E-commerce System Technologies, Repository and Networking Technology


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E-commerce System Technologies, Repository and Networking Technology

  1. 1. ASMA’ BINTI ISMAIL 2011443364KHAIRUNNIZAN 2010314237NUR ATIRA NABILAH 2010715817WAN NUR HAFIZHOH 2010103599
  2. 2. Outline Introduction Online Payment Basics Payment Cards Electronic Cash Electronic Wallets Stored-value cards Internet Technologies and the Banking Industry Criminal Activity and Payment Systems: Phishing and Identity Theft Case study Conclusion
  4. 4. Introduction Ecommerce architecture/framework What should have in ecommerce site? Software/hardware?
  5. 5. Ecommerce architecture/framework • To carry out electronic business successfully, Web sites must provide reliable connectivity and 24 by 7 availability. • Corporate Web sites must also address user scalability and performance to simultaneously handle thousands of Internet connections to their data repositories.
  6. 6.  Database  Collection information that is stored on a computer in a highly structured way  DBMS is software that makes it easy for users to enter, edit, update and retrieve information in the database  Usually the database that serves an online store is the same one that is used by the company’s existing sales operations.
  7. 7.  Middleware  Middleware can be described as "software glue".  Thus middleware is not obviously part of an operating system, not a database management system, and neither is it part of one software application.  Middleware makes it easier for software developers to perform communication and input/output, so they can focus on the specific purpose of their application.
  8. 8.  Enterprise Application Integration  is defined as the use of software and computer systems architectural principles to integrate a set of enterprise computer applications.  the process of linking such applications within a single organization together in order to simplify and automate business processes to the greatest extent possible, while at the same time avoiding having to make sweeping changes to the existing applications or data structures
  9. 9.  Web Services  Software systems that support interoperable machine- to-machine interaction over a network  Set of software and technologies that allow computers to use the web to interact with each other directly without human operators directing the specific interactions
  10. 10.  Web Hosting  A web hosting service is a type of Internet hosting service that allows individuals and organizations to make their website accessible via the World Wide Web.  Web hosts are companies that provide space on a server owned or leased for use by clients, as well as providing Internet connectivity, typically in a data center.
  11. 11. BASIC FUNCTIONS OFE-COMMERCE SOFTWARECATALOG DISPLAY• A catalog organize goods and services being sold.SHOPPING CART• to assist people making purchases online• allows online shopping customers to accumulate a list of items for purchase
  12. 12. TRANSACTION PROCESSING• It occurs when the shopper proceeds to the virtual counter by clicking a checkout button• Then the e-commerce software performs any necessary calculation
  14. 14. Online Payment Basics Basic ways to pay:  Cash  Checks  Credit cards  Debit cards Other payment medium: Scrip  Digital cash issued by a company instead of by a government  Cannot be changed for cash  Gift certificate
  15. 15. Payment Cards• General term to describe all types of plastic cards that consumers use to make purchases Debit cards Credit cards Charge cards Main Categories of Payment cards
  16. 16. Categories of Payment Cards Credit Card Debit Card Charge Card• Spending limit based • Remove the amount • Offered by on the user’s credit of the sale from the companies like history cardholder’s bank American Express• User can pay the account and transfers • No spending limit entire credit card it to the seller’s bank • The entire amount balance / pay account charged to the card is minimum amount • Issued by the due at the end of each billing period cardholder’s bank billing period• Credit card issuers and usually carry the • No lines of credit and charge interest on name of a major no interest charges any unpaid balance credit card issuer like Visa / MasterCard
  17. 17. Advantages and Disadvantages ofPayment cards Advantages Disadvantages• Providebuilt-in security for • The service companiesmerchants charge merchants per-(fraud protection) transaction fees & monthly•Worldwide acceptance processing fees
  18. 18. Payment Acceptance andProcessing card transactions once the merchant Steps in payment receives a consumer’s payment card information: Authentication Checking Settlement • Merchant • Merchant checks • Few days after the authenticates the with payment card purchase payment card to issuer • Indicates that funds ensure it is valid • to ensure that travel between and not stolen credit/funds are banks and are available placed into the • Hold the credit merchant’s account line/funds needed to cover the charge
