Electronic payment systems allow for financial transactions to occur online through digital means rather than traditional cash or checks. Common electronic payment methods include debit and credit cards, digital wallets, online banking transfers, and mobile payments. These systems provide convenience for users but also raise security and privacy concerns that require protocols like encryption, digital signatures, and biometric authentication. While offering benefits over physical payment methods, electronic payment systems still face challenges around expanding access and reducing costs for merchants and users.

1. Electronic Payment
system

2. • Technology has become an integral part of our
life and we can see that there is hardly any
shpere of life,where we don’t use technology.
• The banking sector is no escape to this rule,as
banking transaction,which used to happen in the
traditional ways,are also done with the help of
technology.

3. Electronic Payment
• Electronic Payment is a financial exchange that takes
place online between buyers and sellers.
• The content of this exchange is usually some form of
digital financial instrument (such as encrypted credit
card numbers, electronic cheques or digital cash) that is
backed by a bank or an intermediary, or by a legal tender.

4. Electronic payment system
Electronic payment system is a system which helps the
customer or user to make online payment for their
shopping. ie,To transfer money over the Internet.
 Methods of traditional payment.
o Check, credit card, or cash.
 Methods of electronic payment.
o Electronic cash, software wallets, smart cards, and
credit/debit cards.

5. Requirements For E-payments
• Decreasing technology cost
• Reduced operational and processing cost
• Increasing online commerce

6. Some Examples Of EPS:-
Online reservation
Online bill payment
Online order placing (nirulas)
Online ticket booking ( Movie)

7. Two Storage Methods
 On-line
 Individual does not have possession
personally of electronic cash
 Trusted third party, e.g. online bank, holds
customers’ cash accounts
 Off-line
 Customer holds cash on smart card or
software wallet
 Fraud and double spending require tamper-
proof encryption

8. ATMs: Automated Teller
Machines
• An automated teller machine (ATM) is a computerized
telecommunications device that provides the
customer of a financial institutions / bank with access
to financial transactions in a public space without the
need for a human clerk or bank teller round the clock
(24 hrs a day)

9. History Of ATM
• The ATM was invented by Scot John shepherd-Barron.
• The world's first ATM was installed in a branch of Barclays in the
northern London borough of Enfield, Middlesex, in 1967.
• A mechanical cash dispenser was developed and built by Luther
George Simjian and installed in 1939 in New York City by the
City Bank of New York.
• The first person to use the machine was Reg Varney of "On the
Buses" fame, a British Television programme from the 1960s.
• The idea of a PIN stored on the card was developed by the
British engineer John Rose in 1965.
• The modern, networked ATM was invented in Dallas, Texas, by
Don Wetzel in 1968.
• Notable historical models of ATMs include the IBM 3624 and
473x series, Diebold 10xx and TABS 9000 series, and NCR
5xxx series.

10. ATM Card
• On most modern ATMs, the customer is identified by
inserting a plastic ATM card with a magnetic stripe
or a plastic smartcard with a chip, that contains a
unique card number and some security information.
• Security is provided by the customer entering a
personal identification number(PIN).

11. Structure of ATM

12. Functions of ATM
• 24-hour access to cash
• View Account Balances & Mini-statements
• Order a Cheque Book / Account Statement
• Transfer Funds between accounts
• Refill your Prepaid card
• Pay your utility bills
• Deposit cash or cheques
• Change your PIN
• Learn about other products

13. E cash
 A system that allows a person to pay for goods or
services by transmitting a number from one computer to
another.
 Like the serial numbers on real currency notes, the E-
cash numbers are unique.
 This is issued by a bank and represents a specified sum of
real money.
 It is anonymous and reusable.

14. E-wallet
 The E-wallet is another payment scheme that operates
like a carrier of e-cash and other information.
 The aim is to give shoppers a single, simple, and secure
way of carrying currency electronically.
 Trust is the basis of the e-wallet as a form of electronic
payment.

15. Debit and Credit
Card

16. Debit card n credit card introduced -1970’s
• Corporation Bank-Debit card
• Andhra Bank -Credit Card

17. Debit card
• Plastic card - provides a alternative payment
method to cash when making purchases
• Electronic check - the funds are withdrawn
directly from the account
• BANK CARD or CHECK CARD
• Instant withdrawal of cash, acting as the ATM
• No annual fee

18. Types of Debit Cards
DEBIT
CARD
OFFLINE
DEBIT
SYSTEM
ONLINE
DEBIT
SYSTEM
PREPAID
DEBIT
CARD
ELECTRONIC
PURSE
CARD
SYSTEM

19. Credit cards
• It is a Plastic Card having a Magnetic Number and code on it.
• It has Some fixed amount to spend.
• Customer has to repay the spend amount after sometime.
• Card entitling its holder to buy goods and services based on the
holder's promise to pay for these goods and services
• User can borrow money for payment to a merchant and then
pay it later with an amount of interest charged
• Issued to an account holder who has a regular income not less
than 15k
• The concept of using a card for was first described in 1887 by
Edward Bellamy in his utopian novel Looking Backward.
• The size of most credit cards is 85.60 × 53.98 mm

20. Particulars Displayed On Credit
Cards
• Name of the customer
• 16-digit card number
• Validity date
• The VISA hologram and the VISA logo
• Name of the issuing bank
• Signature period
• Magnetic strip
• PIN

