This document discusses different types of payment systems including cash, checking transfers, credit cards, stored value, and accumulating balance. It then discusses the payment revolution and factors influencing electronic payment systems such as independence, interoperability, security, anonymity, and ease of use. Finally, it provides details on using payment cards online including credit card processing, how online credit card transactions work, and tools for combating fraudulent transactions.
Credit allows consumers to purchase goods and services now and pay for them later. When using credit, finance charges in the form of interest and fees are usually incurred. The amount of credit used, annual percentage rate, and length of repayment time all affect the size of finance charges. While credit provides advantages like convenience and access to costly items, it also poses disadvantages like reducing future income and risk of serious consequences if misused. Different types of credit include sales credit for purchases and cash credit for loans. Establishing a good credit history involves steps like maintaining employment, managing bank accounts responsibly, and initially using small credit limits and paying bills on time. Credit ratings evaluate a person's creditworthiness based on their credit report and credit score
The document provides information on establishing and maintaining good credit. It discusses the importance of creditors evaluating a person's ability and willingness to repay debts through their credit rating and the "3 Cs" of character, capacity, and capital. It offers tips for establishing good credit such as taking out small loans and paying all bills on time. It also covers considerations for choosing credit, types of loan sources, and maintaining good financial habits to protect one's credit rating.
This document provides an overview of consumer credit, including the advantages and disadvantages of using credit, different types of credit sources and loans, how to apply for and protect your credit, and how to manage debts. The key topics covered are types of consumer credit, calculating interest rates and costs of credit, choosing credit cards, applying for loans, maintaining good credit, and dealing with debt issues through credit counseling or bankruptcy.
This document provides information about managing your credit, including understanding credit reports, credit scores, dealing with collection agencies, and preventing identity theft. It discusses reviewing credit reports at least annually, what is included in credit reports, how long different information stays on reports, and tips for interpreting credit scores. The document offers advice on shopping for credit in sprees, keeping old accounts open, saying no to store credit cards, and paying down debt rather than transferring balances. It also provides information on annualcreditreport.com, placing fraud alerts, and sample letters for managing credit issues.
- The document discusses understanding and managing personal credit, including credit reports, credit scores, and proper credit card usage.
- It provides information on obtaining credit reports and credit scores, understanding how credit scores are calculated, and managing credit cards to avoid interest charges and debt.
- The document also reviews how to correct errors on credit reports and opt out of credit card and telemarketing offers to improve credit standing.
Credit involves borrowing and lending money, with interest charged for the cost of borrowing. A credit score is calculated based on factors like payment history, amounts owed, length of credit history, and number of accounts, and shows how risky a borrower is. Maintaining good credit involves paying bills on time, keeping balances low relative to credit limits, and allowing an established credit history. Managing needs versus wants carefully and avoiding overspending can help keep debts under control and credit in good standing.
This document provides information on various topics related to consumer credit:
- It defines credit, the types of consumer and commercial credit, and creditor. The main types of consumer credit are charge accounts, credit cards, and installment borrowing.
- Open-end and closed-end credit are described as the two main types of consumer credit. Open-end has a revolving line of credit while closed-end is a fixed-amount loan.
- Advantages and limitations of using credit are outlined. Factors to consider before using credit like ability to repay and total costs are also discussed.
- Sources of consumer credit include commercial banks, credit unions, and retail stores. Proper credit card usage and potential consequences of
A credit bureau is an organization that collects and maintains credit information on individuals and businesses. It provides credit scores and reports that tell lenders about the risk level of a potential client so they can determine whether to approve loans and at what interest rates. The information helps lenders make informed decisions, and having a good credit history allows individuals and businesses to access more affordable credit options.
Credit allows consumers to purchase goods and services now and pay for them later. When using credit, finance charges in the form of interest and fees are usually incurred. The amount of credit used, annual percentage rate, and length of repayment time all affect the size of finance charges. While credit provides advantages like convenience and access to costly items, it also poses disadvantages like reducing future income and risk of serious consequences if misused. Different types of credit include sales credit for purchases and cash credit for loans. Establishing a good credit history involves steps like maintaining employment, managing bank accounts responsibly, and initially using small credit limits and paying bills on time. Credit ratings evaluate a person's creditworthiness based on their credit report and credit score
The document provides information on establishing and maintaining good credit. It discusses the importance of creditors evaluating a person's ability and willingness to repay debts through their credit rating and the "3 Cs" of character, capacity, and capital. It offers tips for establishing good credit such as taking out small loans and paying all bills on time. It also covers considerations for choosing credit, types of loan sources, and maintaining good financial habits to protect one's credit rating.
This document provides an overview of consumer credit, including the advantages and disadvantages of using credit, different types of credit sources and loans, how to apply for and protect your credit, and how to manage debts. The key topics covered are types of consumer credit, calculating interest rates and costs of credit, choosing credit cards, applying for loans, maintaining good credit, and dealing with debt issues through credit counseling or bankruptcy.
This document provides information about managing your credit, including understanding credit reports, credit scores, dealing with collection agencies, and preventing identity theft. It discusses reviewing credit reports at least annually, what is included in credit reports, how long different information stays on reports, and tips for interpreting credit scores. The document offers advice on shopping for credit in sprees, keeping old accounts open, saying no to store credit cards, and paying down debt rather than transferring balances. It also provides information on annualcreditreport.com, placing fraud alerts, and sample letters for managing credit issues.
- The document discusses understanding and managing personal credit, including credit reports, credit scores, and proper credit card usage.
- It provides information on obtaining credit reports and credit scores, understanding how credit scores are calculated, and managing credit cards to avoid interest charges and debt.
- The document also reviews how to correct errors on credit reports and opt out of credit card and telemarketing offers to improve credit standing.
Credit involves borrowing and lending money, with interest charged for the cost of borrowing. A credit score is calculated based on factors like payment history, amounts owed, length of credit history, and number of accounts, and shows how risky a borrower is. Maintaining good credit involves paying bills on time, keeping balances low relative to credit limits, and allowing an established credit history. Managing needs versus wants carefully and avoiding overspending can help keep debts under control and credit in good standing.
This document provides information on various topics related to consumer credit:
- It defines credit, the types of consumer and commercial credit, and creditor. The main types of consumer credit are charge accounts, credit cards, and installment borrowing.
- Open-end and closed-end credit are described as the two main types of consumer credit. Open-end has a revolving line of credit while closed-end is a fixed-amount loan.
- Advantages and limitations of using credit are outlined. Factors to consider before using credit like ability to repay and total costs are also discussed.