  19. 19. Open and Closed Loop Systems Open loop system  Involve three/more parties  Example: system using Visa/MasterCard Closed loop system  Card issuer pays the merchants that accept the card directly without an intermediary  Example: American Express, Discover Card
  20. 20. Merchant Accounts Merchant bank/acquiring bank:  A bank that does business with sellers (Internet and non-Internet) that want to accept payment cards Online merchant must set up a merchant account to process payment cards for Internet transactions Merchant must provide business information before the bank will provide an account to process payment card transactions
  21. 21. Merchant Accounts New merchant must supply:  Business plan  Details about existing bank accounts  Business and personal credit history The type of the business will influence the bank’s likelihood of granting the account
  22. 22. Processing Payment Cards Online There are few options:  Automatically handled by programs packaged with electronic commerce software  Contract with 3rd party/payment processing service providers  InfoSpace’s Authorize.Net
  23. 23. Processing Payment Cards Online Payment processing service providers include:  InternetSecure  FirstData  Merchant warehouse Products and services offered by these credit card processing software vendors connect to a network of banks called Automated Cleaning House (ACH) and to credit card authorization companies
  24. 24. Processing Payment Cards Online The merchant sends the card information to a payment card authorization company which reviews the customer account  If approved, sends the credit authorization to the issuing bank  The issuing bank deposits the money in the merchant’s bank account through ACH The merchant’s Web site receives conformation of the acceptance of the consumer transaction After receiving notification of transaction acceptance/rejection, the merchant Web site confirms the sale to the customer over the Internet (via e-mail confirmation with details about the purchase price and shopping information)
  25. 25. Electronic Cash Known as e-cash/digital cash Term that describes any value storage and exchange system created by a private entity that:  Does not use paper documents or coins  Can serve as a substitute for government-issued physical currency Useful for making micropayments
  26. 26. Micropayments and SmallPayments Micropayments  Internet payments for items costing from a few cents to around a $1 Small payments  Include all payments of less than $10
  27. 27. Holding Electronic Cash: Onlineand Offline Cash Online cash storage  The consumer does not personally own electronic cash  A trusted 3rd party (online bank) involved in all transfers of electronic cash and holds the consumers’ cash accounts  Require merchants to contact the consumer’s bank to receive payment for a consumer purchase, prevent fraud by confirming that the consumer’s cash is valid
  28. 28. Holding Electronic Cash: Onlineand Offline Cash Offline cash storage:  Virtual equivalent of money kept in a wallet  Customer holds it, no 3rd party is involved  Concern on fraud protection  Use hardware/software safeguards to prevent fraudulent/double-spending Double-spending:  Spending electronic cash twice by submitting the same electronic currency to 2 different vendors
  29. 29. Advantages and Disadvantages ofElectronic Cash Advantages Disadvantages• Transactions are more • No audit trailefficient • Money laundering•Transferring e-cash on theInternet costs less thanprocessing credit cardtransactions•No distributionmethod/human oversight isrequired•Does not require that oneparty obtain an authorization
  30. 30. Electronic Cash Systems PayPal  Provides payment processing services to businesses and to individuals  Earns profit on the float, which is money that is deposited in PayPal accounts and not used immediately  Provides peer-to-peer (P2P) payment system  Free payment clearing service for individuals
  32. 32. Electronic wallets Serves a function similar to a physical wallet  Holds credit card numbers, electronic cash, owner identification and owner contact information  Provides information at electronic commerce site checkout counter  Benefit:  Consumer enters information just once  More efficient shopping
  33. 33. Electronic wallets Two categories of electronic wallets  Server-side electronic wallets  Client- side electronic wallets
  34. 34. Electronic wallets Server-side electronic wallets  Store customer information on a remote server belonging to a particular merchant or wallet publisher.  For example: once customers enter their information on a site such as Amazon.com, the information will be stored in a server side electronic wallets.  Main weakness: Security breach can reveal thousands of users’ personal information (credit card numbers)
  35. 35. Electronic wallets Client-side electronic wallets  Stores information on consumer computer.  Advantages:  Sensitive information stored on user’s computer instead of the wallet provider’s central server.  Disadvantages:  Must download wallet software onto every computer  Not portable
  36. 36. Electronic wallets Electronic wallets can:  Store shipping and billing information  Hold credit card names and numbers  Offers consumer choice of credit cards at online checkout  Hold electronic cash from various providers
