wants to pay for a meal using two different payment instruments:
+cash and a company credit card. He'd like to pay $20.24 with the company
+credit card and provide a $5 tip with digital cash.
+ </li>
+ </ul>
+ </dd>
+ <dt>Target version</dt>
+ <dd>1.0</dd>
+ <dt>Motivation</dt>
+ <dd>
+There are scenarios, such as the first interaction/use of a payment instrument,
+where selection of the payment instrument won't be able to be performed
+automatically.
+ </dd>
+ </dl>
+
+ <dl id="uc-automatic-selection" class="dl-horizontal">
+ <dt>Automatic Selection</dt>
+ <dd>
+When a <a title="payer" href="#dfn-payer" class="internalDFN">payer's</a> personal preferences are known, it
+becomes possible to make selections for them automatically.
+
+ <ul>
+ <li>
+Jonny's payment software on his smart watch chooses the payment instrument that
+will provide him with the biggest cost savings for each <a href="#dfn-purchase" class="internalDFN">purchase</a> he makes
+throughout the week.
+ </li>
+ <li>
+PayCo wants Elizabeth to know that if she pays with the debit card preferred
+by PayCo (because of a lower <a href="#dfn-transaction" class="internalDFN">transaction</a> fee for PayCo),
+she will benefit from a discount.
+ </li>
+ <li>
+Whenever Mary shops at BigFreshGrocery she uses the same credit card.
+She wants payment to happen automatically with that card when she puts her
+phone near the checkout terminal as well as when purchasing groceries online
+from BigFreshGrocery.
+ </li>
+ <li>
+Lalana does not like to scroll. She wants the instruments she uses most
+often to appear at top of the displayed list of available payment instruments.
+ </li>
+ </ul>
+ </dd>
+ <dt>Target version</dt>
+ <dd>Uncategorized</dd>
+ <dt>Motivation</dt>
+ <dd>
+Payment solutions providers can make payments easier and faster through automation.
+ </dd>
+ </dl>
+
+ </section>
+
+ <section id="authentication-to-access-instruments" typeof="bibo:Chapter" resource="#authentication-to-access-instruments" property="bibo:hasPart">
+ <h4 id="h-authentication-to-access-instruments" resource="#h-authentication-to-access-instruments"><span property="xhv:role" resource="xhv:heading"><span class="secno">6.2.3 </span>Authentication to Access Instruments</span></h4>
+ <p>
+ </p>
+
+ <dl id="uc-password" class="dl-horizontal">
+ <dt>Password Auth</dt>
+ <dd>
+When Suresh attempts to pay online, he is asked for a username and password
+by his payment service provider before the payment is approved.
+ </dd>
+ <dt>Target version</dt>
+ <dd>1.0</dd>
+ <dt>Motivation</dt>
+ <dd>
+The most common mechanism for protecting access to payment instruments on the
+Web in 2015 is the use of a username and password.
+ </dd>
+ </dl>
+
+ <dl id="uc-multifactor" class="dl-horizontal">
+ <dt>Multi-Factor</dt>
+ <dd>
+We anticipate a range of authentication scenarios, leveraging a wide variety
+of approaches and device capabilities:
+ <ul>
+ <li>
+When Ian selects his debit card, he is prompted for a PIN.
+ </li>
+ <li>
+Horace presses the biometric fingerprint reader on his phone to authorize a
+purchase.
+ </li>
+ <li>
+An authentication code is sent to Tony's mobile phone as a text message
+to ensure that he is the one that initiated the payment. Once he enters the
+authentication code, the payment proceeds.
+ </li>
+ <li>
+Wes has configured his debit card to require a fingerprint scan from his
+mobile device and a Universal Two Factor (U2F) device to be used when
+performing a <a href="#dfn-purchase" class="internalDFN">purchase</a> over $1,000.
+ </li>
+ <li>
+Frederic taps his phone at the grocery store to pay, and BankA sends him a
+one-time password (OTP) on his mobile phone that he enters using a keypad at
+the checkout counter.
+ </li>
+ <li>
+Nadia's bank asks her to use her two-factor authentication device and at
+least one of their in-branch retinal scanners or palm-vein readers
+before she is allowed to withdraw $25,000.
+ </li>
+ </ul>
+ </dd>
+ <dt>Target version</dt>
+ <dd>1.0</dd>
+ <dt>Motivation</dt>
+ <dd>The payments architecture should support
+ the authentication devices available today for
+multi-factor authentication, as well as those of the future.
+ </dd>
+ <dt>Accessibility</dt>
+ <dd>
+Not everyone can provide fingerprints or detailed iris scans. Therefore, it
+is important to offer multiple forms of biometric verification to improve
+accessibility in addition to providing alternatives to biometric verification,
+such as strong two-factor verification.
+ </dd>
+ </dl>
+
+ <dl id="uc-kyc" class="dl-horizontal">
+ <dt>KYC</dt>
+ <dd>
+A number of Know Your Customer (KYC) requirements must be met when a financial
+service provider authorizes access to a particular <a href="#dfn-payment-instrument" class="internalDFN">payment instrument</a>:
+ <ul>
+ <li>
+BigBank performs KYC clearing on a continuous basis to ensure that their
+customers are properly vetted before participating in financial transactions.
+ </li>
+ <li>
+Multigen, a wealth management company, must ensure that their customer's
+are accredited investors before allowing them to directly manage certain
+investments in their account.
+ </li>
+ <li>
+The Central Bank of Pakistan enables independent mobile resellers to
+perform minimal thumbprint-based KYC clearing in remote regions of the
+country.
+ </li>
+ <li>
+Pharmaxis, a medical drug reseller, requires that a customer is licensed to
+practice medicine and write prescriptions for Class 2 medications (highly
+addictive drugs with a known medical use) before a purchase is allowed to
+proceed.
+ </li>
+ <li>
+Dr. Kubo provides a set of explosives expert KYC credentials at the time of
+transaction to meet transaction requirements managed by the financial
+institution and merchant.
+ </li>
+ </ul>
+ </dd>
+ <dt>Target version</dt>
+ <dd>Uncategorized</dd>
+ <dt>Motivation</dt>
+ <dd>
+Authorization to access an instrument depends on more than just authenticating
+with the payment service provider, it may also require the <a href="#dfn-payee" class="internalDFN">payee</a> to
+have other provable qualities before the transaction can proceed.
+ </dd>
+ <dt>Regulation</dt>
+ <dd>
+In many countries, a variety of regulations exist that require merchants and
+financial service providers to prove that they have vetted their customers
+before allowing a transaction to proceed.
+ </dd>
+ </dl>
+
+ <dl id="uc-" class="dl-horizontal">
+ <dt>AML</dt>
+ <dd>
+Financial service providers, and some merchants, are required to adhere to
+Anti-Money Laundering (AML) regulations by blocking transactions involving
+known bad actors or by reporting suspicious activity related to financial
+transactions:
+ <ul>
+ <li>
+Corresponda Bank's AML system notices an outgoing payment to an account listed
+as frozen by FinCEN and prevents the payment from proceeding.
+ </li>
+ <li>
+FasterPay, a payment service provider, notices tens of thousands of small
+transactions flowing from high-risk foreign accounts into a previously dormant
+domestic account and automatically files a Suspicious Activity Report.
+ </li>
+ <li>
+Eastern Group, an international remittance system, verifies that both the
+sender and a recipient of an international remittance are not on a watch
+list and have known accounts at the source and destination of funds
+before authorizing the transaction.
+ </li>
+ <li>
+The Flamingo, a casino, automatically files a Currency Transaction Report
+when one of its systems detects a customer withdrawing over $10,000 USD
+in winnings over the course of a day.
+ </li>
+ </ul>
+ </dd>
+ <dt>Target version</dt>
+ <dd>Uncategorized</dd>
+ <dt>Motivation</dt>
+ <dd>
+Financial service providers, and some merchants, are required to adhere to
+Anti-Money Laundering (AML) regulations by reporting suspicious activity
+related to financial transactions or by blocking transactions involving
+known bad actors.
+ </dd>
+ <dt>Exceptions</dt>
+ <dd>
+If a <a href="#dfn-payee" class="internalDFN">payee</a> detects that a <a href="#dfn-payer" class="internalDFN">payer</a> is on an applicable blacklist, the
+transaction must not proceed.
+ </dd>
+ </dl>
+
+ <dl id="uc-biometric" class="dl-horizontal">
+ <dt>Biometric</dt>
+ <dd>
+In current online and offline payment <a href="#dfn-transaction" class="internalDFN">transaction</a>s, biometric
+authentication can be used instead of password-based authentication:
+ <ul>
+ <li>
+John registers his fingerprint with his payment provider so that he can
+just use a fingerprint to pay for low-value items.
+ </li>
+ <li>
+Ruba registers her voiceprint and face with her payment provider for use
+in <a href="#dfn-transaction" class="internalDFN">transaction</a>s greater than $1,000.
+ </li>
+ <li>
+Rico buys a $5,000 car for his daughter through an online dealership. His
+<a href="#dfn-payment-processor" class="internalDFN">payment processor</a> requires a password plus two forms of biometric
+identification. Rico doesn't have hands, so he uses a face and iris scan to
+perform the authentication.
+ </li>
+ </ul>
+ </dd>
+ <dt>Target version</dt>
+ <dd>Uncategorized</dd>
+ <dt>Motivation</dt>
+ <dd>
+Biometrics can be utilized on point of sale terminals, mobile, and wearable
+devices. Web payment systems based on biometrics could achieve more reliable
+information security and convenience. Some forms of biometric authentication,
+like facial recognition, can also be used to augment password-based
+authentication mechanisms.
+ </dd>
+ <dt>Security / Privacy</dt>
+ <dd>
+ <ul>
+ <li>
+An individual's privacy should be protected when performing any sort of
+biometric authentication.
+ </li>
+ <li>
+Important data, such as the fingerprint template and private key, and
+sensitive code should be stored and executed in a Trusted Execution
+Environment (TEE).
+ </li>
+ <li>
+The fingerprint authentication protocol, which is capable of transmitting a
+proof of fingerprint authentication credential, should not contain any
+personal fingerprint data.
+ </li>
+ </ul>
+ </dd>
+ <dt>Accessibility</dt>
+ <dd>
+Not everyone can provide fingerprints or detailed iris scans. Therefore, it
+is important to offer multiple forms of biometric verification to improve
+accessibility in addition to providing alternatives to biometric verification,
+such as strong two-factor verification.
+ </dd>
+ </dl>
+
+ <dl id="uc-risk-monitoring" class="dl-horizontal">
+ <dt>Risk Monitoring</dt>
+ <dd>
+Gao's payment processor service continuously monitor's his daily spending limit,
+daily withdrawal limit, and typical spending behavior and alerts him when a
+suspicious payment has been requested.
+ </dd>
+ <dt>Target version</dt>
+ <dd>Uncategorized</dd>
+ <dt>Motivation</dt>
+ <dd>
+As financial services have moved online, the number of Internet-based attacks
+on <a href="#dfn-payer" class="internalDFN">payer</a> financial accounts have increased. One way to protect against
+these sorts of attacks is to perform continous risk monitoring.
+ </dd>
+ </dl>
+
+ <dl id="uc-joint" class="dl-horizontal">
+ <dt>Joint Accounts</dt>
+ <dd>
+ArcheryCorp's manufacturing division has a joint expense account that is
+shared among multiple employees to make purchases. The account is protected
+by an access control list as well as limits on the amount that each
+employee can spend without authorization by management.
+ </dd>
+ <dt>Target version</dt>
+ <dd>Uncategorized</dd>
+ <dt>Motivation</dt>
+ <dd>
+There are many types of accounts that are accessed via different payment
+instruments that can be shared in an organization. Access to the accounts
+are typically protected by one or more sets of authorization rules.
+ </dd>
+ </dl>
+ </section>
+
+ </section>
+
+ <section id="payment-processing-2" typeof="bibo:Chapter" resource="#payment-processing-2" property="bibo:hasPart">
+ <h3 id="h-payment-processing-2" resource="#h-payment-processing-2"><span property="xhv:role" resource="xhv:heading"><span class="secno">6.3 </span>Payment Processing</span></h3>
+ <p>
+ </p>
+
+ <section id="initiation-of-processing" typeof="bibo:Chapter" resource="#initiation-of-processing" property="bibo:hasPart">
+ <h4 id="h-initiation-of-processing" resource="#h-initiation-of-processing"><span property="xhv:role" resource="xhv:heading"><span class="secno">6.3.1 </span>Initiation of Processing</span></h4>
+ <p>
+ </p>
+
+ <div class="note"><div class="note-title" aria-level="5" role="heading" id="h-note2"><span>Note</span></div><p class="">
+Before subjecting a person or organization to any financial <a href="#dfn-transaction" class="internalDFN">transaction</a>
+commitment (such as a web payment), they should be presented with the option
+of reversing, checking, or confirming their choice or submission. It should
+also be noted that this does not preclude certain <a href="#dfn-transaction" class="internalDFN">transaction</a> operations
+from being automated once they have been authorized by an <a href="#dfn-entity" class="internalDFN">entity</a>.
+For more details, see the section on
+<a href="http://www.w3.org/TR/2008/REC-WCAG20-20081211/#minimize-error-reversible">Error Prevention (Legal, Financial, Data)</a>
+in [<cite><a class="bibref" href="#bib-WCAG20">WCAG20</a></cite>].
+ </p></div>
+
+ <dl id="uc-payee-initiated" class="dl-horizontal">
+ <dt>Payee-initiated</dt>
+ <dd>Some payments are initiated by the payee:
+ <ul>
+ <li>
+Richard choses to pay using a credit card at FlowerFriends. FlowerFriends
+initiates payment processing using their <a href="#dfn-payment-processor" class="internalDFN">payment processor</a> to contact the
+acquiring bank that handles credit card payments for FlowerFriends.
+ </li>
+ <li>
+Pitir has authorized RentSeekers to pull money out of his bank account on a
+monthly basis in order to pay his rent. RentSeekers initiates a payment using
+the ACH network to pull money from Pitir's bank account.
+ </li>
+ <li>
+Fiona shows a QR Code, which contains her payment details, to a cashier when
+she is checking out. The cashier scans the QR Code and initiates a payment
+using the details in the QR Code.
+ </li>
+ </ul>
+ </dd>
+ <dt>Target version</dt>
+ <dd>1.0</dd>
+ <dt>Motivation</dt>
+ <dd>
+Payee-initiated payments, also known as "pull payments" or
+"four corner model payments", are widely deployed and utilized today.
