Credit cards are dominant form of online payment, accounting for around 80% of
online payments in 2005
-New forms of electronic payment include:
3-1
3-2
3-3
3-4
3-5
3-6
Digital
Digital
Online
Digital
Digital
Digital
Wallet
cash
stored value systems
accumulating balance payment systems
credit accounts
checking
Network Security is the process of taking physical and software preventative measures to protect the underlying networking infrastructure from unauthorized access, misuse, malfunction, modification, destruction, or improper disclosure, thereby creating a secure platform for computers, users and programs to perform their permitted critical functions within a secure environment. - sans.org
This presentation is about technology internet banking or net banking which is very essential and helpful in our daily life..so in this ppt basic and some advance concepts are highlighted. i am sure this will be very much help full for u
Network Security is the process of taking physical and software preventative measures to protect the underlying networking infrastructure from unauthorized access, misuse, malfunction, modification, destruction, or improper disclosure, thereby creating a secure platform for computers, users and programs to perform their permitted critical functions within a secure environment. - sans.org
This presentation is about technology internet banking or net banking which is very essential and helpful in our daily life..so in this ppt basic and some advance concepts are highlighted. i am sure this will be very much help full for u
Delivery Channels and Inter Bank Payment System, E-Payments, Types of Electronic Fund Transfer system, Real Time Gross Settlement,National Electronics Funds Transfer ,Immediate Payment Service, Credit Card, Automatic Teller Machine, Smart Card, E-Money, E- Wallet, E-Cheque
E-payment and E-payment System (EPS) / Classification of E-paymentUttar Tamang ✔
This slide contains:
1. What is Electronic Payment (E-payment) ??
2. What is E-payment System (EPS) ??
3. E-Payment Channels
4. E-payment Instruments
5. Characteristics of E-payment
6. Classification of E-payment
7. Current Status of E-Payment
.
.
- Uttar Tamang
EPS system explanation, How EPS System works in real world, Model of E- Payments, Security concerns related to EPS systems, Case study of paytm related to electronic payment
eCommerce Payment Gateways: An IntroductionAidanChard
This blog post gives an introduction to eCommerce payment gateways, including the most popular payment gateways, how a payment gateway works, and how you can use one properly.
Epayments system in India and globally iit project abhiROCKS1103
IIT project on epayments. Including all the method uses and innovations in e payments and the growth of epayments in the modern world and rapid growth in india after demonetization.
Delivery Channels and Inter Bank Payment System, E-Payments, Types of Electronic Fund Transfer system, Real Time Gross Settlement,National Electronics Funds Transfer ,Immediate Payment Service, Credit Card, Automatic Teller Machine, Smart Card, E-Money, E- Wallet, E-Cheque
E-payment and E-payment System (EPS) / Classification of E-paymentUttar Tamang ✔
This slide contains:
1. What is Electronic Payment (E-payment) ??
2. What is E-payment System (EPS) ??
3. E-Payment Channels
4. E-payment Instruments
5. Characteristics of E-payment
6. Classification of E-payment
7. Current Status of E-Payment
.
.
- Uttar Tamang
EPS system explanation, How EPS System works in real world, Model of E- Payments, Security concerns related to EPS systems, Case study of paytm related to electronic payment
eCommerce Payment Gateways: An IntroductionAidanChard
This blog post gives an introduction to eCommerce payment gateways, including the most popular payment gateways, how a payment gateway works, and how you can use one properly.
Epayments system in India and globally iit project abhiROCKS1103
IIT project on epayments. Including all the method uses and innovations in e payments and the growth of epayments in the modern world and rapid growth in india after demonetization.
Online banking – Meaning and Functions. Online transaction and insurance services – its nature and procedure.Online income tax services – its payment and online utility payment services.
Introduction to Electronic Payment Systems, Process & Phases of Electronic payment systems, Benefits of Electronic Payment Systems, Risk Involved in Electronic Payment Systems, Types of B2C Electronic Payment Systems- Credit Card, Debit Card, E Cash, E Wallet, Smart Card, E Banking, E Check.
This PPT includes the explanation on various types of Electronic payment systems used its working and the recent trends in E-commerce and Electronic payments with special reference to India, It also speaks of various security issues related with e commerce and the use of e-payment systems.
electronic payment system:-It is a way of making transactions or paying for goods and services through an electronic medium.
