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`SELLING ONLINE WITH •••
`FIRST VIRTUAL
`HOLDINGS, INC.
`
`THE INTERNET MERCHANT MASTER SERIES
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`LIMITED WARRANTY AND DISCLAIMER OF LIABILITY
`
`CHARLES RIVER MEDIA, INC. ("CRM") AND/OR ANYONE WHO HAS BEEN INVOLVED
`IN THE WRITING, CREATION OR PRODUCTION OF THE ACCOMPANYING CODE ("THE
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`02370. CRM's sole obligation to the purchaser is to replace the disk, based on defective materials or faulty
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`Page 4 of 400
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`SELLING ONLINE WITH • • •
`FIRST VIRTUAL
`HOLDINGS, INC.
`
`THE INTERNET MERCHANT MASTER SERIES
`
`-~
`
`_..,.....,_
`. :~{·~~:_' '
`
`CHARLES
`RIVER
`
`•
`
`CHARLES RIVER MEDIA, INC.
`ROCKLAND, MAsSACHUSETTS
`
`Page 5 of 400
`
`

`

`Copyright© 1996 by CHARLES RIVER MEDIA, INC.
`All rights reserved.
`
`No part of this publication may be reproduced in any way, stored
`in a retrieval system of any type, or transmitted by any means or
`media, electronic or mechanical, including, but not limited to, pho(cid:173)
`tocopy, recording, or scanning, without prior permission in writing
`from the publisher.
`
`Publisher: David F. Pallai
`Interior Design/Comp: Reuben· Kantor
`Cover: Gary Ragaglia
`Printer: InterCity Press, Rockland, MA ..
`
`CHARLES RIVER MEDIA, INC.
`P.O.Box417
`403 VFW Drive
`Rockland, Massachusetts 02370
`617-871-4184
`617-8}1-4376 (FAX}
`chrivmedia@aol.com
`
`This book is printed on acid-free paper.
`
`Pete Loshin. Selling Online With ... First Virtual Holdings, Inc.
`ISBN: 1-886801-41-X
`
`All brand names and product names mentioned in this book are
`trademarks or service marks of their respective companies. Any
`omission or misuse (of any kind} of service marks or trademarks
`should not be regarded as intent to infringe on the property of oth(cid:173)
`ers. The publisher recognizes and respects all marks used by compa(cid:173)
`nies, manufacturers, and developers as a means to distinguish their
`products.
`
`Printed in the United States of America
`96 97 98 99 00 6 5 4 3 2 First Edition
`
`CHARLES RIVER MEDIA titles are available for site license or
`bulk purchase by institutions, user groups, corporations, etc. For
`additional information, please contact the Special Sales Department
`at 617-871-4184.
`
`Page 6 of 400
`
`

`

`CONTENTS
`
`FOREWORD .............. . ..... .. ....................... . x:v
`PREFACE . ...... . .... .. ......... ...... . . . ................. xix
`
`Part I Introducing First Virtual and Internet
`Commerce .................... : ..... .... ........... 1
`INTRODUCTION TO INTERNET COMMERCE ... : ... .... ......... ~ .... 3
`
`1
`
`BUYING AND SELLING ON THE INTERNET . . .. ... . ..... .•.............. 6
`What's Different? ...................................... 7
`What's the Same? . ...................... .. ............. 7
`
`THE INTERNET ENVIRONMENT ... ......... : ... ... .. ~ .•.•.......... 9
`The Internet Advantage ............. .. .................. 9
`World Wide Web, Killer App of the Internet . ... ............ 11
`
`THE WORLD WIDE WEB .............. . ..................... . . 13
`World Wide Web Standards ........ .... ....... ... ...... 14
`Web Browsers and Web Servers ... . ..... . ............... 16
`Selling on the World Wide Web ........ . ............. ... 18
`
`Other Internet Sales Venues ......... .. .... ........ ..... 19 ·-
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`Page 7 of 400
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`BMW
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`SELLING ONLINE WITH ••• FIRST VIRTUAL
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`INTERNET COMMERCE ISSUES ................................... 22
`Informal Procedures Aren't Enough ....................... 22
`Securing Financial Information ........................... 23
`Authenticating Transaction Data ......................... 25
`Paying for the Privilege ................................. 26
`
`THE FIRST VIRTUAL WAY ...................................... 27
`A Holistic Approach to Security ......................... 28
`Paying for the Service ................................. 30
`
`FIRST VIRTUAL OVERVIEW ..................................... 30
`Can't People Steal My Information Products? ............... 33
`Can't VirtualPINs Be Compromised? ...................... 34
`It Seems Awfully Complicated .......................... 35
`
