2. Electronic payment structureElectronic payment structure
E- commerce is spreading widely. TheE- commerce is spreading widely. The
commerce based on electronic media has acommerce based on electronic media has a
global occupation. In any commerce or anyglobal occupation. In any commerce or any
commercial transaction the most importantcommercial transaction the most important
factor is accepting and paying. Thus e-factor is accepting and paying. Thus e-
commerce has many ways to pay funds orcommerce has many ways to pay funds or
accept fund through electronic media and itaccept fund through electronic media and it
is called electronic payment system.is called electronic payment system.
3. ModelsModels ofof paymentpayment
Generally 3 types are available in e-payment system.Generally 3 types are available in e-payment system.
1) Prepaid – through this way smart card, cyber coins,1) Prepaid – through this way smart card, cyber coins,
e-cash system is used.e-cash system is used.
2) instant paid – internet cheque, net cheque,2) instant paid – internet cheque, net cheque,
electronic cheque are used.electronic cheque are used.
3) post paid – credit cards are used.3) post paid – credit cards are used.
4. Popular Types of E-payment systemPopular Types of E-payment system
Credit cardsCredit cards
Debit cardsDebit cards
Smart cardsSmart cards
Stored value cardStored value card
E-cash or e-a/cE-cash or e-a/c
5. CREDIT CARDCREDIT CARD
The most common way to pay for an e-commerceThe most common way to pay for an e-commerce
transaction is with credit card. The customer typestransaction is with credit card. The customer types
the card number, entry date & billing address on thethe card number, entry date & billing address on the
order form and the vendor can verify the details andorder form and the vendor can verify the details and
be confident of payment. Credit cards are used in abe confident of payment. Credit cards are used in a
conventional retail application are recorded on aconventional retail application are recorded on a
transaction slip and verified by the use of signature.transaction slip and verified by the use of signature.
In addition to this credit card companies allow forIn addition to this credit card companies allow for
customer not present [ CNP ] transaction.customer not present [ CNP ] transaction.
6. Debit cardsDebit cards
most ATM cards are debit cards with a visors mastermost ATM cards are debit cards with a visors master
card logo. They are easier more convenient and offercard logo. They are easier more convenient and offer
greater access to your money when a debit card is usedgreater access to your money when a debit card is used
with a pin as in using an ATM machine it is called anwith a pin as in using an ATM machine it is called an
online transaction.online transaction.
A major problem at this type is that using a dr cardA major problem at this type is that using a dr card
mean less protection for items that are nevermean less protection for items that are never
delivered, for defective items with cr cards purchasesdelivered, for defective items with cr cards purchases
you can put a hold on payment within 60 days.you can put a hold on payment within 60 days.
7. Smart cardsSmart cards
Smart cards are used to provide real time interactiveSmart cards are used to provide real time interactive
access to secure data stored in the memory of theaccess to secure data stored in the memory of the
smart card. A security plan protects this informationsmart card. A security plan protects this information
from an unauthorized access and manipulation offrom an unauthorized access and manipulation of
data stored in the memory. Lets say that a smart carddata stored in the memory. Lets say that a smart card
is an electronic cheque book a consumersis an electronic cheque book a consumers
identification, information, checking a/c no andidentification, information, checking a/c no and
balance are stored in smart card. The seller verify ourbalance are stored in smart card. The seller verify our
identity by inserting the smart card in smart cardidentity by inserting the smart card in smart card
reader.reader.
8. Stored value cardStored value card
One of the most common forms of e-payment isOne of the most common forms of e-payment is
the stored value card. The most wide spread usethe stored value card. The most wide spread use
of this technology is the telephone card that isof this technology is the telephone card that is
available for use in public for boxes. Further usesavailable for use in public for boxes. Further uses
of this technology are some public transportof this technology are some public transport
operations.operations.
On a more general scope there have been a no ofOn a more general scope there have been a no of
skims to promote stored value card asskims to promote stored value card as
replacement of cash but stored value card couldreplacement of cash but stored value card could
not been proved to be popular because public isnot been proved to be popular because public is
happy with old fashion cash.happy with old fashion cash.
9. E-cash or e- A/cE-cash or e- A/c
the online equivalent of a stored value card isthe online equivalent of a stored value card is
e-cash or network money. The system operatede-cash or network money. The system operated
by the user transferring money from a creditby the user transferring money from a credit
card or bank a/c into an e-cash a/c. the e-cashcard or bank a/c into an e-cash a/c. the e-cash
can then be used to make payment for e-can then be used to make payment for e-
commerce transactioncommerce transaction