The term electronic payment refers to e-commerce, or any type of electronics fund transfer.
E-payments come with various methods, like credit or debit card payments or bank transfers.
IT'S FEATURES AND MANY MORE FOR A BEGINNER PRESENTER
E-Banking is one of the latest approaches to provide
comfort to the client regarding monetary transactions. Through
E-Banking the bank wants to introduce the core concept of IT
based Enabled Services (ITES). The major idea is to provide a
series of services to the customer through the internet, and make
the customer feel flexible in calling out simple tasks faster instead
of making visit to the bank every time. Today, one of the surest
most comfortable and less risk oriented faced by banking sectors
the application of electronic commerce. E-banking is considered
to have a substantial impact on banks’ performance. The main
reason behind this success is the numerous benefits it can
provide, both to the banks and to customers of financial services.
For customers it can provide a greater choice in terms of the
channels they can use to conduct their business, and convenience
in terms of when and where they can use E-banking. More and
more people are adapting to this technique and the banking
industry is bound to grow. The evolution of electronic banking
started with the use of automatic teller machines and has
included telephone banking, direct bill payment, electronic fund
transfer and online banking. This research shows that the
application of e-banking can help their local banks reduce
operating costs and provide a better and fast service to their
customer. It provides an insight into various aspect of E-banking.
Similar to Chapter 4 payment systems in e-commerce (20)
Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large
Services marketing is a sub-field of marketing, The promotion of economic activities offered by a business to its clients. Service marketing might include the process of selling telecommunications, health treatment, financial, hospitality, car rental, air travel, and professional services.
Electronic Customer Relationship Management (E-CRM)
E-CRM This concept is derived from E-commerce. It also uses net
environment i.e., intranet, extranet and internet
Definition of E-CRM: Electronic CRM concerns all forms of managing
relationships with customers making use of Information Technology (IT).
E-CRM (Electronic Customer Relationship Management) expands the
traditional CRM techniques by integrating new electronic channels, such
as Web, wireless, and voice technologies and combines it with e-business
applications into the overall enterprise CRM strategy.
The goal is to drive consistency within all channels relative to sales,
customer service and marketing initiatives to achieve a flawless customer
experience and maximize customer satisfaction, customer loyalty and
revenue.
1- Web Hosting Alternatives
Web host is in the business of providing server space, Web services and file
A
maintenance for Web sites controlled by individuals or companies that do not
have their own web server.
1-1 Self-hosting
– Running servers in-house
– Most often used by large companies
1-2 Commerce service providers (CSPs)
– Provide Internet access and Web-hosting services
– Help companies conduct electronic commerce
– Offer Web server management and rent application software
2- Basic Functions of Electronic Commerce Software
Software and hardware products for building sites
– Externally hosted stores with software tools
– Sophisticated electronic commerce software suites
Electronic commerce software needs determined by– Expected enterprise size
– Projected traffic and sales
– Budget
• Consider online store creation costs versus brick and mortar costs
• Consider external or in-house host costs
All electronic commerce solutions must provide:
– Catalog display
– Shopping cart capabilities
– Transaction processing
Larger complex sites may include:
– Software adding features and capabilities to basic commerce tool set
The Different Dimensions of E-commerce Security
•
•
•
•
•
•
Integrity
◦ The ability to ensure that information being displayed on a web
site or transmitted or received over the internet has not been
altered in any way by an unauthorized party
Nonrepudiation
◦ The ability to ensure that e-commerce participants do not deny (i.e.
repudiate) their online actions
Authenticity
◦ The ability to identify the identity of a person or entity with whom
you are dealing in the internet
Confidentiality
◦ The ability to ensure that messages and data are available only to
those who are authorized to view them
Privacy
◦ The ability to control the use of information about oneself
Availability
◦ The ability to ensure that an e-commerce site continues top
function as intended.
1.
•
•
• An e-commerce business model aims to use and leverage the unique
qualities of the Internet, the Web, and the mobile platform.
• There are eight key elements of a business model.
Value proposition
Defines how a company’s product or service fulfills the needs of customers.
