Verifiable encryption is an encryption technique with which one can verify what has been encrypted even if one can not decrypt the ciphertext. This technique can be used in fair exchange to convince the counterpart of his or her receiving an item by presenting an encrypted form in advance. In this paper, a method that can guarantee the payment atomicity is proposed by applying verifiable encryption to an electronic cash system based on the representation problem. With the new method, the process of dispute settlement is improved in the fact that the trusted third party do not have to interact with the bank to resolve disputes. This method is also flexible in a sense that clients and shops can request for dispute settlement regardless of any deadline constraint. However, additional proof is necessary to apply verifiable encryption during payment. We discuss the security and the atomicity of our method, and compare ours with others