Electronic credit (e-credit) cards
allow customers to charge online payments to their credit card account.
Electronic credit (e-credit) cards are used primarily in B2C and in shopping by small-to-medium enterprise (SMEs). Here is how e-credit cards work
Step 1:
When you buy a book from Amazon,
for example, your credit card information and purchase amount are encrypted in your browser.
This way to information is safe while it is "travelling" on the Internet to Amazon.
Step 2:
When your information arrives at Amazon, it is not opened.
Rather, it is transferred automatically (in encrypted form) to a clearinghouse,
where it is decrypted for verification and authorization.
Step 3:
The clearinghouse asks the bank that issued you your credit card (the card issuer bank)
to verify your credit card information.
Step 4:
Your card issuer bank verifies your credit card information
and reports this to the clearinghouse.
Step 5:
The clearinghouse reports the results of the verification of your credit card to Amazon.
Step 6:
Amazon reports a successful purchase and amount to you.
Step 7:
Your card issuer bank sends funds in the amount of the purchase to Amazon's bank.
Step 8:
Your card issuer bank notifies you (either electronically or in your monthly statement)
of the debit on your credit card.
Step 9:
Amazon's bank notifies Amazon of the funds credited to its account.
Source:
Introduction to Information Systems - Third Edition
Enabling and Transforming Business
By R. Kelly Rainer, Casey G. Cegielski
Page 217-218