- Sources of consumer credit include commercial banks, credit unions, and retail stores. Proper credit card usage and potential consequences of
A credit bureau is an organization that collects and maintains credit information on individuals and businesses. It provides credit scores and reports that tell lenders about the risk level of a potential client so they can determine whether to approve loans and at what interest rates. The information helps lenders make informed decisions, and having a good credit history allows individuals and businesses to access more affordable credit options.
Credit allows individuals to borrow money and pay it back over time, usually with interest. There are various types of credit like credit cards, loans, mortgages, and student loans offered through banks, credit unions, and other financial institutions. While credit provides advantages like convenience and flexibility to make purchases, it also carries costs like interest fees and penalties if not managed responsibly. When applying for credit, lenders will consider an individual's credit history, income, existing debts, and assets to determine if they qualify.
The document summarizes consumer protections for credit card users established by the CARD Act of 2009. It outlines rules regarding credit card agreements, interest rate increases, fees, billing statements, payment requirements, credit limits, credit reports, gift cards and overdraft protection. Key points include requirements that card issuers provide 45 day advance notice of rate hikes or penalty fee increases and allow customers to reject changes by closing their accounts.
Credit card with Moral Consciousness whereby it
allows cardholders to redeem their rewards
points to donate to charity, thus making
it easier to turn unused points into cash
donation. The Card with Charity is based on simple modus operandi ‘Spending and Sharing’ will not only satisfy the payment needs but also the need of conscious customers to perform charity.
Securing Retirement withHome Equity Conversion Mortgages.
HECM Basics
Borrower Protections
Fees/Costs
Product Misconceptions
Loan Amounts
Accessing Funds
Retirement Strategies
Right-Sizing the Home
Retirement Planning Using Home Equity
Home Equity: The 4th component
Using home equity can help supplement retirement income and provide increased cash flow.
Provides tax-free cash*
Requires no monthly mortgage payments**
Homeowners stay in their home & retain title
This document provides an overview of credit and credit cards. It discusses the basics of credit, the advantages and disadvantages of credit cards, credit card terminology, tips for responsible credit card use, and how to build and maintain good credit. Key topics covered include the different types of credit, factors that affect credit scores, how to read credit reports, and steps to take to dispute errors or rebuild poor credit.
This document provides information about credit, credit reports, credit scores, and maintaining good credit. It defines credit and explains how credit reports and FICO credit scores are calculated. Key factors that influence credit scores are payment history, amount of debt, credit history length, recent credit applications, and credit mix. The document advises paying bills on time, keeping balances low, and carefully managing credit accounts to maintain good credit over time.
There are three main types of consumer credit: retail credit, cash credit, and real estate credit. Retail credit includes revolving credit like credit cards which allow purchases up to a credit limit to be paid off over time, installment contracts for large purchases paid in regular installments, and services provided on credit. Cash credit includes installment loans, single payment loans, and general purpose credit cards which provide cash advances. Real estate credit is used to purchase or improve homes, with the property serving as collateral for the loan.
The document discusses consumption patterns and household expenditure. It defines consumption and describes how it can be studied by the kinds of goods and services consumed, how they are organized for use, and the underlying values of households. It lists categories of consumption in household surveys and constraints on consumption like price, resources, and environmental factors. The document also discusses current and future needs, basic versus non-basic needs, and expenditures related to housing, transportation, clothing, education, insurance, and children.
Danny Singh's Financial Seminar on the Student Loans and Credit Crisis in Ame...Danny Singh, M.B.A., MSEd
Danny Singh is the teen who refinanced his mom's house and car at 14 and has never been late on any type of bill for the past 8 years. He now hopes to raise the awareness of the student loans crisis and teach consumers the most effective methods to repay their debts in months instead of years while having enough money for everyday expenses and retirement. For this reason, he is doing financial seminars and has published a book titled "Finance 101: The Whiz Kid's Perfect Credit Guide." All profits are donated to the Children's National Medical Center for HIV treatment research. Danny has been recognized by Governor Rick Perry, First Lady Anita Perry, Seminole County Commissioner Bob Dallari, Florida State Representative Jason Brodeur, and Senator Marco Rubio. Please contact him using www.facebook.com/studentsfinance. Thank you.
Credit refers to buying something now and paying for it later. There are several types of credit available to students including student loans, lines of credit, and credit cards. It is important to understand credit terms like annual percentage rate, minimum payment, and interest rates when using credit. Maintaining good credit involves paying bills on time, keeping credit utilization low, and establishing a history of responsible credit use over time.
The document discusses various topics related to providing loans to businesses and consumers by banks. It covers the types of loans banks offer like real estate loans, personal loans, and educational loans. It also discusses factors that influence the growth and mix of bank loans, regulations around lending, establishing a written loan policy, the lending process, credit analysis, sources of information about loan customers, lending to business firms, analyzing business loan applications, preparing sources and uses of funds statements, and pricing business loans.
The document is a slide presentation on understanding credit cards. It covers key topics such as:
- What is a credit card and how it provides a line of credit with an established limit.
- Different interest rates that may apply, including annual percentage rates for purchases, balance transfers, cash advances, and penalty rates.
- Fees associated with credit cards like annual fees, transaction fees, and penalty fees.
- How credit worthiness can impact the annual percentage rate a person receives.
- Additional terms like introductory rates and how to avoid paying interest.
The document discusses credit basics, including the different types of credit (installment/closed-end, revolving/open-end, alternative), how to obtain credit responsibly, and important factors to consider when taking on credit such as interest rates, fees, and ability to repay. It emphasizes shopping around for favorable terms, carefully evaluating contracts, and understanding one's responsibilities to manage credit well for both present and future financial well-being.
Electronic payment systems have revolutionized business by reducing paperwork and transaction costs. Common electronic payment modes include credit cards, debit cards, smart cards, e-money, and electronic funds transfer. Credit cards allow customers to make purchases and pay the balance later, while debit cards deduct funds immediately from the linked bank account. Smart cards contain encrypted payment and personal information. E-money refers to online payments via payment cards or services like e-cash. The Automated Clearing House (ACH) network facilitates electronic funds transfers between bank accounts in the US.
E-commerce System Technologies, Repository and Networking Technologyizan28
The document outlines an introduction to online payment systems and security. It discusses various payment methods including payment cards, electronic cash, electronic wallets, and stored-value cards. It also covers online payment processing, merchant accounts, and open and closed-loop payment systems. The document then discusses Internet technologies used by banks including check processing and mobile banking. It concludes by covering criminal activities like phishing and identity theft that target payment systems.
Payment systems allow the transfer of funds from one entity to another and come in various forms like credit cards, debit cards, and electronic wallets. The document discusses different types of payment systems including check transfers, accumulating balances, cash, credit cards, and smart value cards. It also covers online payment systems like credit cards, debit cards, electronic funds transfer, and digital wallets. Wireless and contactless payment systems using technologies like RFID are also summarized.
