What Is Virtual Cash?


The 21st century is hurtling toward us at a sometimes frightening
pace, bringing with it countless changes. Among these a completely new
means of commerce: the virtual transaction. In this new type of
economic exchange, value changes hands without any physical currency
involved and often without any physical product either. In this
virtual economy, an new type of currency is needed. One that doesn't
involve bank notes, checks or any other type of physical medium. It is
a strange new concept indeed but one without which we will be unable
to fully avail ourselves of the rich possibilities of cyberspace.

NetCash is the first fully functional form of virtual currency. It
works very much like physical cash but without the physical symbols.
Rather than a wallet filled with bills, you have a virtual wallet (a
file in your computer) filled with virtual bills. These are nothing
more than information, specifically a serial number identifying each
bill and the monetary value it represents.

When you buy something in a virtual store, instead of handing the
merchant physical money, you send them information; specifically, you
send them the amount and serial numbers of one or more NetCash
"coupons" in the amount of the purchase. Once the merchant has
accepted these coupons, they are no longer yours, just as cash paid to
a merchant is no longer yours once you have parted with it.

Physical cash is a symbolic substitute for economic value. It is
generally guaranteed by the government that issues it. NetCash is a
symbolic substitute for physical cash and has the same value as an
equivalent amount of "real" cash. This is because NetCash is purchase
with ordinary cash and can be converted back into ordinary cash. From
the time it is purchased until it is exchanged for ordinary cash it is
more of an idea than a thing. This notion takes some getting used to
but it is not complicated. You can be sure that when symbolic currency
was first invented thousands of years ago, people used to dealing in
gold or other commodities had some difficulty getting used to the idea
too. But the world's economy would have been stunted at that point
without the benefits of symbolic currencies. We are now on the
threshold of another quantum leap in economics and we need a new type
of currency which can grow with us.

By the turn of the millennium virtual cash will be as ordinary as
traditional cash is now. So will many other new forms of commerce both
economic and social. It is an adaptation we must learn to make because
it has evolved out of our own needs, not been thrust upon us
arbitrarily. Once we accept it and become comfortable with it, we will
wonder how we ever got along without it. Sound familiar? Sure it is if
you have a microwave oven, fax machine, computer of cellular phone.
Even the telephone, radio, television and computer were envisioned as
oddities at first. Now look at them. Virtual commerce is no different.

So you might as well just jump right in and get your feet wet. It's
new and different, but, like so many other novelties before it, soon
you'll wonder what the big deal was. Don't forget that there was a
time when tying your own shoes seemed like a challenge.


Virtual Commerce

The foundation of all economic commerce is the exchange of value. For
tens of thousands or even millions of years trading for something of
agreed upon equal value has consummated transactions. Except where
direct bartering of goods and services is involved, transactions
usually rely on some symbolic value on one or both sides of the trade.
The same is true in virtual commerce of all kinds.

The problem with virtual transactions is that the parties are not in
close physically proximity. They cannot exchange conventional cash. Of
course, they can rely on credit cards instead, but there are some
drawbacks. Here are a few:

Credit card information is not yet secure in cyberspace.

     This will be changing in the not too far distant future, but
     right now, today, it is still true. What's worse, if someone does
     intercept to your credit card information, they can use it
     repeatedly until the system closes up the hole. Worse yet, since
     you won't know it until the charges start appearing on your
     statement, it can be a real mess. Ask anyone who has ever been in
     this predicament if they ever want to be there again. Debit cards
     are even worse because rather than all-paper credit transactions,
     these purchases come directly out of your bank account almost
     immediately. Once that cash is gone, try getting it back.

Credit card merchant accounts are not available to everyone.

     In order to accept credit cards you must establish a merchant
     account at a financial institution. Not everyone is eligible and
     not all forms of transactions are allowed. This provides a solid
     barrier to many for whom credit card transactions are the only
     practical means of receiving payment.

Credit card fees can be expensive.

     Every credit card transaction involves a processing fee. On
     relatively large purchases it is a modest percentage of the value
     of the transaction, but on smaller purchases where there is a
     minimum fee, it can actually exceed the value of the transaction.
     This is a serious obstacle to those who deal in low cost goods
     and services. Nowhere is this more apparent than in selling
     modest amounts of information. It is expected that transactions
     of this type will be among the first and fastest growing segment
     of virtual commerce.

Not everyone has credit cards.

     Many potential customers, for whatever reasons, do not have or
     choose not to use credit cards. If you build your virtual
     business on the use of credit cards, you slam your doors on
     millions of people who might very much want your product or
     service. It's like setting hundred dollar bills on fire!

Enter NetCash

     NetCash suffers from none of these limitations. It can be as
     secure as you want it to be. You must have a merchant account to
     convert NetCash into hard currency, but anyone can get one and
     you don't have to pay a cent for it. While there are fees
     involved in using NetCash, they are only charged when you
     actually convert cash into NetCash and back. You are never
     charged for spending or accepting NetCash. The cost of buying
     something for a nickel or $100 is the same: nothing.

     Perhaps best of all anyone can buy and use NetCash. It is even
     possible to use NetCash without ever paying a fee. Since fees are
     never charged for NetCash transactions, if you receive NetCash in
     payment for something and spend it on a purchase of your own, you
     will encounter no fees whatsoever. True, someone paid a small
     amount to get it and someone else will eventually pay to convert
     it to hard currency. But in the meantime, it is fee-free to use.
     Remind you of something familiar? It should. Why do you think we
     call it NetCash.

     As a merchant, you can start accepting NetCash at any moment. You
     don't even need a merchant account until you want to convert it
     back into "real money." It offers you a way of consummating
     transactions with anyone who has access to US dollars; anywhere,
     anytime, for anything

     Establishing a merchant account also has many advantages. Not
     only can you exchange the NetCash you receive for "real money,"
     but you will receive other benefits as well. Among them are:

A listing in the NetCash merchants directory.