+ </dd>
+ <dt>Privacy / Security</dt>
+ <dd>
+One of the biggest security flaws of <a href="#dfn-payee" class="internalDFN">payee</a>-initiated payments is that
+all the information necessary to initiate a <a href="#dfn-transaction" class="internalDFN">transaction</a> from the
+<a title="payer" href="#dfn-payer" class="internalDFN">payer's</a> financial account is typically transmitted
+to the <a href="#dfn-payee" class="internalDFN">payee</a>. For example, credit card information along with
+expiration date, name, and CVV2 code are transmitted and could be intercepted
+by rogue software running on the <a title="payer" href="#dfn-payer" class="internalDFN">payer's</a> servers.
+Special attention should be paid to ensuring that this risky security
+model isn't supported by a Web Payments solution. For example, at a minimum,
+credit card tokenization such as EMVCo's solution should be supported
+alongside other tokenization solutions.
+ </dd>
+ </dl>
+
+ <dl id="uc-payer-initiated" class="dl-horizontal">
+ <dt>Payer-initiated</dt>
+ <dd>Some payments are initiated by the payer:
+ <ul>
+ <li>
+Once Sally has signed into PayPal to pay, PayPal initiates payment processing.
+ </li>
+ <li>
+Joakim uses his Bitcoin wallet to send money to his friend.
+ </li>
+ <li>
+Carson (in New York City) sends money to Vladimir (in Moscow) using
+his Ripple client, which converts the currency from US Dollars to Rubels in
+transit.
+ </li>
+ </ul>
+ </dd>
+ <dt>Target version</dt>
+ <dd>1.0</dd>
+ <dt>Motivation</dt>
+ <dd>
+Payer-initiated payments, also known as "push payments",
+"three corner model payments", or "peer-to-peer payments", are fundamentally
+more secure as no information is given to the <a href="#dfn-payee" class="internalDFN">payee</a> that would
+allow them or an attacker to replay the <a href="#dfn-transaction" class="internalDFN">transaction</a> for a different
+amount or to a different <a href="#dfn-payee" class="internalDFN">payee</a> at a later date.
+ </dd>
+ <dt>Regulatory</dt>
+ <dd>
+There are a number of regulations that cover the protection of confidential
+customer data both from a payment scheme perspective as well as a federal
+level.
+ </dd>
+ </dl>
+
+ </section>
+
+ <section id="verification-of-available-funds" typeof="bibo:Chapter" resource="#verification-of-available-funds" property="bibo:hasPart">
+ <h4 id="h-verification-of-available-funds" resource="#h-verification-of-available-funds"><span property="xhv:role" resource="xhv:heading"><span class="secno">6.3.2 </span>Verification of Available Funds</span></h4>
+ <p>
+ </p>
+
+ <dl id="uc-hold-verification" class="dl-horizontal">
+ <dt>Hold Verification</dt>
+ <dd>
+Renne checks into a hotel and is asked for a deposit for any damages to the
+room. She uses her phone to provide a proof-of-hold until she checks out of
+the hotel, at which time the hold on her funds will be released.
+ </dd>
+ <dt>Target version</dt>
+ <dd>Uncategorized</dd>
+ <dt>Motivation</dt>
+ <dd>
+Delivering services or products that are difficult to "undo," such
+as performing an oil change, dispensing fuel, or renting a car or hotel
+room are examples of situations which may require a two-part
+<a href="#dfn-transaction" class="internalDFN">transaction</a>.
+ </dd>
+ </dl>
+
+ <dl id="uc-funds-verification" class="dl-horizontal">
+ <dt>Funds Verification</dt>
+ <dd>
+When Mario wishes to <a href="#dfn-purchase" class="internalDFN">purchase</a> a race car through the manufacturer,
+the company that makes the car requires a proof of funds from Mario's bank
+in order for the customization of the car to proceed.
+ </dd>
+ <dt>Target version</dt>
+ <dd>Uncategorized</dd>
+ <dt>Motivation</dt>
+ <dd>
+A <a href="#dfn-payee" class="internalDFN">payee</a> may want to limit access to certain services to only those
+who they know can afford the good or service because the act of
+providing an acceptable level of service to the <a href="#dfn-payee" class="internalDFN">payee</a> during the
+pre-sale phase may be costly.
+ </dd>
+ </dl>
+
+ </section>
+
+ <section id="authorization-of-transfer" typeof="bibo:Chapter" resource="#authorization-of-transfer" property="bibo:hasPart">
+ <h4 id="h-authorization-of-transfer" resource="#h-authorization-of-transfer"><span property="xhv:role" resource="xhv:heading"><span class="secno">6.3.3 </span>Authorization of Transfer</span></h4>
+ <p>
+ </p>
+
+ <dl id="uc-proofs" class="dl-horizontal">
+ <dt>Proofs</dt>
+ <dd>
+Goods and services may be released at different times depending on the type of
+<a href="#dfn-transaction" class="internalDFN">transaction</a> being performed:
+ <ul>
+ <li>
+Sung-hyun provides a proof of initiation of funds transfer to get access to
+an online streaming music service.
+ </li>
+ <li>
+Zhang Wei orders 10 large boxes of envelopes from an online shop in
+Tianjin. He uses an escrow service to provide a proof of escrow to the
+online shop in order to get them to initiate the shipment.
+ </li>
+ <li>
+To protect Tibor's privacy when he <a title="purchase" href="#dfn-purchase" class="internalDFN">purchases</a> candy
+online, the store asks only for Tibor's verified shipping address and a
+proof of payment to send him the chocolates.
+ </li>
+ <li>
+RockinRadio, SmoothSounds, and classicallyClassic are independent, specialized
+music streaming services. They accept proof of <a href="#dfn-purchase" class="internalDFN">purchase</a> from each other
+to provide a track that is in their online streaming catalogue even if it was
+originally bought from another provider.
+ </li>
+ </ul>
+ </dd>
+ <dt>Target version</dt>
+ <dd>1.0</dd>
+ <dt>Motivation</dt>
+ <dd>
+At times, it is safe to release a good
+when the payment network acknowledges that the funds are on their way. At other
+times, it's not safe to release a good or service until it has been proven that
+the funds are sitting in the <a title="payee" href="#dfn-payee" class="internalDFN">payee's</a> financial
+account.
+ </dd>
+ <dt>Exceptions</dt>
+ <dd>
+If a particular expected proof is not provided, the <a href="#dfn-transaction" class="internalDFN">transaction</a> will most
+likely fail or transition into an alternate path.
+ </dd>
+ </dl>
+
+ </section>
+
+ <section id="completion-of-transfer" typeof="bibo:Chapter" resource="#completion-of-transfer" property="bibo:hasPart">
+ <h4 id="h-completion-of-transfer" resource="#h-completion-of-transfer"><span property="xhv:role" resource="xhv:heading"><span class="secno">6.3.4 </span>Completion of Transfer</span></h4>
+ <p>
+ </p>
+
+ <dl id="uc-delay-variation" class="dl-horizontal">
+ <dt>Variation of Delay</dt>
+ <dd>When a <a href="#dfn-transaction" class="internalDFN">transaction</a> occurs, the time it takes to transmit and receive
+funds often vary according to the <a href="#dfn-payment-scheme" class="internalDFN">payment scheme</a>:
+ <ul>
+ <li>
+Eman uses a credit card to buy some gifts for her parents. The shop has
+access to the funds in three days.
+ </li>
+ <li>
+Frank uses an electronic check to pay his rent. The rental agency has access
+to the funds in 7 days.
+ </li>
+ <li>
+Felicity has chosen Bitcoin to pay for glasses online. The store
+that sells the glasses has almost guaranteed access to the funds within
+15 minutes.
+ </li>
+ <li>
+Vanessa uses Ripple to <a href="#dfn-purchase" class="internalDFN">purchase</a> a new work outfit in US Dollars.
+Funds in Euros are available to OnlineWorkClothes within a few minutes.
+ </li>
+ </ul>
+ </dd>
+ <dt>Target version</dt>
+ <dd>Uncategorized</dd>
+ <dt>Exceptions</dt>
+ <dd>
+If the funds are sent but never received, then the <a href="#dfn-payee" class="internalDFN">payee</a> will
+select a recourse mechanism that is included in the last <a href="#dfn-transaction" class="internalDFN">transaction</a>
+message.
+ </dd>
+ </dl>
+
+ <dl id="uc-escrow" class="dl-horizontal">
+ <dt>Escrow</dt>
+ <dd>
+There are a number of considerations when providing escrow services to both
+<a title="payer" href="#dfn-payer" class="internalDFN">payers</a> and <a title="payee" href="#dfn-payee" class="internalDFN">payees</a>:
+ <ul>
+ <li>
+Jack has established an online store on a trusted third party website to
+sell pants. Mary wants to buy a pair of pants from Jack's online store.
+Mary doesn't trust Jack because she has never met him nor has she done
+business with him before. Jack doesn't trust Mary because he doesn't know
+if he will be paid after shipping the pants to Mary. Mary makes a purchase,
+selecting to put her money in escrow at the trusted third party. Jack is
+notified that the funds have been received by the trusted third party.
+Jack sends the pants to Mary via Express Mail. When Mary gets the pants,
+she will tell the trusted third party and they will move the funds
+to Jack's account.
+ </li>
+ <li>
+Escrow services in China sometimes provide a virtual financial account to
+<a title="payer" href="#dfn-payer" class="internalDFN">payers</a>. Money is typically transferred from the
+<a title="payer" href="#dfn-payer" class="internalDFN">payer's</a> bank account to the escrow service provider's
+bank to hold, but where the funds are still legally owned by the <a href="#dfn-payer" class="internalDFN">payer</a>.
+When Hung transfers funds to an escrow service provider, his
+rights and responsibilities are exchanged with the escrow service provider
+at the same time as well as how various parties involved with the account
+can access and use the funds.
+ </li>
+ </ul>
+
+ </dd>
+ <dt>Target version</dt>
+ <dd>Uncategorized</dd>
+ <dt>Motivation</dt>
+ <dd>
+A trusted third party is typically helpful for non-instant transactions
+where neither the <a href="#dfn-payer" class="internalDFN">payer</a> or the <a href="#dfn-payee" class="internalDFN">payee</a> have an existing
+relationship. A trusted third party protects the <a href="#dfn-payer" class="internalDFN">payer</a> by ensuring that
+the <a href="#dfn-payee" class="internalDFN">payee</a> has been vetted and by guaranteeing product or a refund. The
+trusted third party protects the <a href="#dfn-payee" class="internalDFN">payee</a> by ensuring that funds from the
+<a href="#dfn-payer" class="internalDFN">payer</a> have been verified before releasing the product to them.
+ </dd>
+ <dt>Regulatory</dt>
+ <dd>
+The use of money held in escrow accounts by the escrow service provider is
+covered by a number of consumer protection laws that restrict what the
+escrow service provider can do with the money. Expressing these restrictions
+in a way that enhances interoperability is desirable.
+ </dd>
+ </dl>
+
+ <dl id="uc-notifications" class="dl-horizontal">
+ <dt>Notifications</dt>
+ <dd>
+Gavin sends an electronic check to WaveMart. WaveMart receives a notification
+that payment has been initiated almost immediately. Four days later, WaveMart
+receives a notification from their bank that payment has been received.
+ </dd>
+ <dt>Target version</dt>
+ <dd>Uncategorized</dd>
+ <dt>Motivation</dt>
+ <dd>
+It is difficult for an organization to know when a payment has been received
+without depending on proprietary software.
+ </dd>
+ <dt>Exceptions</dt>
+ <dd>
+It may also be important to be notified when a payment that was initiated
+has not been received, or when a payment has been reversed after it had been
+received.
+ </dd>
+ </dl>
+
+ </section>
+
+ </section>
+
+ <section id="delivery-of-product-receipt-and-refunds-2" typeof="bibo:Chapter" resource="#delivery-of-product-receipt-and-refunds-2" property="bibo:hasPart">
+ <h3 id="h-delivery-of-product-receipt-and-refunds-2" resource="#h-delivery-of-product-receipt-and-refunds-2"><span property="xhv:role" resource="xhv:heading"><span class="secno">6.4 </span>Delivery of Product/Receipt and Refunds</span></h3>
+ <section id="delivery-of-product" typeof="bibo:Chapter" resource="#delivery-of-product" property="bibo:hasPart">
+ <h4 id="h-delivery-of-product" resource="#h-delivery-of-product"><span property="xhv:role" resource="xhv:heading"><span class="secno">6.4.1 </span>Delivery of Product</span></h4>
+ <p>
+ </p>
+
+ <dl id="uc-physical-goods" class="dl-horizontal">
+ <dt>Physical Goods</dt>
+ <dd>
+Giralt orders a bicycle for his daughter through BikeSmart online and has it
+shipped to his home address.
+ </dd>
+ <dt>Target version</dt>
+ <dd>1.0</dd>
+ <dt>Motivation</dt>
+ <dd>
+The <a href="#dfn-purchase" class="internalDFN">purchase</a> and delivery of physical goods via an online marketplace
+is one of the cornerstones of online commerce.
+ </dd>
+ </dl>
+
+ <dl id="uc-virtual-goods" class="dl-horizontal">
+ <dt>Virtual Goods</dt>
+ <dd>
+When Lilith buys music from a band at MusicBox and then goes to their
+Web site to download additional content, no registration is required, just a
+proof of <a href="#dfn-purchase" class="internalDFN">purchase</a> that is sent to the band's website, after which
+MusicBox provides Lilith a link to download the additional content.
+ </dd>
+ <dt>Target version</dt>
+ <dd>1.0</dd>
+ <dt>Motivation</dt>
+ <dd>
+Delivery of product can happen on any site that accepts a proof of purchase
+that contains a recognized product identifier.
+ </dd>
+ </dl>
+
+ <dl id="uc-dropshipping" class="dl-horizontal">
+ <dt>Dropshipping</dt>
+ <dd>
+Takeru orders a new backpack online and has it shipped to a nearby department
+store for pickup.
+ </dd>
+ <dt>Target version</dt>
+ <dd>Uncategorized</dd>
+ <dt>Motivation</dt>
+ <dd>
+It is common in Japan and the United Kingdom to purchase items online and then
+have them shipped to a nearby department store to save on shipping.