This document discusses various electronic payment systems. It describes methods of electronic payment such as electronic cash, software wallets, smart cards, and credit/debit cards. It also outlines requirements for e-payments like atomicity and non-repudiation. Several modes of e-payment are explained in detail, including payment cards, electronic cash, check free, check share, internet cash, wallets, and smart cards. Benefits and drawbacks of different systems are provided.
The document discusses various online payment systems for e-commerce transactions. It begins by describing how online credit card transactions work, noting security and cost issues. It then explains how the Secure Electronic Transaction (SET) protocol aimed to address these by authenticating identities through digital certificates. However, SET did not gain widespread adoption due to high integration costs. The document goes on to discuss digital wallets, digital cash systems, PayPal, stored value accounts, and other digital payment methods like eChecks and their advantages over credit cards for online purchases. It concludes by noting business-to-business payments are more complex than consumer payments.
This document provides an overview of different electronic payment systems including payment cards, electronic cash, check free, check share, electronic wallets, and smart cards. It discusses the basic concepts and workings of these various e-payment methods. Key points covered include how payment cards like credit, debit, and charge cards work as well as their acceptance and processing. Advantages and disadvantages of payment cards and electronic cash are also summarized. The document also gives brief descriptions of different electronic wallet and smart card systems.
The document discusses various topics related to electronic payments, including:
1) Different types of electronic money and key requirements for internet-based payment systems.
2) Methods of electronic payment such as credit cards, debit cards, smart cards, and digital cash/e-cash.
3) Issues and implications regarding the regulation, economics, and social impacts of electronic payment methods.
Std 12 Computer Chapter 5 Introduction to Mcommerce (Part 3 Electronic Payment System)
Payment in Ecommerce/Mcommerce
Traditional vs. Electronic Payment System
Credit Card
Debit Card
Smart Card
Charge Card
Net Banking
Electronic Fund Transfer (EFT)
E-Wallet
RuPay
Credit allows individuals to borrow money and pay it back over time, usually with interest. There are various types of credit like credit cards, loans, mortgages, and student loans offered through banks, credit unions, and other financial institutions. While credit provides advantages like convenience and flexibility to make purchases, it also carries costs like interest fees and penalties if not managed responsibly. When applying for credit, lenders will consider an individual's credit history, income, existing debts, and assets to determine if they qualify.
The document summarizes consumer protections for credit card users established by the CARD Act of 2009. It outlines rules regarding credit card agreements, interest rate increases, fees, billing statements, payment requirements, credit limits, credit reports, gift cards and overdraft protection. Key points include requirements that card issuers provide 45 day advance notice of rate hikes or penalty fee increases and allow customers to reject changes by closing their accounts.
Credit card with Moral Consciousness whereby it
allows cardholders to redeem their rewards
points to donate to charity, thus making
it easier to turn unused points into cash
donation. The Card with Charity is based on simple modus operandi ‘Spending and Sharing’ will not only satisfy the payment needs but also the need of conscious customers to perform charity.
Securing Retirement withHome Equity Conversion Mortgages.
HECM Basics
Borrower Protections
Fees/Costs
Product Misconceptions
Loan Amounts
Accessing Funds
Retirement Strategies
Right-Sizing the Home
Retirement Planning Using Home Equity
Home Equity: The 4th component
Using home equity can help supplement retirement income and provide increased cash flow.
Provides tax-free cash*
Requires no monthly mortgage payments**
Homeowners stay in their home & retain title
This document provides an overview of credit and credit cards. It discusses the basics of credit, the advantages and disadvantages of credit cards, credit card terminology, tips for responsible credit card use, and how to build and maintain good credit. Key topics covered include the different types of credit, factors that affect credit scores, how to read credit reports, and steps to take to dispute errors or rebuild poor credit.
This document provides information about credit, credit reports, credit scores, and maintaining good credit. It defines credit and explains how credit reports and FICO credit scores are calculated. Key factors that influence credit scores are payment history, amount of debt, credit history length, recent credit applications, and credit mix. The document advises paying bills on time, keeping balances low, and carefully managing credit accounts to maintain good credit over time.
There are three main types of consumer credit: retail credit, cash credit, and real estate credit. Retail credit includes revolving credit like credit cards which allow purchases up to a credit limit to be paid off over time, installment contracts for large purchases paid in regular installments, and services provided on credit. Cash credit includes installment loans, single payment loans, and general purpose credit cards which provide cash advances. Real estate credit is used to purchase or improve homes, with the property serving as collateral for the loan.
The document discusses consumption patterns and household expenditure. It defines consumption and describes how it can be studied by the kinds of goods and services consumed, how they are organized for use, and the underlying values of households. It lists categories of consumption in household surveys and constraints on consumption like price, resources, and environmental factors. The document also discusses current and future needs, basic versus non-basic needs, and expenditures related to housing, transportation, clothing, education, insurance, and children.
Danny Singh's Financial Seminar on the Student Loans and Credit Crisis in Ame...Danny Singh, M.B.A., MSEd
Danny Singh is the teen who refinanced his mom's house and car at 14 and has never been late on any type of bill for the past 8 years. He now hopes to raise the awareness of the student loans crisis and teach consumers the most effective methods to repay their debts in months instead of years while having enough money for everyday expenses and retirement. For this reason, he is doing financial seminars and has published a book titled "Finance 101: The Whiz Kid's Perfect Credit Guide." All profits are donated to the Children's National Medical Center for HIV treatment research. Danny has been recognized by Governor Rick Perry, First Lady Anita Perry, Seminole County Commissioner Bob Dallari, Florida State Representative Jason Brodeur, and Senator Marco Rubio. Please contact him using www.facebook.com/studentsfinance. Thank you.
Credit refers to buying something now and paying for it later. There are several types of credit available to students including student loans, lines of credit, and credit cards. It is important to understand credit terms like annual percentage rate, minimum payment, and interest rates when using credit. Maintaining good credit involves paying bills on time, keeping credit utilization low, and establishing a history of responsible credit use over time.
The document discusses various topics related to providing loans to businesses and consumers by banks. It covers the types of loans banks offer like real estate loans, personal loans, and educational loans. It also discusses factors that influence the growth and mix of bank loans, regulations around lending, establishing a written loan policy, the lending process, credit analysis, sources of information about loan customers, lending to business firms, analyzing business loan applications, preparing sources and uses of funds statements, and pricing business loans.
The document is a slide presentation on understanding credit cards. It covers key topics such as:
- What is a credit card and how it provides a line of credit with an established limit.
- Different interest rates that may apply, including annual percentage rates for purchases, balance transfers, cash advances, and penalty rates.