     Once you have signed up for a NetCash merchant account you will
     receive a free listing in our NetCash Merchants On-line
     directory. This gives you and your products and services
     additional exposure throughout cyberspace and it won't cost you a
     cent.

Permission to display the NetCash logo.

     A merchant account allows you to display the NetCash logo in your
     own on-line store and next to your listing in any other
     directories or catalogues in which you are included. This tells
     prospective customers that you are open for business today.

NetCash encourages impulse buying.

     Displaying the NetCash logo tells customers that if they find
     something they like and want to buy, you are ready to sell it to
     them immediately. This promotes impulse buying in cyberspace for
     the first time. To appreciate the value of impulse buying, all
     you have to do is walk into a supermarket and look at the
     check-out stands. They are surrounded by racks of impulse-items.
     These few square feet of floor space are generally considered to
     be the most valuable and productive area in the store and for
     good reason.

Accepting NetCash makes a statement.

     When you display the NetCash logo, you identify yourself as a
     forward-looking entrepreneur, one who understands the nature of
     this exciting new medium of global commerce. It tells customers
     that you want their business enough to give them a quick and
     handy way of buying from you. In short, it marks you as someone
     who came to do business, not just to talk about doing business.

Aren't there other alternatives?

     Sure. We already talked about using credit cards. There are other
     forms of virtual cash too, or at least there seem to be at first
     glance. Upon closer inspection, however, you will find that
     NetCash is different in important ways. Other virtual cash
     alternatives have limitations that may be unimportant or
     debilitating to you depending on your situation. Here are some
     things to look for:

Is this virtual cash actually "for real" right now, today?

     Some alternatives are not actually ready to do business yet. They
     may be ready to sell you their virtual cash but not to buy it
     back for hard currency yet, or perhaps not in your area.

Are there limitations on what you can sell in exchange for their
virtual cash?

     You may only be able to accept their virtual cash in payment for
     information or other services and products that are deliverable
     electronically. This means that you can sell them an electronic
     copy of your book, but not a printed copy. It means that if you
     are marketing anything physical, sorry Charlie. These and other
     limitations may or may not matter to you personally, but be aware
     that they do exist.

Can anyone buy their virtual cash?

     Some forms of virtual cash are available only by credit card
     purchase. Well, we already know what the down side of that is.

What does it cost you to try it out?

     NetCash merchant accounts are free. Are theirs?



The Bottom Line

In the final analysis, any merchant with an ounce of sense will want
to accept every form of transaction that their customers want to use.
Let's not kid ourselves, it's really that simple. So why NetCash? Here
are some reasons:

     NetCash is here now, ready to do business with you in cyberspace.

     NetCash was the very first form of virtual cash readily available
     in cyberspace.

     Your customers can buy NetCash in a few moments.

     In fact, if you do it right, they can do it directly from your
     on-line store while they're still in love with your lovely
     widgets.

NetCash is as secure as you want it to be.

You can make NetCash transactions with no security if you aren't
concerned about such things. The most you would have to lose is the
amount of the purchase. On a half-dollar transaction, you're on pretty
safe ground since you are not revealing any information of greater
potential value. If, on the other hand, you want to have absolute
security, then you've got it. NetCash transactions fully support PGP
(Pretty Good Privacy) encryption. This is generally considered to be
an unbreakable cipher that is easy to use. When secure transactions
become universal in cyberspace, this is the method that will be used.
NetCash uses it now and has been for quite a while.


For more information, please contact the NetBank Info Server at:
   netbank-info@agents.com



----------------------------------------------------------------------------

Welcome to the NetBank -- The First National Bank of CyberSpace

Introduction to the NetBank

The NetBank is an electronic payment system for merchants on the
information superhighway.  It is based on "payment coupons" that may be
traded via electronic mail.  Information Providers and other on-line
merchants may operate their businesses completely via e-mail. Merchants may
receive payments and deliver information services electronically.  The
payment coupons are called NetCash(tm) coupons, or NetCash for short.  A
detailed discussion of NetCash appears below.

Business Opportunities

By using the NetBank, it is possible for virtually anyone to start an
"E-Mail Order" business; that is, a business that distributes information
services to its customers and collects payments from its customers entirely
using electronic mail.

Anyone with a personal computer and access to e-mail may operate their own
information service.  Millions of people use electronic mail, and many of
these people prefer receiving information via e-mail over other forms of
distribution. Electronic magazines and newspapers are easily distributed by
e-mail. Personalized financial data or other types of specialized
information may be delivered to the customer via e-mail.  Customers pay for
the information by sending NetCash coupons to the information provider via
electronic mail.

NetCash Philosophy

The use of NetCash may be compared to using a foreign currency.  For
example, when we travel to a foreign country, we obtain the local currency
to make our purchases.  When we travel the autobahn in Germany, we carry
Deutsche marks; when we travel the Infobahn, we carry NetCash.

When we return home, we usually cash-in our foreign currency.  And, we
lose a little money in the process due to the conversion fees.  With
NetCash, we can avoid this problem by not immediately cashing-in the
NetCash when we receive it.  Instead, we should keep a few NetCash coupons
in our pockets to spend later.

This is similar to what folks who live near a national border might do. If
they frequently cross the border, they might always want some local
currency in their pocket.

For those of us who frequently cross the border into CyberSpace, keeping a
little NetCash in our pockets makes sense.

Obtaining NetCash

NetCash is easily obtained by using the NetBank's "Check Cashing by E-Mail"
service.  Customers may purchase NetCash by issuing a personal check, via 
e-mail, to the NetCash Distribution Center.  Travelers on the Infobahn
may carry NetCash and cash checks while online.

NetCash Details

This is a NetCash coupon that represents a ten dollar bill:

    NetCash US$ 10.00 E123456H789012W

The coupon consists of three parts: the "NetCash US$" keyword, the dollar
amount, and the serial number.  All three parts are required when using the
NetCash coupon for payment.  The "NetCash US$" indicates that the coupon
has a cash value in US dollars.

