As the online gaming market grows, so do the mechanisms being developed to process the financial transactions. Another company has now emerged on the market, Ebanx, based in Vancouver, Canada.
As the fastest growing medium ever, the Internet has helped draw the global village even closer, ranging from business to personal. But while this worldwide interconnectivity has facilitated greater international communication and an increase in information access and retrieval, the Internet has at the same time spawned a growing demand for personal anonymity and security.
Much of the Internet is within the public domain, and with more businesses using this medium to sell their goods and services through electronic commerce (e-commerce) systems, databases are becoming increasingly full of personal information. It's this information that most people don't want as part of the Internet's public domain. For most users of online e-commerce systems, it is extremely important to have high level security while remaining anonymous in making Internet payment for goods and services. It's these Internet consumers who have created a burgeoning market for secure, Internet anonymous payment systems.
"There is a huge market on the Internet for anonymous micro payment systems," said Tom Canning, General Manager for eBanx Corp., a Canadian-based financial institution and online transaction processing company regulated by the laws of the government of Canada.
"People demand privacy and security," Canning added. "They don't like other people dictating where they spend their money. People should be able to spend their money where they want on the Internet and their privacy should be respected at the same time."
The company has developed the eBanx secure eCash system, which is a software-based payment/transaction system that sends electronic payments from any personal computer to any eBanx Merchant, using any computer network, including the Internet. eCash is eBanx's form of computer generated currency that can be purchased through various modes, including credit cards and certified cheques. Established in 1987 and based in Vancouver, British Columbia, eBanx has an unlimited worldwide license to use the eBanx secure eCash system. Its website is located at http://www.ebanx.com.
Once a customer opens an eBanx personal account for a specific merchant and obtains eCash from eBanx, it can be used to purchase goods and services from that eBanx certified Merchant. Also, a customer can take eCash from their account that was not utilized or that was credited back to their eCash account and purchase currency, such as US dollars. Companies sign up to be eBanx system merchants, and are given a simple developer's kit to integrate their website with the eBanx system servers.
To date, eBanx has integrated its eCash system into Internet sportsbook technologies, developed by Cyberoad Corporation. So eBanx's Internet and call center-accessed transaction clearinghouse is, therefore uniquely positioned for processing transactions for international sportsbook companies, note a company spokesman.
The eBanx system is simple. Each sportsbook is required to open a merchant account with eBanx, while the player (bettor) opens a personal eBanx account. When the player makes a bet with the sportsbook, the eCash is held by eBanx until the event is determined. If the player wins, the held eCash is released back to the player and the winnings automatically credited to their eBanx account. All transactions come directly out of the client's eBanx account, much like a bank debit-card system. In other words, the sportsbook never touches the player's money unless they earn it. One sportsbook that has integrated the eBanx system is Grand Prix Sportsbook, located at http://www.grandprixsports.com.
In essence, once a player's money is outside the U.S., for example, they are able to enter into transactions with a wagering company directly through their bank account. The wagering
company is never involved in transfers of money into or out of the US since all transfers are to or from a Canadian based Financial Institution.
"The most critical issue for gaming companies is one of credibility," says Cyberoad President, John Coffey. "Sports bettors want to know that their money is safe, that they are going to get paid. This integration of eBanx into our sports betting system is the perfect solution for both our sportsbook clients, and their clients - the sports bettor."
Personal eCash accounts can be established with major credit cards online over the Internet or by sending money to eBanx via Western Union, MoneyGram, bank wires, or through a courier with cheques and money orders. Once account holders have eCash in their secured personal accounts, they can transfer and make purchases of goods and services safely over the Internet. eBanx has a comprehensive currency conversion process, where account holders can purchase US funds or convert eCash back into US funds (Conversion of US currency with eCash is done at par: $1 eCash = US$1).
One of the benefits touted by the eBanx system is security, as this is a key issue for the global Internet e-commerce industry to help match the demand for anonymity. "We have done everything that is technologically possible to protect any information," Canning said, adding that he couldn't divulge the technical details, for obvious reasons. "But suffice to say, we are using the best encryption and the best network security available on the market today." eBanx has hired world class specialists in network security, including computer crimes experts.
Marc Rogers, one of eBanx's Network Security consultants, has worked with both the Royal Canadian Mounted Police and Federal Bureau of Investigation in successfully prosecuting dozens of computer hackers and cybercriminals. "The beauty of the eBanx system is that no personal information is transmitted, so hackers have nothing to work with other than the authorization number, which will do them no good at all. Also, they have only a few seconds before this packet (of data) is terminated," said Rogers. "This system is much better than relying on multi-levels of encryption to protect loads of personal information, and hoping that no one can get in."
Company materials also note that other features of the eBanx system are its simplicity and privacy, combined with increased convenience and speed. eBanx also provides benefits for both the merchant and the end-user, such as offering non-US based merchants the opportunity to both quote and sell their products and services in $US denominations. Also, eBanx offers a significant advantage over other payment methods such as credit cards, where small value transactions are not cost-effective. Other benefits include portability, maximum card acceptance, and affordability.
There are several aspects of the eBanx system that are not necessarily unique to eBanx but have been identified as critical for a smooth, fully integrated eCash system for international online e-commerce transactions. These include the need for full call centre and Internet integration; multiple purchase methods; multiple simultaneous merchant banks; cybercash-compatable banks; micro payment support; multi-language and multi-currency extendibility; wireless device accessibility; and have the ability to be accessed by a browser with no need for downloadable "wallets."
"We decided to go with a browser-based system because there seems to be a lot of resistance from the marketplace to downloading software off the Internet," Canning said. "And let's not forget, that another key issue is having a system that will work today, not having to wait for universal adoption of any other payment methods."
For the end-user or customer, eBanx tackles the privacy issue by providing a strictly enforced eBanx Privacy Policy, whereby merchants are forced to disclose any use of personal information to the end-user. The Privacy Policy agreement guarantees no personal information of any nature will be used in any way other than to verify the identity of account holders. This is done for the protection of account holders. Further, all eBanx Merchant companies that accept eBanx eCash are contractually obligated to follow the eBanx Privacy Policy. The net result is that all end-users - including US citizens - are able to conduct global commerce through the Internet using a standard currency ($US).
"We can't really guarantee absolute privacy technically," said Canning, as people are going to have to pass on some personal information to eBanx when they make transactions with the sole purpose of any personal information given by the Account Holder to eBanx is to verify Account Holder identity. This is done strictly for the protection of the Account Holder. All private information provided when opening the eBanx account will be held in strict confidence.
A privacy policy states,
"This private information WILL NOT be given out to anyone or any organization; it WILL NEVER be sold or distributed in any form, or for any purpose. Further, all eBanx Merchant companies that accept eBanx eCash are contractually obligated to follow the eBanx Privacy Policy.
eBanx Merchant Account Holders agree that all personal information collected from Account Holders is solely for verifying the identification of the Account Holder. This applies when that Account Holder is using the merchant's services.
Only when a Merchant's website has a clearly defined "opt-in" agreement that has been OK'd by the Account Holder, might the Merchant disclose any Account Holder information. This disclosure of information will rigidly adhere to the parameters of the "opt-in" agreement.
eBanx does not leave any permanent cookies on the hard drive of any Account Holder, and eBanx guarantees that Merchants do not have any compromising cookies. (Note: Cookies are pieces of information that a website transfers to an individual's hard drive for record keeping purposes while at the site. Cookies make web surfing easier by saving your passwords and other preferences for you. The use of cookies is an industry standard, and you'll find cookies at most major websites). "