  37. 37. Electronic wallets Two electronic wallet arena survivors  Microsoft Windows Live ID  Yahoo.wallet
  38. 38. Electronic wallets• Microsoft Windows Live ID  Formerly called Passport, Microsoft .NET Passport  Single sign-in service  Includes server-side electronic wallet  Operated by Microsoft  All personal data entered into Windows Live ID wallet  Encrypted and password protected
  39. 39. Electronic wallets  Four integrated services  Single sign-in service (SSI)  Allows user to sign in using username and password  Wallet service  Provides electronic wallet functions  Kids service  Helps parents protect, control children’s online privacy  Public profiles  Allows consumers to create public page of information about themselves
  40. 40. Electronic wallets Yahoo! Wallet  Server-side electronic wallet offered by Yahoo!  Completes order forms automatically  Identifying information, credit card payment information  Allow user to stores information about several major credit and charge cards.  Accepted by:  Thousands of Yahoo! Store merchants, Yahoo! Travel  Yahoo! Services  Premium e-mail storage, Web hosting fees
  41. 41. Electronic wallets  Yahoo! Wallet  Yahoo! advantage  Hosts many services and shops Large number of merchants  accept Yahoo! wallet  Privacy concern  Company issuing wallet has access to much information about individual using wallet
  42. 42. Google Wallet a mobile payment system developed by Google that allows its users to store credit cards, loyalty cards, and gift cards among other things, as well as redeeming sales promotions on their mobile phone. Google Wallet uses near field communication to make secure payments fast and convenient by simply tapping the phone on any PayPass-enabled terminal at checkout. http://www.google.com/wallet/
  43. 43. Google Wallet
  44. 44. Google Wallet
  45. 45. Stored-value cards Stored-value cards can be an elaborate smart card with a microchip or a plastic card with magnetic strip that records a currency balance
  46. 46. Stored-value cards Magnetic strip cards  Hold value that can be recharged by inserting them into appropriate machines  Cannot send or receive information  Cannot increment or decrement value of cash stored on the card  Processing must be done on a device into which the is inserted
  47. 47. Stored-value cards Smart card  A stored value card that is a plastic card with an embedded microchip that can store information  Hold private user data such as financial facts , encryption keys, account information, credit card numbers, medical records  Can store about 100 times more information than a magnetic strip plastic card  Safer than conventional credit cards
  48. 48. Stored-value cards Smart card  Popular in Europe, parts of Asia  Use for public telephone calls, cable television programs  Hong Kong  Retail counters, restaurant cash registers have smart card readers  Octopus: public transportation smart card
  49. 49. Stored-value cards Smart card  Beginning to appear in United States  TransLink: first integrated ticketing system for public transportation in the United States.  Smart Card Alliance  Advances smart card benefits  Promotes widespread acceptance of multiple-application smart card technology  Promotes compatibility among smart cards, card reader devices, applications 49
  51. 51. Internet Technologies and theBanking Industry Check Processing Mobile Banking
  52. 52. Check Processing 2. Deposit the check in bank account 3. Bank send the1. Write a check to check to a pay clearinghouse 4. Paper check transport to consumer’s bank
  53. 53. Check Processing (cont.) Disadvantages  Transportation costs increased  Time delay
  54. 54. Mobile Banking Allow customers to:  Obtain bank balance  View account statement  Find a nearby ATM Future plans  Offering downloadable applications  Install and use to transact all types of banking business  Allow users to copy and paste information easily
  55. 55. Criminal Activity and PaymentSystems: Phishing and IdentityTheft Average consumers who engage in online payment transactions are easy prey for expert criminals  Phishing Attacks  Using Phishing Attacks for Identity Theft  Phishing Attack Countermeasures
  56. 56. Phishing Attacks 2. The messages 3. The recipient1. Attacker sends tell the recipient enters logine-mail messages to correct the name and to recipient matter password 5. The 4. The perpetrator perpetrator access the captures the personal login name and information password
  57. 57. Phishing Attacks (cont.)
  58. 58. Phishing Attacks (cont.) One research firm estimates that phishing victims lost $1.2 billion between April 2003 and April 2004. (Computer Crime Research Center) Spear Phishing  Purposely created to target a particular person or organization  Do considerable research on the intended person
  59. 59. Phishing Attacks (cont.) The links are disguised One common way to disguise the real URL is to use the @ sign.  https://www.paypal.com@ The link in the phishing email includes Javascript code which it is invisible Phishing perpetrators often include graphics from the Web site
  60. 60. Phishing Attacks (cont.)