A NetCash coupon should be protected as you would protect real money.  Do
not give it away or leave it where someone else could find it.  The holder
of the NetCash is responsible for its safety.  NetCash should be kept
private until it is being spent.

NetCash Transactions

A NetCash transaction is an e-mail dialog involving one or more NetCash
coupons.  The transaction can be between customer and merchant, or between
NetCash holder and the NetBank.

Between customer and merchant, the transaction takes the familiar form of
handing over some cash, then receiving a product or service.  A customer
initiates this transaction by including a NetCash coupon in an e-mail
message to a merchant.  The dialog (or transaction) is concluded when the
merchant responds to the customer by providing the requested product or
service.

Transactions between NetCash holders and the NetBank are somewhat more
formal.  These transactions are initiated by the NetCash holder and are
concluded by a response from the NetBank.

The following examples describe several different transactions.

Spending NetCash

To make a purchase, simply give the NetCash to a merchant in exchange for
goods or services.  The coupons may be given to a merchant via e-mail. 
After you give the coupon to a merchant, it is no longer yours.  You may
only spend a NetCash coupon once.

Accepting NetCash

The merchant will accept the NetCash by sending the following transaction
to the NetBank via e-mail:

    NetCash US$ 10.00 E123456H789012W /Accept

The NetBank will validate the transaction by confirming that the NetCash is
valid.  If it is valid, the NetBank will record that this coupon has been
spent and disallow its use again.  Next, the NetBank will issue a new
NetCash coupon to the merchant and send it back in a NetBank receipt.  The
NetBank does not charge for transaction processing; there are no fees
incurred by trading NetCash.

The merchant will receive a new coupon which he must keep private until he
is ready to spend it:

    NetCash US$ 10.00 E234567H890123W

For the protection of the person accepting a NetCash payment, the status of
the transaction appears in the e-mail subject line and the replacement
NetCash coupons appear in the message.  This arrangement allows the person
accepting the NetCash to validate the current transaction without opening
the message and exposing the new NetCash coupons.  At any time in the
future when privacy is assured, the message can be opened and the NetCash
coupons removed.

Cashing-In NetCash

NetCash is easily converted back to real money by the NetBank.  Anyone may
cash-in NetCash coupons.  To do so, they must open a NetBank Merchant
account.  NetBank Merchants request reimbursement by depositing NetCash
coupons into their accounts.  By using e-mail, the merchant deposits the
NetCash they wish to cash-in.  Reimbursement checks are mailed to merchants
based on the amount of NetCash deposited to their accounts.


NetBank Transaction Commands

NetBank Transactions are specified by appending a slash (/) and a
transaction command to the end of a NetCash coupon.  The NetBank is capable
of processing the following transaction commands:  the accept command, the
change command, and the deposit command.

Accept Command

Whenever NetCash changes hands, a transaction is sent to the NetBank via
e-mail.  For example, when a merchant receives payment in NetCash, they
send an "accept" transaction to the NetBank to "take" ownership of the
NetCash coupon.  The transaction is necessary to confirm the validity of
the coupon and to issue a new, private NetCash coupon to the new owner. 
The old coupon is voided and may not be spent again.

Example transaction:

    NetCash US$ 10.00 E123456H789012W /Accept

Change Command

This transaction is used to exchange NetCash coupons for coupons in
different dollar amounts. NetCash coupons may represent any dollar amount. 
Standard denominations for NetCash are quarters, halves, ones, twos, fives,
tens, and twenties.

Example transaction:

    NetCash US$ 10.00 E123456H789012W /Change 2 fives

would return two new coupons, each worth five dollars.

Other examples:
    NetCash US$ 10.00 E123456H789012W /Change 10 ones
    NetCash US$ 10.00 E123456H789012W /Change 1 five 4 ones 4 quarters
    NetCash US$ 10.00 E123456H789012W /Change 9 ones 4 quarters

A change transaction may also request coupons of specific dollar amounts. 
For example:

    NetCash US$ 10.00 E123456H789012W /Change 4.50

would return two NetCash coupons.  One coupon in the amount of $4.50, and
the other coupon for the remaining cash value (10.00 - 4.50 = 5.50).


Deposit Command

This transaction is only used by NetBank Merchants.  A NetBank Merchant is
anyone who is interested in converting NetCash back to real money.  Every
merchant has a NetBank account they may deposit NetCash into.  This
transaction performs the same validation as the accept command.  Instead of
issuing a new NetCash coupon, the NetCash is deposited into the specified
account.  In the following example, the account number is 12345.

    NetCash US$ 10.00 E123456H789012W /Deposit 12345

Using the NetBank

All transactions are sent to the NetBank via e-mail.  All customers and
merchants may use the NetBank to manipulate their NetCash.

Customers use the NetBank primarily to make change.  When a customer wants
to buy information from a merchant, he should give the merchant "exact
change."  Many merchants charge only one or two dollars for their services.
And an electronic daily newspaper might cost only 25 cents.  Most
customers will need NetCash coupons in the smaller denominations.

Merchants, of course, may also be customers.  In addition to making the
same types of transactions as customers, merchants will deposit NetCash
into their NetBank accounts.

E-Mail Messages

All NetBank transactions should be addressed to: netbank@agents.com.  The
transactions should be placed in the body of the e-mail message.  When
specifying multiple transactions, each line of the message must contain a
single transaction.  Transactions begin with the keyword "NetCash."


For information on related topics, please send e-mail to
"netbank-info@agents.com" with the following keyword(s) in the message:

    Keyword                         Topic

  netbank-update      Latest features and services provided by the NetBank
  quick-start         Quick Start Guide and how to buy NetCash by E-Mail
  buying-netcash      Other options for buying NetCash from the NetBank
  netbank-faq         Answers to frequently asked questions
  netbank-merchant    Opening a NetBank Merchant account
  shareware-info      Using the NetBank to collect shareware fees


netbank-intro
Copyright (c) 1994, Software Agents, Inc.
All Rights Reserved


----------------------------------------------------------------------------

NetBank Update
February 1995

What's New With NetCash?