+ </dd>
+ </dl>
+
+ </section>
+
+ <section id="delivery-of-receipt" typeof="bibo:Chapter" resource="#delivery-of-receipt" property="bibo:hasPart">
+ <h4 id="h-delivery-of-receipt" resource="#h-delivery-of-receipt"><span property="xhv:role" resource="xhv:heading"><span class="secno">6.4.2 </span>Delivery of Receipt</span></h4>
+ <dl id="uc-electronic-receipts" class="dl-horizontal">
+ <dt>Electronic Receipts</dt>
+ <dd>
+Ashraf pulls up to a pump at a petrol station. He pays electronically using a
+credit card (via his phone). A machine-readable electronic receipt for
+the <a href="#dfn-purchase" class="internalDFN">purchase</a> from the gas station is transferred to his phone and
+displayed using his favorite expense tracking software.
+ </dd>
+ <dt>Target version</dt>
+ <dd>1.0 (very basic receipt container and delivery protocol)</dd>
+ <dt>Motivation</dt>
+ <dd>
+Standardized, machine-readable electronic receipts make it easier to
+track expenses, prove that certain <a title="purchase" href="#dfn-purchase" class="internalDFN">purchases</a> were
+made, file tax returns, and simplify management of unnecessary paper.
+ </dd>
+ <dt>Privacy</dt>
+ <dd>
+Many merchants want to ensure that receipts are not readable by any party
+between them and their customer.
+ </dd>
+ <dt>Security</dt>
+ <dd>
+Electronic receipts should be tamperproof such that the information can be
+verified to have come from the merchant issuing the receipt. One mechanism
+that could be employed would be the use of digital signatures over the
+contents of the electronic receipt.
+ </dd>
+ <dt>Accessibility</dt>
+ <dd>
+Protecting digital receipts may have the unintended consequence of degrading
+or preventing their use with accessibility technology. It is important that
+protection measures do not prevent accessibility technology from reading
+pertinent information about the transaction.
+ </dd>
+ </dl>
+
+ <dl id="uc-physical-receipts" class="dl-horizontal">
+ <dt>Physical Receipts</dt>
+ <dd>
+Bongani reserves a bus ticket online using his mobile phone. At the bus
+terminal he taps his phone to a kiosk and receives a printed physical receipt
+that he can use on the bus.
+ </dd>
+ <dt>Target version</dt>
+ <dd>Uncategorized</dd>
+ <dt>Motivation</dt>
+ <dd>
+There will be a transition period from the use of physical receipts and
+tickets to digital receipts. In some cases, physical receipts may never be
+replaced, so it is important to ensure that digital receipts have a mechanism
+to be transformed to physical receipts.
+ </dd>
+ <dt>Privacy / Security</dt>
+ <dd>
+Physical receipts should ensure that private information is not exposed on
+the receipt.
+ </dd>
+ <dt>Accessibility</dt>
+ <dd>
+Implementations should ensure that people who have visual disabilities have
+options such as Braille output for physical receipts alongside high-contrast /
+large print lettering.
+ </dd>
+ </dl>
+
+ </section>
+ <section id="refunds" typeof="bibo:Chapter" resource="#refunds" property="bibo:hasPart">
+ <h4 id="h-refunds" resource="#h-refunds"><span property="xhv:role" resource="xhv:heading"><span class="secno">6.4.3 </span>Refunds</span></h4>
+ <dl id="uc-refund" class="dl-horizontal">
+ <dt>Basic Refund</dt>
+ <dd>
+At times, it becomes necessary to refund a <a title="payer" href="#dfn-payer" class="internalDFN">payer's</a>
+payment:
+ <ul>
+ <li>
+Pele buys a slice of pizza with a credit card at a local restaurant
+and is accidentally charged for five slices of pizza. He notices the
+mistake after he pays and requests a refund, which the restaurant
+manager approves. The overcharged funds are returned to his account.
+ </li>
+ <li>
+Teo claims that a blender he purchased online was faulty and returns
+the product to the merchant. The merchant provides the customer with a refund
+in the form of store credit based on the return policy.
+ </li>
+ <li>
+<span class="issue">Should we include a scenario where the refund is to a
+different payment scheme, e.g., cash?</span>
+ </li>
+ <li>
+A financial crimes regulator identifies a criminal syndicate that is
+operating via a number of fake identities. The fake identities are flagged
+and an electronic message is sent to all
+<a title="payment processor" href="#dfn-payment-processor" class="internalDFN">payment processors</a> to reverse all
+payments sent to the fake identities.
+ </li>
+ </ul>
+ </dd>
+ <dt>Target version</dt>
+ <dd>1.0 (if time permits)</dd>
+ <dt>Motivation</dt>
+ <dd>
+Some <a href="#dfn-transaction" class="internalDFN">transaction</a>s are the result of human error or fault. In these
+cases, it is helpful to be able to reverse the <a href="#dfn-transaction" class="internalDFN">transaction</a> and provide
+a refund to the customer.
+ </dd>
+ <dt>Regulatory</dt>
+ <dd>
+Consumer protection laws and regulations affect the ways a customer can
+request a refund for a defective product or service.
+ </dd>
+ </dl>
+
+ </section>
+
+ </section>
+ </section>
+
+ <section id="additional-examples-of-the-payment-phases" typeof="bibo:Chapter" resource="#additional-examples-of-the-payment-phases" property="bibo:hasPart">
+ <!--OddPage--><h2 id="additional-examples" resource="#additional-examples"><span property="xhv:role" resource="xhv:heading"><span class="secno">7. </span>Additional Examples of the Payment Phases</span></h2>
+ <p>
+Early in the document we provide an
+<a href="#a-simple-example-of-the-payment-phases">example of the payment
+phases</a>. In this appendix we provide further examples to
+illustrate the phase steps.
+ </p>
+
+ <div class="issue"><div class="issue-title" aria-level="3" role="heading" id="h-issue5"><span>Issue 5</span></div><p class="">
+Input is requested from experts at each organization providing services
+mentioned below as well as engineers and designers of technologies used below.
+Specifically, if the payment flows outlined below contain errors or omissions
+the group would like to be to ensure that the oversight is corrected as soon
+as possible.
+ </p></div>
+
+ <section id="credit-card-payment-visa-mastercard" typeof="bibo:Chapter" resource="#credit-card-payment-visa-mastercard" property="bibo:hasPart">
+ <h3 id="h-credit-card-payment-visa-mastercard" resource="#h-credit-card-payment-visa-mastercard"><span property="xhv:role" resource="xhv:heading"><span class="secno">7.1 </span>Credit Card Payment (Visa, MasterCard)</span></h3>
+ <p>
+This scenario outlines a typical card purchase using the "four corner model".
+Janet is buying an handbag online from a resale shop.
+ </p>
+
+ <section class="notoc" typeof="bibo:Chapter" resource="#negotiation-of-purchase-terms-1" property="bibo:hasPart">
+ <h4 id="negotiation-of-purchase-terms-1" resource="#negotiation-of-purchase-terms-1"><span property="xhv:role" resource="xhv:heading">Negotiation of Purchase Terms</span></h4>
+ <ul>
+ <li>
+<strong>Discovery of Offer</strong>: Janet searches her favorite resale shop
+online to discover a gently used purse that she has always wanted.
+ </li>
+ <li>
+<strong>Agreement on Terms</strong>: Janet selects the purse and puts it into
+the shopping cart before others have a chance to buy it. She agrees with the
+shipping terms and adds an extended warranty for the product.
+ </li>
+ <li>
+<strong>Application of Marketing Elements</strong>: At the time of reviewing
+the shopping cart, she is asked if she would like the scarf which goes with
+the purse.
+ </li>
+ </ul>
+ </section>
+
+ <section class="notoc" typeof="bibo:Chapter" resource="#negotiation-of-payment-instruments-3" property="bibo:hasPart">
+ <h4 id="negotiation-of-payment-instruments-3" resource="#negotiation-of-payment-instruments-3"><span property="xhv:role" resource="xhv:heading">Negotiation of Payment Instruments</span></h4>
+ <ul>
+ <li>
+<strong>Discovery of Accepted Schemes</strong>: The site takes
+Discover, MasterCard, Visa, and debit cards along with secured money order,
+Bitcoin, Google Wallet, and ApplePay.
+ </li>
+
+ <li>
+<strong>Selection of Payment Instruments</strong>: Janet selects her Discover
+rewards credit card that is highlighted by default because she had used
+it for a previous purchase with the merchant.
+ </li>
+
+ <li>
+<strong>Authentication to Access Instruments</strong>: The merchant asks Janet
+for her zip code and the verification code on the back of the card.
+ </li>
+ </ul>
+ </section>
+
+ <section class="notoc" typeof="bibo:Chapter" resource="#payment-processing-3" property="bibo:hasPart">
+ <h4 id="payment-processing-3" resource="#payment-processing-3"><span property="xhv:role" resource="xhv:heading">Payment Processing</span></h4>
+ <ul>
+ <li>
+<strong>Initiation of Processing</strong>: The merchant initiates an
+payment authorization request to their <a href="#dfn-payment-processor" class="internalDFN">payment processor</a>.
+ </li>
+ <li>
+<strong>Verification of Available Funds</strong>: The payment authorization
+request is successful and the <a href="#dfn-payment-processor" class="internalDFN">payment processor</a> sends a response to the
+merchant acknowledging that the funds are now held until the merchant
+finalizes the payment.
+ </li>
+ <li>
+<strong>Authorization of Transfer</strong>: After the merchant has packed
+the bag for shipping, the merchant sends a message back to the
+<a href="#dfn-payment-processor" class="internalDFN">payment processor</a> to finalize the payment.
+ </li>
+ <li>
+<strong>Completion of Transfer</strong>: The funds are immediately deducted from
+Janet's line of credit. The funds take 3 days to be transferred to the
+merchant's bank account.
+ </li>
+ </ul>
+ </section>
+
+ <section class="notoc" typeof="bibo:Chapter" resource="#delivery-of-product-receipt-and-refunds-3" property="bibo:hasPart">
+ <h4 id="delivery-of-product-receipt-and-refunds-3" resource="#delivery-of-product-receipt-and-refunds-3"><span property="xhv:role" resource="xhv:heading">Delivery of Product/Receipt and Refunds</span></h4>
+ <ul>
+ <li>
+<strong>Delivery of Receipt</strong>: The seller sends her a digital receipt,
+which she receives by email and directly to her digital wallet. Her
+digital wallet forwards the receipt to her budgeting software. The digital
+wallet forwards the tracking number embedded in the digital receipt to
+her MyUPS Shipping Tracker mobile application.
+ </li>
+
+ <li>
+<strong>Delivery of Product</strong>: The merchant's shipping department packs
+and delivers the bag to the shipper, which then sends it to Janet.
+ </li>
+ </ul>
+ </section>
+ </section>
+
+ <section id="tokenized-payments-applepay-venmo-cybersource" typeof="bibo:Chapter" resource="#tokenized-payments-applepay-venmo-cybersource" property="bibo:hasPart">
+ <h3 id="h-tokenized-payments-applepay-venmo-cybersource" resource="#h-tokenized-payments-applepay-venmo-cybersource"><span property="xhv:role" resource="xhv:heading"><span class="secno">7.2 </span>Tokenized Payments (ApplePay / Venmo / CyberSource)</span></h3>
+ <p>
+The following scenario outlines payment using a mobile device and
+tokenization. The merchant has provided a mobile application that
+customers can download in the example below. This example may apply to
+various tokenization payment systems now in use, such as ApplePay,
+CyberSource, Venmo, and Square.
+ </p>
+
+ <section class="notoc" typeof="bibo:Chapter" resource="#negotiation-of-purchase-terms-2" property="bibo:hasPart">
+ <h4 id="negotiation-of-purchase-terms-2" resource="#negotiation-of-purchase-terms-2"><span property="xhv:role" resource="xhv:heading">Negotiation of Purchase Terms</span></h4>
+ <ul>
+ <li>
+<strong>Discovery of Offer</strong>: Tom uses the Terrific-Tools mobile
+app to select a new ax to purchase and finds a hickory handled model like the
+one his father had.
+ </li>
+
+ <li>
+<strong>Agreement on Terms</strong>: Tom selects the ax, which is in the
+price range he wanted.
+ </li>
+
+ <li>
+<strong>Application of Marketing Elements</strong>: <em>Not applicable to
+this particular use case.</em>
+ </li>
+ </ul>
+ </section>
+
+ <section class="notoc" typeof="bibo:Chapter" resource="#negotiation-of-payment-instruments-4" property="bibo:hasPart">
+ <h4 id="negotiation-of-payment-instruments-4" resource="#negotiation-of-payment-instruments-4"><span property="xhv:role" resource="xhv:heading">Negotiation of Payment Instruments</span></h4>
+ <ul>
+ <li>
+<strong>Discovery of Accepted Schemes</strong>: The mobile app uses
+tokenized <a title="payment instrument" href="#dfn-payment-instrument" class="internalDFN">payment instruments</a> and the
+Terrific-Tools Application displays the options available.
+ </li>
+
+ <li>
+<strong>Selection of Payment Instruments</strong>: Tom chooses to pay
+with his tokenization-enabled MasterCard.
+ </li>
+
+ <li>
+<strong>Authentication to Access Instruments</strong>: Tom uses the
+fingerprint recognition feature of his device to authenticate his payment.
+ </li>
+ </ul>
+ </section>
+
+ <section class="notoc" typeof="bibo:Chapter" resource="#payment-processing-4" property="bibo:hasPart">
+ <h4 id="payment-processing-4" resource="#payment-processing-4"><span property="xhv:role" resource="xhv:heading">Payment Processing</span></h4>
+ <ul>
+ <li>
+<strong>Initiation of Processing</strong>: The mobile app creates an
+encrypted transaction and sends it to the payment processor. The payment
+processor decrypts the information and processes the transaction.
+ </li>
+ <li>
+<strong>Verification of Available Funds</strong>: <em>Not applicable to
+this particular use case.</em>
+ </li>
+ <li>
+<strong>Authorization of Transfer</strong>: The payment processor
+responds back to the mobile app with an approval.
+ </li>
+ <li>
+<strong>Completion of Transfer</strong>: The payment processor sends a
+transaction receipt to Terrific-Tools.
+ </li>
+ </ul>
+ </section>
+
+ <section class="notoc" typeof="bibo:Chapter" resource="#delivery-of-product-receipt-and-refunds-4" property="bibo:hasPart">
+ <h4 id="delivery-of-product-receipt-and-refunds-4" resource="#delivery-of-product-receipt-and-refunds-4"><span property="xhv:role" resource="xhv:heading">Delivery of Product/Receipt and Refunds</span></h4>
+ <ul>
+ <li>
+<strong>Delivery of Receipt</strong>: Terrific-Tools sends a transaction
+receipt to the mobile app.
+ </li>
+
+ <li>
+<strong>Delivery of Product</strong>: Terrific-Tools ships the ax to Tom.
