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INTRODUCTION
 E payment is a subset of an e-commerce
transaction to include electronic
payment for buying and selling goo...
3
TRADITIONAL PAYMENT METHODS
Payment: The transfer of money from one
individual or legal entity to another
 Cash
 Perso...
4
SELECTION OF PAYMENT METHOD
 Based on:
Convenience
Trace-ability
Repudiation
Financial risk
Fraud protection
 Att...
5
CREDIT CARDS
 A very common method of payment
 Cards are issued by a bank
 Unique 16-digit number (including check
di...
6
CREDIT CARD - BUSINESS MODEL LOGICAL
MONEY FLOW
Customer
Customer
Bank
Store
Visa
(3rd Party)
1. Charge
2. Credit
Author...
7
REQUIREMENTS OFE-PAYMENT METHODS
 Enable an honest customer to convince a seller to
accept payment
 Prevent a dishones...
8
E-PAYMENT PROS/CONS
 Pros:
 Potential for great flexibility
 Low transaction costs
 Rapid and diverse purchase power...
9
VARIOUS E-PAYMENT METHODS
 Credit and Debit card
 Digital Currency
 E-Wallets
 Peer-to-Peer Methods
 Smart card
 M...
11
CREDIT CARD FRAUD
 A major problem for E-commerce
 The merchant has no legal proof of purchase
unless the buyer uses ...
12
DIGITAL CURRENCY
 Digital cash accounts like traditional bank accounts
 Buyers deposit cash in the account and spend ...
13
E-WALLETS
 Established by financial institutions in
partnership with member E-Commerce sites
 Allows customer to subm...
14
PEER-TO-PEER METHODS
 Digital cash via email (eCash.com)
 PayPal.com – digital payment system
 Acts as a trusted thi...
16
SMART CARDS
 Cards with computer chips embedded on their
faces – very common in Europe
 Used for health care, transpo...
17
MICRO-PAYMENTS
 Long distance phone call charge is an example of a
micro-payment
 Digital Equipment Corporatiion (DEC...
18
WHY HAVE MICRO-PAYMENTS FAILED?
 Overly complicated for customer and
business – technology & accounting
 Income is ve...
19
B2B
 B2B transactions are the fastest area of $ growth
on the web
 B2B transactions are substantially larger than B2C...
.
Questions..??
Thank yu
Harshit, Rajat & Yash
Electronic payment System
Electronic payment System
Electronic payment System
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Electronic payment System

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ELectronic payemnt modes and description about e payment

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Electronic payment System

  1. 1. INTRODUCTION  E payment is a subset of an e-commerce transaction to include electronic payment for buying and selling goods or services offered through the Internet.  Generally we think of electronic payments as referring to online transactions on the internet, there are actually many forms of electronic payments.
  2. 2. 3 TRADITIONAL PAYMENT METHODS Payment: The transfer of money from one individual or legal entity to another  Cash  Personal Cheques  Money orders (Bank note)  Credit cards  Debit cards
  3. 3. 4 SELECTION OF PAYMENT METHOD  Based on: Convenience Trace-ability Repudiation Financial risk Fraud protection  Attacks on traditional methods?
  4. 4. 5 CREDIT CARDS  A very common method of payment  Cards are issued by a bank  Unique 16-digit number (including check digits) and an expiration date  Third party authorization companies verify purchases
  5. 5. 6 CREDIT CARD - BUSINESS MODEL LOGICAL MONEY FLOW Customer Customer Bank Store Visa (3rd Party) 1. Charge 2. Credit Authorization 3. Clearance/Settlement 4. Payment What can you do if your statement shows a fraudulent purchase? Store’s Bank
  6. 6. 7 REQUIREMENTS OFE-PAYMENT METHODS  Enable an honest customer to convince a seller to accept payment  Prevent a dishonest customer from making unauthorized or fraudulent payments  Ensure the privacy of honest participants  Scalable to very large numbers of customers  Integrate with existing and evolving systems NOT EASY!
  7. 7. 8 E-PAYMENT PROS/CONS  Pros:  Potential for great flexibility  Low transaction costs  Rapid and diverse purchase power  Cons:  Perfect copying of transactions is possible  Vulnerability to world-wide attack  Lack of anonymity, potential for privacy intrusion
  8. 8. 9 VARIOUS E-PAYMENT METHODS  Credit and Debit card  Digital Currency  E-Wallets  Peer-to-Peer Methods  Smart card  Micro-payments  B2B
  9. 9. 11 CREDIT CARD FRAUD  A major problem for E-commerce  The merchant has no legal proof of purchase unless the buyer uses authentication certificate  Companys such as Visa, nochargeback.com and CyberCash (now VeriSign) are working to limit fraud:  Visa has established high risk business models and best practices info for merchants  Nochargeback.com has lists of fraudlent cards, e- mail addresses and postal addresses  VeriSign/CyberCash has employed AI to catch frauders
  10. 10. 12 DIGITAL CURRENCY  Digital cash accounts like traditional bank accounts  Buyers deposit cash in the account and spend it at E-Commerce sites (acct # is passed using secure proprietary protocol)  E-Comm merchants can feel sure of payment  Customers do not need a credit card and spending is limited to account balance  www.ecash.com
  11. 11. 13 E-WALLETS  Established by financial institutions in partnership with member E-Commerce sites  Allows customer to submit billing and shipping info with one click at member sites  Also can store e-Cheques, e-Cash and credit card information  Not as popular as originally projected  Entrypoint’s InfoGate offers an e-wallet
  12. 12. 14 PEER-TO-PEER METHODS  Digital cash via email (eCash.com)  PayPal.com – digital payment system  Acts as a trusted third party (e.g. auction purchase)  To send money:  Sender sets up an account and requests to send payment  Sender places payment into the receivers account by credit-card  Reciever is notified of payment via email  Receiver can transfer funds to bank account or request a cheque  There is also a request payment method  FOR FREE .. ? What is the their business model ?
  13. 13. 16 SMART CARDS  Cards with computer chips embedded on their faces – very common in Europe  Used for health care, transportation, ID, retail, pay phones, loyalty programs, banking machines  Smart card readers interface with card and request user PIN for access  Bank machines can load cards with cash and then merchants can download cash from card  Returns anonymity of purchase to customer  GemPlus, MasterCard are leading supplier of SCs
  14. 14. 17 MICRO-PAYMENTS  Long distance phone call charge is an example of a micro-payment  Digital Equipment Corporatiion (DEC) researchers originally envisioned MPs:  Payment per newspaper article ($0.005)  Payment by stock quote ($0.001)  Payment per click (Qpass, Inc)  Has not been popular, instead advertisers pay for info, or customers pay flat rates … Why?
  15. 15. 18 WHY HAVE MICRO-PAYMENTS FAILED?  Overly complicated for customer and business – technology & accounting  Income is very dependent on customer use (difficulties in cashflow management)  Customer anxiety – could act as a deterent  Difficulties in standardization – lost of different approaches, variant media
  16. 16. 19 B2B  B2B transactions are the fastest area of $ growth on the web  B2B transactions are substantially larger than B2C  Paymantech is major provider:  24/7 availability, all manner of EFT supported  many management tools and reporting methods  Ecredit.com offers real-time automated credit approval and financing  TradeCard offers comprehensive B2B E-commerce facilities on an international scale
  17. 17. . Questions..??
  18. 18. Thank yu Harshit, Rajat & Yash

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