Negotiable store of value maintained digitally in a smart card or computer record that can be debited as the stored value is depleted; also called near money. Digital cash is most often used in the form of loyalty program points or premiums (e.g., accrued miles in a frequent flyer program). Other forms of digital cash are also in use. For example, subway commuters in some cities can purchase a smart card that is used as a ticket until the cash value of the card has been depleted. Although the concept has not overcome consumer preference for credit cards for Internet transactions, digital cash is expected to become a common means of payment for very small dollar value purchases over the Internet. One proposal has been for minors to access Internet-based digital cash accounts set up by their parents, instead of giving minors access to credit cards.