+ </li>
+ </ul>
+ </section>
+ </section>
+
+ <section id="three-corner-model-payments-paypal-alipay-google-wallet" typeof="bibo:Chapter" resource="#three-corner-model-payments-paypal-alipay-google-wallet" property="bibo:hasPart">
+ <h3 id="h-three-corner-model-payments-paypal-alipay-google-wallet" resource="#h-three-corner-model-payments-paypal-alipay-google-wallet"><span property="xhv:role" resource="xhv:heading"><span class="secno">7.3 </span>Three Corner Model Payments (PayPal / Alipay / Google Wallet)</span></h3>
+ <p>
+The following scenario outlines an ideal payment experience using a
+<a href="#dfn-payer" class="internalDFN">payer</a>-initiated payment, also known as a "push-payment" or
+"three corner model payment". In this scenario, Meihui is buying an airline
+ticket from a booking website and during the payment process she uses her
+fingerprint instead of a password to authorize the payment.
+ </p>
+
+ <section class="notoc" typeof="bibo:Chapter" resource="#negotiation-of-purchase-terms-3" property="bibo:hasPart">
+ <h4 id="negotiation-of-purchase-terms-3" resource="#negotiation-of-purchase-terms-3"><span property="xhv:role" resource="xhv:heading">Negotiation of Purchase Terms</span></h4>
+ <ul>
+ <li>
+<strong>Discovery of Offer</strong>: Meihui searches for a flight on
+the booking website. She finds a flight for the ideal price and time.
+ </li>
+
+ <li>
+<strong>Agreement on Terms</strong>: Meihui selects the flight and agrees to the
+terms and service associated with the ticket.
+ </li>
+
+ <li>
+<strong>Application of Marketing Elements</strong>: <em>Not applicable to
+this particular use case.</em>
+ </li>
+ </ul>
+ </section>
+
+ <section class="notoc" typeof="bibo:Chapter" resource="#negotiation-of-payment-instruments-5" property="bibo:hasPart">
+ <h4 id="negotiation-of-payment-instruments-5" resource="#negotiation-of-payment-instruments-5"><span property="xhv:role" resource="xhv:heading">Negotiation of Payment Instruments</span></h4>
+ <ul>
+ <li>
+<strong>Discovery of Accepted Schemes</strong>: The booking website takes
+Alipay, Visa, MasterCard, and China UnionPay for payment.
+ </li>
+
+ <li>
+<strong>Selection of Payment Instruments</strong>: Meihui chooses Alipay for
+payment.
+ </li>
+
+ <li>
+<strong>Authentication to Access Instruments</strong>: Meihui logs in the Alipay
+with her account name and password. Meihui is told that she will pay for the
+airline ticket with 3,500 RMB and she confirms it. Meihui uses her fingerprint
+to approve the payment.
+ </li>
+ </ul>
+ </section>
+
+ <section class="notoc" typeof="bibo:Chapter" resource="#payment-processing-5" property="bibo:hasPart">
+ <h4 id="payment-processing-5" resource="#payment-processing-5"><span property="xhv:role" resource="xhv:heading">Payment Processing</span></h4>
+ <ul>
+ <li>
+<strong>Initiation of Processing</strong>: Meihui's Alipay wallet initiates
+the <a href="#dfn-transaction" class="internalDFN">transaction</a>.
+ </li>
+ <li>
+<strong>Verification of Available Funds</strong>: <em>Not applicable to
+this particular use case.</em>
+ </li>
+ <li>
+<strong>Authorization of Transfer</strong>: Alipay initiates the payment to
+the booking website based on Meihui's prior fingerprint-based authorization.
+ </li>
+ <li>
+<strong>Completion of Transfer</strong>: The booking website gets a message
+from Alipay that the transfer is complete.
+ </li>
+ </ul>
+ </section>
+
+ <section class="notoc" typeof="bibo:Chapter" resource="#delivery-of-product-receipt-and-refunds-5" property="bibo:hasPart">
+ <h4 id="delivery-of-product-receipt-and-refunds-5" resource="#delivery-of-product-receipt-and-refunds-5"><span property="xhv:role" resource="xhv:heading">Delivery of Product/Receipt and Refunds</span></h4>
+ <ul>
+ <li>
+<strong>Delivery of Receipt</strong>: The booking website sees that Meihui's
+airline ticket order has been paid and sends a receipt message to her
+digital wallet.
+ </li>
+
+ <li>
+<strong>Delivery of Product</strong>: The booking website sends an email to
+Meihui with the flight information including the airline, flight number,
+departure time, and gate number.
+ </li>
+ </ul>
+ </section>
+ </section>
+
+ <section id="cryptocurrency-payment-bitcoin-ripple" typeof="bibo:Chapter" resource="#cryptocurrency-payment-bitcoin-ripple" property="bibo:hasPart">
+ <h3 id="h-cryptocurrency-payment-bitcoin-ripple" resource="#h-cryptocurrency-payment-bitcoin-ripple"><span property="xhv:role" resource="xhv:heading"><span class="secno">7.4 </span>Cryptocurrency Payment (Bitcoin, Ripple)</span></h3>
+ <p>
+The following scenario outlines an ideal payment experience using Bitcoin, or a
+Bitcoin-like cryptocurrency. In this scenario, Lenne is buying a pair of
+alpaca socks from an online retailer using a "buy one, get one free" coupon.
+The socks are shipped to her home address.
+ </p>
+
+ <section class="notoc" typeof="bibo:Chapter" resource="#negotiation-of-purchase-terms-4" property="bibo:hasPart">
+ <h4 id="negotiation-of-purchase-terms-4" resource="#negotiation-of-purchase-terms-4"><span property="xhv:role" resource="xhv:heading">Negotiation of Purchase Terms</span></h4>
+ <ul>
+ <li>
+<strong>Discovery of Offer</strong>: Lenne searches for "warm socks,
+locally sourced" in her favorite search engine. A pair of Alpaca socks come up
+as the first hit as the Alpaca's are nearby where she lives and the online
+store (AlpacaToesCo) provides local delivery. She has a coupon in her
+digital wallet for the store, but forgot long ago that it is there.
+ </li>
+
+ <li>
+<strong>Agreement on Terms</strong>: Lenne goes to AlpacaToesCo and puts the
+socks in her online shopping cart and is shown the price. Lenne provides her
+shipping address to AlpacaToes.
+ </li>
+
+ <li>
+<strong>Application of Marketing Elements</strong>: When Lenne puts the socks
+in her online shopping cart, she's reminded of the "buy one, get one free"
+coupon she has in her wallet. She adds another pair of socks and continues
+with the checkout process.
+ </li>
+ </ul>
+ </section>
+
+ <section class="notoc" typeof="bibo:Chapter" resource="#negotiation-of-payment-instruments-6" property="bibo:hasPart">
+ <h4 id="negotiation-of-payment-instruments-6" resource="#negotiation-of-payment-instruments-6"><span property="xhv:role" resource="xhv:heading">Negotiation of Payment Instruments</span></h4>
+ <ul>
+ <li>
+<strong>Discovery of Accepted Schemes</strong>: The website takes Visa,
+Ripple, and Bitcoin for payment.
+ </li>
+
+ <li>
+<strong>Selection of Payment Instruments</strong>: Lenne has a Visa card
+as well as a local Ripple wallet and a cloud-based Bitcoin wallet. Lenne
+selects her cloud-based Bitcoin wallet.
+ </li>
+
+ <li>
+<strong>Authentication to Access Instruments</strong>: Since the value of the
+payment is less than $50, Lenne isn't asked for her two-factor authentication
+device to approve the <a href="#dfn-purchase" class="internalDFN">purchase</a>.
+ </li>
+ </ul>
+ </section>
+
+ <section class="notoc" typeof="bibo:Chapter" resource="#payment-processing-6" property="bibo:hasPart">
+ <h4 id="payment-processing-6" resource="#payment-processing-6"><span property="xhv:role" resource="xhv:heading">Payment Processing</span></h4>
+ <ul>
+ <li>
+<strong>Initiation of Processing</strong>: Lenne's cloud-based Bitcoin wallet
+provider initiates the <a href="#dfn-transaction" class="internalDFN">transaction</a>.
+ </li>
+ <li>
+<strong>Verification of Available Funds</strong>: <em>Not applicable to
+this particular use case.</em>
+ </li>
+ <li>
+<strong>Authorization of Transfer</strong>: AlpacaToesCo is sent a message
+from the Bitcoin cloud wallet notifying them that the transfer has been
+initiated. Lenne is told that she will receive a notification when the
+item is shipped.
+ </li>
+ <li>
+<strong>Completion of Transfer</strong>: AlpacaToesCo gets a message from the
+Bitcoin cloud wallet that the transfer is complete. A Bitcoin
+<a href="#dfn-transaction" class="internalDFN">transaction</a> ID is included in the message so that AlpacaToesCo can
+release the product when the appropriate number of verifications are made on
+the <a href="#dfn-transaction" class="internalDFN">transaction</a>.
+ </li>
+ </ul>
+ </section>
+
+ <section class="notoc" typeof="bibo:Chapter" resource="#delivery-of-product-receipt-and-refunds-6" property="bibo:hasPart">
+ <h4 id="delivery-of-product-receipt-and-refunds-6" resource="#delivery-of-product-receipt-and-refunds-6"><span property="xhv:role" resource="xhv:heading">Delivery of Product/Receipt and Refunds</span></h4>
+ <ul>
+ <li>
+<strong>Delivery of Receipt</strong>: AlpacaToesCo sees 6 verifications on the
+transaction in the Bitcoin blockchain and sends a receipt of sale to Lenne's
+cloud wallet. The store notifies Lenne that they have shipped her package.
+ </li>
+
+ <li>
+<strong>Delivery of Product</strong>: AlpacaToesCo ships the package of socks
+to Lenne and she receives them the next day.
+ </li>
+ </ul>
+ </section>
+ </section>
+
+ <section id="electronic-check-payment" typeof="bibo:Chapter" resource="#electronic-check-payment" property="bibo:hasPart">
+ <h3 id="h-electronic-check-payment" resource="#h-electronic-check-payment"><span property="xhv:role" resource="xhv:heading"><span class="secno">7.5 </span>Electronic Check Payment</span></h3>
+ <p><em>To be completed</em>.</p>
+ </section>
+
+ <section id="direct-debit" typeof="bibo:Chapter" resource="#direct-debit" property="bibo:hasPart">
+ <h3 id="h-direct-debit" resource="#h-direct-debit"><span property="xhv:role" resource="xhv:heading"><span class="secno">7.6 </span>Direct Debit (SEPA Direct Debit)</span></h3>
+ <p>
+The following scenario outlines an ideal payment experience using a
+Direct Debit (<a href="#dfn-payee-initiated-payment" class="internalDFN">payee-initiated payment</a>), also known as a
+<a href="#dfn-pull-payment" class="internalDFN">pull payment</a> in the context of a <a href="#dfn-four-corner-model" class="internalDFN">four corner model</a> payment.
+In this scenario, Anna is signing up for electricity service via the
+service's website. During the payment process she will validate an electronic
+direct debit mandate.
+ </p>
+
+ <section class="notoc" typeof="bibo:Chapter" resource="#negotiation-of-purchase-terms-5" property="bibo:hasPart">
+ <h4 id="negotiation-of-purchase-terms-5" resource="#negotiation-of-purchase-terms-5"><span property="xhv:role" resource="xhv:heading">Negotiation of Purchase Terms</span></h4>
+ <ul>
+ <li>
+<strong>Discovery of Offer</strong>: Anna connects to a utility website. She
+wants to setup this new utility immediately before she moves in to a new flat.
+ </li>
+ <li>
+<strong>Agreement on Terms</strong>: Anna selects the contract she wants and
+agrees to the terms and service associated with the delivery of electricity.
+ </li>
+ <li>
+<strong>Application of Marketing Elements</strong>: <em>Not applicable to this
+particular use case.</em>
+ </li>
+ </ul>
+ </section>
+
+ <section class="notoc" typeof="bibo:Chapter" resource="#negotiation-of-payment-instruments-7" property="bibo:hasPart">
+ <h4 id="negotiation-of-payment-instruments-7" resource="#negotiation-of-payment-instruments-7"><span property="xhv:role" resource="xhv:heading">Negotiation of Payment Instruments</span></h4>
+ <ul>
+ <li>
+<strong>Discovery of Accepted Schemes</strong>: The utility website takes
+Visa, MasterCard, and SEPA Direct Debit for payment.
+ </li>
+ <li>
+<strong>Selection of Payment Instruments</strong>: Anna chooses SEPA Direct
+Debit for payment.
+ </li>
+ <li>
+<strong>Authentication to Access Instruments</strong>: Anna provides
+all the mandatory data required for a valid electronic SEPA Direct Debit
+Mandate as well as the IBAN number associated with Anna's account. Anna is
+told that she is setting up a recurring payment with the utility and the
+payment will be automatically withdrawn at the end of the month based on
+her electricity consumption. She agrees to the automatic transfer by
+entering her secret PIN.
+ </li>
+ </ul>
+ </section>
+
+ <section class="notoc" typeof="bibo:Chapter" resource="#payment-processing-7" property="bibo:hasPart">
+ <h4 id="payment-processing-7" resource="#payment-processing-7"><span property="xhv:role" resource="xhv:heading">Payment Processing</span></h4>
+ <ul>
+ <li>
+<strong>Initiation of Processing</strong>: At the end of the month the utility
+invoice system will initiate the payment by sending an invoice by email
+that will be sent directly to Anna's payment service provider.
+ </li>
+ <li>
+<strong>Verification of Available Funds</strong>: <em>Not applicable to this
+particular use case.</em>
+ </li>
+ <li>
+<strong>Authorization of Transfer</strong>: Anna's payment service provider
+authorizes the transfer based on the reference ID that was validated by
+Anna during the <strong>Authentication to Access Instruments</strong> phase.
+ </li>
+ <li>
+<strong>Completion of Transfer</strong>: The utility website gets a message
+from its payment service provider that the transfer has been completed.
+ </li>
+ </ul>
+ </section>
+
+ <section class="notoc" typeof="bibo:Chapter" resource="#delivery-of-product-receipt-and-refunds-7" property="bibo:hasPart">
+ <h4 id="delivery-of-product-receipt-and-refunds-7" resource="#delivery-of-product-receipt-and-refunds-7"><span property="xhv:role" resource="xhv:heading">Delivery of Product/Receipt and Refunds</span></h4>
+ <ul>
+ <li>
+<strong>Delivery of Receipt</strong>: The utility website sees that Anna's
+direct debit mandate has been validated and sends a receipt message to her
+digital wallet.
