Before the user is able to use e-cash the user first have to create an account with the provider first. Once the provider has verified the identity of the user they will provide the user with a digital certificate which serves as a proof of identity to that user.
Once the user is identified using the digital certificate the bank will issue an e-currency to the customer according to the amount that is required by the user and the amount is then deducted from the users account. The user then can use the e-cash to make payment to merchant who are verified to prevent fraud and forgery.
Once the goods or service are received by the buyer the merchant then can present the e-cash to the issuing bank to deposit it into the merchant’s account.
Reference:
http://homepages.inf.ed.ac.uk/dts/pm/practical/ecash.htm