- Fees associated with credit cards like annual fees, transaction fees, and penalty fees.
- How credit worthiness can impact the annual percentage rate a person receives.
- Additional terms like introductory rates and how to avoid paying interest.
The document discusses credit basics, including the different types of credit (installment/closed-end, revolving/open-end, alternative), how to obtain credit responsibly, and important factors to consider when taking on credit such as interest rates, fees, and ability to repay. It emphasizes shopping around for favorable terms, carefully evaluating contracts, and understanding one's responsibilities to manage credit well for both present and future financial well-being.
Electronic payment systems have revolutionized business by reducing paperwork and transaction costs. Common electronic payment modes include credit cards, debit cards, smart cards, e-money, and electronic funds transfer. Credit cards allow customers to make purchases and pay the balance later, while debit cards deduct funds immediately from the linked bank account. Smart cards contain encrypted payment and personal information. E-money refers to online payments via payment cards or services like e-cash. The Automated Clearing House (ACH) network facilitates electronic funds transfers between bank accounts in the US.
E-commerce System Technologies, Repository and Networking Technologyizan28
The document outlines an introduction to online payment systems and security. It discusses various payment methods including payment cards, electronic cash, electronic wallets, and stored-value cards. It also covers online payment processing, merchant accounts, and open and closed-loop payment systems. The document then discusses Internet technologies used by banks including check processing and mobile banking. It concludes by covering criminal activities like phishing and identity theft that target payment systems.
Payment systems allow the transfer of funds from one entity to another and come in various forms like credit cards, debit cards, and electronic wallets. The document discusses different types of payment systems including check transfers, accumulating balances, cash, credit cards, and smart value cards. It also covers online payment systems like credit cards, debit cards, electronic funds transfer, and digital wallets. Wireless and contactless payment systems using technologies like RFID are also summarized.
This document discusses various electronic payment systems. It describes methods of electronic payment such as electronic cash, software wallets, smart cards, and credit/debit cards. It also outlines requirements for e-payments like atomicity and non-repudiation. Several modes of e-payment are explained in detail, including payment cards, electronic cash, check free, check share, internet cash, wallets, and smart cards. Benefits and drawbacks of different systems are provided.
The document discusses various online payment systems for e-commerce transactions. It begins by describing how online credit card transactions work, noting security and cost issues. It then explains how the Secure Electronic Transaction (SET) protocol aimed to address these by authenticating identities through digital certificates. However, SET did not gain widespread adoption due to high integration costs. The document goes on to discuss digital wallets, digital cash systems, PayPal, stored value accounts, and other digital payment methods like eChecks and their advantages over credit cards for online purchases. It concludes by noting business-to-business payments are more complex than consumer payments.
This document provides an overview of different electronic payment systems including payment cards, electronic cash, check free, check share, electronic wallets, and smart cards. It discusses the basic concepts and workings of these various e-payment methods. Key points covered include how payment cards like credit, debit, and charge cards work as well as their acceptance and processing. Advantages and disadvantages of payment cards and electronic cash are also summarized. The document also gives brief descriptions of different electronic wallet and smart card systems.
The document discusses various topics related to electronic payments, including:
1) Different types of electronic money and key requirements for internet-based payment systems.
2) Methods of electronic payment such as credit cards, debit cards, smart cards, and digital cash/e-cash.
3) Issues and implications regarding the regulation, economics, and social impacts of electronic payment methods.
Std 12 Computer Chapter 5 Introduction to Mcommerce (Part 3 Electronic Payment System)
Payment in Ecommerce/Mcommerce
Traditional vs. Electronic Payment System
Credit Card
Debit Card
Smart Card
Charge Card
Net Banking
Electronic Fund Transfer (EFT)
E-Wallet
RuPay
Application of e banking in bangladeshMd Mir Belal
This document discusses electronic banking in Bangladesh. It provides details on various electronic banking services offered in Bangladesh including ATMs, debit cards, credit cards, point of sale services, home banking, internet banking, and wholesale electronic banking services. It also discusses the basic components, advantages, and problems of introducing electronic banking in Bangladesh. It emphasizes the need for banks in Bangladesh to adopt electronic banking systems to modernize and remain competitive.
The document presents a presentation on electronic payment systems made by Naimiksha. It defines electronic payment as payments that utilize information and communication technology including cryptography and telecommunications networks. It discusses the types of electronic payment systems such as payment cards, e-cash, e-wallets, and e-cheques. The benefits of electronic payment systems for buyers include convenience, universal acceptance, security, consumer protection, and access to immediate credit. For sellers the benefits are speed and security of transactions, reduced costs, and efficiency. Security issues in electronic payment systems including authentication, integrity, non-repudiation, and privacy are also covered.
Electronic payments allow consumers to make payments online for goods and services without physically transferring cash or checks. Common electronic payment methods include payment cards, electronic cash stored on cards or digital wallets, and stored-value cards. When making an electronic payment, the customer enters their payment details on the merchant's site or is redirected to their bank. If validated, the payment is processed and the merchant's account is credited, completing the transaction. Popular electronic payment systems like credit cards, debit cards, and electronic wallets provide convenience but also have security and portability tradeoffs.
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.
This document discusses electronic payments and their benefits. It defines electronic payments as digital financial transactions facilitated by encrypted credit cards or digital cash backed by banks. Electronic payments can benefit businesses by extending their customer base, boosting cash flow, reducing costs, enhancing customer service, and improving competitive advantage. The document then discusses specific benefits like improved customer service and increased profitability from convenience, immediacy of payments, and improved cash flow. It also outlines different types of electronic transactions and modes of electronic payment including payment cards, electronic cash, electronic wallets, and smart cards.
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.
This document provides an overview of electronic banking (e-banking) in Bangladesh. It discusses the objectives and basic components of e-banking from both the bankers' and clients' point of view. Specific components covered include automated teller machines (ATMs), debit cards, credit cards, point of sale (POS) services, and mobile and internet banking. The document also outlines some functions of ATMs, advantages of debit cards, and risks associated with e-banking. It concludes by identifying some problems with e-banking in Bangladesh and providing recommendations to improve its implementation.
This document discusses various forms of online payment systems including payment cards, electronic cash, electronic wallets, and smart cards. It outlines the basic functions of online payment systems and how payment cards, electronic cash, and stored-value cards work. It also discusses technologies like electronic wallets, smart cards, and security issues like phishing attacks that threaten online financial institutions.
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
This document discusses e-payment systems and methods. It begins by outlining the objectives of e-payments, risks involved, and digital signatures. It then provides an introduction to e-payment systems and how they have grown with internet banking and shopping. The main e-payment methods discussed include credit cards, debit cards, smart cards, e-money, and electronic funds transfer. Payment gateways are described as facilitating secure transactions between customers and merchants. Digital signatures are also summarized as providing security for e-payments through use of public and private keys.