+ </li>
+ <li>
+<strong>Delivery of Product</strong>: The utility website sends an email to
+Anna with the contract information based on the email provided in the
+Completion of Transfer message sent to her payment service provider.
+ </li>
+ <li>
+<strong>Refunds</strong>: Anna could request a refund by contacting her bank
+if something goes wrong with the Direct Debit.
+ </li>
+ </ul>
+ </section>
+ </section>
+
+ <section id="credit-transfer" typeof="bibo:Chapter" resource="#credit-transfer" property="bibo:hasPart">
+ <h3 id="h-credit-transfer" resource="#h-credit-transfer"><span property="xhv:role" resource="xhv:heading"><span class="secno">7.7 </span>Credit Transfer (SEPAmail)</span></h3>
+ <p>
+The following scenario outlines an ideal payment experience using a
+<a href="#dfn-payer-initiated-payment" class="internalDFN">payer-initiated payment</a>, also known as a
+<a href="#dfn-push-payment" class="internalDFN">push payment</a> in the context of a <a href="#dfn-four-corner-model" class="internalDFN">four corner model</a> payment. In
+this scenario, Anna is buying a very expensive piece of furniture that costs
+far more than the maximum amount allowed by her payment card. She pays
+using her bank account via her bank's website.
+ </p>
+
+ <section class="notoc" typeof="bibo:Chapter" resource="#negotiation-of-purchase-terms-6" property="bibo:hasPart">
+ <h4 id="negotiation-of-purchase-terms-6" resource="#negotiation-of-purchase-terms-6"><span property="xhv:role" resource="xhv:heading">Negotiation of Purchase Terms</span></h4>
+ <ul>
+ <li>
+<strong>Discovery of Offer</strong>: Anna browses a Furniture website.
+She wants to buy a desk for her new flat.
+ </li>
+ <li>
+<strong>Agreement on Terms</strong>: Anna selects a heavy oak antique desk
+from the 17th century.
+ </li>
+ <li>
+<strong>Application of Marketing Elements</strong>: <em>Not applicable to this
+particular use case.</em>
+ </li>
+ </ul>
+ </section>
+
+ <section class="notoc" typeof="bibo:Chapter" resource="#negotiation-of-payment-instruments-8" property="bibo:hasPart">
+ <h4 id="negotiation-of-payment-instruments-8" resource="#negotiation-of-payment-instruments-8"><span property="xhv:role" resource="xhv:heading">Negotiation of Payment Instruments</span></h4>
+ <ul>
+ <li>
+<strong>Discovery of Accepted Schemes</strong>: The furniture website takes
+Visa, MasterCard, and SEPA "Credit Transfer via SEPAmail" for payment.
+ </li>
+ <li>
+<strong>Selection of Payment Instruments</strong>: Anna chooses
+"Credit Transfer via SEPAmail" for payment and provides a tokenized version
+of her IBAN account number. The furniture website sends a "payment request"
+to its payment service provider which will forward it to Anna’s bank.
+ </li>
+ <li>
+<strong>Authentication to Access Instruments</strong>: Anna connects to her
+bank's website where the payment request is pending approval.
+ </li>
+ </ul>
+ </section>
+
+ <section class="notoc" typeof="bibo:Chapter" resource="#payment-processing-8" property="bibo:hasPart">
+ <h4 id="payment-processing-8" resource="#payment-processing-8"><span property="xhv:role" resource="xhv:heading">Payment Processing</span></h4>
+ <ul>
+ <li>
+<strong>Initiation of Processing</strong>: Anna approves the payment request.
+ </li>
+ <li>
+<strong>Verification of Available Funds</strong>: The availability of
+funds is verified by Anna's bank.
+ </li>
+ <li>
+<strong>Authorization of Transfer</strong>: The funds transfer is automatically
+authorized by Anna's bank.
+ </li>
+ <li>
+<strong>Completion of Transfer</strong>: Anna's bank sends the Credit Transfer,
+as well as a payment report (analogous to a signed receipt) to the furniture
+website's payment service provider. The furniture website gets a message
+(also known as a "payment advice") from its payment service provider that the
+transfer is complete depending of the Scheme of Credit Transfer used:
+within 24 hours for a SEPA Credit Transfer, often longer in International
+Credit Transfer outside Europe.
+ </li>
+ </ul>
+ </section>
+
+ <section class="notoc" typeof="bibo:Chapter" resource="#delivery-of-product-receipt-and-refunds-8" property="bibo:hasPart">
+ <h4 id="delivery-of-product-receipt-and-refunds-8" resource="#delivery-of-product-receipt-and-refunds-8"><span property="xhv:role" resource="xhv:heading">Delivery of Product/Receipt and Refunds</span></h4>
+ <ul>
+ <li>
+<strong>Delivery of Receipt</strong>: The furniture website sees that Anna's
+credit transfer has been received and sends a receipt by email to
+Anna based on the email address included in the payment report.
+ </li>
+ <li>
+<strong>Delivery of Product</strong>: The piece of furniture is shipped to
+Anna.
+ </li>
+ <li>
+<strong>Refunds</strong>: Anna must contact the furniture website directly
+since the credit transfer cannot be reversed since she initiated it.
+ </li>
+ </ul>
+ </section>
+ </section>
+
+ </section>
+
+ <section class="appendix" id="future-work" typeof="bibo:Chapter" resource="#future-work" property="bibo:hasPart">
+ <!--OddPage--><h2 id="h-future-work" resource="#h-future-work"><span property="xhv:role" resource="xhv:heading"><span class="secno">A. </span>Future Work</span></h2>
+
+ <ul>
+ <li>Automatic Tax Payment</li>
+ <li>Person to Person Cash Payment</li>
+ <li>Government Entitlement Disbursement</li>
+ </ul>
+
+ </section>
+
+ <section class="appendix" id="acknowledgements" typeof="bibo:Chapter" resource="#acknowledgements" property="bibo:hasPart">
+ <!--OddPage--><h2 id="h-acknowledgements" resource="#h-acknowledgements"><span property="xhv:role" resource="xhv:heading"><span class="secno">B. </span>Acknowledgements</span></h2>
+ <p>
+The editors wish to thank the participants of the
+<a href="http://www.w3.org/Payments/IG/">Web Payments Interest Group</a>
+for discussions about and contributions to this document, as well as the
+<a href="https://www.w3.org/community/webpayments/">Web Payments Community
+Group</a> for earlier work that informed this document.
+ </p>
+ </section>
+
+
+
+<section id="references" class="appendix" typeof="bibo:Chapter" resource="#references" property="bibo:hasPart"><!--OddPage--><h2 id="h-references" resource="#h-references"><span property="xhv:role" resource="xhv:heading"><span class="secno">C. </span>References</span></h2><section id="informative-references" typeof="bibo:Chapter" resource="#informative-references" property="bibo:hasPart"><h3 id="h-informative-references" resource="#h-informative-references"><span property="xhv:role" resource="xhv:heading"><span class="secno">C.1 </span>Informative references</span></h3><dl class="bibliography" resource=""><dt id="bib-WCAG20">[WCAG20]</dt><dd>Ben Caldwell; Michael Cooper; Loretta Guarino Reid; Gregg Vanderheiden et al. <a href="http://www.w3.org/TR/WCAG20/" property="dc:references"><cite>Web Content Accessibility Guidelines (WCAG) 2.0</cite></a>. 11 December 2008. W3C Recommendation. URL: <a href="http://www.w3.org/TR/WCAG20/" property="dc:references">http://www.w3.org/TR/WCAG20/</a>
+</dd></dl></section></section></body></html>
\ No newline at end of file
--- a/latest/charters/payments-wg-charter.html Mon Jul 13 17:46:55 2015 -0700
+++ b/latest/charters/payments-wg-charter.html Wed Jul 15 12:10:51 2015 -0700
@@ -111,7 +111,9 @@
<li>Improved security and privacy by providing information only to those parties that require it to complete a
transaction.
</li>
- <li>Easier integration of new payment schemes by payment service providers, increasing merchant acceptance.</li>
+ <li>Easier integration of new payment schemes by payment service providers, increasing the variety of payment
+ instruments accepted by payees.
+ </li>
<li>Increased scope for <a href="#wallets">digital wallet</a> innovation by banks, retailers, mobile operators,
card networks, and other wallet providers.
</li>
@@ -199,8 +201,8 @@
<li>
<strong>Payment Initiation Request</strong>, by the payee to the payer providing the terms of
the payment including elements such as the accepted payment schemes, price, currency,
- recurrence, transaction type (purchase, refund etc.) and requests for any additional data that
- is required from the payee.
+ recurrence, transaction type (purchase, refund etc.), timeout and requests for any additional
+ data that is required from the payee.
</li>
</ul>
</dd>
@@ -331,7 +333,8 @@
<h3 id="rec_track">Recommendation-track deliverables</h3>
<h4 id="Web_Payment_Vocabularies_1.0">Web Payment Vocabularies 1.0</h4>
- <p>The Working Group will develop machine-readable vocabularies that enable the following:</p>
+ <p>The Working Group will develop machine-readable vocabularies (and a mechanism to manage the lifecycle of
+ these vocabularies) that enable the following:</p>
<ul>
<li>
<strong>Payment Scheme Description</strong>: this vocabulary is used by payees to represent accepted
--- a/latest/common/biblio.js Mon Jul 13 17:46:55 2015 -0700
+++ b/latest/common/biblio.js Wed Jul 15 12:10:51 2015 -0700
@@ -1,5 +1,17 @@
var biblio = {
-
+ "ISO-20022-CAPE": {
+ "authors": [
+ "SWIFT"
+ ],
+ "etAl": true,
+ "href": "http://www.iso20022.org/cards_and_retail_messages.page",
+ "title": "ISO 20022 Cards and Related Retail Financial Services",
+ "status": "International Standard",
+ "publisher": "International Standards Organization (ISO)",
+ "deliveredBy": [
+ "http://www.iso20022.org/contact.page"
+ ]
+ }
// capture localBiblio entries here if needed - example below
// "WAI-ARIA-10": {
// "authors": [
--- a/latest/common/terms.html Mon Jul 13 17:46:55 2015 -0700
+++ b/latest/common/terms.html Wed Jul 15 12:10:51 2015 -0700
@@ -1,141 +1,249 @@
-<p>The following terms are used throughout this document.</p>
+<p>
+This document attempts to communicate the concepts outlined in the Web
+Payments space by using specific terms to discuss particular concepts. This
+terminology is included below and linked to throughout the document to aid
+the reader:
+</p>
<dl class="termlist">
- <dt><dfn>Account</dfn></dt>
- <dd>[PSD2] an account held in the name of one or more payment service users
- which is used for the execution of payment transactions</dd>
- <dd>[Capabilities] An account is a store of value with a balance and a history
- of debits and credits that affect that balance</dd>
-
- <dt><dfn>Account Provider</dfn></dt>
- <dd>[PSD2] account servicing payment service provider: a payment service provider
- providing and maintaining the payment account from which the payer wants the
- specific payment transaction to be made</dd>
-
- <dt><dfn>Authentication</dfn></dt>
- <dd>[PSD2] procedures which allow the payment service provider to verify the
- identity of a payment service user or the validity of the use of a specific
- payment instrument, including the use of its personalized security credentials</dd>
- <dd>[ECB] a security mechanism for verifying: 1) the identity of an individual
- or other entity (including verification by means of a computer or computer
- application); and 2) the level of authority of that person or entity (i.e.
- the ability of that person or entity to perform specific tasks or activities).</dd>
-
- <dt><dfn>Authorization</dfn></dt>
- <dd>[Proposed text – Evert] Requesting acceptance of a payment from a payer to a payee
- at the account serving payment service provider or other actor
- according to payment rules defined by the relevant payment scheme</dd>
- <dd>[ECB] the consent given by a participant (or a third party acting on behalf of
- that participant) in order to transfer funds or securities.</dd>
-
- <dt><dfn>Clearing</dfn></dt>
- <dd>[ECB] the process of transmitting, reconciling and, in some cases,
- confirming transfer orders prior to settlement, potentially including the
- netting of orders and the establishment of final positions for settlement</dd>
-
- <dt><dfn>Customer</dfn></dt>
- <dd>An entity paying to receive goods, services, or other things of value; abstractly known as a payer.</dd>
-
- <dt><dfn>Identity</dfn></dt>
- <dd>A set of information that can be used to identify a particular entity
- such as a person, software agent, or organization.
- An entity may have multiple identities associated with it.</dd>
-
- <dt><dfn>Ledger</dfn></dt>
- <dd>[Merriam-Webster] a book containing accounts to which debits and credits
- are posted from books of original entry</dd>
-
- <dt><dfn>Merchant</dfn></dt>
- <dd>An entity receiving payment for goods, services, or other things of value;
- abstractly known as a payee.</dd>
-
- <dt><dfn>Payer</dfn></dt>
- <dd>An entity that provides a source of funds as required by a transaction.</dd>
-
- <dt><dfn>Payee</dfn></dt>
- <dd>An entity that receives funds as required by a transaction.</dd>
+ <dt><dfn lt="account|accounts">account</dfn></dt>
- <dt><dfn>Payment</dfn></dt>
- <dd>[ECB] in a strict sense, a payment is a transfer of funds which discharges
- an obligation on the part of a payer vis-à-vis a payee.
