Internet Fundamental & Applications chapter 7 Electronic Payment

1. Electronic Payment
By: - Nawal Kishor Shah
Under supervision of Mr. Bikash Banskota
( Subject Lecturer )

2. Content
• ElectronicCash
• Credit Card Processing
• ElectronicCheque Processing
• Gift & prepaidCertificate
• Payer Authentication
• Smart Authorization
• Electronic Payment Gateway
• Threats in E-Transaction

3. Electronic Cash
• An anonymous electronic cash system; equivalent to "cash" or "printed bank
notes" except that it is transferred through networks with bits of
information, in essence it is just another representation of monetary value;
anonymity is preserved through public key cryptography, digital signatures,
and blind signatures.
• money kept in electronic form which allows a buyer to pay for goods and
services on the internet without using a card or paper notes

4. Properties of Physical Cash
• Heavily Regulated and created by Central Bank of the Country
• Some other property such as Gold is deposited in equal to Cash created
• Usually involves Note Number
• Cost is incurred to print the Cash
• Forgery Problem

5. Properties Electronic Cash
• In Electronic Form
• Easy to Handover andTransfer
• Easier Storage
• Encrypted Form
• Has sequence Number

6. Problems of Electronic Cash
• Exact copy of Electronic Cash is not forgery
• How to make sure one note can be spent only once one place?
• Hacking Problem
• Storage : Requires secure device and Secure Communication
• Requires Digital Devices
• Needs Modern Society

7. Credit Card
• card issued by a financial company which enables the cardholder to
borrow funds
• a small plastic card issued by a bank, building society, etc., allowing the
holder to purchase goods or services on credit.
• funds may be used as payment for goods and services

9. Characteristics of a Credit Card
1. Type of card.
Credit cards are all different, but they can be divided into three main groups: secured cards,
regular cards and premium ones.
2. Grace period
The number of days by the end of which you have to pay your bill in full.
3. Credit Card Fees
A card has annual fees, late payment fees, foreign transaction or any other fees.
4. Cash advance features.
This is especially important if you are going to use cash advances, so get detailed information
about access to ATM and so on.
5. Credit limit.
Some cards set their own credit limits even if you qualify for more.
6. Rewards and bonuses.
These can include various extra points, gifts and services for you to enjoy your credit card
more.
7. Interest rate.
It can be fixed or changeable. Although you might think that there is less risk with a fixed rate
card, it is not necessarily true. Federal law permits any changes in the card policy, including its
rate.

10. What are included in credit card
1. Card Number
2. Expiration date
3. Card verification number
4. Bank name

11. Add a SlideTitle - 5

12. Parties involve in credit card transaction
• The card holder − a cardholder is someone who obtains a bankcard (credit or debit) from a card
issuing bank.They then present that card to merchants as payment for goods or services.
• The merchant − a merchant is any business that maintains a merchant account that enables
them to accept credit or debit cards as payment from customers (cardholders) for goods or
services provided.
• The card issuer bank − card holder's bank. Issuing banks pay acquiring banks for purchases that
their cardholders make. It is then the cardholder’s responsibility to repay their issuing bank
under the terms of their credit card agreement.
• The acquirer bank − the merchant's bank
• The card brand − for example , visa or MasterCard also card association.

13. Practices
• Good
• Protect your private keys
• Be careful with your receipts
• Protect yourself online
• Check your account often
• Avoid
• Don’t put credit number on open sources
• Don’t display credit number on open sources
web
• Sharing cards for transactions
• Bending of cards

14. Electronic cheque
• An electronic check, also referred to as an e-check, is a form of payment
made via the internet, or other data network, designed to perform the same
function as a conventional paper check. Since the check is in an electronic
format, it can be processed in fewer steps.

15. Cheques

17. BENEFITS OF E-CHEQUE
TO CUSTOMERS;
• No physical movement of cheques so no fear of loss of cheque in transit.
• Quicker clearance; within 3-4 working days. Its more secured than physical
cheques.
• Decrease errors and fraud. eCheques reduce the potential for errors and
fraud because fewer people handle them.
• They can serve corporate markets. Firms can use them in more cost-
effective manner

18. Benefits to Bank
• Reduce the risk associated with paper clearing
• Superior verification and reconciliation process
• No geographical restrictions
• No physical movement of cheques- it saves cost and time for banks.
• No chance of cheque dishonor-The risk is taken care of by the accounting
server, which will guarantee that the cheque would be honoured.

19. DRAW BACKS
• Customer education
• Chances of misuse, hacking etc
• Need a different infrastructure
• Unauthorized transactions becomes challenge for banks
• Problem could be when there is more than one signer or endorser.
• Transactions based on internet- network failure may lead to delay in payment.
• Both payer and payee should have e-cheque facility

20. Working principle

21. Gift & Prepaid Certificate
• Gift certificate
• limited one-time uses but have few fees, are losing favor
• A $100 gift card translates into $100 of buying power.
• Prepaid certificate
• which are reloadable, are adding more debit card-like features, though you may pay
dearly for the privilege.

22. Payer Authentication
• Payer authentication, also known asVerified byVisa (VbV) and MasterCard
SecureCode, are security protocols developed byVisa and MasterCard that
allow consumers to shop online more securely.Visa and MasterCard also
give back to eCommerce businesses who enable these programs by
providing chargeback protection and lower interchange rates.

23. Payerauthorization

24. Electronicpaymentgateway

25. Threat in eTransaction
A threat is an object, person, or other entity that represents a constant danger to
an asset.
• Hackers attempting to steal customer information or disrupt the site.
• A server containing customer information is stolen.
• Imposters can mirror your ecommerce site to steal customer money.
• Authorized administrators/users of an ecommerce website downloading hidden
active content that attacks the ecommerce system.
• A disaffected employee disrupting the ecommerce system.
• It is also worth considering where potential threats to your ecommerce site might
come from, as identifying potential threats will help you to protect your site.

26. Thank you for being an amazing
audience!

27. “For eCommerce firms, the three important infrastructure are imformation
flow, cash flow & delivery.” -Jack Ma

28. Bibliography
• Research of Pradip Khatiwoda
• Växjö University, Sweden
• PROTECTION AND SECURITY OF ECOMMERCE