To make buying NetCash more convenient, the NetBank is offering a new
service:

E-Mail Check Cashing

Several people have asked if NetCash may be used for impulse shopping
on the Net. There are many situations when a customer would like
immediately spend NetCash on a product or service. Previously, this
was possible only if the customer was already carrying NetCash.
Customers new to NetCash would have to interrupt their Net browsing,
and buy NetCash by faxing a check to the NetBank (and waiting for
their NetCash to appear in their e-mailbox).

This is no longer the case. Now, customers may instantly receive
NetCash, by e-mail, anytime they wish. This is done through our new
E-Mail Check Cashing service. Customers simply fillout a short
information form, and e-mail it to the NetBank. The NetBank will
return the requested amount of NetCash to the customer immediately.
The e-mail form requests the same information that is usually printed
on a personal check.

This service allows all NetBank merchants to receive the benefits of
electronic check processing, without the hassles (and expense) of
using a third-party check processing service. The NetBank still offers
merchant accounts without a setup fee.

Changes to the NetBank Payment System

While implementing our E-Mail Check Cashing service, it was necessary
to make additional modifications to the NetBank Payment System.

Previously, the NetBank did not issue NetCash until after the
customer's payment was received. This allowed the NetBank to maintain
a one-to-one relationship between the NetCash in circulation and the
cash reserves used to reimburse merchants. With E-Mail Check Cashing,
the NetBank issues NetCash before the customer's payment is received,
and the following new features are necessary to support this service.

As shown in the example transactions, each time a message is sent to
the NetBank, the NetBank responds with a "receipt message."
Previously, these receipts indicated only if the transaction was
"accepted" or "rejected".

The NetBank transaction processor has been modified to include
additional information in the receipt messages. The receipt messages
now indicates whether or not the NetBank has received payment for the
NetCash coupon (or coupons) being processed. A new status code of
"pending" is used to identify NetCash coupons whose payment have not
yet been received by the NetBank.

While all NetCash coupons may be spent and accepted, only after the
NetBank receives payment, may a coupon be redeemed by a merchant. This
is very important, and each merchant must decide if they wish to
accept NetCash while it is "pending."

Most merchants will want to accept "pending" NetCash. This will allow
them to quickly attract new customers, and to benefit from the
advantages of "impulse buying." By using "pending" NetCash, a customer
may read a merchants advertisement, buy a some NetCash, and purchase
the merchants product, all within a few minutes.

Please read the "Transaction Processing" document for more information
on the enhancements to the NetBank Payment System.


To receive information on any of the topics below, please send a message
to "netbank-info@agents.com" with the appropriate keywords included in the 
message body.  When requesting information on more than one topic, please 
separate the keywords with a space.

     Keyword                        Topic

  quick-start            Quick Start Guide discusses buying NetCash by E-Mail
  netbank-transactions   Examples of NetBank Transaction Processing
  virtual-cash           Introduction to Virtual Cash

This information is also available via our World-Wide Web site at:
  http://www.netbank.com/~netcash/


----------------------------------------------------------------------------

NetCash Quick Start Guide

This document describes how new customers should use NetCash to make
purchases from merchants on the Internet. New customers are welcome to
read all the NetBank documents, but this guide should be enough to get
started.

This document describes the three steps involved in using NetCash.
They are:

  Buying NetCash from the NetBank,
  Manipulating NetCash Coupons, and
  Sending NetCash to Merchants.


Buying NetCash from the NetBank

NetCash is purchased from the NetBank by sending funds (US$) to the
NetBank in exchange for NetCash coupons. The simplest way to buy
NetCash is to use our "E-Mail Check Cashing" service. Other procedures
for buying NetCash are mentioned in the NetBank FAQ, but this is the
recommended procedure.

Cashing Checks by E-Mail

You may buy NetCash by sending an e-mail message to the NetBank. This
service is call our "E-Mail Check Cashing" service, and it's the
fastest way to receive NetCash. To use this service, you must have a
checking account at a U.S. bank.

To cash a check by e-mail, you will complete the "NetCash Request
Form," and send it to the NetBank (netbank@agents.com). The form is
designed to be automatically processed by the NetBank, and it requires
you to type in the information printed on your check. This information
includes your name, address, bank account number, etc.

Your request form will be immediately processed when it is received by
the NetBank. A response message will be sent to you within minutes.

If the information you provided on your request form does not contain
any errors, the response message will contain a NetCash coupon that
you may start using at any time. If your request form contains
incomplete or invalid information, you will receive instructions on
how to correct and resubmit your request form.

This is an example NetCash coupon that would be included in the
response message:

  NetCash US$ 25.00 A123456B789012C

The coupon consists of three parts; the "NetCash US$" keyword, the
dollar amount, and the serial number.

As a convenience to our customers, we are issuing NetCash coupons
immediately when we receive a NetCash request form. This allows you to
use your NetCash immediately. However, this does not allow us to
contact your bank and processing your check before sending your
NetCash. Therefore, the cash value of your coupon is contingent on
your bank honoring your check and remitting payment to the NetBank.
This process usually takes between a week and 10 days.

During this period of time, your coupon is assigned a status of
"pending" to indicate that its value is pending the processing of your
check by your bank. This status is used to inform merchants that your
using a "new" coupon and the NetBank is waiting for your check to
clear. Once your check clears, the status of your NetCash coupon will
change to "valid".

Most merchants will gladly accept your NetCash while it is pending.
Some merchants, however, operate on a "cash only" basis, and will only
accept "valid" coupons, or will accept your NetCash and hold it until
it becomes valid, before fulfilling your order. Please feel free to
asked any merchant if he accepts "pending" NetCash.


Manipulating NetCash Coupons

Customers may easily use the NetBank to manipulate their NetCash.
Customers may freely exchange coupons in a large denominations for
coupons in smaller denominations.

Many customers buy a $25 or $50 NetCash coupon, and exchange it for
smaller coupons, as they spend their NetCash. This way, the customer
doesn't need to buy a separate NetCash coupon every time they go
shopping on the Internet.