Questions to ask:
• Why should the customer buy from you?
• What will your firm provide that others do not or cannot?
Successful e-commerce value propositions:
• Personalization/customization
•
Reduction of product search, price discovery costs
• Facilitation of transactions by managing product delivery
2. Revenue model
• Describes how the firm will earn revenue, generate profits, and produce a superior return
on invested capital.
Most companies rely on one, or some combination, of the following major revenue models:
• Advertising (Yahoo)
• Subscription (WSJ)
• Transaction fee (eBay)
• S ales (Amazon)
• Affiliate (MyPoints)
Why may a company want more than one revenue model?
3. Market opportunity
• • Refers to the company’s intended marketspace and the overall potential financial
opportunities available to the firm in that marketspace.
Marketspace
• Area of actual or potential commercial value in which company intends to
operate.
Realistic market opportunity:
•
Defined by revenue potential in each market niche in which company hopes
to compete.
Market opportunity typically divided into smaller niches
4. Competitive environment
• Refers to the other companies operating in the same marketspace selling
similar products.
Who else occupies your intended marketspace?”
• Other companies selling similar products in the same marketspace.
• Includes both direct and indirect competitors.
Influenced by:
• Number and size of active competitors
• Each competitor’s market share
• Competitors’ profitability
•
•
•
•
5. Competitive advantage
• Competitive advantage:
• Achieved by a firm when it can produce a superior product and/or
bring the product to market at a lower price than most, or all, of its
competitors.
“What special advantages does your firm bring to the marketspace?”
• Is your product superior to or cheaper to produce than your
competitors’?
6. Market strategy
• • The plan you put together that details exactly how you intend to enter a
new market and attract new customers.
Details how a company intends to enter market and attract customers Best
business concepts will fail if not properly marketed to potential customers.
Examples:
• YouTube having social network marketing strategy which lets users to
post content on the site for free;
• AOL distributing out free trial CDs through magazines and newspapers
7. Organizational development
• Development plan describes how the company will organize the work that
needs to be accomplished.
Work typically divided into functional departments, e.g, production,
shipping, marketing
The Internet
• The Internet is a worldwide collection of networks that links millions of businesses,
government agencies, educational institutions, and individuals
Evolution of the Internet
• The Internet originated as ARPANET in September 1969 and had two main goals:
Allow scientists at different physical locations to share information and work together.
Function even if part of the network were disabled or destroyed by a disaster
Evolution of the Internet
1969 APRANET became functional
1984 Has more than 1000 companies linked as host
1986 NSF connect NSFnet to APRANET and imternet created
1995 NSF terminated its network on the internet and resumed status as research
network
1996 internet 2 founded
today more than 550 million hosts connected to the internet
• Each organization is responsible only for maintaining its own network – The World
Wide Web Consortium (W3C) oversees research and sets guidelines and standards
• Internet2 connects more than 200 universities and 115 companies via a high-speed
private network.
• Many home and small business users connect to the Internet via high-speed broadband
Internet service
• An access provider is a business that provides individuals and organizations access to
the Internet free or for a fee
• Internet service provider (ISP):
Regional ISPs provide Internet access to specific geographical area.
National ISPs provide Internet access in cities and towns nationwide
• Online Service Provider (OSP)
Has many members -Only features
Popular OSPs include AOL (America Online) and MSN (Microsoft Network)
• Wireless Internet Service Providers (WISP)
Provides wireless internet access to computers and mobile devices
May requires wireless modem
The World Wide Web
• The World Wide Web, or Web, consists of a worldwide collection of electronic
documents (Web pages)
• A Web site is a collection of related Web pages and associated items
• A Web server is a computer that delivers requested Web pages to your computer
• Web 2.0 refers to Web sites that provide a means for users to interact
• A Web browser, or browser, allows users to access Web pages and Web 2.0 programs.
Like Firefox, Opera,Internet Explorer, Google Chrome, Safari.
• A home page is the first
• Some Web pages are page that a Web site designed specifically for displays
microbrowsers .(Mobile)
• Web pages provide links to other related Web pages – Surfing the Web
• Downloading is the process of receiving information
• A Web page has a unique address called a URL or Web address
• Tabbed browsing allows you to open and view multiple Web pages in a single Web
browser window
• Two types of search tools are search engines and subject directories
-Subject directory Classifies Web pages in an organized set of categories.