- However, in a technical or statistical sense, it is often used as a synonym for “transfer order”</dd>
-
- <dt><dfn>Payment Order</dfn></dt>
- <dd>[PSD2] any instruction by a payer or payee to his payment service provider
- requesting the execution of a payment transaction</dd>
-
- <dt><dfn>Transfer Order</dfn></dt>
- <dd>[ECB] an order or message requesting the transfer of assets
- (e.g. funds, securities, other financial instruments or commodities)
- from the debtor to the creditor</dd>
-
- <dt><dfn>Payment Instrument</dfn></dt>
- <dd>PSD2] any personalized device(s) and/or set of procedures agreed
- between the payment service user and the payment service provider
- and used in order to initiate a payment order</dd>
- <dd>[ECB] a tool or a set of procedures enabling the transfer of funds from a payer to a payee.</dd>
-
- <dt><dfn>Payment Scheme</dfn></dt>
- <dd>[ECB] a set of interbank rules, practices and standards necessary
- for the functioning of payment services.</dd>
-
- <dt><dfn>Payment Service Provider</dfn></dt>
- <dd>[PSD] A body executing payment services such as
- <ol>
- <li>credit institutions</li>
- <li>electronic money institutions</li>
- <li>post office giro institutions</li>
- <li>payment institutions</li>
- <li>central banks other than when acting in their capacity as a monetary authority
- or carrying out other functions of a public nature</li>
- <li>government departments and local authorities, other than when carrying out functions
- of a public nature</li>
- </ol></dd>
-
- <dt><dfn>Credit institution</dfn></dt>
- <dd>[ECB] a company duly authorized to carry out banking transactions on a regular basis
- (i.e. to receive deposits from the public, carry out credit transactions,
- make funds available and manage means of payment)</dd>
-
- <dt><dfn>Electronic Money Institution</dfn></dt>
- <dd>[ECB] a term used in EU legislation to designate credit institutions which
- are governed by a simplified regulatory regime because their activity is
- limited to the issuance of electronic money and the provision of financial
- and non-financial services closely related to the issuance of electronic money.</dd>
-
- <dt><dfn>Purchase</dfn></dt>
- <dd>Activities surrounding and including a transaction
- (e.g., discovery of an offer, negotiation of terms, selection of payment instrument, delivery, etc.).</dd>
-
- <dt><dfn>Settlement</dfn></dt>
- <dd>[ECB] the completion of a transaction or of processing with the aim of
- discharging participants’ obligations through the transfer of funds and/or
- securities. A settlement may be final or provisional.</dd>
-
- <dt><dfn>Transaction</dfn></dt>
- <dd>An agreement, communication, or movement carried out between a buyer and a seller
- to exchange an asset for payment</dd>
-
- <dt><dfn>Wallet</dfn></dt>
- <dd>a software service, providing similar functions in the digital world to those provided
- by a physical wallet, namely:
- <ul>
- <li>It holds payment instruments registered by the wallet owner;</li>
- <li>It supports certain payment schemes and enables the payer to use registered payment
- instruments to execute a payment in accordance with that scheme;</li>
- <li>It may hold one or more balances of some digital asset that can be used to make payments.</li>
- </ul>
- This definition of wallet may expand in the future to include other items people find in
- physical wallets such as digital receipts, coupons, and identification.</dd>
-
-
- <dt><dfn>Payment Orchestrator</dfn></dt>
- <dd>The payment orchestrator is the entity or entities (payer, payee or payment
- service provider) that are orchestrating the steps required to complete the
- payment flow.</dd>
+ <dd>[PSD2] an account held in the name of one or more payment service
+ users which is used for the execution of payment transactions.
+ [Capabilities] An account is a store of value with a balance and a
+ history of debits and credits that affect that balance</dd>
- <dt><dfn>Regulator</dfn></dt>
- <dd>The regulator is responsible for monitoring some
- payments activities and enforcing legal requirements.</dd>
+ <dt><dfn lt="account provider|account providers">account provider</dfn></dt>
+
+ <dd>[PSD2] account servicing payment service provider: a payment
+ service provider providing and maintaining the payment account from
+ which the payer wants the specific payment transaction to be made</dd>
+
+ <dt><dfn>authentication</dfn></dt>
+
+ <dd>[PSD2] procedures which allow the payment service provider to
+ verify the identity of a payment service user or the validity of the
+ use of a specific payment instrument, including the use of its
+ personalized security credentials. [ECB] a security mechanism for
+ verifying: 1) the identity of an individual or other entity (including
+ verification by means of a computer or computer application); and 2)
+ the level of authority of that person or entity (i.e. the ability of
+ that person or entity to perform specific tasks or activities).</dd>
+
+ <dt><dfn>authorization</dfn></dt>
+
+ <dd>[Proposed text � Evert] Requesting acceptance of a payment from a
+ payer to a payee at the account serving payment service provider or
+ other actor according to payment rules defined by the relevant payment
+ scheme. [ECB] the consent given by a participant (or a third party
+ acting on behalf of that participant) in order to transfer funds or
+ securities.</dd>
+
+ <dt><dfn>clearing</dfn></dt>
+
+ <dd>[ECB] the process of transmitting, reconciling and, in some cases,
+ confirming transfer orders prior to settlement, potentially including
+ the netting of orders and the establishment of final positions for
+ settlement</dd>
+
+ <dt><dfn lt="credit institution|credit institutions">credit institution</dfn></dt>
+
+ <dd>[ECB] a company duly authorized to carry out banking transactions
+ on a regular basis (i.e. to receive deposits from the public, carry
+ out credit transactions, make funds available and manage means of
+ payment)</dd>
+
+ <dt><dfn lt="customer|customers">customer</dfn></dt>
+
+ <dd>An entity paying to receive goods, services, or other things of
+ value; abstractly known as a payer.</dd>
+
+ <dt><dfn lt="electronic money institution|electronic money institutions">electronic money institution</dfn></dt>
+
+ <dd>[ECB] a term used in EU legislation to designate credit
+ institutions which are governed by a simplified regulatory regime
+ because their activity is limited to the issuance of electronic money
+ and the provision of financial and non-financial services closely
+ related to the issuance of electronic money.</dd>
+
+ <dt><dfn lt="entity|entities">entity</dfn></dt>
+
+ <dd>A person, organization, or software agent that is capable of
+ interacting with the world.</dd>
+
+ <dt><dfn>four corner model</dfn></dt>
+
+ <dd>A <a>payment scheme</a> which includes the following stakeholders:
+ the <a>payer</a> (also known as the Cardholder), the Issuer (who has a
+ relationship with the Cardholder), the Acceptor and the Acquirer
+ (which has a relationship with the Acceptor). The <a>payment
+ scheme</a> defines the rules which apply to all parties; there are no
+ limitations as to who may join the scheme, as long as the requirements
+ of the scheme are met.</dd>
+
+ <dt><dfn lt="identity|identities">identity</dfn></dt>
+
+ <dd>A set of information that can be used to identify a particular
+ entity such as a person, software agent, or organization. An entity
+ may have multiple identities associated with it.</dd>
+
+ <dt><dfn lt="ledger|ledgers">ledger</dfn></dt>
+
+ <dd>[Merriam-Webster] a book containing accounts to which debits and
+ credits are posted from books of original entry</dd>
+
+ <dt><dfn lt="merchant|merchants">merchant</dfn></dt>
+
+ <dd>An entity receiving payment for goods, services, or other things
+ of value; abstractly known as a payee.</dd>
+
+ <dt><dfn lt="payee|payees">payee</dfn></dt>
+
+ <dd>An entity that receives funds as required by a transaction.</dd>
+
+ <dt><dfn lt="payer|payers">payer</dfn></dt>
+
+ <dd>An entity that provides a source of funds as required by a
+ transaction.</dd>
+
+ <dt><dfn lt="payment|payments">payment</dfn></dt>
+
+ <dd>[ECB] in a strict sense, a payment is a transfer of funds which
+ discharges an obligation on the part of a payer vis-a-vis a payee.
+ However, in a technical or statistical sense, it is often used as a
+ synonym for <a>transfer order</a></dd>
+
+ <dt><dfn lt="payment instrument|payment instruments">payment instrument</dfn></dt>
+
+ <dd>A mechanism used to transfer value from a <a>payer</a> to a
+ <a>payee</a>. Examples: Corporate Visa card, personal Visa card, a
+ bitcoin account, a PayPal account, and an Alipay account. [PSD2] any
+ personalized device(s) and/or set of procedures agreed between the
+ payment service user and the payment service provider and used in
+ order to initiate a payment order. [ECB] a tool or a set of procedures
+ enabling the transfer of funds from a payer to a payee.</dd>
+
+ <dt><dfn lt="payment orchestrator|payment orchestrators">payment orchestrator</dfn></dt>
+
+ <dd>The payment orchestrator is the entity or entities (payer, payee
+ or payment service provider) that are orchestrating the steps required
+ to complete the payment flow.</dd>
+
+ <dt><dfn lt="payment order|payment orders">payment order</dfn></dt>
+
+ <dd>[PSD2] any instruction by a payer or payee to his payment service
+ provider requesting the execution of a payment transaction</dd>
+
+ <dt><dfn lt="payment processor|payment processors">payment processor</dfn></dt>
+
+ <dd>An <a>entity</a> that submits and processes payments using a
+ particular <a>payment instrument</a> to a payment network. Examples:
+ Stripe, PayPal, Authorize.net, Atos, FedACH.</dd>
+
+ <dt><dfn lt="payment scheme|payment schemes">payment scheme</dfn></dt>
+
+ <dd>Sets of rules and technical standards for the execution of payment
+ <a title="transaction">transactions</a> that have to be followed by
+ adhering entities (<a title="payment processor">payment
+ processors</a>, <a title="payer">payers</a> and <a title=
+ "payee">payees</a>). Examples: Visa, MasterCard, Bitcoin, Ripple,
+ PayPal, Google Pay, Alipay, Yandex money, ACH, SEPA. [ECB] a set of
+ interbank rules, practices and standards necessary for the functioning
+ of payment services.</dd>
+
+ <dt><dfn lt="payment service provider|payment service providers">payment service provider</dfn></dt>
+
+ <dd>
+ [PSD] A body executing payment services such as
+
+ <ol>
+ <li>credit institutions</li>
+
+ <li>electronic money institutions</li>
+
+ <li>post office giro institutions</li>
+
+ <li>payment institutions</li>
+
+ <li>central banks other than when acting in their capacity as a
+ monetary authority or carrying out other functions of a public
+ nature</li>
+
+ <li>government departments and local authorities, other than when
+ carrying out functions of a public nature</li>
+ </ol>
+ </dd>
+
+ <dt><dfn lt="pull payment|pull payments">pull payment</dfn> or <dfn lt="payee-initiated payment|payee-initiated payments">payee-initiated payment</dfn></dt>
+
+ <dd>A type of <a>transaction</a> where the <a>payee</a> initiates the
+ funds transfer from the <a>payee</a>. A credit card payment is an
+ example of a pull payment.</dd>
+
+ <dt><dfn lt="purchase|purchases">purchase</dfn></dt>
+
+ <dd>Activities surrounding and including a transaction (e.g.,
+ discovery of an offer, negotiation of terms, selection of payment
+ instrument, delivery, etc.).</dd>
+
+ <dt><dfn lt="push payment|push payments">push payment</dfn> or <dfn lt="payer-initiated payment|payer-initiated payments">payer-initiated payment</dfn></dt>
+
+ <dd>A type of <a>transaction</a> where the <a>payer</a> initiates the
+ funds transfer to the <a>payee</a>. PayPal is an example of a push
+ payment.</dd>
+
+ <dt><dfn lt="regulator|regulators">regulator</dfn></dt>
+
+ <dd>The regulator is responsible for monitoring some payments
+ activities and enforcing legal requirements.</dd>
+
+ <dt><dfn>settlement</dfn></dt>
+
+ <dd>[ECB] the completion of a transaction or of processing with the
+ aim of discharging participants� obligations through the transfer of
+ funds and/or securities. A settlement may be final or
+ provisional.</dd>
+
+ <dt><dfn>three corner model</dfn></dt>
+
+ <dd>A <a>payment scheme</a> including the following stakeholders: the
+ <a>payer</a> (also known as the Card Holder), the Issuer (who has a
+ relationship with the <a>payer</a>), the Acceptor and the Acquirer
+ (who has a relationship with the Acceptor), but where the Issuer and
+ the Acquirer are the same entity.</dd>
+
+ <dt><dfn lt="transaction|transactions">transaction</dfn></dt>
+
+ <dd>An economic exchange between a <a>payer</a> and one or more
+ <a title="payee">payees</a>. An agreement, communication, or movement
+ carried out between a buyer and a seller to exchange an asset for
+ payment</dd>
+
+ <dt><dfn lt="transfer order|transfer orders">transfer order</dfn></dt>
+
+ <dd>[ECB] an order or message requesting the transfer of assets (e.g.
+ funds, securities, other financial instruments or commodities) from
+ the debtor to the creditor</dd>
+
+ <dt><dfn lt="wallet|wallets">wallet</dfn></dt>
+
+ <dd>
+ a software service, providing similar functions in the digital world
+ to those provided by a physical wallet, namely:
+
+ <ul>
+ <li>It holds payment instruments registered by the wallet
+ owner;</li>
+
+ <li>It supports certain payment schemes and enables the payer to
+ use registered payment instruments to execute a payment in
+ accordance with that scheme;</li>
+
+ <li>It may hold one or more balances of some digital asset that
+ can be used to make payments.</li>
+ </ul>This definition of wallet may expand in the future to include
+ other items people find in physical wallets such as digital
+ receipts, coupons, and identification.
+ </dd>
</dl>
--- a/latest/glossary/index.html Mon Jul 13 17:46:55 2015 -0700
+++ b/latest/glossary/index.html Wed Jul 15 12:10:51 2015 -0700
@@ -1,60 +1,390 @@
-<dl>
- <dt><tdef>entity</tdef></dt>
- <dd>
-A person, organization, or software agent that is capable of interacting with
-the world.
- </dd>
- <dt><tdef>payer</tdef></dt>
- <dd>
-An <tref>entity</tref> that provides a source of funds as required by a
-<tref>transaction</tref>.
- </dd>
- <dt><tdef>payee</tdef></dt>
- <dd>
-An <tref>entity</tref> that receives funds as required by a
-<tref>transaction</tref>.
- </dd>
- <dt><tdef>merchant</tdef></dt>
- <dd>
-An <tref>entity</tref> receiving payment for goods, services, or other things
-of value; abstractly known as a <tref>payee</tref>.
- </dd>
- <dt><tdef>customer</tdef></dt>
- <dd>
-An <tref>entity</tref> paying to receive goods, services, or other things
-of value; abstractly known as a <tref>payer</tref>.
- </dd>
- <dt><tdef>transaction</tdef></dt>
- <dd>
-An instance of an exchange of value such as buying or selling something.
- </dd>
- <dt><tdef>payment scheme</tdef></dt>
- <dd>
-Sets of rules and technical standards for the execution of payment transactions
-that have to be followed by adhering entities
-(<tref title="payment processor">payment processors</tref>,
-<tref title="payer">payers</tref> and <tref title="payee">payees</tref>).
- </dd>
- <dt><tdef>payment instrument</tdef></dt>
- <dd>
-A mechanism used to transfer value from a <tref>payer</tref> to a
-<tref>payee</tref>.
- </dd>
- <dt><tdef>payment processor</tdef></dt>
- <dd>
-Submits and processes payments using a particular
-<tref>payment instrument</tref> to a payment network.
- </dd>
- <dt><tdef>credential</tdef></dt>
- <dd>
-A qualification, achievement, personal quality, aspect of an
-<tref>entity</tref>'s background, or verifiable statement by an entity about
-another entity.