For example, if you have a $25 coupon and want to buy a $5 product
from a merchant, you simply exchange your coupon for two coupons; a
$20 coupon and a $5 coupon. You would spend the $5, and keep the $20
in your "pocket" to spend later. You may exchange your coupons as
often as you wish, and for any denominations you need. There is no
charge to exchange coupons.

NetCash coupons are exchanged by sending e-mail messages to the
NetBank. These messages contain one or more "transactions" as
illustrated below:

Requesting Change from the NetBank

Below is an example e-mail message that you would send to the NetBank
to "make change."

 From: user@home.net (Joe User)
 To: netbank@agents.com

 NetCash US$ 25.00 A123456B789012C /Change 5.00

After this transaction is processed, the following receipt will be
returned to you:

 From: netbank@agents.com (The NetBank)
 To: user@home.net (Joe User)
 Subject: Receipt, Pending: 1

 Input Transaction(s):
 NetCash US$ 25.00 A123456B789012C /Change 5.00

 Total Pending: $ 25.00
 NetCash US$ 20.00 B234567C890123D
 NetCash US$  5.00 C345678D901234E

This transaction has replaced your $25 coupon, with two coupons, a $20
and a $5. The original $25 is no longer valid, and may not be used
again.


Sending NetCash to Merchants

To make a purchase, the you will send your NetCash coupon to a
merchant in exchange for a product or service. This many be done
either by e-mail, or via the merchant's WWW pages. The merchant will
tell you the recommended procedure to send him your coupon.

For example, the e-mail message could be as simple as the one below:

  From: user@home.net (Joe User)
  To: merchant@shopping.net (Joe Merchant)

  Dear Merchant,
  Enclosed is payment for your product.
  NetCash US$  5.00 C345678D901234E
  Thank You.

------------------------------------------------------------------------

NetCash Purchase Request Form


Directions

Please enter the requested information after each prompt. An
explanation of each prompt appears in parentheses below. Send the
completed form to the NetBank (netbank@agents.com) for processing. An
example request form, and the corresponding response message is
available.


Please answer the questions completely and accurately. Check fraud is
a felony punishable by law. Do not complete this form if you do not
own a personal checking account.

Account-Type: Checking

NetCash-Amount: 
(How much NetCash would you like?)

Service-Charge: 
(Calculate the service charge; 2% of the amount, $1 minimum fee.)

Check-Amount: 
(Enter the total of the NetCash amount and the service charge.  This is the
amount you are authorizing for this check.)

Pass-Phrase: 
(If you are using PGP data encryption, please enter the PGP pass phrase you
want the NetBank to use to encrypt the response message.  If you are not
using PGP, leave this field blank.)

Reply-To: 
(Enter your e-mail address.)

First-Name1: 
Last-Name1: 
(Enter your first and last name as it appears on your checking account.)

First-Name2: 
Last-Name2: 
(Enter a second name if this is a joint personal checking account.)

Street-Address: 
(Enter your current street address or the address on file with your bank.)

City: 
(Enter your city.)

State: 
(Enter the two letter postal abbreviation for your state.)

Zip-Code: 
(Enter your 5-digit zip code.)

Daytime-Phone: 
(Enter your day-time phone number.)

Check-Number: 
(Enter the check number that your are using.)

Routing-Number: 
(Enter your routing number. See bottom of your check. Look for a 9 digit
number surrounded by a symbol at the beginning and end.  It will be the
first 9 numbers starting on the left.)

Account-Number: 
(Enter your account number. See bottom of your check. Look for the set of
numbers that follows the routing number.  Be sure not to include your check
number in this field.)

By supplying either your driver's license number or social security number,
you are securing this transaction and confirming the following statements:
(1) You are initiating this transaction.
(2) You are 18 years of age or older.
(3) This is your account and/or you are an authorized user of this account.
(4) You are authorizing your bank to honor this check for the amount you
have authorized above.

Drivers-License-Number: 
(Enter the abbreviation of issuing state and license number)
    -or-
Social-Security-Number: 

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Example NetCash Purchase Request Form

Below is an example NetCash Purchase Request form. Completed forms should 
be sent to the NetBank for processing. Note that you may omit the lines on 
the purchase request form that are enclosed in parentheses ().

Account-Type: Checking
NetCash-Amount: 25.00
Service-Charge: 1.00
Check-Amount: 26.00

First-Name1: John Q.
Last-Name1: Doe
First-Name2: Jane
Last-Name2: Doe
Street-Address: 1234 Main Street, Apt# 56
City: Orlando
State: FL
Zip-Code: 32123
Daytime-Phone: 407-876-5432

Check-Number: 1234
Routing-Number: 123456789
Account-Number: 0123543246879

By supplying either your driver's license number or social security number,
you are securing this transaction and confirming the following statements:
(1) You are initiating this transaction.
(2) You are 18 years of age or older.
(3) This is your account and/or you are an authorized user of this account.
(4) You are authorizing your bank to honor this check for the amount you
have authorized above.
Drivers-License-Number: FL D123-456-789

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Example Purchase Response Message

When the NetBank receives a NetCash purchase request, it is immediately 
processed. If no errors are found on the request form, a reply message 
containing a NetCash coupon is sent to the customer.

Below is an example response sent to the customer if there where no errors 
on the request form:


Your NetCash purchase requested has been processed.  Please make sure that
you have recorded the following information in your records:

Ck#      Date         Pay To                    Memo          Check Amount
1234  01/31/1995  Software Agents, Inc.   $25.00 in NetCash      26.00

Below is your NetCash coupon in the amount of $25.00.  The cash value of
this coupon is contingent on your bank honoring this transaction and
remitting payment to Software Agents, Inc.

   NetCash US$ 25.00 A123456B789012C

This coupon has been temporarily assigned the status of "pending" to
indicate that it's value is pending the processing of this transaction by
your bank.  Once processed, the status of this coupon will be changed to
"valid" and it will have a cash value of $25.00.