`2 SECURITY ISSUES, SECURITY TOOLS . ........................... 37
`WHY THE INTERNET Is LiNSECURE .......•........................ 38
`It's the Protocols ...................................... 40
`Where the Risks Are ................................... 42
`What the Risks Are .................... · ............... 42
`Internet Security Holes ................................ 43
`A Bigger Risk ......................................... 45
`What It Al I Means ..................................... 46
`
`NEW TOOLS FOR CRYPTOGRAPHY ............................... 46
`Cryptography ........................................ 4 7
`Cryptographic Objectives .............................. 48
`Codes and Ciphers ................... . ............... 50
`Breaking Encryption Schemes ........................... 51
`Securing Algorithms .................................. 53
`Distributing Keys and Keeping Them Secret ................. 54
`The Public Key Solution ................................ 55
`Public Key Implications ................................ 56
`Key Distribution and Certification ........................ 58
`Trusted Key Distribution and Verification .................. 59
`
`CRYPTOGRAPHIC APPLICATIONS ................................. 60
`Encryption .......................................... 60
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`Ill
`
`CONTENTS
`
`Digital Signature ...................................... 61
`Nonrepudiation and Message Integrity .................... 62
`
`3 SECURING INTERNET COMMERCE .............................. 65
`
`THE INTERNET COMMERCE STORY, So FAR ........•.•............... 66
`Five Internet Commerce Techniques ...................... 66
`Security through Obscurity ............................. 66
`Consumer/Merchant Channel Encryption ................... 67
`Digital Envelope Encryption ............................ 68
`Digital Currencies .................................... 69
`Offline Handling of Transaction Data ...................... 69
`Representative Internet Commerce Players ................. 70
`Other Internet Commerce Actors ........................ 72
`
`TRANSACTION SECURITY THROUGH OBSCURITY ......................• 73
`The "No Security" Choice .............................. 73
`Choosing No Security ................................. 74
`Incomplete Security Solutions ........................... 75
`Marks of Unsecure Solutions ............................ 76
`
`THE ENCRYPTED CHANNEL APPROACH ............................ 77
`How an Encrypted Channel Works ....................... 78
`Advantages for Merchants .............................. 81
`Advantages for Consumers ............................. 82
`Weaknesses and Disadvantages .......................... 82
`
`THE DIGITAL ENVELOPE APPROACH .............................. 83
`How Digital Envelopes Work ............................ 85
`Advantages for Merchants .............................. 85
`Advantages for Consumers ............................. 86
`Weaknesses and Disadvantages .......................... 86
`
`DIGITAL CURRENCIES .....................•.................. 87
`How Digital Cash Works ................................ 88
`Advantages for Merchants .............................. 89
`Advantages for Consumers ............................. 89
`Weaknesses and Disadvantages .......................... 89
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`EXTERNAL CHANNEL APPROACH ................................ 90
`How the External Channel Approach Works ................ 91
`Advantages for Merchants .............................. 92
`Advantages for Consumers ............................. 93
`Weaknesses and Disadvantages .......................... 94
`
`Part II First Virtual: The Company,
`Its Products and Services ..................... 97
`4 THE FIRST VIRTUAL APPROACH TO INTERNET COMMERCE ........... 99
`
`THE BIRTH OF FIRST VIRTUAL .................................. 100
`
`How FIRST VIRTUAL WORKS .............•.................... 101
`Creating an Account ................................. 102
`Account Requirements ............................... 103
`Submitting the Application ............................ 103
`Terms and Conditions ................................ 103
`Making a Purchase .................................. 104
`Making a Sale ....................................... 105
`
`FIRST VIRTUAL PROTOCOLS ................................... 105
`The Green Commerce Model .......................... 107
`Cardholders and Cardholder Accounts ................... 109