This session discusses about the payment systems available in an commerce environment. Which include:
credit card e-commerce transactions, e-commerce digital payment in the b2c arena, and electronic billing and presentment systems.
This document discusses liquidity risk management for financial institutions. It begins by defining liquidity risk and explaining that depository institutions are highly exposed due to holding short-term liabilities to fund long-term assets. It then examines the causes of liquidity risk, effects of deposit drains on banks' balance sheets, and tools for measuring and managing liquidity risk such as the financing gap and net liquidity statement. The document also addresses liquidity issues for other financial institutions like insurance companies and investment funds.
This document discusses credit risk management for financial institutions. It covers topics such as how financial institutions transform household savings into loans, the importance of credit risk management, credit quality problems over time, analyzing different types of loans including real estate, consumer, small business and commercial loans. It discusses tools for credit analysis like the five C's of credit, cash flow analysis, ratio analysis, Altman's Z-score model and Moody's expected default frequency model. The document is from a textbook on financial institutions by Dr. Muath Asmar from An-Najah National University.
Financial institutions face various types of risks that can impact their returns and solvency. The document discusses 12 main risks: credit risk, liquidity risk, interest rate risk, market risk, off-balance sheet risk, foreign exchange risk, sovereign risk, technology risk, operational risk, fintech risk, insolvency risk, and interactions among risks. Managing these risks is a major objective of financial institution management to increase returns while maintaining solvency. The risks stem from activities like lending, trading, and transformations of assets and liabilities across maturities and currencies.
The document discusses recent developments in fintech companies and innovations. It provides definitions of fintech and describes the evolving relationship between fintech startups and banks. Global fintech venture capital funding has increased significantly in recent years. The most frequently used fintech services are money transfers and payments. There have been many recent innovations in payments, clearing, settlement services, and market support services using technologies like distributed ledger, artificial intelligence, and blockchain. Regulations are evolving to support fintech innovations through regulatory sandboxes and changes in international regulations like PSD2 and GDPR.
Pension funds offer tax-deferred savings plans for working individuals to accumulate savings for retirement. There are two main types of pension funds - defined benefit plans where employers commit to providing a specific retirement benefit, and defined contribution plans where employers commit to specified contributions. Regulation of pension funds in the US is governed by ERISA which sets standards for funding, vesting periods, fiduciary responsibilities, and provides insurance for underfunded plans. Global pension systems vary, with some European countries having traditional state-funded pensions.
The document discusses investment companies, specifically mutual funds and hedge funds. It provides details on the types of mutual funds, including their growth and regulation. The key points are:
1) Investment companies pool financial resources from individuals and companies and invest them in diversified portfolios. Mutual funds are a type of investment company.
2) Mutual funds have grown significantly since the 1970s with the introduction of new types of funds. As of 2019, over $25 trillion was invested in US mutual funds.
3) Mutual funds are highly regulated due to protecting small investors. Regulations address areas like disclosure, fees, and preventing investor abuses.
Securities firms and investment banks help transfer funds from households to businesses. Investment banks are involved in raising capital through transactions like debt and equity underwriting. They also provide advisory services for mergers and acquisitions. Securities firms specialize in trading existing securities. The investment banking industry was impacted by the 2008 financial crisis, with some of the largest banks ceasing to exist. Regulations aim to protect investors and oversee the industry.
Insurance companies play an important role in society by compensating policyholders for specified events in exchange for premiums. There are two main types of insurance companies: life insurers which provide protection for death, illness, and retirement, and property-casualty insurers which protect against accidents and liability. Both types pool risks, invest premiums, and must balance premium income with payouts to remain profitable. Strict regulation by states aims to ensure solvency and protect policyholders.
This document provides an overview of other lending institutions besides commercial banks, including savings institutions, credit unions, and finance companies. It discusses the historical origins and roles of each type of institution, compares their balance sheets and regulatory frameworks, and analyzes trends in their performance and consolidation over time. Key topics covered include the savings and loan crisis of the 1980s-90s, differences between savings banks and credit unions, types of finance companies, and how each sector has adapted to increasing competition.
This document discusses analyzing the financial statements of commercial banks. It covers key components of bank balance sheets and income statements, as well as off-balance sheet items and how they are evaluated. Regulators use CAMELS ratings to assess banks, focusing on capital adequacy, asset quality, management, earnings, liquidity, and market sensitivity. Return on equity is a key framework for analyzing bank performance by decomposing it into return on assets and equity multiplier. Various ratios like net interest margin, overhead efficiency, and components of profit margin provide additional insights. The appropriate analysis depends on a bank's niche and size.
Commercial banks are the largest financial institutions in terms of assets. They accept deposits and make loans. Their major assets are loans and investment securities, while deposits are their major liabilities. Banks play essential roles in payment services, maturity transformation, and monetary policy transmission. They are regulated to protect these services from disruption. Large banks engage in both retail and wholesale banking globally, while community banks focus on local retail banking. The number of banks has declined due to mergers and acquisitions.
Insurance companies play an important role in society by compensating policyholders for specified events in exchange for premiums. There are two main types of insurance companies: life insurers which provide protection for death, illness, and retirement, and property-casualty insurers which protect against accidents and liability. Both types of insurers pool risks, invest premiums, and must balance premium income with payouts to remain profitable. Strict regulation at the state level oversees insurance company operations and solvency.
This chapter introduces financial markets and institutions. It defines key terms like primary and secondary markets, as well as money and capital markets. It outlines the role of various financial institutions in channeling funds and the risks they face. It also discusses the regulation of financial institutions to prevent failures from causing economic harm. Globalization trends are noted, with international financial markets growing rapidly in recent decades. An appendix summarizes the failures that led to the 2007-2008 financial crisis and the major government responses.
This document summarizes key concepts from Chapter 11 of the textbook "Investments" by Bodie, Kane, and Marcus on the efficient market hypothesis. It discusses how stock prices follow random walks, different versions of the EMH, evidence for and against market efficiency from event studies and anomalies, and debates around whether active managers can consistently beat the market. The overall conclusion is that while some anomalies exist, the market is competitive enough that only minor gains can be made from superior information.
This document summarizes key aspects of arbitrage pricing theory (APT) and multifactor models of risk and return from the textbook "Investments" by Bodie, Kane, and Marcus:
1) APT generalizes the security market line of the CAPM to provide richer insight into the risk-return relationship by allowing for multiple systematic risk factors rather than a single market factor.
2) Multifactor models posit that security returns respond not just to overall market movements but also to specific systematic risk factors like GDP, interest rates, and inflation.
