There are a lot of benefits to using e-payment as an alternative to ordinary modes of payment.The e-payment modes are very flexible, according to business and payment requirements.The transaction costs can be considerably lower as compared to paper money.Your purchasing power is not limited by the amount of hard cash you’re carrying, or even your location.
Choice – like your competitors, you can offer a wide range of payment options Convenience – they remove the need for invoices, cheques, cash and BACsCredit – they may allow purchases that would otherwise be delayedConcessions – small discounts to encourage online purchases improve the perception of valueCompetitive Edge - if you don’t offer the full range of payment options but your competitors do, what does this say about your business?
Convenience – removing administrative resources required by invoices, cheques and cash Immediacy – credit cards enable instant purchasing (without delay)Improved cash flow – payment at the time of purchase reduces the pressures caused by 30-day invoicingGrowth – open additional payment channels via the phone, mail order and Internet and increase your customer base. More customers mean more revenue.Competitive advantage – match and beat the services of your competitors and gain the edge
There are also a few concerns which need to be addressed, when talking about e-payment. These are:A lot of people worry about their private data being stolen and misused.There are people who participate in internet fraud and identity theft, thus misusing the freedom the internet offers.There are also people who inherently prefer to make paper money payments, due to its familiarity.
Offline mode:Indicate national and international wire-transfer instructions on the payment page. To facilitate the process for the registering member, the full instructions should be contained within a small downloadable PDF file for printing and quick reference.Off-line credit card payments. It consist of a form page where all the essential credit card details are to be keyed in by the card holder. Client prints the form and signs it. This form then needs to be faxed to seller who can submit it to the bank, eventually with more documents (scanned copies of ID, scanned copies of front and back of credit card).
Credit card: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. Debit card:A card much like a credit card, but which takes money directly from the bank account, rather than borrowing money at a rate of interest, and uses a PIN instead of a signatureSmartcard:Commonly used in Europe, smart cards are similar in appearance to credit cards. Smart cards store data on a chip inside the card. This chip is used to store everything from your bank account numbers to health-insurance information. Compared to a diskette, smart-card technology is secure, so theft of your information from a smart card is impossible. Because of the security benefits, smart card technology is becoming more prevalent.
3*STRICT POLICIES ARE TO BE FOLLOWED. The available security measures can prevent the sensitive information from being exposed. But it is important to use virus protection or firewalls for your computer. It is important to carry out money transactions over a secure server.5*electronic cash is based on cryptographic systems. The transactions are encoded by means of numeric keys while the transaction details travel across the net. Though electronic payments are resistant to forgery, the keys are vulnerable to attack.
Let's say you have a small business and you want to set up online payments via your Web site. Your first decision is whether to outsource your payment solution or handle it in-house.
For those who want an all-in-one solution, services like PayPal and ProPay make it easy for you to accept credit cards and other forms of electronic payment from your site. When a customer enters his or her information on your site, your payment service authorizes the transaction and transfers funds to your account. These services charge a processing fee per transaction.
If you prefer to process payments in-house, the first thing you need to do is set up a secure server. This is a computer that uses encryption to make it difficult for intruders to intercept confidential information. Secure Socket Layer (SSL) technology is used to encrypt the data. You can apply for an SSL certificate online. Once you have an SSL certificate, you need to register your site with a digital authentication service. A digital certificate validates that the site receiving your customers' information is the correct one. It assures customers that your site is legitimate and that their information is encrypted.
Now that you've a secure server, you'll need to build or buy shopping software that allows a customer to choose products from your site and add them to a virtual shopping cart. When customers are ready to complete their orders, they click on a "checkout" link that takes them to your secure server, where they enter their credit card information.
Finally, you need a system to process credit card payments and an Internet merchant account with a bank. Credit card payment processing services are available through online companies such as Verisign. They provide you with software that validates your customer's credit card information over your secure server. Some businesses also choose to accept electronic checks from customers.
CONTRIBUTORS:CHAITRALI MARATHE MOHIT DESHPANDE PRANAY PANDAY SHALET SHAJI BBA (IT), SEM VI, DIV ‘B’,SYMBIOSIS INSTITUTE OF COMPUTER STUDIES & RESEARCH E-PAYMENT AND PAYMENT GATEWAYS AN INTRODUCTORY PRESENTATION
INTRODUCTIONWhen it comes to paymentoptions, nothing is more convenientthan electronic payment. You dont haveto write a check or handle any papermoney; all you have to do is enter someinformation into your Web browser andclick your mouse.
CHANGING FACE OF MONEY TRADITIONAL CASH PAYMENTS MAKE WAY FOR E-PAYMENTS
DEFINITIONAn e-payment transaction may be definedas one in which monetary value istransferred electronically ordigitally.However it is obvious that any paymentthat is not transacted by paper basedinstruments is considered an e-paymenttransaction.
TYPES OF E-PAYMENTFor all the methods of e-payment, there are three major typesof transactions. These are asfollows.
1. One time customer tovendor:This is used whenone shops at an e-commerce site (forexample amazon.com).As the nameimplies, this is aone-time payment.
2. Recurring customerto vendor payment:This is when abill is paidthrough aregularlyscheduled directdebit from acheckingaccount, or acredit card.
3. Automatic bank tovendor payment:For this to work, thebank must offer aservice called onlinebill pay. One can logon to the bank’s website and authorizepayment to specificvendors.
E-PAYMENT BENEFITSThere are various reasons why e- payments make our lives easier. A few of these are listed below, in point form: Potential for great flexibility Low transaction costs Rapid and diverse purchase power
INCREASE INPROFITABILITY DUE TOE-PAYMENT: THE REASONS Convenience Immediacy Improved cash flow Growth Competitive advantage
E-PAYMENT: CONCERNSThe main drawbacks to electronic payments are the following: Concerns over privacy The possibility of identity theft Dislike for making electronic payments; preference of familiarity of writing cheques and cash transactions
1. OFFLINE MODE : Where the payment is notdone instantaneously. Theseller gets his paymentafter the entireprocessing is done.Eg: Off-line credit cardpayments
OFFLINE MODE Information online offline $ Products/services Regional Training Workshop for Enterprise Support Agencies to Promote E-business for
2. ONLINE MODEIt is specifically designed to address the unique requirements of payments made via the Internet and the payments takes place at the very minute.Eg:Credit cardDebit cardSmart card
ONLINE MODE Information $ online offline Products/services
1.HACKING.2.LEAKAGE OF CONFIDENTIAL INFO.3.IDENTITY THEFT.4.USAGE OF STOLEN CREDIT/SMART CARDS.5.VULNERABILITY OF WORLD WIDE ATTACK.
SETTING UP E-PAYMENTSay you want to set up online payments via your Web site 2 Solutions
OUTSOURCEIt involves subscription of services likePaypal and paypro.An all-in-one-solutionYour earnings = (A-B)A = Amt paid by customersB = Processing fee per transaction
IN-HOUSE HANDLING /1Setup a secure webserver Which uses
IN-HOUSE HANDLING /3Processing the transaction
E-PAYMENT GATEWAYA payment gateway is an e-commerceapplication service provider servicethat authorizes payments for e-businesses, online retailers, bricksand clicks, or traditional brick andmortar.Payment gateways protect credit carddetails by encrypting sensitiveinformation.