`Green Commerce Transactions ......................... 110
`FundsTmnskr ..................................... 111
`Cardnumber Inquiries ................................ 114
`Transfer Inquiries ................................... 114
`Chargebacks ...................................... 115
`Green Commerce Server Capabilities ..................... 115
`Cardholder Account Application ....................... 115
`Account Maintenance ............................... 116
`Account History Requests ............................. 116
`Application/Green-Commerce MIME Content-Type ......... 117
`Simple MIME Exchange Protocol (SMXP) .................. 118
`Simple Green Commerce Protocol (SGCP) ................. 118
`
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`• CONTENTS
`
`@!Ill
`
`SELLING HARD GOODS WITH FIRST VIRTUAL ..........•............ 119
`Added Security Measures ............................. 119
`Selling Hard Goods vs. Information Products .............. 119
`Digital Signature Key Management. ...................... 120
`Validating Digital Signatures ............................ 121
`
`5
`
`FIRST VIRTUAL PRODUCTS AND SERVICES ....................... 123
`
`THE FIRST VIRTUAL ORGANIZATION ............................. 124
`A Virtual Corporation ................................. 124
`Using Automation ................................... 125
`First Virtual Products and Services ....................... 126
`
`TERMS AND CONDITIONS ..................................•. 127
`Getting the Terms and Conditions Documents ........ . .... 128
`Buyer's Terms and Conditions .......................... 129
`Seller's Terms and Conditions .......................... 129
`lnfoHaus Seller's Terms and Conditions ................... 130
`
`BUYERS' SERVICES ......................................... 130
`Account Requirements ............................... 130
`Account Creation .................................... 131
`Buying Privileges ..................................... 132
`Customer Support Services ............................ 132
`
`SELLERS' SERVICES ......................................... 133
`Account Creation and Requirements .................... 134
`Selling Privileges ..................................... 135
`Customer Support Services ............................ 135
`
`WHY THE 91-DAY HOLDBACK PERIOD? .....•.................... 136
`
`THE INFOHAUS SERVICE ..................................... 137
`Storefront Creation and Requirements ................... 138
`Storefront Management ............................... 138
`Rights and Responsibilities ............................ 139
`Customer Support Services ............................ 139
`
`REACHING FIRST VIRTUAL .................................... 139
`Contacting First Virtual via the World Wide Web ............ 140
`
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`SELLING ONLINE WITH ••• FIRST VIRTUAL
`
`E-mail Addresses .................................... 141
`Automatic E-mail Responder .......................... 141
`Special Addresses for Sellers .......................... 141
`Special lnfoHaus Addresses ........................... 142
`Other Internet Resource Addresses ..................... 142
`ftp ............................................... 143
`Telnet ............................................. 143
`First Virtual Users Mailing List ........................... 144
`How To Subscribe To the FV-Users List . ,. ................. 144
`Unsubscribing From the FV-Users List. .................... 145
`Participating In the FV-Users List ........................ 145
`Reaching a Human ................................... 146
`
`Part Ill Buying and Selling with First Virtual ......... 149
`6 OPENING YOUR FIRST VIRTUAL ACCOUNT ...................... 151
`
`THE FIRST VIRTUAL ACCOUNT PROCESS ...•....................... 152
`Methods for Initial Contact ............................ 152
`Providing Some Information Online ..................... 153
`Different Applications, Identical Followup ................ 156
`Providing Some Information Offline ..................... 157
`Buying and/or Selling ................................. 158
`Waiving the Holding Period for Merchants ................ 158
`
`SIGNING UP BY WORLD WIDE WEB ............................. 159
`Connecting to the First Virtual Web Site .................. 159
`Filling in the Application Form .......................... 160
`What Follows ........................................ 164
`
`SIGNING UP BY TELNET .....................•................ 164
