Preference of internet-based debit payment protocols

Debit payment is a low cost and low risk payment method in comparison with credit and pre-paid payment methods. In this study, we analyze the structures of Internet-based debit payment protocols and classified them into three types depending upon which party drives the authentication: Payment Gateway, customer's bank, or electronic merchant. For each type, real world protocols, SSL/D, SDT, and SET/D, respectively are exemplified. To compare the merchants' preference regarding these protocols, we have identified five distinctive factors that distinguish the characteristics of these three protocols: authentication method, risk of leaking bank account information, efficient recovery of failed authorization response, merchant's required implementation effort, and customer's ease of use. For these factors, the preferred features of each merchant are mapped to compute the preferences of the protocols. In order to empirically evaluate the preferences of protocols, we surveyed the merchant's weighting of five factors and preferred features from 36 online merchants. Based on the obtained data, we computed the preferences of protocols and first found that the protocols have difference preference levels. Second, this study found that the game and content providers prefer SSL/D and real goods retailers prefer SDT. This preference value provides insight into the future demand of debit payment protocols.