3) The Fama-French three-factor model explains returns based on sensitivities to market, firm size, and book-to-market factors
This document summarizes key aspects of the Capital Asset Pricing Model (CAPM) from the textbook "Investments" by Bodie, Kane, and Marcus. It discusses the assumptions and structure of CAPM, how it relates expected returns to an asset's systematic risk as measured by beta, extensions to the basic model, challenges in testing CAPM, and how it is applied in both academic and investment industry contexts.
This document summarizes key aspects of index models from the textbook "Investments" by Bodie, Kane, and Marcus. It discusses the advantages of index models over the Markowitz model, including requiring fewer estimates and enhancing security risk analysis. The single-index model relates security return to market return through sensitivity coefficients. While the full Markowitz model is theoretically superior, the index model is more practical and reduces estimation risk.
This document summarizes key concepts from Chapter 7 of the textbook "Investments" by Bodie, Kane, and Marcus on efficient diversification. It discusses how diversification reduces risk by eliminating firm-specific risk and how the minimum variance portfolio has the lowest risk. It also explains how to calculate the expected return and variance of portfolios containing multiple assets and determines the optimal portfolio using the Sharpe ratio and capital allocation line.
This document summarizes chapters from the textbook "Investments" by Bodie, Kane, and Marcus. It discusses the differences between real assets and financial assets, types of financial markets and assets, and the roles of various players in financial markets like firms, households, and governments. It also provides an overview of the financial crisis of 2008, including factors that contributed to the crisis and systemic risks that emerged, such as the rise of securitized mortgages and mortgage-backed derivatives.
This document summarizes key concepts from Chapter 25 of the textbook "Investments" by Bodie, Kane, and Marcus on international diversification. It discusses the benefits of international diversification, including reduced risk from greater diversification. While international diversification provides benefits, there are also additional risks such as exchange rate risk and political risk in foreign markets. The chapter also examines factors that influence returns and risks across different countries and regions.
QA or the Highway - Component Testing: Bridging the gap between frontend appl...zjhamm304
These are the slides for the presentation, "Component Testing: Bridging the gap between frontend applications" that was presented at QA or the Highway 2024 in Columbus, OH by Zachary Hamm.
How information systems are built or acquired puts information, which is what they should be about, in a secondary place. Our language adapted accordingly, and we no longer talk about information systems but applications. Applications evolved in a way to break data into diverse fragments, tightly coupled with applications and expensive to integrate. The result is technical debt, which is re-paid by taking even bigger "loans", resulting in an ever-increasing technical debt. Software engineering and procurement practices work in sync with market forces to maintain this trend. This talk demonstrates how natural this situation is. The question is: can something be done to reverse the trend?
For the full video of this presentation, please visit: https://www.edge-ai-vision.com/2024/06/temporal-event-neural-networks-a-more-efficient-alternative-to-the-transformer-a-presentation-from-brainchip/
Chris Jones, Director of Product Management at BrainChip , presents the “Temporal Event Neural Networks: A More Efficient Alternative to the Transformer” tutorial at the May 2024 Embedded Vision Summit.
The expansion of AI services necessitates enhanced computational capabilities on edge devices. Temporal Event Neural Networks (TENNs), developed by BrainChip, represent a novel and highly efficient state-space network. TENNs demonstrate exceptional proficiency in handling multi-dimensional streaming data, facilitating advancements in object detection, action recognition, speech enhancement and language model/sequence generation. Through the utilization of polynomial-based continuous convolutions, TENNs streamline models, expedite training processes and significantly diminish memory requirements, achieving notable reductions of up to 50x in parameters and 5,000x in energy consumption compared to prevailing methodologies like transformers.
Integration with BrainChip’s Akida neuromorphic hardware IP further enhances TENNs’ capabilities, enabling the realization of highly capable, portable and passively cooled edge devices. This presentation delves into the technical innovations underlying TENNs, presents real-world benchmarks, and elucidates how this cutting-edge approach is positioned to revolutionize edge AI across diverse applications.
What is an RPA CoE? Session 2 – CoE RolesDianaGray10
In this session, we will review the players involved in the CoE and how each role impacts opportunities.
Topics covered:
• What roles are essential?
• What place in the automation journey does each role play?
Speaker:
Chris Bolin, Senior Intelligent Automation Architect Anika Systems
"Scaling RAG Applications to serve millions of users", Kevin GoedeckeFwdays
How we managed to grow and scale a RAG application from zero to thousands of users in 7 months. Lessons from technical challenges around managing high load for LLMs, RAGs and Vector databases.
"Frontline Battles with DDoS: Best practices and Lessons Learned", Igor IvaniukFwdays
At this talk we will discuss DDoS protection tools and best practices, discuss network architectures and what AWS has to offer. Also, we will look into one of the largest DDoS attacks on Ukrainian infrastructure that happened in February 2022. We'll see, what techniques helped to keep the web resources available for Ukrainians and how AWS improved DDoS protection for all customers based on Ukraine experience
How to Interpret Trends in the Kalyan Rajdhani Mix Chart.pdfChart Kalyan
A Mix Chart displays historical data of numbers in a graphical or tabular form. The Kalyan Rajdhani Mix Chart specifically shows the results of a sequence of numbers over different periods.
AppSec PNW: Android and iOS Application Security with MobSFAjin Abraham
Mobile Security Framework - MobSF is a free and open source automated mobile application security testing environment designed to help security engineers, researchers, developers, and penetration testers to identify security vulnerabilities, malicious behaviours and privacy concerns in mobile applications using static and dynamic analysis. It supports all the popular mobile application binaries and source code formats built for Android and iOS devices. In addition to automated security assessment, it also offers an interactive testing environment to build and execute scenario based test/fuzz cases against the application.
This talk covers:
Using MobSF for static analysis of mobile applications.
Interactive dynamic security assessment of Android and iOS applications.
Solving Mobile app CTF challenges.
Reverse engineering and runtime analysis of Mobile malware.
How to shift left and integrate MobSF/mobsfscan SAST and DAST in your build pipeline.
What is an RPA CoE? Session 1 – CoE VisionDianaGray10
In the first session, we will review the organization's vision and how this has an impact on the COE Structure.
Topics covered:
• The role of a steering committee
• How do the organization’s priorities determine CoE Structure?
Speaker:
Chris Bolin, Senior Intelligent Automation Architect Anika Systems
Introduction of Cybersecurity with OSS at Code Europe 2024Hiroshi SHIBATA
I develop the Ruby programming language, RubyGems, and Bundler, which are package managers for Ruby. Today, I will introduce how to enhance the security of your application using open-source software (OSS) examples from Ruby and RubyGems.