`Connecting to the First Virtual Telnet Server ............... 164
`Answering Application Questions ...................... 167
`Reviewing and Submitting the Application ............... 170
`What Follows ........................................ 173
`
`Page 12 of 400
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`Ill
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`(ON TENTS
`
`SIGNING UP BY E-MAIL. ........................ · ............. 174
`Getting the E-mail Application ......................... 174
`Filling in the Application Form .......................... 174
`Submitting the Application Form ....................... 180
`What Follows ........................................ 181
`
`ACCOUNT VERIFICATION AND fOLLOWUP ......................... 181
`E-mail Confirmation of Application ...................... 182
`Responding by Telephone for Buyers .................... 186
`Responding by Mail for Sellers ... _. ..................... 187
`Finishing the Process ................................. 188
`
`GETTING EXPRESS MERCHANT STATUS ........................... 188
`
`ACCOUNT MAINTENANCE .................................... 190
`Tracking Your Account Status ............. . ............ 190
`Making Changes ..................................... 191
`
`7 BUYING WITH FIRST VIRTUAL . ............................... 193
`
`THE TRANSACTION PROCESS .................................. 194
`
`A SAMPLE PURCHASE ...................................... 195
`
`TRANSACTION COMPLETION .................................. 199
`
`PRODUCT DELIVERY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 206
`
`BUYING HARD GOODS ..................................... 207
`
`BUYING BY E-MAIL AND FTP : ................................. 208
`Buying by ftp ...................................... 208
`Buying by E-mail ................................... 209
`
`8 SELLING ON THE INFOHAUS ................................ 213
`
`INTRODUCTION TO THE INFOHAUS ............•................. 214
`Why the lnfoHaus? ................................... 214
`How It Works ....................................... 216
`It's Not Just for the World Wide Web ...... _. ............. 216
`What It Costs ....................................... 217
`
`Page 13 of 400
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`*"
`
`SELLING ONLINE WITH ••• FIRST VIRTUAL
`
`SETTING UP YOUR STOREFRONT ................................ 218
`Opening Your lnfoHaus Storefront ...................... 218
`Setting up a Storefront Using Telnet ...................... 219
`Setting up a Storefront Using E-mail. ..................... 225
`Stocking Your Store .................................. 227
`Preparing Your Information Products ..................... 228
`Uploading Products by ftp ............................ 232
`Uploading Products by E-mail. ......................... 233
`Checking in Products by Telnet ......................... 233
`Installing Products by E-mail ........................... 235
`
`ADDING HTML TO YOUR INFOHAUS STOREFRONT .................. 238
`
`INFOHAUS PERIODICALS ..................................... 240
`Subscribing to a Periodical ................ : ........... 241
`Creating Periodicals .................................. 241
`Adding Issues to a Periodical .......................... 242
`
`9 SELLING FROM YOUR WEB SERVER ........................... 243
`
`WHAT You NEED TO Go ONLINE ............................. 245
`Hardware, Software, Services .......................... 246
`Hardware ........................................ 246
`Software ......................................... 247
`Services .......................................... 247
`If You Outsource Your Web Site ......................... 248
`
`FIRST VIRTUAL RESOURCES .•.................................. 249
`Using First Virtual Programs and Templates ................ 250
`Using the First Virtual Web Site ......................... 251
`Scripts, Templates, and More .......................... 253
`
`THE SELLING PROCESS ............•......................... 254
`Initiating a Transaction ................................ 254
`Using E-mail. ...................................... 255
`Using Telnet ....................................... 256
`Using the. Simple Green Commerce Protocol ............... 257
`Making Sales off the Internet ........................... 257
`
`Page 14 of 400
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`

`

`CONTENTS
`
`Verifying a Buyer's VirtualPIN . . .... ...... .. ... .. ... . .... 258