- </dd>
- <dt><tdef>payment agent</tdef></dt>
- <dd>
-A piece of software operating on an <tref title="entity">entity's</tref>
-behalf that is capable of executing
-<tref title="transaction">transactions</tref>.
- </dd>
-</dl>
+<!DOCTYPE html>
+<html>
+ <head>
+ <title>Web Payments Glossary 1.0</title>
+ <meta http-equiv='Content-Type' content='text/html;charset=utf-8'/>
+ <script src="../common/biblio.js" class="remove"></script>
+ <script src='../respec-w3c-common.js' class='remove'></script>
+ <script src='../respec-webpayments.js' class='remove'></script>
+ <script src="../common/script/resolveReferences.js" class="remove"></script>
+ <script class='remove'>
+ var respecConfig = {
+ // specification status (e.g. WD, LCWD, NOTE, etc.). If in doubt use ED.
+ specStatus: "ED",
+
+ // the specification's short name, as in http://www.w3.org/TR/short-name/
+ shortName: "web-payments-glossary",
+
+ // if you wish the publication date to be other than today, set this
+ //publishDate: "2015-04-16",
+
+ // if there is a previously published draft, uncomment this and set its YYYY-MM-DD date
+ // and its maturity status
+ // previousPublishDate: "1977-03-15",
+ // previousMaturity: "CG-DRAFT",
+
+ // if there a publicly available Editor's Draft, this is the link
+ edDraftURI: "https://dvcs.w3.org/hg/webpayments/raw-file/default/latest/glossary/index.html",
+
+ // if this is a LCWD, uncomment and set the end of its review period
+ // lcEnd: "2009-08-05",
+
+ // if you want to have extra CSS, append them to this list
+ // it is recommended that the respec.css stylesheet be kept
+ //extraCSS: [],
+ localBiblio: biblio,
+
+ // editors, add as many as you like
+ // only "name" is required
+ editors: [
+ { name: "Evert Fekkes", url: "https://www.linkedin.com/in/fekkes",
+ company: "Rabobank", companyURL: "https://www.rabobank.com/" },
+ { name: "Shane McCarron", url: "https://www.linkedin.com/in/halindrome",
+ company: "Digital Bazaar", companyURL: "http://digitalbazaar.com/" },
+ { name: "Manu Sporny", url: "https://manu.sporny.org/",
+ company: "Digital Bazaar", companyURL: "http://digitalbazaar.com/" }
+ ],
+
+ // authors, add as many as you like.
+ // This is optional, uncomment if you have authors as well as editors.
+ // only "name" is required. Same format as editors.
+
+ authors: [
+ { name: "Evert Fekkes", url: "https://www.linkedin.com/in/fekkes",
+ company: "Rabobank", companyURL: "https://www.rabobank.com/" },
+ { name: "Ian Jacobs", url: "http://www.w3.org/People/Jacobs/",
+ company: "W3C", companyURL: "http://www.w3.org/" },
+ { name: "Manu Sporny", url: "https://manu.sporny.org/",
+ company: "Digital Bazaar", companyURL: "http://digitalbazaar.com/" }
+ ],
+
+ otherLinks: [{
+ key: "Version control",
+ data: [{
+ value: "Github Repository",
+ href: "https://github.com/w3c/webpayments-ig"
+ }, {
+ value: "Issues",
+ href: "http://www.w3.org/Payments/IG/track/products/1"
+ }]
+ }],
+
+ // maximum level of table of contents
+ maxTocLevel: 3,
+
+ // name of the WG
+ wg: "Web Payments Interest Group",
+
+ // URI of the public WG page
+ wgURI: "http://www.w3.org/blog/wpig/",
+
+ // name of the public mailing to which comments are due
+ wgPublicList: "public-webpayments-comments",
+
+ // URI of the patent status for this WG, for Rec-track documents
+ // !!!! IMPORTANT !!!!
+ // This is important for Rec-track documents, do not copy a patent URI from a random
+ // document unless you know what you're doing. If in doubt ask your friendly neighbourhood
+ // Team Contact.
+ wgPatentURI: "http://www.w3.org/2004/01/pp-impl/73816/status",
+
+ //preProcess: [ webpayments.preProcess ]
+ /*,
+ alternateFormats: [ {uri: "diff-20111214.html", label: "diff to previous version"} ],
+ */
+ };
+ //respecEvents.sub('start-all', webpayments.preProcess.apply);
+ </script>
+ </head>
+<body>
+
+ <section id='abstract'>
+ <p>
+This document is the unified glossary used by all Web Payments Interest Groups
+and Working Groups operating under the W3C Web Payments Activity.
+ </p>
+ </section>
+
+ <section id='sotd'>
+ <p>
+This document is a work in progress and is being released early and often
+using an agile process; it is incomplete.
+ </p>
+ <p>
+The group continues to actively align the Web Payments terminology with
+definitions produced by other standardization bodies around the world.
+ </p>
+ </section>
+
+ <section>
+ <h2>Introduction</h2>
+ <p>
+This document is the unified glossary used by all Web Payments Interest Groups
+and Working Groups operating under the W3C Web Payments Activity.
+ </p>
+ </section>
+
+ <section>
+ <h2>Terminology</h2>
+
+ <div data-include="../common/terms.html">
+ </div>
+
+ </section>
+
+ <section>
+ <h2>Cross References</h2>
+
+ <p class="issue">
+The cross reference section is highly experimental and may change drastically
+or disappear entirely over the course of the next several weeks or months.
+ </p>
+
+ <p>
+This section contains cross references from terminology defined in this
+document to industry terminology defined in other specifications.
+ </p>
+
+ <section>
+ <h3><a>payer</a></h3>
+ <p>An entity that provides a source of funds as required by a transaction. </p>
+
+
+ <table border="1">
+ <tr>
+ <th>Related Term</th>
+ <th>Definition</th>
+ <th>Scheme</th>
+ <th>Relation</th>
+ <th>Reference</th>
+ </tr>
+ <tr>
+ <th>acceptor</th>
+ <td class="term-dfn">An entity accepting payment related cards </td>
+ <td>Credit/Debit</td>
+ <td>Synonym</td>
+ <td>[[ISO-20022-CAPE]]</td>
+ </tr>
+ <tr>
+ <th>merchant</th>
+ <td class="term-dfn">An entity which provides goods and/or services at one or several sites (physical or virtual). The merchant signs a contract with one or several acquirers. The merchant can perform the role of an acceptor or delegate it to another party (agent).</td>
+ <td>General</td>
+ <td>Specialization</td>
+ <td>[[ISO-20022-CAPE]]</td>
+ </tr>
+ </table>
+
+ </section>
+
+ <section>
+ <h3><a>payee</a></h3>
+ <p>An entity that receives funds as required by a transaction.</p>
+
+ <table border="1">
+ <tr>
+ <th>Related Term</th>
+ <th>Definition</th>
+ <th>Scheme</th>
+ <th>Relation</th>
+ <th>Reference</th>
+ </tr>
+ <tr>
+ <th>customer</th>
+ <td class="term-dfn">A party purchasing goods or services at a merchant </td>
+ <td>General</td>
+ <td>Specialization</td>
+ <td>[[ISO-20022-CAPE]]</td>
+ </tr>
+ </table>
+
+ </section>
+
+ <section>
+ <h3><a>transaction</a></h3>
+ <p>An instance of an exchange of value such as buying or selling something. </p>
+
+ <table border="1">
+ <tr>
+ <th>Related Term</th>
+ <th>Definition</th>
+ <th>Scheme</th>
+ <th>Relation</th>
+ <th>Reference</th>
+ </tr>
+ <tr>
+ <th>transaction </th>
+ <td class="term-dfn">An economic transaction is the whole of transfer of products, the rendering of services and transfers of money which are needed to complete a purchase or any other economic trade. An economic transaction can be seen as the complete economic session from start to finish between two or more parties. </td>
+ <td>General</td>
+ <td>Synonym</td>
+ <td><a href="#UETP">UETP</a></td>
+ </tr>
+ <tr>
+ <th>financial transaction</th>
+ <td class="term-dfn">The act of a cardholder and a merchant or acquirer that results in the exchange of goods or services against payment. </td>
+ <td>Credit/Debit</td>
+ <td>Synonym</td>
+ <td><a href="#EMVCO_TOKEN">EMVCO_TOKEN</a></td>
+ </tr>
+ </table>
+
+
+ </section>
+
+ <section>
+ <h3><a>purchase</a></h3>
+
+ <p>Activities surrounding and including a transaction (e.g., discovery of an offer, negotiation of terms, selection of payment instrument, delivery, etc.). </p>
+
+ </section>
+
+ <section>
+ <h3><a>payment</a></h3>
+ <p>@@TBD@@</p>
+
+ <table border="1">
+ <tr>
+ <th>Related Term</th>
+ <th>Definition</th>
+ <th>Scheme</th>
+ <th>Relation</th>
+ <th>Reference</th>
+ </tr>
+ <tr>
+ <th>payment</th>
+ <td class="term-dfn">A payment is the transfer of an item of value from one party (such as a person or company) to another in exchange for the provision of goods, services or both, or to fulfill a legal obligation. Thus, a payment is a transfer of one form of good, service or monetary unit in exchange for another form of good, service or monetary unit in proportions that have been previously agreed upon by all parties involved. payment can be made in the form of funds (including cryptocurrencies) or assets. </td>
+ <td>General</td>
+ <td>Synonym</td>
+ <td><a href="#UETP">UETP</a></td>
+ </tr>
+ <tr>
+ <th>payment</th>
+ <td class="term-dfn">The basic service which allows the cardholder to pay for the purchase of goods and services from a card acceptor using their card applications or credentials </td>
+ <td>Credit/Debit</td>
+ <td>Synonym</td>
+ <td><a href="#EPC_Vol_1">EPC_Vol_1</a></td>
+ </tr>
+ </table>
+
+ </section>
+
+ <section>
+ <h3><a>payment scheme</a></h3>
+ <p>Sets of rules and technical standards for the execution of payment transactions that have to be followed by adhering entities (payment processors, payers and payees). </p>
+
+ <table border="1">
+ <tr>
+ <th>Related Term</th>
+ <th>Definition</th>
+ <th>Scheme</th>
+ <th>Relation</th>
+ <th>Reference</th>
+ </tr>
+ <tr>
+ <th>payment network</th>
+ <td class="term-dfn">An electronic payment system used to accept, transmit, or process transactions made by payment cards for money, goods, or services, and to transfer information and funds among Issuers, Acquirers, Payment Processors, Merchants, and Cardholders.</td>
+ <td>Credit/Debit</td>
+ <td>Synonym</td>
+ <td><a href="#EMVCO_TOKEN">EMVCO_TOKEN</a></td>
+ </tr>
+ <tr>
+ <th>four party scheme</th>
+ <td class="term-dfn">A Card Scheme which includes the following stakeholders: The Cardholder, the Issuer (who has a relationship with the Cardholder), the Acceptor and the Acquirer (which has a relationship with the Acceptor). The Scheme defines the rules which apply to all parties; there are no limitations as to who may join the scheme, as long as the requirements of the scheme are met. </td>
+ <td>Credit</td>
+ <td>Specialization</td>
+ <td><a href="#EPC_Vol_1">EPC_Vol_1</a></td>
+ </tr>
+ <tr>
+ <th>three party scheme</th>
+ <td class="term-dfn">A Card Scheme including the following Stakeholders: the Cardholder, the Issuer (who has a relationship with the Cardholder), the Acceptor and the Acquirer (who has a relationship with the Acceptor), but the Issuer and the Acquirer are the same entity.</td>
+ <td>Debit</td>
+ <td>Specialization</td>
+ <td><a href="#EPC_Vol_1">EPC_Vol_1</a></td>
+ </tr>
+ </table>
+
+
+ </section>
+
+ <section>
+ <h3><a>payment instrument</a></h3>
+
+ <p>A mechanism used to transfer value from a payer to a payee (payment method). </p>
+
+ <table border="1">
+ <tr>
+ <th>Related Term</th>
+ <th>Definition</th>
+ <th>Scheme</th>
+ <th>Relation</th>
+ <th>Reference</th>
+ </tr>
+ <tr>
+ <th>debit card</th>
+ <td class="term-dfn">A card enabling its holder to make purchases and/or withdraw cash and have these transactions directly and immediately debited from the accounts </td>
+ <td>Debit</td>
+ <td>Specialization</td>
+ <td><a href="#EPC_Vol_1">EPC_Vol_1</a></td>
+ </tr>
+ <tr>
+ <th>credit card</th>
+ <td class="term-dfn">A card enabling its holder to make purchases and/or withdraw cash and have these transactions directly and immediately debited from the accounts </td>
+ <td>Credit</td>
+ <td>Specialization</td>
+ <td><a href="#EPC_Vol_1">EPC_Vol_1</a></td>
+ </tr>
+ <tr>
+ <th>user account</th>
+ <td class="term-dfn">In Web-based payment providers, payers are identified to the payment processor via user accounts.</td>
+ <td>General</td>
+ <td>Specialization</td>
+ <td>None</td>
+ </tr>
+ <tr>
+ <th>virtual currency</th>
+ <td class="term-dfn">Virtual Currency is a digital representation of value, not issued by a central bank, credit institution or e-money institution, which, in some circumstances, can be used as an alternative to money. </td>
+ <td>Digital Currency</td>
+ <td>Specialization</td>
+ <td><a href="#ECB">ECB</a></td>
+ </tr>
+ </table>
+
+ </section>
+
+ <section>
+ <h3><a>payment processor</a></h3>
+ <p>Submits and processes payments using a particular payment instrument to a payment network.</p>
+
+ <table border="1">
+ <tr>
+ <th>Related Term</th>
+ <th>Definition</th>
+ <th>Scheme</th>
+ <th>Relation</th>
+ <th>Reference</th>
+ </tr>
+ <tr>
+ <th>payment processor</th>
+ <td class="term-dfn">An entity that provides payment processing services for Acquirers and / or Issuers. A Payment Processor may in addition to processing provide operational, reporting and other services for the Acquirer or Card Issuer. </td>
+ <td>Credit/Debit</td>
+ <td>Synonym</td>
+ <td><a href="#EMVCO_TOKEN">EMVCO_TOKEN</a></td>
+ </tr>
+ </table>
+
+ </section>
+
+ </section>
+
+ <section class="appendix">
+ <h2>Acknowledgements</h2>
+ <p>
+The editors wish to thank the participants of the
+<a href="http://www.w3.org/Payments/IG/">Web Payments Interest Group</a>
+for discussions about and contributions to this document, as well as the
+<a href="https://www.w3.org/community/webpayments/">Web Payments Community
+Group</a> for earlier work that informed this document.