-Search engine Finds information related to a specific topic
• A search engine is helpful in locating items such as: Images,Videos,
Audio ,News ,People o
Chapter 6: FINANCIAL OPERATIONS OF I NSURERSMarya Sholevar
1-Liabilities: Loss Reserves
A loss reserve is the estimated cost of settling claims for losses that have already occurred but that have not been paid as of the valuation date . More specifically, the loss reserve is an estimated amount for (1) claims reported and adjusted but not yet paid, (2) claims reported and filed, but not yet adjusted, and (3) claims for losses incurred but not yet reported to the company .
Loss reserves in property and casualty insurance can be classified as case reserves, reserves based on the loss ratio method, and reserves for incurred but not reported claims.
2-Policyholders’ Surplus
Policyholders’ surplus is the difference between an insurance company’s assets and liabilities . It is not calculated directly—it is the “balancing” item on the balance sheet.
If the insurer were to pay all of its liabilities using its assets, the amount remaining would be policyholders’ surplus.
Surplus can be thought of as a cushion that can be drawn upon if liabilities are higher than expected.
Surplus represents the paid-in capital of investors plus retained income from insurance operations and investments over time.
The level of surplus is also an important determinant of the amount of new business that an insurance company can write.
3-Income and Expense Statement
The income and expense statement summarizes revenues received and expenses paid during a specified period of time .
Revenues are cash inflows that the company can claim as income. The two principal sources of revenues for an insurance company are premiums and investment income.
Earned premiums represent the portion of the premiums for which insurance protection has been provided .
Expenses Partially offsetting the company’s revenues were the company’s expenses, which are cash outflows from the business.
The major expenses for an Insurance Company:
Adjusting claims
Paying the insured losses
Underwriting
4-Measuring Profit or Loss
A simple measure that can be used is the insurance company’s loss ratio and expense ratio.
The loss ratio is the ratio of incurred losses and loss adjustment expenses to premiums earned .
Loss ratio= (Incurred losses+Loss adjustment expenses)/Premiums earned
The expense ratio is equal to the company’s underwriting expenses divided by written premiums .
Expense ratio=Underwriting expenses/Premiums written
5-Rate-Making Methods
1-Insurance Marketing
AGENTS AND BROKERS
A successful sales force is the key to success in the financial services industry. Most insurance policies sold today are sold by agents and brokers.
Agents:An agent is someonewho legally represents the principal and has the authority to act on the principal’s behalf.
Brokers:A broker is someone who legally represents the insured even though he or she receives a commission from the insurer.
2-TYPES OF MARKETING SYSTEMS
Life Insurance Marketing
Distribution systems for the sale of life insurance have changed dramatically over time.
Major life insurance distribution systems:
Personal selling systems
Financial institution distribution systems
Direct response system
Other distribution systems
1-Personal Selling Systems:
2-Financial Institution Distribution Systems
3-Direct Response System
3-Property and Casualty Insurance Marketing
Independent agency system
Exclusive agency system
Direct writer
Direct response system
Multiple distribution systems
1-INSURANCE COMPANY OPERATIONS
The most important insurance company operations consist of the following:
Ratemaking
Underwriting
Production
Claim settlement
Reinsurance
Insurers also engage in other operations, such as accounting, legal services, loss control, and information systems.
2-RATING AND RATEMAKING
Ratemaking refers to the pricing of insurance and the calculation of insurance premiums .
A rate is the price per unit of insurance.
An exposure unit is the unit of measurement used in insurance pricing, which varies by line of insurance.
The person who determines rates and premiums is known as an actuary . An actuary is a highly skilled mathematician who is involved in all phases of insurance company operations, including planning, pricing, and research.
3-UNDERWRITING
Underwriting refers to the process of selecting, classifying, and pricing applicants for insurance . The underwriter is the person who decides to accept or reject an application.
Statement of Underwriting Policy:Underwriting starts with a clear statement of underwriting policy.
An insurer must establish an underwriting policy that is consistent with company objectives.
4-PRODUCTION
The term production refers to the sales and marketing activities of insurers. Agents who sell insurance are frequently referred to as producers .