`Finger ..... ....... .. ....... ...... ................ 258
`Telnet ........ .......... ........... . . ·· ... . ........ 259
`E-mail ..... ............. .......... ... .. . · ... . ..... 260
`Using the FV-API ..................... ~ .· ........ . .... 260
`
`INFOHAUS HTML FORMS . ..... . .. .............. ....... .... . 261
`Emailform .................. . ........ . . ............ . 261
`, Emailpayform ............................ . .... .... .. 263 J
`
`CGI SELLING TOOLS .... .............. ... .................. 265
`Member ............................... .. ... ...... . 265
`Installing and Running Member .............. . .......... 266
`Websale .......... . . . ................. . . .. ......... 268
`Using Tel . . . ... . ..... ....... .. ...... . . . ... . .... ... 269
`Installing Websale . . . .... .... . . .... . . .. . · . .... .... ... 269
`
`THE FIRST VIRTUAL API ................ ... .................. 269
`Getting and Installing the First Virtual API ..... .. .... ... ... 271
`FV-API Operations ....... ........................ . .... 271
`Autosell URLs ...................................... 271
`Manusell URLs .... ... .. . . ... ............ .. . .. .... . . 272
`Formsel/ URLs .. ...... ................ ......... . .. .. 272
`
`10 TIPS, TRICKS, AND POINTERS ............................... 273
`
`TIPS FOR EVERYONE ......... • .............................. 27 4
`
`TIPS FOR INFOHAUS MERCHANTS . .. ........... .. ... ........... 275
`
`GmlNG YOUR STORE LISTED ... . ....... ......... ..... .. •.. .•. 279
`
`COMMERCIAL OPTIONS FOR MERCHANTS ...................•..... 280
`
`MAKING TEST SALES THROUGH FIRST VIRTUAL ..... . . ............... 281
`lnfoHaus "QuickBuy" Numbers .......... .. .. ... . ...... . 282
`
`LEARNING MORE ABOUT HTML AND CGI .. .. .......... ... ....... 284
`Getting Help from the World Wide Web ................. 284
`Books about HTML and CGI ............................ 285
`
`,,_~ ,
`
`\i : ;
`
`Page 15 of 400
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`EE
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`SELLING ONLINE WITH ••• FIRST VIRTUAL
`
`APPENDIX A
`
`INTERNET COMMERCE GLOSSARY . ............................ 287
`
`APPENDIX B ELECTRONIC COMMERCE ONLINE RESOURCES ................... 305
`WORLD WIDE WEB RESOURCES ................................ 306
`Electronic Commerce Companies ....................... 306
`Financial Institutions .................................. 311
`International Internet Commerce Sites .................... 314
`General Catalog and News Services ..................... 316
`Online Commerce Organizations ....................... 318
`Online Marketing, Buying, and Selling .................... 320
`
`MAILING LISTS ........................................... 322
`
`COMMERCENET ........................................... 326
`CommerceNet Charter ................................ 326
`CommerceNet Participation ................... · ........ 327
`What CommerceNet Offers ............................ 327
`
`APPENDIX C
`
`FIRST VIRTUAL TERMS AND CONDITIONS DOCUMENTS ............. 329
`
`BUYER'S TERMS AND CONDITIONS .............................. 330
`
`SELLER'S TERMS AND CONDITIONS .... . ......................... 341
`
`INFOHAUS TERMS AND CONDITIONS .........•...•.............. 360
`
`APPENDIX D GUIDE TO THE CD-ROM . ................................. 371
`
`INSTALLING THE CD-ROM ................................... 371
`Accessing the CD-ROM Index .. : ....................... 372
`
`SUPPORT FOR SOFTWARE ON THE CD-ROM ....................... 3711
`CD-ROM CONTENTS ...............•...................... 371
`Structure of the CD-ROM .............................. 371
`First Virtual Specification Documents .................... 371
`lnfoHaus Templates .................................. 371
`HTML Templates and CGI Scripts ....................... 371
`The First Virtual API. .................................. 371
`First Virtual Enabling Your ftp Server ..................... 371
`
`ELECTRONIC COMMERCE LINKS ............•................... 371
`
`INDEX ................................................. 377
`
`Page 16 of 400
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`..........--
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`'Ad
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`SELLING ONLINE WITH ••• FIRST VIRTUAL
`
`restructure their world. Their reactions vary in every conceiv(cid:173)
`able way, sharing only one common theme: a desperate
`hunger to understand this strange new thing called the
`Internet.