  61. 61. Using Phishing Attacks for IdentityTheft Identity theft  A criminal act in which the perpetrator gathers personal information about a victim and then uses that information to obtain credit  The perpetrator runs up the charges and then disappears  Personal information that most wanted:  Social Security number  Driver’s license number  Credit card numbers  Card verification numbers  Passwords (PINs)
  62. 62. Using Phishing Attacks for IdentityTheft (cont.) Use phishing attacks to gather personal information and then use it to perpetrate identity theft and other crimes Two elements in phishing  Collection of the information (collectors)  The use of the information (cashers) More than a million people fall victim to phishing attack each year and as a group financial losses exceeding $500 million
  63. 63. Phishing Attack Countermeasures Educate the Web site users Warn the customers Provide information about phishing attacks Have contracted with consulting firms Monitor online chat rooms that are used by criminals
  65. 65. COMPARISON BETWEENUK, JAPAN AND MALAYSIA/SPORE JAPAN • Engineer • Kaizuka-shi, Osaka, Japan • 7-years living in Japan UNITED KINGDOM • Medical Student • Isle of Wright, UK • 4-years living in UK MALAYSIA • Lawyer • Kuching, Sarawak • Has been buying online since 2006
  66. 66. Malaysia/Singapore 1. jipaban.com  Malaysia/Singapore online shopping mall  Singapore online database  Act as an online mall where shopper can build their own ‘shopping mall’ and add/drop stores according to their preference  Delivery method  JPB express delivery (the fastest)  Standard postage  Registered postage  Payment method  Credit card/paypal  Internet banking/bank transfer  Shopper credit
  67. 67. Malaysia/Singapore 2. thepoplook.com/fashionvalet.net • Malaysian famous online shopping website • Typical/usual ecommerce website with shopping cart where buyer can select item and put in cart, then proceed with payment • Delivery method – Poslaju (the fastest) • Payment method – Interbanking – Pay with FPX – Pay with MEPS Cash – Paypal/ Credit card
  68. 68. United Kingdom1. Tesco  British multinational grocery and general merchandise retailer headquartered in Cheshunt, United Kingdom.  It is the third-largest retailer in the world measured by revenues (after Wal-Mart and Carrefour) and the second-largest measured by profits (after Wal-Mart).  Delivery Method  Home delivery ( can book delivery slot with charge)  By call / set appointment (extra charge)  Click and Collect  Find a collection point, or  Book a collection slot  Payment Method  Pay by credit card / debit card
  69. 69. United Kingdom2. Brandalley.co.uk /asos.com  Famous online shopping website worldwide  Offer free deliver and free return ( in certain period of time)  Delivery Method  Courier Service ( worldwide)  Payment Method  Pay by credit card / debit card  Paypal
  70. 70. Japan1. rakuten.co.jp  Largest internet service company in Japan  Largest e-commerce (online database) website in Japan  Flagship : B2B2C  Facts : > 90mill products, >38,000 merchants, >75 mill membership nationwide  Serves as an online shopping mall : merchants register under rakuten to sell their products
  71. 71. Japan  Sells everything under the sun, from groceries, to apparel, to flight/bus ticket and also you can book hotels/accomodation at rakuten  Payment method  Credit card  Rakuten bank  Cash on delivery  Interbanking/ bank transfer  By convenience store  Lawson (convenience store franchise chain in Japan)  Pay using a machine called “loppi”
  72. 72. Japan  Delivery method  Courier Service  Shipping company  Kuroneko yamato / sagara  Top shipping company in Japan
  73. 73. Japan2. Yahoo auction  Yahoo Auctions Japan is the largest online auction in Japan where you can bid and buy anything you want.  It has the same business model as ebay  Interested in thing? Bid. Best price wins  They even sell second hand cars on Yahoo Auction  Products > 5000yen needs to be registered and fees to be imposed on seller
  74. 74. Japan3. Zozotown (zozo.jp) / uniqlo.com ZOZOTOWN is an internet retailer of fashion products originating in Japan with over 700 popular brands  Delivery Method  Courier Service ( worldwide)  Payment Method  Pay by credit card / debit card  paypal
  75. 75. Why shop online? JAPAN UK MALAYSIA• Super fast internet • Sales online is • Easier for people connection much more cheaper who live afar• User friendly/easy • Cant get them in • Cant get them in to navigate website store store• Easy for foreigner to • Buying experience • (used to be) look for imported cheaper than in products store• Variety of products • Buying experience• Cheaper and variety• Reliable and trusted web services
  76. 76. THANK YOU