The first topic is CVE (Common Vulnerabilities and Exposures). I have published CVEs many times. But what exactly is a CVE? I'll provide a basic understanding of CVEs and explain how to detect and handle vulnerabilities in OSS.
Next, let's discuss package managers. Package managers play a critical role in the OSS ecosystem. I'll explain how to manage library dependencies in your application.
I'll share insights into how the Ruby and RubyGems core team works to keep our ecosystem safe. By the end of this talk, you'll have a better understanding of how to safeguard your code.
Must Know Postgres Extension for DBA and Developer during MigrationMydbops
Mydbops Opensource Database Meetup 16
Topic: Must-Know PostgreSQL Extensions for Developers and DBAs During Migration
Speaker: Deepak Mahto, Founder of DataCloudGaze Consulting
Date & Time: 8th June | 10 AM - 1 PM IST
Venue: Bangalore International Centre, Bangalore
Abstract: Discover how PostgreSQL extensions can be your secret weapon! This talk explores how key extensions enhance database capabilities and streamline the migration process for users moving from other relational databases like Oracle.
Key Takeaways:
* Learn about crucial extensions like oracle_fdw, pgtt, and pg_audit that ease migration complexities.
* Gain valuable strategies for implementing these extensions in PostgreSQL to achieve license freedom.
* Discover how these key extensions can empower both developers and DBAs during the migration process.
* Don't miss this chance to gain practical knowledge from an industry expert and stay updated on the latest open-source database trends.
Mydbops Managed Services specializes in taking the pain out of database management while optimizing performance. Since 2015, we have been providing top-notch support and assistance for the top three open-source databases: MySQL, MongoDB, and PostgreSQL.
Our team offers a wide range of services, including assistance, support, consulting, 24/7 operations, and expertise in all relevant technologies. We help organizations improve their database's performance, scalability, efficiency, and availability.
Contact us: info@mydbops.com
Visit: https://www.mydbops.com/
Follow us on LinkedIn: https://in.linkedin.com/company/mydbops
For more details and updates, please follow up the below links.
Meetup Page : https://www.meetup.com/mydbops-databa...
Twitter: https://twitter.com/mydbopsofficial
Blogs: https://www.mydbops.com/blog/
Facebook(Meta): https://www.facebook.com/mydbops/
High performance Serverless Java on AWS- GoTo Amsterdam 2024Vadym Kazulkin
Java is for many years one of the most popular programming languages, but it used to have hard times in the Serverless community. Java is known for its high cold start times and high memory footprint, comparing to other programming languages like Node.js and Python. In this talk I'll look at the general best practices and techniques we can use to decrease memory consumption, cold start times for Java Serverless development on AWS including GraalVM (Native Image) and AWS own offering SnapStart based on Firecracker microVM snapshot and restore and CRaC (Coordinated Restore at Checkpoint) runtime hooks. I'll also provide a lot of benchmarking on Lambda functions trying out various deployment package sizes, Lambda memory settings, Java compilation options and HTTP (a)synchronous clients and measure their impact on cold and warm start times.
Discover top-tier mobile app development services, offering innovative solutions for iOS and Android. Enhance your business with custom, user-friendly mobile applications.
"Choosing proper type of scaling", Olena SyrotaFwdays
Imagine an IoT processing system that is already quite mature and production-ready and for which client coverage is growing and scaling and performance aspects are life and death questions. The system has Redis, MongoDB, and stream processing based on ksqldb. In this talk, firstly, we will analyze scaling approaches and then select the proper ones for our system.
Main news related to the CCS TSI 2023 (2023/1695)Jakub Marek
An English 🇬🇧 translation of a presentation to the speech I gave about the main changes brought by CCS TSI 2023 at the biggest Czech conference on Communications and signalling systems on Railways, which was held in Clarion Hotel Olomouc from 7th to 9th November 2023 (konferenceszt.cz). Attended by around 500 participants and 200 on-line followers.
The original Czech 🇨🇿 version of the presentation can be found here: https://www.slideshare.net/slideshow/hlavni-novinky-souvisejici-s-ccs-tsi-2023-2023-1695/269688092 .
The videorecording (in Czech) from the presentation is available here: https://youtu.be/WzjJWm4IyPk?si=SImb06tuXGb30BEH .
In our second session, we shall learn all about the main features and fundamentals of UiPath Studio that enable us to use the building blocks for any automation project.
📕 Detailed agenda:
Variables and Datatypes
Workflow Layouts
Arguments
Control Flows and Loops
Conditional Statements
💻 Extra training through UiPath Academy:
Variables, Constants, and Arguments in Studio
Control Flow in Studio
[OReilly Superstream] Occupy the Space: A grassroots guide to engineering (an...Jason Yip
The typical problem in product engineering is not bad strategy, so much as “no strategy”. This leads to confusion, lack of motivation, and incoherent action. The next time you look for a strategy and find an empty space, instead of waiting for it to be filled, I will show you how to fill it in yourself. If you’re wrong, it forces a correction. If you’re right, it helps create focus. I’ll share how I’ve approached this in the past, both what works and lessons for what didn’t work so well.
LF Energy Webinar: Carbon Data Specifications: Mechanisms to Improve Data Acc...DanBrown980551
This LF Energy webinar took place June 20, 2024. It featured:
-Alex Thornton, LF Energy
-Hallie Cramer, Google
-Daniel Roesler, UtilityAPI
-Henry Richardson, WattTime
In response to the urgency and scale required to effectively address climate change, open source solutions offer significant potential for driving innovation and progress. Currently, there is a growing demand for standardization and interoperability in energy data and modeling. Open source standards and specifications within the energy sector can also alleviate challenges associated with data fragmentation, transparency, and accessibility. At the same time, it is crucial to consider privacy and security concerns throughout the development of open source platforms.
This webinar will delve into the motivations behind establishing LF Energy’s Carbon Data Specification Consortium. It will provide an overview of the draft specifications and the ongoing progress made by the respective working groups.
Three primary specifications will be discussed:
-Discovery and client registration, emphasizing transparent processes and secure and private access
-Customer data, centering around customer tariffs, bills, energy usage, and full consumption disclosure
-Power systems data, focusing on grid data, inclusive of transmission and distribution networks, generation, intergrid power flows, and market settlement data
3. 4.1 GENERIC TYPES OF
PAYMENT SYSTEMS
MBA 61062: ELECTRONIC COMMERCE, BY S. SABRAZ NAWAZ 3
4. 4.1 GENERIC TYPES OF PAYMENT
SYSTEMS
CASH:
• Is the legal tender defined by national authority to
represent value and is the most common form of
payment in terms of number of transactions.
• It is instantly convertible into other forms of value
without intermediation of any other institution.