+ </p>
+ </section>
+
+ </body>
+</html>
--- a/latest/use-cases/index.html Mon Jul 13 17:46:55 2015 -0700
+++ b/latest/use-cases/index.html Wed Jul 15 12:10:51 2015 -0700
@@ -3,8 +3,10 @@
<head>
<title>Web Payments Use Cases 1.0</title>
<meta http-equiv='Content-Type' content='text/html;charset=utf-8'/>
+ <script src="../common/biblio.js" class="remove"></script>
<script src='../respec-w3c-common.js' class='remove'></script>
<script src='../respec-webpayments.js' class='remove'></script>
+ <script src="../common/script/resolveReferences.js" class="remove"></script>
<script class='remove'>
var respecConfig = {
// specification status (e.g. WD, LCWD, NOTE, etc.). If in doubt use ED.
@@ -88,9 +90,9 @@
wgPatentURI: "http://www.w3.org/2004/01/pp-impl/73816/status",
//preProcess: [ webpayments.preProcess ]
- /*,
- alternateFormats: [ {uri: "diff-20111214.html", label: "diff to previous version"} ],
- */
+ //,
+ //alternateFormats: [ {uri: "diff-20150416.html", label: "diff to previous version"} ],
+
};
//respecEvents.sub('start-all', webpayments.preProcess.apply);
</script>
@@ -332,100 +334,11 @@
<section>
<h2>Terminology</h2>
- <p>
-This document attempts to communicate the concepts outlined in the Web
-Payments space by using specific terms to discuss particular concepts. This
-terminology is included below and linked to throughout the document to aid
-the reader:
- </p>
- <dl>
- <dt><dfn>entity</dfn></dt>
- <dd>
-A person, organization, or software agent that is capable of interacting with
-the world.
- </dd>
- <dt><dfn>payee</dfn></dt>
- <dd>
-An <a>entity</a> that receives funds as required by a
-<a>transaction</a>.
- </dd>
- <dt><dfn>payer</dfn></dt>
- <dd>
-An <a>entity</a> that provides a source of funds as required by a
-<a>transaction</a>.
- </dd>
- <dt><dfn>transaction</dfn></dt>
- <dd>
-An economic exchange between a <a>payer</a> and one or more
-<a title="payee">payees</a>.
- </dd>
- <dt><dfn>payment instrument</dfn></dt>
- <dd>
-A mechanism used to transfer value from a <a>payer</a> to a
-<a>payee</a>. Examples: Corporate Visa card, personal Visa card, a bitcoin
-account, a PayPal account, and an Alipay account.
- </dd>
- <dt><dfn>payment processor</dfn></dt>
- <dd>
-An <a>entity</a> that submits and processes payments using a particular
-<a>payment instrument</a> to a payment network. Examples: Stripe, PayPal,
-Authorize.net, Atos, FedACH.
- </dd>
- <dt><dfn>payment scheme</dfn></dt>
- <dd>
-Sets of rules and technical standards for the execution of payment
-<a title="transaction">transactions</a> that have to be followed by adhering
-entities (<a title="payment processor">payment processors</a>,
-<a title="payer">payers</a> and <a title="payee">payees</a>). Examples: Visa,
-MasterCard, Bitcoin, Ripple, PayPal, Google Pay, Alipay, Yandex money, ACH, SEPA.
- </dd>
- <dt><dfn>purchase</dfn></dt>
- <dd>
-Activities surrounding and including a <a>transaction</a> (e.g., discovery of
-an offer, negotiation of terms, selection of <a>payment instrument</a>, and
-delivery).
- </dd>
- <dt><dfn>three corner model</dfn></dt>
- <dd>
-A <a>payment scheme</a> including the following stakeholders: the <a>payer</a>
-(also known as the Card Holder), the Issuer (who has a relationship with
-the <a>payer</a>), the Acceptor and the Acquirer (who has a relationship with
-the Acceptor), but where the Issuer and the Acquirer are the same entity.
- </dd>
- <dt><dfn>four corner model</dfn></dt>
- <dd>
-A <a>payment scheme</a> which includes the following stakeholders:
-the <a>payer</a> (also known as the Cardholder), the Issuer (who has a
-relationship with the Cardholder), the Acceptor and the Acquirer (which
-has a relationship with the Acceptor). The <a>payment scheme</a> defines the
-rules which apply to all parties; there are no limitations as to who may
-join the scheme, as long as the requirements of the scheme are met.
- </dd>
- <dt><dfn>push payment</dfn> or <dfn>payer-initiated payment</dfn></dt>
- <dd>
-A type of <a>transaction</a> where the <a>payer</a> initiates the funds
-transfer to the <a>payee</a>. PayPal is an example of a push payment.
- </dd>
- <dt><dfn>pull payment</dfn> or <dfn>payee-initiated payment</dfn></dt>
- <dd>
-A type of <a>transaction</a> where the <a>payee</a> initiates the funds
-transfer from the <a>payee</a>. A credit card payment is an example of a
-pull payment.
- </dd>
- </dl>
- <p class="note">
-There are a number of financial industry standards (such as
-ISO20022, ISO12812, various X9 standards, PCI DSS, and others) that
-define payment terms. The Web Payments Interest Group has as a goal to
-make use of industry-defined terms in its deliverables. At the same time,
-the group has as a goal that these use cases may be understood by both
-payment industry professionals and the broader Web community. Thus, our
-definitions are simplified and few in number here, but the group is
-also developing a
-<a href="https://www.w3.org/Payments/IG/wiki/GlossaryReference">more complete glossary</a>
-with detailed definitions and mappings to industry-defined terms.
- </p>
+ <div data-include="../common/terms.html"
+ data-oninclude="restrictReferences">
+ </div>
+
</section>
<section>
@@ -873,10 +786,21 @@
<dl id="uc-mobile" class="dl-horizontal">
<dt>Mobile</dt>
<dd>
+A mobile device can be used to discover an offer in a variety of ways:
+ <ul>
+ <li>
Hani takes a taxi from the airport to his hotel. The taxi driver
displays the total with his mobile device. Hani and the taxi driver
touch their mobile devices to each other. The total appears on Hani's mobile
device.
+ </li>
+ <li>
+There is a Quick Response Code (QR Code) printed on the bottom of a cup that
+Donna wants to buy. Donna uses her mobile phone app to capture the QR Code,
+view the price of the item, and add it to the list of items that she is buying
+from the store.
+ </li>
+ </ul>
</dd>
<dt>Target version</dt>
<dd>Uncategorized</dd>
@@ -986,6 +910,13 @@
Automated <a title="purchase">purchases</a> (e.g,. by a vehicle) may involve
increased logging and security (e.g., a second factor of authentication).
</dd>
+ <dt>Regulatory</dt>
+ <dd>
+If a pre-authorization is initiated by a software agent (such as a vehicle)
+due to a <a title="payer">payer's</a> negligence, the regulatory environment
+may assert that the software manufacturer is liable if the proper consent
+notifications were not displayed when the pre-authorization rule was activated.
+ </dd>
</dl>
<dl id="uc-machine-readability" class="dl-horizontal">
@@ -1018,6 +949,11 @@
The ability to express a non-repudiable offer as the basis of a legally
enforceable contract will reduce <a>transaction</a> friction.
</dd>
+ <dt>Regulatory</dt>
+ <dd>
+Listing inaccurate prices or not honoring prices could be prosecuted under
+certain regulatory regimes.
+ </dd>
</dl>
<dl id="uc-trialware" class="dl-horizontal">
@@ -1056,6 +992,11 @@
For safety reasons, the interface used to interact with the digital offer
must not lead to an increase in vehicle accidents.
</dd>
+ <dt>Regulatory</dt>
+ <dd>
+It may be illegal to provide services such as this if the vehicle is in
+motion or if it requires the driver to look away from the road.
+ </dd>
</dl>
<dl id="uc-memorable-ids" class="dl-horizontal">
@@ -1152,6 +1093,12 @@
particular <a>purchase</a> is a recurring payment prior to initiating
the payment.
</dd>
+ <dt>Regulatory</dt>
+ <dd>
+Some regulations may require that subscriptions should be automatically
+canceled after the subscription time span unless explicitly renewed by
+a <a>payer</a>.
+ </dd>
</dl>
<dl id="uc-credentials" class="dl-horizontal">
@@ -1192,6 +1139,13 @@
<dt>Privacy / Security</dt>
<dd>It is important that people retain control over when
and how their credentials are shared.</dd>
+ <dt>Regulatory</dt>
+ <dd>
+There are a large number of regulations covering the collection, storage, and
+usage of personally identifiable information. Any system designed to transmit
+or collect credentials must conform to all local and federal regulations
+related to identity and privacy.
+ </dd>
<dt>Exceptions</dt>
<dd>A <a>transaction</a> may fail if a required credential is not available.
</dd>
@@ -1376,6 +1330,12 @@
Ubiquitous <a title="payment scheme">payment schemes</a> should be supported
without changes to how the schemes or payment instruments operate.
</dd>
+ <dt>Regulatory</dt>
+ <dd>
+Often payment schemes have their own internal regulations as well as
+regulations at the local and federal level that cover the usage of the
+scheme.
+ </dd>
</dl>
<dl id="uc-emerging" class="dl-horizontal">
@@ -1493,6 +1453,11 @@
to him. <span class="issue">Why does this need to be standardized?
Isn't this just a part of the wallet UI?</span>
</li>
+ <li>
+Fergus wants to pay for a meal using two different payment instruments:
+cash and a company credit card. He'd like to pay $20.24 with the company
+credit card and provide a $5 tip with digital cash.
+ </li>
</ul>
</dd>
<dt>Target version</dt>
@@ -1770,6 +1735,23 @@
</dd>
</dl>
+ <dl id="uc-risk-monitoring" class="dl-horizontal">
+ <dt>Risk Monitoring</dt>
+ <dd>
+Gao's payment processor service continuously monitor's his daily spending limit,
+daily withdrawal limit, and typical spending behavior and alerts him when a
+suspicious payment has been requested.
+ </dd>
+ <dt>Target version</dt>
+ <dd>Uncategorized</dd>
+ <dt>Motivation</dt>
+ <dd>
+As financial services have moved online, the number of Internet-based attacks
+on <a>payer</a> financial accounts have increased. One way to protect against
+these sorts of attacks is to perform continous risk monitoring.
+ </dd>
+ </dl>
+
<dl id="uc-joint" class="dl-horizontal">
<dt>Joint Accounts</dt>
<dd>
@@ -1826,6 +1808,11 @@
monthly basis in order to pay his rent. RentSeekers initiates a payment using
the ACH network to pull money from Pitir's bank account.
</li>
+ <li>
+Fiona shows a QR Code, which contains her payment details, to a cashier when
+she is checking out. The cashier scans the QR Code and initiates a payment
+using the details in the QR Code.
+ </li>
</ul>
</dd>
<dt>Target version</dt>
@@ -1877,6 +1864,12 @@
allow them or an attacker to replay the <a>transaction</a> for a different
amount or to a different <a>payee</a> at a later date.
</dd>
+ <dt>Regulatory</dt>
+ <dd>
+There are a number of regulations that cover the protection of confidential
+customer data both from a payment scheme perspective as well as a federal
+level.
+ </dd>
</dl>
</section>
@@ -2015,6 +2008,57 @@
</dd>
</dl>
+ <dl id="uc-escrow" class="dl-horizontal">
+ <dt>Escrow</dt>
+ <dd>
+There are a number of considerations when providing escrow services to both
+<a title="payer">payers</a> and <a title="payee">payees</a>:
+ <ul>
+ <li>
+Jack has established an online store on a trusted third party website to
+sell pants. Mary wants to buy a pair of pants from Jack's online store.
+Mary doesn't trust Jack because she has never met him nor has she done
+business with him before. Jack doesn't trust Mary because he doesn't know
+if he will be paid after shipping the pants to Mary. Mary makes a purchase,
+selecting to put her money in escrow at the trusted third party. Jack is
+notified that the funds have been received by the trusted third party.
+Jack sends the pants to Mary via Express Mail. When Mary gets the pants,
+she will tell the trusted third party and they will move the funds
+to Jack's account.
+ </li>
+ <li>
+Escrow services in China sometimes provide a virtual financial account to
+<a title="payer">payers</a>. Money is typically transferred from the
+<a title="payer">payer's</a> bank account to the escrow service provider's
+bank to hold, but where the funds are still legally owned by the <a>payer</a>.
+When Hung transfers funds to an escrow service provider, his
+rights and responsibilities are exchanged with the escrow service provider
+at the same time as well as how various parties involved with the account
+can access and use the funds.
+ </li>
+ </ul>
+ </ul>
+ </dd>
+ <dt>Target version</dt>
+ <dd>Uncategorized</dd>
+ <dt>Motivation</dt>
+ <dd>
+A trusted third party is typically helpful for non-instant transactions
+where neither the <a>payer</a> or the <a>payee</a> have an existing
+relationship. A trusted third party protects the <a>payer</a> by ensuring that
+the <a>payee</a> has been vetted and by guaranteeing product or a refund. The
+trusted third party protects the <a>payee</a> by ensuring that funds from the
+<a>payer</a> have been verified before releasing the product to them.
+ </dd>
+ <dt>Regulatory</dt>
+ <dd>
+The use of money held in escrow accounts by the escrow service provider is
+covered by a number of consumer protection laws that restrict what the
+escrow service provider can do with the money. Expressing these restrictions
+in a way that enhances interoperability is desirable.
+ </dd>
+ </dl>
+
<dl id="uc-notifications" class="dl-horizontal">
<dt>Notifications</dt>
<dd>
@@ -2036,6 +2080,7 @@
received.
</dd>
</dl>
+
</section>
</section>
@@ -2110,8 +2155,8 @@
<dd>1.0 (very basic receipt container and delivery protocol)</dd>
<dt>Motivation</dt>
<dd>
-Standardized, machine-readable electronic receipts could make it easier to
-track expenses, prove that certain <a title="purchase">purchases</a> were
+Standardized, machine-readable electronic receipts make it easier to
+track expenses, prove that certain <a title="purchase">purchases</a> were
made, file tax returns, and simplify management of unnecessary paper.
</dd>
<dt>Privacy</dt>
@@ -2205,6 +2250,11 @@
cases, it is helpful to be able to reverse the <a>transaction</a> and provide
a refund to the customer.
</dd>
+ <dt>Regulatory</dt>
+ <dd>
+Consumer protection laws and regulations affect the ways a customer can
+request a refund for a defective product or service.
+ </dd>
</dl>
</section>