Life insurers have an agency or sales department. This department is responsible for recruiting and training new agents and for the supervision of general agents, branch office managers, and local agents.
Property and casualty insurers have marketing departments. To assist agents in the field, special agents may also be appointed.
A special agent is a highly specialized technician who provides local agents in the field with technical help and assistance with their marketing problems.
5-CLAIMS SETTLEMENT
Every insurance company has a claims division or department for adjusting claims. This section of the chapter examines the basic objectives in adjusting claims, the different types of claim adjustors, and the various steps in the claim-settlement process.
Basic Objectives in Claims Settlement:
Verification of a covered loss
Fair and prompt payment of claims
Personal assistance to the insured
6-REINSURANCE
Reinsurance is an arrangement by which the primary insurer that initially writes the insurance transfers to another insurer (called the reinsurer) part or all of the potential losses associated with such insurance .
The primary insurer that initially writes the insurance is called the ceding company .
The insurer that acceptspart or all of the insurance from the ceding com pany is called the reinsurer .
The amount of insurance retained by the ceding company for its own account is called the retention limit or net retention .
The amount of insurance ceded to the reinsurer is known as the cession
1-Organization of insurer
Consolidation means that the number of firms in the financial services industry has declined over time because of merger and acquisition.
Convergence means that financial institutions can now sell a wide variety of financial products that earlier were outside their core business area.
An effective organizational structure benefits a company by:
Responsibility
Authority
Accountability
Delegation
The Organization Chart :An organization chart also shows the company’s chain of command, or the structure of authority that flows downward in the organization from the higher levels to the lower levels.
Pyramidal Structure and Levels of Authority:The pyramidal structure illustrates that the authority in a company starts at the top with one person or a small group of people, Authority is then distributed through the chain of command to ever-larger numbers of people throughout out the company.
2- TYPES OF INSURERS ORGANIZATION
Insurance organizations are classified by basis of risk coverage [life, general,health, property, auto]. their agency system [independent, exclusive, direct selling]and formation from legal point of view – stock or mutual.
Stock insurers
Mutual insurers
Lloyd’s of London
Reciprocal exchanges
1-The Basics Parts of an Insurance Contract
Declarations
Definitions
Insuring Agreement
Exclusions
Conditions
Deductibles
Miscellaneous Provisions
Insured
Rider And Endorsement
2-COINSURANCE
A coinsurance formula is used to determine the
amount paid for a covered loss. The coinsurance for-
mula is as follows:
(Amount of insurance carried/Amount of insurance required) * Loss = Amount of recovery
Insurance is a social device for spreading the chance of financial loss among
a large number of people. Insurance protects against pure risk.
Risk is the possibility of losing economic security.
Risk can be of two kinds: speculative or pure And only pure risks are insurable
Pure risk involves only two possible outcomes:
loss or no loss, with no possibility of gain or profit
Speculative Risk
involves three possible outcomes: loss, no loss or profit
The Law of Large Numbers:
The average of the results obtained from a large number of trials should
be close to the expected value.
Underwriting:
The process of selecting certain types of risks that have historically
produced a profit.
Peril:
A potential cause of loss. Accident, fire, and theft are common perils.
Hazard:
Anything that increases the seriousness of a loss or increases
the likelihood that a loss will occur.
Adverse Selection:
Is the tendency of person with a higher than average chance
of loss to seek insurance at the average state, which if not
Controlled by underwriting, result in higher than expected
Loss levels.
Insurance is not same as gambling. Gambling is creat a new
speculative risk and socially is unproductive but insurance
Deals with pure risk and socially is productive.
Insurance is not same as hedging. Insurance involves the
Transfer of pure risk and reduce objective risk but hedging
Involves just the transfer of speculative risk not risk
Reduduction.
Types of Insurance:
Private insurance, consist of health insurance, property and
liabilty insurance.
Government Insurance, cnosist of social insurance and other
Government insurance programs.
How does insurance work?
You pay a fee called a premium, and in exchange,
the insurance company agrees to pay you a certain
amount of money
-Basic Characteristics Of Insurance
Pooling of losses
Payment of fortuitous losses
Risk transfer
Indemnification
-Pooling of losses
Spreading of losses incurred by the few over the entire group.
