Internet Payment Systems: Legal Issues Facing Businesses, Consumers and Payment Service Providers

The Internet is changing the way businesses sell everything from newspapers, music, groceries and airplane parts, to electronic equipment and natural gas.'An increasing number of businesses are using the Internet to reach customers, process orders and receive payment with greater speed, at lower cost and in higher volumes than they could through traditional marketing channels.2 For example, Dell Computer Corporation increased its daily sales at its Web site from $1 million-a-day in January 1997 to $2 million-a-day in June 1997.3 Indicative of the medium's growth as a payment tool, Internet retail purchases of goods and services are expected to grow from between $500 and $600 million in 1996, to between $4 and $10 bil-* Robert F. Stankey is Assistant General Counsel of Cyber Cash, Inc., Reston, Virginia.I For businesses that are offering these products on the Internet, see the following World Wide Web sites: www.mercurycenter.com(newspapers), www.cdnow.com(music), www.peapod.com(groceries), www.boeing.com/as-socproducts/spares/hom'e.htm(airplane parts), www.cisco.com(electronic equipment), and www.quicktrade.com(natural gas).