Many merchants will gladly accept your NetCash while it is pending.  Other
merchants operate on a "cash only" basis, and will only accept "valid"
coupons, or will accept your NetCash and hold it until it becomes valid,
before fulfilling your order.

You many determine the status of any NetCash coupon by sending a "verify"
transaction to the NetBank.  For example,

   NetCash US$ 25.00 A123456B789012C /verify

If you have any questions regarding the use of your NetCash, please
contact the NetBank Help Desk (help@agents.com).

Thank You.


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Buying NetCash

This document describes how customers obtain NetCash to make purchases from
NetBank merchants.

NetCash is purchased from the NetBank by sending funds (US$) to the NetBank
in exchange for NetCash coupons.  Funds may be sent by either mail, e-mail,
or FAX.  A check or money order may be sent via the mail, and a personal
check may be sent by e-mail or FAX to the NetBank.  NetCash coupons are
sent to the customer by e-mail.

Currently, a US bank account is required to purchase NetCash electronically 
(via e-mail or FAX), but anyone with access to US dollars may purchase 
NetCash by mail.  Overseas customers should use the "Cashing Checks by Mail"
instructions.

Cashing Checks by FAX

Travelers on the Infobahn may now cash checks in CyberSpace.  By using the
NetBank's FaxCheck service, customers may cash checks with a FAX machine. 
You may simply write a check and fax it to the NetBank.  

The NetBank is currently providing an online check cashing service.  Checks
are paid in NetCash, and there is a small check cashing fee.  The fee is
two percent (2%) of the amount, with a $1 minimum.

Procedure

1. Decide on the amount of NetCash you would like to purchase (maximum
$100), and determine the check cashing fee for that amount.  For checks of
$50 or less, the fee is $1.  Calculate the total amount of the check.

2. Write a check, payable to Software Agents, Inc. in the amount you
calculated.  In the memo field of the check, please write "I am paying by
FAX," and sign the check.  Also, clearly write your complete e-mail address
on the check, near where you name is printed.

3. Your check is now ready to be faxed.  For best results, please use the
"fine or best" resolution setting on the FAX machine.  Fax the check to the
NetBank at 301-540-3958.

4. Once your fax is received by the NetBank, your transaction will be
processed, and your NetCash will be sent to the requested e-mail address.

Example:

The customer would like $60 in NetCash.  The two percent check cashing fee
equals $1.20 ($60 x 0.02).  Total amount of check equals $61.20.

Using this procedure, any FAX machine may be used to cash personal checks. 

Customers who do not have access to a FAX machine should use the "E-Mail 
Check Cashing" service described in the Quick Start Guide.  This guide may
be received by requesting the "quick-start" document from the NetBank Info
Server (netbank-info@agents.com).


Cashing Checks by Mail

You may also buy NetCash by sending a check or money order in the mail. 
The fee to buy NetCash by mail is two percent (2%), with NO minimum.  For
example, the check cashing fee for a $10 check is only 20 cents.  

The following types of payment are currently accepted:

1. Checks drawn on US banks
2. Money Orders (in US dollars)
3. American Express Travelers Cheques (in US dollars)
4. US Cash (dollar bills)

Checks should to made payable to Software Agents, Inc. and mailed to:

Software Agents, Inc.
NetCash Distribution Center
P.O. Box 541
Germantown, MD  20875
U.S.A.

Most overseas customers find using an American Express Travelers Cheque the
most convenient (and least expensive) choice.  Be sure to sign and date
your travelers cheque before mailing it, and include your e-mail address
with your payment.


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The NetBank -- Frequently Asked Questions                   (Version 2.0a4)

This FAQ is maintained by Software Agents, Inc.  If you have any questions
or comments, please send them to our help desk (help@agents.com).

In addition to this FAQ, there are some introductory documents on the
NetBank you might find helpful.  To have a document mailed to you, please
send a message to the NetBank Info Server (netbank-info@agents.com) with
the appropriate keyword included in your message.  When requesting
information on more than one document, please separate the keywords with a
space.

    Keyword                          Document
 
  virtual-cash        Introduction to Virtual Cash
  netbank-intro       Introduction to the NetBank Payment System
  netbank-update      Latest features and services provided by the NetBank
  quick-start         Quick Start Guide and how to buy NetCash by E-Mail
  netbank-merchant    Opening a NetBank Merchant account
  netbank-encryption  How to encrypt your NetCash transactions
  boardwatch-story    Reprint of NetCash story from Boardwatch Magazine
  story-update        Enhancements since the Boardwatch story was published
  shareware-info      Using the NetBank to collect shareware fees
  netbank-faq         Frequently Asked Questions (this document)


October 1994

Several enhancements have been made to the NetBank.  Many questions and
answers have been modified to reflect these changes.  New or modified
questions and answers are indicated by a change bar (|) below:

QUESTIONS

   1. What is the NetBank, and what will it do for me?
|  2. What is NetCash?
|  3. What are the advantages of using NetCash?
|  4. How do Merchants Sign-Up?
|  5. How do I get NetCash?
   6. Will my NetCash coupons be accepted by everyone?
   7. How do I make a purchase using NetCash?
   8. What is the maximum dollar amount that may be traded with NetCash?
|  9. What NetCash denominations are available, and how do I make "change"?
| 10. How do I convert NetCash coupons back to US dollars?
  11. Do I pay a transaction fee every time I spend or accept NetCash?
  12. What about someone guessing a NetCash serial number?
| 13. Can I use Pretty Good Privacy (PGP) to encrypt my transactions?
| 14. Can merchants receive reimbursement checks on a threshold basis?


ANSWERS

1. What is the NetBank, and what will it do for me?

The NetBank is an electronic payment system that allows you to buy and sell
"information products" via electronic mail.  The system uses electronic
payment coupons (NetCash) that are exchanged for goods and services using
e-mail.  For example, you can easily pay a shareware software author by
sending him NetCash in an e-mail message.  You may also pay to access
computer bulletin board systems using NetCash.  There are, of course, many
other uses for NetCash.