• Key mechanism is “law of large number”.
• Future losses are predicted based on law of large number.
Note
• Pooling of loss is the spreading of losses incurred by the few over the
entire group so that in the process average loss is substituted for actual loss.
• The primary purpose of pooling is to reduce the variation in possible
Outcomes , which reduces risk.
-Payment of fortuitous losses
A fortuitous loss is one that is unforeseen and
unexpected and occurs as a result of chance.
Insurance policies do not cover intentional losses
-Risk Transfer
Risk transfer means that a pure risk is transferred from
the insured to the insurer,who typically is in a stronger
Financial position to pay the loss than the insured.
-Indemnification
Means that the insured is restored to his or her approximate
financial position prior to the occurrence of the loss.
- Insurable Risk
Insurer normally insure only pure risk.
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Knowledge and skills frameworks, generally called competency frameworks, for ELT teachers, trainers and managers have existed for a few years now. However, until I created one for my MA dissertation, there wasn’t one drawing together what we need to know and do to be able to effectively produce language learning materials.
This webinar will introduce you to my framework, highlighting the key competencies I identified from my research. It will also show how anybody involved in language teaching (any language, not just English!), teacher training, managing schools or developing language learning materials can benefit from using the framework.
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2. All business activities need the support of payment system, so
does the e-commerce. As e-commerce process transactions
through the Internet, it requires a more secure, stable and
efficient payment system for supporting commerce done
electronically. By the success of online banking and online
payment in recent years, the market seems to have a solution for
e-commerce. Online payment can be conducted in different
means, such as intelligent card (IC), e-check, e-Wallet, e-Cash
etc. This chapter briefly introduces the online banks and the
online payment tools that are common used in e-commerce.
1-Payment Systems
3. 2-1 Cash
2-2 Checking Transfer
2-3 Credit Card
2-4 Stored Value
2-5 Accumulating Balance
2-Types of Payment Systems
4. -Legal tender defined by a national authority to represent value
-Most common form of payment in terms of number of
transactions
-Instantly convertible into other forms of value without
intermediation of any kind
-Portable, requires no authentication, and provides instant
purchasing power
-Free” (no transaction fee), anonymous, low cognitive demands
-Limitations: easily stolen, limited to smaller transaction, does not
provide any float
2-1 Cash
5. -Funds transferred directly via a signed draft or check from
a consumer’s checking account to a merchant or other
individual
-Most common form of payment in terms of amount spent
-Can be used for both small and large transactions
-Some float
-Not anonymous, require third-party intervention (banks)
-Introduce security risks for merchants (forgeries,stopped
payments), so authentication typically required
2-2 Checking Transfer
6. -Represents an account that extends credit to consumers,
permitting consumers to purchase items while deferring
payment, and allows consumers to make payments to
multiple vendors at one time
-Credit card associations: Nonprofit associations (Visa,
MasterCard) that set standards for issuing banks
-Issuing banks: Issue cards and process transactions
-Processing centers (clearinghouses): Handle verification of
accounts and balances
2-3 Credit Card
7. Accounts created by depositing funds into an account
and from which funds are paid out or withdrawn as
needed
*Examples: Debit cards, gift certificates,prepaid
cards, smart cards
2-4 Stored Value
8.
9. -Accounts that accumulate expenditures and to which
consumers make period payments
Examples: utility, phone, American Express accounts
2-5 Accumulating Balance
10. -Credit cards are dominant form of online payment,
accounting for around 80% of online payments in 2005
-New forms of electronic payment include:
3-1 Digital Wallet
3-2 Digital cash
3-3 Online stored value systems
3-4 Digital accumulating balance payment systems
3-5 Digital credit accounts
3-6 Digital checking
3-Current Online Payment
Systems
11. -Concept of digital wallet relevant to many of the new digital
payment systems
-Seeks to emulate the functionality of traditional wallet
-Most important functions:
*Authenticate consumer through use of digital
certificates or other encryption methods
*Store and transfer value
*Secure payment process from consumer to merchant
-Most common types are client-based software applications:
Gator eWallet.com, asterCard Wallet
3-1 Digital Wallets
12. -One of the first forms of alternative payment systems
-Not really “cash”: rather, are forms of value storage and
value exchange that have limited convertibility into other
forms of value, and require intermediaries to convert
-Many of early examples have disappeared; concepts
survive as part of P2P payment systems
3-2 Digital Cash
13.
