CNBAB is an e-commerce platform which constructs a creditworthy trade environment and providesfinancing channels for Chinese Small and medium-sized enterprise (SME). CNBAB adopts a brandnewbusiness pattern called BAB(business agent business). BAB pattern can provide credit guaranteeand solve quickly transactional fund shortage for SMEs. CNBAB constructs an aggregate called agentto guarantee reliable trading environment by combining banks, the government, digital authenticationcenters, enterprise credit rating institutions, third party quality inspection organizations, third partylogistics companies and third party arbitration institutions, in which every party undertakes differentresponsibility throughout the entire trading process. CNBAB balance center is responsible for thesettlement of funds which provides three e-payment methods, respectively cash, cash under themonitor of bank, trade-currency. In cash payment method, payment procedure is completed byinteraction with the gateways of commercial banks. In cash under the monitor of bank paymentmethod, CNBAB balance center has a cash account system to facilitate accounts processing andaccounts inquiry. Both each user and CNBAB platform has a separate cash account in cash accountsystem of CNBAB balance center, CNBAB platform has bank accounts in commercial banks. Usercan recharge own cash account by transferring funds from his bank account to the bank account ofCNBAB platform, and can withdrawal from own cash account by transferring funds from the bankaccount of CNBAB platform to his bank account. The bank account of CNBAB platform is under themonitor of the bank and must have a certain amount of margin to deal with risks. In trade-currencypayment method, CNBAB balance center has a trade-currency account system to facilitate accountsprocessing and accounts inquiry. Both each user and CNBAB platform has a separate trade-currency account in trade-currency account system of CNBAB balance center. Trade-currency is similar to short-term loans of banks for user to resolve financing problem. Trade-currency guarantees trade between users, banks guarantee the value of trade-currency to assure smooth trade steps. CNBAB has been in operation since Mar., 2008. In this paper, we firstly present BAB business pattern, secondly describe e-payment protocols adopting cash under the monitor of bank payment method, thirdly the corresponding account settings and table design for accounting settings are described, finally the corresponding accounting treatment is introduced.

BAB; e-payment method; cash under the monitor of bank; e-payment protocol