If this interests you, please read the "netbank-intro" document described
above.  It will answer many questions that are not in this FAQ.

If you are NOT interested in an electronic payment system, you need not
read any further.


2. What is NetCash?

NetCash is the online currency used by the NetBank. It is a new form of
online money that may be passed from one person to another in e-mail
messages.  Computer users may use NetCash to buy online products and
service, such as, newspapers delivered via e-mail, and access to computer
bulletin board systems.

NetCash is "in circulation" on the Internet, and anyone may spend or accept
it.  NetCash is ideally suited to be used as "online pocket change."  It
may be used to buy a newspaper for 25 cents, or to settle a $2 debt with a
friend across the country.  Anyone may use NetCash, and anyone may convert
it back to real money.  Below is an example of a NetCash coupon:

    NetCash US$ 10.00 A123456B789012C

This coupon is called "NetCash US$" to indicate it has a cash value in US$.
 The fee to convert between NetCash and US dollars is two percent (each
way).  This makes NetCash competitive with credit cards.  Since we are not
charging any start-up fees, for many merchants, accepting NetCash will be
significantly less expensive than credit cards.


3. What are the advantages of using NetCash?

Here are a few of the advantages of using NetCash.

For the merchant, NetCash offers features that are not available with other
forms of payment, such as, credit cards.

*  There are no transaction fees so NetCash may be used to sell very low
cost items (25 cents, for example).  The merchant's fee is based on a
percentage of his total receipts, not on a per transaction basis.

*  The NetCash collected from customers may be spend by the merchant,
without paying a transaction fee.  If necessary, merchants may issue
refunds to customers using NetCash.  The merchant pays a fee only on the
NetCash that he converts back to US dollars.

*  The NetBank provides free advertising for it's Merchant via an E-Mail
Merchant Catalog.  Merchants may list a description of their products and
services in this catalog.  The catalog is distributed, via e-mail, to
anyone who requests a copy.

There are also advantages for the customer.

*  NetCash coupons have a finite cash value assign to them, so they are
safer than credit cards to use in online shopping applications.  Customers
may buy NetCash via a secure e-mail or FAX transaction, and then use their
NetCash to shop online (where the security/privacy of the transaction is
unknown).  Many customers do not wish to transmit their credit card numbers
over the Internet, and with NetCash, they don't have to.

*  NetCash may be spent and accepted by anyone, just like real cash.  This
is a major advantage over the "one-way" nature of credit cards.  Of course,
e-mail is required to accept NetCash.


4. How do Merchants Sign-Up?

Anyone who is selling an information product or service is invited to
sign-up as a NetBank Merchant.  Currently, there are no application fees or
startup charges involved.  

To open a NetBank Merchant account, please request the "netbank-merchant"
form from the NetBank Info Server.  The form should be completed, and sent
to the NetBank as described on the form.
  
Once we receive the form, we will create a merchant account, and notify you
by e-mail.  This process usually takes one or two business days.

NOTE: Merchants may start accepting NetCash from their customers
immediately.  You do not need to wait for your account to be opened.


5. How do I get NetCash?

The first step in using the NetBank is to obtain some NetCash. There are
two ways to get NetCash.  The first way applies if you are selling a
product or service online; you simply accept NetCash from your customers as
payment.  The NetCash you accept from your customers may be converted back
to real money, or spent on other products or services.  The second way to
get NetCash is to buy it.

Note: The NetBank's "E-Mail Check Cashing" service is described in the
"quick-start" document, available from the NetBank Info Server. While E-Mail Check Cashing is the recommended procedure to buy NetCash, two other options 
are available: 

Check Cashing by FAX

NetCash is purchased from the NetBank by sending funds (US$) to the NetBank
in exchange for NetCash coupons.  The NetBank is implementing several ways
for customers to buy NetCash coupons.  The first to become available is the
online check cashing service.  Checks are paid in NetCash, and there is a
small check cashing fee.  NetCash coupons are sent to the customer by
e-mail.

You may buy NetCash by faxing a personal or business check to the NetBank. 
Any amount of NetCash, up to $100, may be purchased.  The check cashing fee
is two percent (2%) of the amount of NetCash being purchased, with a $1
minimum.  For example, the fee for "NetCashing" a $50 check is $1.

And yes, you may actually run your check through a FAX machine, and receive
NetCash in return.  Make your check payable to "Software Agents, Inc."

Your check should be faxed to the NetBank at 301-540-3958. Please write "I
am paying by FAX" in the memo field, and don't forget to sign the check. 
For best results, please use the "fine or best" resolution setting on the
FAX machine.  Also, please write your e-mail address on your check, or
include it on a FAX cover sheet, so we may send you your NetCash.

You may also send a check or money order in the mail.  The fee to buy
NetCash by mail is two percent (2%), with NO minimum.  Checks should be
sent to the address below:

    Software Agents, Inc.
    NetCash Distribution Center
    P.O. Box 541
    Germantown, MD 20875


6. Will my NetCash coupons be accepted by everyone?

No, not everyone accepts NetCash.  However, a growing number of online
information services and shareware software publishers are accepting
NetCash.  Feel free to ask online "merchants" if they accept NetCash for
payment.  It is definitely easier e-mailing them a NetCash coupon, than
sending them a check in the mail!

Since NetCash has a cash value in US dollars, we expect most online
merchants would consider accepting it from you; even if they were not
previously aware of NetCash.  Most merchants don't want to disappoint a
customer, and NO merchant wants to lose a sale.


7. How do I make a purchase using NetCash?

Purchases are made by exchanging NetCash coupons for information products
or services.  This process usually occurs via electronic mail, or some
other type of online communication.  

Okay, let's assume that you have bought a NetCash coupon.  What do you do
with it?  One thing you can do is spend your NetCash at any "merchant" that
accepts NetCash.  You simply send your NetCash to the merchant in exchange
for their services.  Before sending your NetCash, you should make sure that
you have "exact-change."  That may involve requesting change from the
NetBank.