14. -Permit consumers to make instant, online payments
to merchants and other individuals based on value
stored in an online account
-Rely on value stored in a consumer’s bank, checking,
or credit card account
3-3 Online Stored Value
Systems
15.
16. -Another kind of stored value system based on credit-card
sized plastic cards that have embedded chips that store
personal information
Two types:
*Contact
*Contactless
-Examples: Mondex, Octopus
3-3-1 Smart Cards as Stored
Value Systems
17. -Allows users to make micropayments and purchases on
the Web, accumulating a debit balance for which they are
billed at the end of the month
-Examples: Qpass, Valista, Clickshare, Click & Buy,
Peppercoin
3-4 Digital Accumulating
Balance Payment Systems
18. -Extend the functionality of existing credit cards for use as
online shopping payment tools
-Focus specifically on making use of credit cards safer and
more convenient for online merchants and consumers
-Example: eCharge
3-5 Digital Credit Card
Payment Systems
19.
20. -Extend the functionality of existing checking accounts
for use as online shopping payment tools
-Examples: PayByCheck, Western Union MoneyZap
3-6 Digital Checking
Payment Systems
21. -Mobile payment (m-payments) systems not very well
established yet in U.S, but with growth in Wi-Fi and 3G
cellular phone systems, this is beginning to change
-Juniper Research predicts global m-commerce will total at
least $88 billion by 2009, majority of transactions will be
micro-m-payments
4- Digital Payment Systems and
the Wireless Web
22. -Online payment systems for monthly bills EBPP expected
to grow rapidly, to an estimated 40% of all households by
2007 Main business models in EBPP market include:
*Biller-direct
*Consolidator
5- Electronic Billing Presentment
and Payment (EBPP)
23. -Processed in much the same way that in-store purchases
are
-Major difference is that online merchants do not see or
take impression of card, and no signature is available (CNP
transactions)
-Participants include consumer, merchant, clearinghouse,
merchant bank (acquiring bank) and consumer’s card
issuing bank
6- How an Online Credit Card
Transaction Works
24.
25. -Security: neither merchant nor consumer can be fully
authenticated
-Cost: for merchants, around 3.5% of purchase price plus
transaction fee of 20 – 30 cents per transaction
-Social equity: many people do not have access to credit
cards (young adults, plus almost 100 million other adult
Americans who cannot afford cards or are considered poor
risk)
6-1 Limitations of Online
Credit Card Payment Systems
26. -E-channels enable financial transactions from anywhere and
allow non-stop working time. E-channels like: Internet, WAP
based mobile network, Automatic Telephone, ATM network, …
-E-Bank is transforming banking business into e-Business
through utilizing e-Channels.
-Customers’ requests are:
*Non-stop working time
*Using services from anywhere
E-channels provide:
-Working time 7/24h
-Great flexibility
7- Electronic Banking
7-1 Introduction
27. -Electronic Funds Transfer (EFT) is a system of transferring
money from one bank account directly to another without
any paper money changing hands. EFT is safe, secure,
efficient, and less expensive than paper check payments
and collections. EFT offers several services that consumers
may find practical to be as a means of payment.
7-1 Introduction
28. Electronic money is money which exists only in banking
computer systems and is not held in any physical form.
7-2 Definition of Electronic
Money
29. The following terms all refer to one form or another of electronic
banking: -personal computer (PC) banking,
-Internet banking,
-virtual banking,
-online banking,
-home banking,
-remote electronic banking,
-and phone are banking.
PC banking and Internet or online banking is the most
frequently used designations.
7-3 Electronic Banking Forms
30. PC banking is a form of online banking that enables customers
to execute bank transactions from a PC via a modem. In most
PC banking ventures, the bank offers the customer a proprietary
financial software program that allows the customer to perform
financial transactions from his or her home computer. The
customer then dials into the bank with his or her modem,
downloads data, and runs the programs that are resident on the
customer’s computer.