21. What does 16 digit means

22. Types of credit cards
CREDIT
CARD
BUSINESS
CREDIT
CARD
PREPAID
CREDIT
CARD
DIGITAL
CREDIT
CARD
SECURED
CREDIT
CARD

23. Processing a Credit cards
payment

24. Secure Electronic Transaction
(SET) Protocol
• Jointly designed by MasterCard and Visa with backing of
Microsoft, Netscape, IBM, GTE, SAIC, and others
• Designed to provide security for card payments as they
travel on the Internet
– Contrasted with Secure Socket Layers (SSL)
protocol, SET validates consumers and merchants in
addition to providing secure transmission
• SET specification
– Uses public key cryptography and digital certificates
for validating both consumers and merchants
– Provides privacy, data integrity, user and merchant
authentication, and consumer nonrepudiation

25. DEBIT CARD CREDIT CARD
It is a pay now product. It is a pay later product.
Payment is immediately debited in
card holders account.
The card holder can avail credit for 30-
45 days.
No interest charge on the use of debit
card.
Interest and other charges have to be
paid on credit card.
A bank account and minimum balance
should be maintained.
This is not compulsory in case of
credit cards.
Probability of risk of fraud is lower. Probability of risk and fraud is higher.
No risk of over spending as the
customer can spend what he has.
The holder tends to overspend
because he is using the credit
provided by credit card issuer.
It can be used at ATM terminals to
withdraw cash.
Also known as ATM cum debit card.
It is commonly used to make payment
at POS/online.it can be used in ATMs
with restrictions.
Known as plastic money.

26. Smart Cards
• A Smart card is a plastic card about the size of a credit card,
with an embedded microchip that can be loaded with data,
used for telephone calling, cash payments , and other
applications, and then periodically refreshed for additional
use.
• A smart card is a plastic card with a small, built in
microcomputer chip and integrated circuit that can store and
process a lot of data

27. Smart Card Readers
• Computer based readers
Connect through USB or COM (Serial) ports
• Dedicated terminals
Usually with a small screen, keypad, printer,
often also have biometric devices such as thumb
print scanner.

28. Electronic signature
• An electronic signature, or e-signature, refers to data in
electronic form, which is logically associated with other
data in electronic form and which is used by the
signatory to sign.
• This type of signature provides the same legal standing
as a handwritten signature as long as it adheres to the
requirements of the specific regulation.
• An electronic sound, symbol, or process, attached to or
logically associated with a contract or other record and
executed or adopted by a person with the intent to sign
the record.

29. Digital signatures
• Digital signatures are cryptographic implementations
of electronic signatures used as a proof
of authenticity, data integrity and non-repudiation of
communications conducted over the Internet.
• When implemented in compliance to digital signature
standards, digital signing should offer end-to-end privacy
with the signing process being user-friendly and secure.
• Digital signatures are generated and verified through
standardized frameworks such as the Digital Signature
Algorithm(DSA)

30. Biometric signatures
• Electronic signature may also refer to electronic forms of
processing or verifying identity through use of biometric
"signatures" or biologically identifying qualities of an
individual.
• Such signatures use the approach of attaching some
biometric measurement, or hash of said measurement, to
a document as evidence.
• For instance, fingerprints, hand geometry (finger lengths
and palm size), iris patterns, or even retinal patterns. All
of these are collected using electronic sensors of some
kind.
• Since each of these physical characteristics has claims to
uniqueness among humans, each is to some extent
useful as a signature method.

31. Magnetic ink character
recognition
• MICR Code is a character-recognition
technology used mainly by the banking industry
to ease the processing and clearance of
cheques and other documents.
• The MICR encoding, called the MICR line, is at
the bottom of cheques and other vouchers and
typically includes the document-type
indicator, bank code,bank account
number,cheque number, cheque amount, and a
control indicator.

32. • The technology allows MICR readers to scan
and read the information directly into a data-
collection device.
• Unlike barcodes and similar technologies,
MICR characters can be read easily by
humans.
• The MICR E-13B font has been adopted as
the international standard in ISO
1004:1995, but the CMC-7 font is widely
used in Europe, Brazil and Mexico.

33. MICR reader
• MICR characters are printed on documents in either of
the MICR fonts.
• The ink used in the printing is a magnetic ink or toner,
usually containing iron oxide.
• The MICR text is passed before a MICR reader. The ink
in the plane of the paper is first magnetized. Then the
characters are passed over a MICR read head, a device
similar to the playback head of a tape recorder. As each
character passes over the head it produces a
unique waveform that can be easily identified by the
system.

34. What Is The Difference Between
IFSC Code And MICR Code?
• IFSC code is developed to initiate electronic money
transfer between banks within India, MICR is a Magnetic
Ink Recognition technology for making cheque
processing faster and simpler.
• IFSC code is alphanumeric 11 digits unique code,
whereas MICR is a 9 digit numeric code.

35. LIMITATIONS
OF EPS
LACK OF
APPLICABILITY
HIGH USAGE
COST FOR
MERCHANTS
UNSUITABILITY
LACK OF
SECURITY

36. CONCLUSION
Expand Market beyond Traditional
geographic market
 Override traditional marketing system into
digital marketing system.
 Made human life convenient as a person
can pay his payments online while he is
taking rest.

37. PRESENTED BY,
ATHULY
ROLL
M
MAR IVANIOS COLLE
THIRUVANATHAPURAM