e-business notes

2.  E-payment systems comprise payment
services over the network for goods and
services procured.
 Electronic payment system consists of :
1. Buyer
2. Seller
3. Payment gateway
4. Buyer’s bank (issuer of the payment
instrument)
5. Seller’s bank ( acquirer)

3. These include:
1. Prepaid cards
2. Internet Accounts/Wallet/Purse
3. Mobile Accounts/Wallet/Purse
4. Remittance Cards ( Domestic or International)

4.  Prepaid cards function under two programs:
 1. Under open-loop, cards are accepted and
processed across the globe at any Master
card/Visa or similar merchants across the
globe besides these cards can also be used to
withdraw the money from the card using
ATMs
Eg: Debit Card
 In a closed loop program, acceptance is
limited to specific geographic locations,
generally domestic.
 Eg: Gift card
Currency of Issue
Indian Rupee only
Load/Re-load
State Bank Gift Card is not re-loadable
Minimum Amount of Issue
Rs.500 and thereafter in multiples of Rs.1
Maximum Amount of Issue
Rs.50,000
Balance enquiry
Cardholder can view the balance in the Gift Card
and also obtain a transaction receipt indicating the
balance from any State Bank Group ATM in India
free of cost and also online at
www.prepaid.onlinesbi.com
Validity of Card
The validity of the card is for 3 years from the
date of issue and the expiry date is printed on the
face of the card.
Daily Transaction Limit
Up to the Balance in the Card.

5.  A debit card (also known as a bank card or check card) is a plastic
card that provides an alternative payment method to cash when making
purchases. Functionally, it can be called an electronic cheque, as the
funds are withdrawn directly from either the bank account, or from the
remaining balance on the card. In some cases, the cards are designed
exclusively for use on the Internet, and so there is no physical card.
 Debit cards can also allow for instant withdrawal of cash, acting as the
ATM card for withdrawing cash and as a cheque guarantee card.
Merchants can also offer "cashback"/"cashout" facilities to customers,
where a customer can withdraw cash along with their purchase.

7.  A credit card is part of a system of payments named after the
small plastic card issued to users of the system.
 It is a card entitling its holder to buy goods and services based on
the holder's promise to pay for these goods and services.
 The issuer of the card grants a line of credit to the consumer (or
the user) from which the user can borrow money for payment to a
merchant or as a cash advance to the user.

8.  Micropayments are financial transactions involving very small sums of money. M-
PESA offered by different telecom companies to its customers are the examples
of micro payment systems.
 Instead of using methods like cash, cheque, and credit card, a customer can
use a mobile phone to transfer money or to pay for goods and services.
 customer can transfer money or pay for goods and services by sending an SMS,
using a Java application over GPRS, a WAP service, over IVR or other mobile
communication technologies. In India, this service is bank-led.
 Customers wishing to avail themselves of this service will have to register with
banks which provide this service. Currently, this service is being offered by
several major banks and is expected to grow further

9. These are classified into:
1. Internet bank accounts
2. Internet virtual accounts with cash withdrawal
across the globe
3. Wallets/ purse for specific usages with no cash
withdrawal.

10. E- Cash
 Electronic Cash (also known as electronic money, electronic currency,
digital money, digital cash or digital currency) refers to money or scrip
which is exchanged only electronically.
 Typically, this involves use of computer networks, the internet and digital
store value systems. Electronic Funds Transfer (EFT) and direct deposit are
examples of electronic money. Also, it is a collective term for financial
cryptography and technologies enabling it.
 ECash is a legal form of computer-based currency that can be securely
purchased and withdrawn by credit card, Cheque, certified cheques, wire
transfer, money order and Electronic Cheque Processing (ECP). Users can
also deposit to and withdraw from their ECash Direct account using
several third-party merchants' payment solutions.