`
`First Virtual came from another planet, more or less. The FV
`founders came from inside the Internet, understood it deeply,
`and were totally comfortable with it. Of course, our igno(cid:173)
`rance and naivete on the financial side of things were pretty
`impressive, too. If the established players had understood the
`Internet, they would have eaten us for lunch. As it was, we
`all found ourselves in a frantic race to learn more. Our
`biggest advantage was probably that it was easier to find
`people who could explain the financial world to us than it
`was for banks to find people who could explain the Internet
`to them.
`
`It will be a long time before the dust settles on Internet com(cid:173)
`merce mechanisms. It may yet happen that all the players cur(cid:173)
`rently on the scene will be swept away by forces that are, at
`this writing, just lurking in the wings. But so far, a few of First
`Virtual's key features seem to have struck a receptive chord
`with the Internet community. They seem likely to be around
`for a long time in one form or another.
`
`One such idea is open, universal access to commerce. First
`Virtual has without a doubt opened up more entrepreneurial
`horizons than any other payment system in history. With ten
`dollars and a bank account, you can start selling things to
`people all over the planet. There's no credit-scoring or
`approval process that restricts merchant status to large, estab(cid:173)
`lished corporations. Anyone can be a seller. This aspect of the
`FV system has met with nearly universal approval, and seems
`to be in tune with one of the most important aspects of the
`Internet -
`its role in opening, leveling, and universalizing
`human communication.
`
`Page 18 of 400
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`II FOREWORD
`
`Another aspect of First Virtual's system design that seems to
`have been validated by experience is our reluctance to rely on
`special consumer-level mechanisms to facilitate commerce. All
`that you really need in order to be a buyer with First Virtual is
`access to Internet e-mail. This means that neither First Virtual
`nor the merchants who use our system have to be in the busi(cid:173)
`ness of persuading customers to acquire, learn, and use any new
`tools. In essence, the entire Internet is our installed software
`base, and FV customers don't have to sacrifice any freedom of
`choice regarding the software that they use for Internet access.
`
`Perhaps the most important aspect of FV's system design,
`however, is that we have demonstrated that it is possible to
`build a secure commerce mechanism based entirely on proto(cid:173)
`cols that are truly open. Programmers who want to write
`applications that use First Virtual's payment system can down(cid:173)
`load complete specifications, sample code, and even some fully
`functioning software, all for free from our site. There are no
`woolly-headed claims for security through obscurity, no
`requirements for programmers to license patented algorithms,
`and no dependencies on proprietary computing platforms.
`Contrary to many people's expectations, FV demonstrates that
`it is possible to make Internet commerce as open as the
`Internet itself. Unfortunately, not everyone wants to keep it
`that way.
`
`We all know that there's a gold rush going on right now on
`the Internet, with people and companies vying for position in
`the much-discussed but little-understood infrastructure for the
`future of human communication and commerce. What's less
`recognized is that implicit in this gold rush is a struggle over
`the very organization of society in the years to come.
`Computing technology serves fundamentally to amplify
`human abilities. Thus, it inherently tends to push organiza(cid:173)
`tions towards one of two extremes, centralization or democra(cid:173)
`tization, depending on how it is applied and in what
`
`' \ji.f
`
`Page 19 of 400
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`SELLING ONLINE WITH ••• FIRST VIRTUAL
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`organizational structures. Nowhere is this more important
`than in the area of payment systems.
`
`Internet payment systems can be designed to enable the masses
`to be entrepreneurs, or they can be designed to further concen(cid:173)
`trate power in the hands of the largest companies and wealthi(cid:173)
`est individuals. If you look carefully at the technical design of
`a payment system, you will always find assumptions about the
`social structure of commerce, and you will often find a politi(cid:173)
`cal agenda as well.
