Internet transactions


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what do we mean by internet transaction ??

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  • Internet transactions

    1. 3.
    2. 4. <ul><li>Aqib Farooq </li></ul><ul><li>Kunal Bhatt </li></ul>
    3. 5. <ul><li>Is a system that permits online payment between parties using an electronic surrogate of a financial tender </li></ul><ul><li>The electronic surrogate is backed by financial institutions and/or trusted intermediaries </li></ul><ul><li>The intent is to act as an alternative form of payment to the physical cash, cheque or other financial tender </li></ul>
    4. 6. New ePayment Solutions Security Infrastrucure Business Realities Authentication Models Spa Customer Profiles Payment Types
    5. 7. <ul><li>Defined as the medium in which the value is recognised in a payment transaction </li></ul><ul><li>Card-based such as </li></ul><ul><ul><li>Credit and charge cards </li></ul></ul><ul><ul><ul><li>buy now, pay later </li></ul></ul></ul><ul><ul><li>Debit cards </li></ul></ul><ul><ul><ul><li>buy now, pay now </li></ul></ul></ul><ul><ul><li>Cash cards, stored-valued, e-cash </li></ul></ul><ul><ul><ul><li>buy now, prepaid or pay before </li></ul></ul></ul>
    6. 8. <ul><li>Most widely used </li></ul><ul><ul><li>banks able to leverage existing card infrastructure </li></ul></ul><ul><ul><li>appears ‘defacto’ online payment </li></ul></ul><ul><li>Largely unencrypted </li></ul><ul><ul><li>‘ card-not-present’ transactions processed without customer & merchant authentication </li></ul></ul><ul><li>Charge back risk for merchants </li></ul><ul><ul><li>charge-back is when customer demands a refund </li></ul></ul><ul><ul><li>banks transfer liabilities of charge-backs to the merchants </li></ul></ul><ul><ul><li>merchants need to have a bond to cover such charges </li></ul></ul>
    7. 9. <ul><li>Direct electronic transfer of account - direct account debiting </li></ul><ul><li>Uses chip/smart eWallets </li></ul><ul><li>Digital signature to secure access </li></ul><ul><li>Connected to eBanking solution </li></ul>
    8. 10. <ul><li>A system of purchasing cash and storing the credits in consumer’s computer </li></ul><ul><li>Computerised stored value is used as a form of cash to be spent in small increments </li></ul><ul><li>A third party is involved in the payment transactions </li></ul><ul><li>Examples: Beenz, Billpoint, Paypal </li></ul>
    9. 11. <ul><li>Payment solution on a proprietary protocol that allows payment over the Internet </li></ul><ul><li>A digital/virtual wallet with prepaid credit-based/token-based payment system </li></ul><ul><li>Enables low-value electronic payments on the Internet </li></ul><ul><li>Limited distribution, proprietary solutions </li></ul><ul><li>Needs to install card reader and download free eWallet </li></ul>
    10. 12. <ul><li>A formatted email message that consists of payee name, amount, payment date, payer’s account number, and payer’s bank </li></ul><ul><li>Digital certificate and signature are used to secure the cheque so that the contents are not tampered with </li></ul><ul><li>A signed electronic cheque is exchanged between the parties’ financial institutions through automated clearing house </li></ul>
    11. 13. <ul><li>Use of stolen card </li></ul><ul><li>Credit card number or password stolen from computer </li></ul><ul><li>Unauthorised access </li></ul><ul><li>Information modified in transit </li></ul><ul><li>Payment info stolen from merchant </li></ul><ul><li>Masquerading as legitimate merchant </li></ul><ul><li>Key info stolen by merchant staff </li></ul><ul><li>Information modified in transit </li></ul><ul><li>Information stolen </li></ul>Buyer Merchant Payment gateway Internet Private network Internet Bank network
    12. 14. <ul><li>The Trust Principle </li></ul><ul><ul><li>The parties to the transaction must trust each other </li></ul></ul><ul><ul><li>Buyer must believe that seller is legitimate and will deliver the goods </li></ul></ul><ul><ul><li>Buyer must believe that goods are as represented and are worth the price </li></ul></ul><ul><ul><li>Seller must believe that buyer is legitimate and will pay for the goods purchased </li></ul></ul>
    13. 15. <ul><li>The Security Principle </li></ul><ul><ul><li>Parties need a secure environment in which to conduct the electronic transactions </li></ul></ul><ul><ul><li>Seller needs to protect the details of the transactions </li></ul></ul><ul><ul><li>Buyer needs to be certain that his/her information is securely handled and stored </li></ul></ul><ul><ul><li>Buyer needs to be certain that information is not stolen that it can be inappropriately used </li></ul></ul>
    14. 16. <ul><li>Identification and authenticate </li></ul><ul><ul><li>the ability to verify both the transacting parties </li></ul></ul><ul><li>Authorisation </li></ul><ul><ul><li>the ability to validate the rightful owner to the transaction </li></ul></ul><ul><li>Integrity and confidentiality </li></ul><ul><ul><li>the ability to transmit the transaction securely </li></ul></ul><ul><ul><li>the ability to store the transaction properly </li></ul></ul><ul><li>Accountability </li></ul><ul><ul><li>The ability to provide audit trail as evidence in dispute </li></ul></ul><ul><li>Policies for sharing risks and liabilities </li></ul><ul><ul><li>the mechanism to settle disputes/non-repudiation </li></ul></ul>
    15. 17. <ul><li>Protocol by Visa and MasterCard released in 1996 </li></ul><ul><li>3 party system - cardholder, merchant and bank using SET-enabled systems </li></ul><ul><li>Uses digital certificate to ensure cardholder is who he/she says he/she is or claims to be </li></ul><ul><li>Credit card details are invisible to merchants, protected by encryption for clearing bank </li></ul>
    16. 18. Bills buyer Pays bank Orders goods Deliver goods Reimburses merchant Voucher to Acquiring Bank Transaction voucher to Issuing Bank Issuing Bank pays Visa / Mastercard Sends transaction voucher to Visa / Mastercard Visa / Mastercard reimburses Acquiring Bank 1 2 7 4 5 3 6 8 9 Buyer Issuing Bank Merchant Acquiring Bank Visa/Mastercard
    17. 19. <ul><li>SPA is an authenticated payment system that involves participation of the cardholder, cardholder’s issuer, and merchant </li></ul><ul><li>Cardholder needs authentication mechanism from the issuer such as a browser plug-in or an electronic wallet in their computers </li></ul><ul><li>Merchants needs plug-in from the acquirer in shopping cart to carry hidden fields of transaction-specific information which can be checked with the security token….. </li></ul>