For example, suppose you want to buy something, from an online merchant,
for $5 and all you have is a $10 coupon.  You must first "change" your
'ten' for two 'fives'.  This is done by sending a mail message (NetCash
transaction) to the NetBank.  The message should be addressed to:
netbank@agents.com, and the following line should appear in the message:

    NetCash US$ 10.00 A123456B789012C /change 2 fives 

The NetBank will send a "receipt" to you via e-mail.  This receipt will
contain two $5 coupons. 
 
    NetCash US$ 5.00 B234567C789012D
    NetCash US$ 5.00 C345678D789012E

Note:  When the NetBank receives your $10 coupon, it is "consumed" during
the process of making change.  The original $10 coupon is now void, and may
not be spent again.

You now have a two $5 coupons.  You may use one of them to pay the
merchant. When you give your coupon to the merchant, they will accept it by
sending an e-mail message to the NetBank.  Once they accept your coupon,
they have your $5, and your coupon becomes void.  It may not be spent
again.


8. What is the maximum dollar amount that may be traded with NetCash?

The NetBank system was designed mainly to support small, low dollar
exchanges of money.  The NetBank allows you to use e-mail to buy online
information, or pay shareware fees for software.  These types of
transactions are usually in the $10 to $20 dollar range.  Also, NetCash can
be used to send 25 or 50 cents to merchants who are selling electronic
newsletters via e-mail.

However, to answer the question, there currently is no maximum limit on the
size of a NetCash transaction.


9. What NetCash denominations are available, and how do I make "change"?

NetCash is available in the following standard denominations: quarters
($0.25), halves ($0.50), ones ($1), twos ($2), fives ($5), tens ($10),
twenties ($20), fifties ($50), and hundreds ($100).

The "change" command is used to make change.  The command is appended to a
NetCash coupon to form a transaction.  This is explained, in detail, in the
"netbank-intro" document.  The command consists of the keyword "change"
followed by one or more change requests.  A change request consists of the
requested number of coupons and the requested denomination.  The following
transaction contains two change requests:

    NetCash US$ 10.00 A123456B789012C /change 1 five 5 ones

You may also exchange multiple "small" denomination coupons for "larger"
ones.  This is done by using the "accept" command.  When you accept
multiple NetCash coupons in a single mail message, the NetBank summarizes
the transactions and issues the minimum number of new coupons necessary. 
For example, sending the following two transactions to the NetBank:

    NetCash US$ 5.00 B234567C789012D /accept
    NetCash US$ 5.00 C345678D789012E /accept

will return a single coupon:

    NetCash US$ 10.00 D654321E789012F

The NetBank will also process "change" transactions that request exact
change (dollars and cents).  The following change transaction will request
a coupon of a specific dollar amount:

    NetCash US$ 10.00 B123456C789012D /change 4.50 

This transaction will return two NetCash coupons.  One coupon in the amount
of $4.50, and the other coupon for the remaining cash value (10.00 - 4.50 =
5.50). 


10. How do I convert NetCash coupons back to US dollars?

Converting NetCash coupons back to US dollars is easy, and anyone may do
it.  To do so, you open a NetBank Merchant account.  Once you have your
account, you request reimbursement by sending a "deposit" transaction to
the NetBank.  For example, the following transaction will deposit a $5
coupon into account number 12345:

    NetCash US$ 5.00 C345678D789012E /deposit 12345

On a periodic basis, the NetBank totals the deposits for each account, and
sends a reimbursement check to the merchant.

Each merchant may specify the frequency they wish to receive reimbursement
checks.  Merchants may request the NetBank to issue checks weekly,
biweekly, or monthly. If the merchant doesn't specify, monthly checks will
be issued.

Merchants pay a conversion fee when they convert NetCash to US dollars. 
This fee is equal to two percent (2%) of the amount of the reimbursement
check, with a $4 minimum.  This is the only fee the merchant pays.  

For low volume merchants ($200 or less per check), this works out to a fee
of only four dollars ($4)!  A merchant who redeems $500, pays only $10.  


11. Do I pay a transaction fee every time I spend or accept NetCash?

No, the NetBank processes transactions free of charge.  Users may spend and
accept NetCash, and make change, all without a charge.  The only charge
involved is the conversion fee to convert between NetCash and real money.

This is important; in order for NetCash to "feel" like cash, you must be
able to pay someone a quarter, without incurring a transaction fee!

 
12. What about someone guessing a NetCash serial number?

We expect a few people will try to steal other people's NetCash by guessing
their serial numbers.  To minimize this, we closely monitor all "rejected"
NetCash transactions to detect random guessing activity. 

Also, we have recently increased the length of the NetCash serial number to
reduce the chance of someone guessing it.

For added security, NetBank users may encrypt their NetCash transactions
before mailing them to the NetBank.


13. Can I use Pretty Good Privacy (PGP) to encrypt my transactions?

Yes.  All NetBank merchants are invited to use data encryption on their
e-mail messages.  Support for PGP is now available.  The NetBank will
process messages that have been encrypted with the PGP encryption software.
 For specific instruction regarding using PGP at the NetBank, please
request the "netbank-encryption" document from the NetBank Info Server.


14. Can merchants receive reimbursement checks on a threshold basis?

Yes.  A new, more flexible, payment option is now available for NetBank
merchants.  The NetBank will now issue reimbursement checks on a dollar
threshold basis.  Merchants may specify the dollar amount of the checks
they wish to receive.  Each time their account balance reaches that
threshold, a check will be sent to them.  

For example, a merchant could request a payment threshold of $500.  As the
merchant makes deposits to his account, the NetCash is accumulated.   Each
time the balance reaches (or exceeds) $500, a reimbursement check is issued
to the merchant.  

Depending on the volume of NetCash deposited, and the requested dollar
threshold, merchants will be issued reimbursement checks up to twice per
week. As previously mentioned, the minimum charge to issue a check is $4.


netbank-faq
Copyright (c) 1994, Software Agents, Inc.
All Rights Reserved


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