`
`First Virtual makes no bones about its political agenda: We
`want to make sure that the little guy has a chance, along with
`the big guy, to set up- businesses on the Internet. Ultimately, we
`want a musician in rural Uganda to be able to sell his music
`directly to consumers in the United States, Tonga, or anywhere
`else. We don't believe our payment system is the only way to
`enable such commerce, but we do believe that this goal is con(cid:173)
`spicuously absent from many other proposed payment systems.
`
`Unlike this preface, the book you're holding in your hands is
`not a political or ideological statement. It's a very practical
`"how-to" book, and by the time you're done reading it, you
`should be able to set up a whole new business in cyberspace
`starting with nothing but $10, an Internet connection, a good
`idea, and a willingness to work. I hope that's why you're read(cid:173)
`ing these words. I don't really mind if you don't share my
`political agenda. If you're an industrious would-be entrepre(cid:173)
`neur with a dream of your own, you are my political agenda. I
`hope you do very well.
`
`- Nathaniel Borenstein
`Chief Scientist, First Virtual Holdings
`
`Page 20 of 400
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`
`SELLING ONLINE WITH ••• FIRST VIRTUAL
`
`advances in cryptography have been providing the tools
`needed to solve Internet commerce security issues. Chapter 3,
`"Securing Internet Commerce," explains how companies have
`been putting together the various cryptographic tools to create
`Internet commerce solutions. Here is an overview of how
`Internet commerce is developing, your choices as an Internet
`merchant, and the advantages and disadvantages of using
`these different solutions.
`
`Part Two provides an overview of the First Virtual organiza(cid:173)
`tion and their products and services. Chapter 4, "The First
`Virtual Approach to Internet Commerce," explains how the
`company came to be, the logical and technological underpin(cid:173)
`nings of the First Virtual system, and how that system works.
`Chapter 5, "First Virtual Products and Services," provides a
`summary of First Virtual contact, product, and information
`resources.
`
`In Part Three, the nuts and bolts of buying and selling with
`·First Virtual are laid out in full. Chapter 6, "Opening Your
`First Virtual Account," explains in detail how to open your
`account for buying and selling, including applying for Express
`Merchant status. Chapter 7, "Buying With First Virtual,"
`examines the process of making a purchase with First Virtual.
`Chapter 8, "Selling on the InfoHaus," explains how you can
`set up your own Internet storefront using First Virtual's
`InfoHaus hosting service; Chapter 9, "Selling from Your Web
`Server," explains how to use scripts and other tools for selling
`your own information products or hard goods on your own
`Internet or World Wide Web server. Finally, Chapter 10,
`"Tips, Tricks a'nd Pointers," brings you tips and pointers from
`First Virtual staff and merchants to help make your selling
`experience more profitable.
`~
`
`Page 22 of 400
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`• PREFACE
`
`Appendices include "Internet Commerce Glossary" (Appendix
`A), "Electronic Commerce Online Resources (Appendix B),
`"First Virtual Terms and Conditions Documents" (Appendix
`C) and "Guide to the CD-ROM" (Appendix D). Included on
`the CD-ROM are First Virtual protocol specifications as well
`as scripts and other code for implementing your own First
`Virtual Internet storefront.
`
`This book was possible only with the cooperation, support,
`and help of many people. In particular, thanks are due the
`people at First Virtual, who are making Internet commerce a
`reality for anyone connected to the Internet, not just big com(cid:173)
`panies. Special thanks also go to Nathaniel Borenstein of First
`Virtual for his help in getting this book finished on time, as
`well as to publisher David Pallai and production specialist
`Reuben Kantor.
`
`Finally, very special thanks to Lisa Wolfe, Ph.D., for her very
`special support, and to our genetic repository for his help in
`focusing my attention.
`
`Page 23 of 400
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`
`PART I •
`
`INTRODUCING FIRST VIRTUAL AND INTERNET COMMERCE
`
`liPimmiiiiilii here can be no question: as we approach the end of
`the century, commercial life as we know it is changing
`rapidly. One of the most prominent vehicles of that
`change is the expansion of the global Internet. In 1990, after
`twenty years of research and development, only a tiny fraction
`even of well-informed technologists knew what the Internet
`was