1. Scratch Cash Method of Payment for Electronic Commerce © Copyright: Ben Livson 1998. All rights reserved. Confidential.

2. Scratch Cash Method of Payment for Electronic Commerce

5. 4. Scratch Cash End to End Process 1. Initialize back-office scratch cash database and assign monetary value to randomly generated sequences. 2. Produce scratch cash cards and print scratch sequences. 3. Enable consumer card use services, e.g. scratch stamps and e- commerce. 4. Distribute scratch cash for card retail sales. 5. Consumer uses scratch cash for payment 6. Back-office automatically validates scratch cash, updates scratch database status and maintains transaction record. All. Front of office customer support and help desk.

6. Scratch Cash Method of Payment for Electronic Commerce Fill your shopping cart for $x Pay by entering scratch sequences $s 1 +$s 2 +…+$s n >$x Validate sequences against the back-end database. If all sequences valid, accept payment and issue consumer a receipt and authorise delivery of goods and services. Validate OK Mark s 1,s 2,…,s n-1 used Provide exact change by reducing the value of new $s n= =$x-($s 1 +$s 2 +…+$s n ) Update database statuses, time-stamps and write transaction records Deliver Issue receipt Backend delivery of goods and services Interface with ERP Accounts & Financials Consumer receives a receipt and the goods or services OK Purchase complete Well Done! All sequences must be valid Consumer can retry y-times Figure 5: Consumer-Merchant Process

7. Scratch Cash Method of Payment for Electronic Commerce