7-3 Electronic Banking Forms
31. Internet banking, sometimes called online banking, is an
outgrowth of PC banking. Internet banking uses the Internet as
the delivery channel by which to conduct banking activity.
An Internet banking customer accesses his or her accounts
from a browser— software that runs Internet banking programs
resident on the bank’s World Wide Web server, not on the
user’s PC.
Internet banks are also known as virtual, cyber, net, interactive,
or web banks.
7-3 Electronic Banking Forms
32.
33. 7-4-1 Choice and Convenience for Customers:
7-4-2 Attracting High Value Customers:
7-4-3 Enhanced Image
7-4-4 Increased Revenues
7-4-5 Load Reduction on Other Channels
7-4-6 Cost Reduction
7-4-7 Organizational Efficiency
7-4-8 Easier Expansion:
7-4 Benefits of E-Banking
(Importance of E-Banking)
34. In 70’s, banks started to establish centralized data processing
centers.
Essentially the roles of these data processing centers are:
-collect the handwritten documents from branches
-compile the documents
-manual data entry by the operators
-generate reports for the bank staff and the central bank
-execute some banking transactions
7-5 Technology
Commencement in Banking
35. In the mid-1980s, banks accepted product based banking and
competed with their products.
Banks developed new products for their customers.
-Credit card
-Credit deposit account (Super Account)
-Debit cards
Beside branch, banks brought new channels to give better
service to their customers.
-ATM
-POS
7-6 Product and Service
Based Banking
36. Debit Cards are plastic cards, which look like credit cards, but
are electronically connected to a card holder’s depository
institution account.
Money is automatically withdrawn from the designated account
when a purchase is made.
Debit cards can be used when there is not enough money in the
account, which will result in a non- sufficient fund fee.
7-6-1 Debit Card
37. Debit cards require the use of PIN (Personal Identification
numbers).
Personal Identification Number (PIN) is a number that is
entered in at an Automated Teller Machine (ATM) or Point
of Sale Terminal (POS)
This confirms that the individual is authorized to access
that particular account.
7-6-1-1 Personal Identification
Numbers(PIN)
38. Automated Teller Machines (ATM’s) are electronic
computer terminals which offer automated, computerized
banking.
Transactions allowed may include:
-Deposits
-Cash withdrawals
-Transfers between accounts
-Account balance information
7-6-2 Automated Teller
Machines
39. Point of Sale Terminal (POS), are located at stores and allows
the customer to use a debit card to make a purchase.
-A debit card’s magnetic strip is swiped through the POS.
-After the required PIN is provided, the transaction is
authorized.
-If the purchase is under $25.00 a signature may not be
required.
7-6-3 Point of Sale Terminal
(POS)
40. SWIFT or Society for Worldwide Interbank Financial
Telecommunication):
is a co-operative society, founded in 1974 by seven
international banks, which operate a global network to facilitate
the transfer of financial messages.
-transports financial messages in a highly secure way
-banks can exchange data for funds transfer between financial
institutions
-Can do money transfer, currency exchange, loan, deposit etc
-Improve the productivity and avoid error
7-6-4 SWIFT
41. SMS banking uses short text messages sent through the client’s
mobile phone.
-Kept updated on important information when it concerns your
business matters by SMS alert
-A client can automatically receive information about his
account balance: an SMS is sent to the client immediately after
a certain operation is performed, or on request: a client sends
the bank a correctly formatted message which processes it and
answers the client’s request by SMS.
Such as: *Check balance * Account Transfer
7-6-5 SMS Banking
42. -Customers can use their personal computers at home, office or
everywhere to access their accounts for transactions by
subscribing to and dialing into the banks’ Intranet proprietary
software system by use of password.
-More common among corporate customers compared to
individual customers.
-Reducing cost, increasing speed and improved flexibility of
business transactions. Such as Account balance, request
transfers between accounts, and pay bills electronically.
7-6-6 Internet Banking
43. • Online banking and e-banking are modern ways to conduct
banking transactions sitting in the comfort of one’s own hoe
without going to the bank physically.
• E-banking is broader in spectrum than online banking in the
sense that it encompasses the use of ATM cards for withdrawal
of money and making payments to merchants even without
going online.
7-7 Online Banking vs e-
Banking