• It is portable, no authentication required and
provides instant purchasing power for those who
posses it.
• Micropayments are allowed.
• No transaction fee for using it.
• Anonymous and difficult to trace
MBA 61062: ELECTRONIC COMMERCE, BY S. SABRAZ NAWAZ 4
5. GENERIC TYPES OF PAYMENT
SYSTEMS
CHECKING TRANSFER:
• Represents funds transferred directly via a single
draft or check from a consumer’s checking account
to a merchant or other individual.
• Second most common form of payment in terms of
transactions
• Can be used for small and large transactions
• Not anonymous and requires third party institution
to work.
• Can be forged easily than cash; so authentication
required.
• They can be cancelled before being cleared in bank.MBA 61062: ELECTRONIC COMMERCE, BY S. SABRAZ NAWAZ 5
6. GENERIC TYPES OF PAYMENT
SYSTEMS
CREDIT CARD:
• Represents an account that extends credit to
consumers, permits consumers to purchase items
while differing payment, and allows them to make
payment to multiple vendors with one instrument.
• Credit card associations such as Visa and
MasterCard are non profit associations that set
standards for the issuing bank that actually issues
the card and processes transactions.
• Issuing banks are the financial intermediaries.
• Consumers can repudiate the purchases under
certain circumstances. MBA 61062: ELECTRONIC COMMERCE, BY S. SABRAZ NAWAZ 6
7. GENERIC TYPES OF PAYMENT
SYSTEMS
STORED VALUE:
• Accounts created by depositing funds into an
account and from which funds are paid out or
withdrawn as needed are stored value payment
systems.
• Similar to checking account but no checks are
written.
• E.g.: debit cards, prepaid cards.
• Debit cards immediately debits a checking or other
demand deposit account.
• P2P payment systems such as PayPal are variations
on the stored value concept. MBA 61062: ELECTRONIC COMMERCE, BY S. SABRAZ NAWAZ 7
8. GENERIC TYPES OF PAYMENT
SYSTEMS
ACCUMULATING BALANCE:
• Accounts that accumulate expenditures and to
which consumers make periodic payments are
accumulating balance payment systems.
• E.g.: utilities such as water, electricity, phone accounts
that accumulate balances and then are paid in full at
the end of the period.
ISM 41113: E-COMMERCE, BY S. SABRAZ NAWAZ 8
10. 4.2 THE PAYMENT REVOLUTION
The competition for e-payment systems is fierce. The success of any e-
payment system depends on factors such as those listed below.
• Independence. Most forms of e-payment require the merchant to install
specialized software and hardware to authorize and process a payment;
burdensome and costly.
• Interoperability. An e-payment method must be integrated with existing
information systems.
• Security. How safe is the money transfer? What if the money transfer is
compromised?
• Anonymity. Some buyers want their identities and purchase records to be
anonymous; only possible when cash used.
• Divisibility. Since most merchants accept credit cards only if the purchase
price is over a certain amount.
• Ease of use. Credit cards are used for B2C and B2B e-payments because
of ease of use.
E-payments must complement the trading methods.
• Transaction fees. When a credit card is used, the merchant pays
processing fees
• International support & Regulations. An e-payment method must be
easily adapted to fit buying needs and local legal requirements before itMBA 61062: ELECTRONIC COMMERCE, BY S. SABRAZ NAWAZ 10
11. THE PAYPAL ALTERNATIVE
• Buyers don’t like to reveal their credit card numbers online.
• While credit and debit cards dominate e-commerce payments, one
alternative that has succeeded is PayPal.
• Its initial success came from providing a payment system that was used
for eBay transactions
• Essentially, eBay sellers and buyers opened PayPal accounts that were
secured by a bank or credit card account.
• At the completion of an auction, the payment transactions were
conducted via the seller’s and buyer’s PayPal accounts.
• Seller are charged low transaction fees.
• PayPal’s overall success is the result of a three-phase approach to e-
payments
• First, they concentrated on expanding services provided to eBay users in the U.S.
• Next, they increased the size of their market by opening the system to eBay’s
international sites and users.
• Finally, they decided to build PayPal’s operations to non-eBay businesses.
• Over the years, PayPal has had a handful of competitors – none of which
has posed a serious threat. Today, there is a new cast including: Google
Wallet
MBA 61062: ELECTRONIC COMMERCE, BY S. SABRAZ NAWAZ 11
12. PERSON-TO-PERSON (P2P)
PAYMENTS
• A lot of EC transactions are conducted between
individuals.
• Payments from unknown buyers are critical to the
success of EC where transactions are conducted
online and the participants are in different places
and do not know each other.
• The following are some of the methods used in P2P
payments:
• Using PayPal
• Using prepaid cards
• Using the clearXchange network (clearxchange.com).
This network serves customers of participating banks.MBA 61062: ELECTRONIC COMMERCE, BY S. SABRAZ NAWAZ 12
14. 4.3 USING PAYMENT CARDS ONLINE
Payment cards are electronic cards that contain payment-
related data. They come in three forms:
1. Credit cards. A credit card enables its holder to charge
items (and pay later), or obtain cash up to the
cardholder’s authorized limit. With each purchase, the
credit card holder receives a loan from the credit card
issuers. Holders are charged interest if the balance is
not paid in full by the due date. Visa, MasterCard, and
American Express are prime examples of credit cards.
2. Charge cards. These are special credit cards where the
balance must be paid in full by the due date and
usually have annual fees. Examples of issuers are
American Express (it offers regular credit cards as
well).
3. Debit cards. Payments made with a debit card are
withdrawn from the holder’s checking or savings
account. The actual transfer of funds usually takes
place in real time from the holder’s account (if an ATM
card is used). However, a settlement to a merchant’s
checking account may take place within one to twoMBA 61062: ELECTRONIC COMMERCE, BY S. SABRAZ NAWAZ 14
15. PROCESSING CARDS ONLINE
• The processing of credit card payments has two
major phases: authorization and settlement.
• Authorization determines whether a buyer’s card is
valid (e.g., not expired) and whether the customer has
sufficient credit or funds in his or her account.
• Settlement involves the transfer of money from the
buyer’s account to the merchant’s.
• The settlement varies by the configuration of the
system used by the merchant to process payments.
MBA 61062: ELECTRONIC COMMERCE, BY S. SABRAZ NAWAZ 15
16. CREDIT CARD PROCESSING
The following are the processing options. The EC merchant may:
• Own the payment software. A merchant can purchase a payment-
processing module and integrate it with its other EC software. This
module communicates with a payment gateway run by an acquiring
bank or another third party.
• Use a Point-Of-Sale (POS) system operated by a card acquirer.
Merchants can redirect cardholders to a POS system run by an
acquirer. The POS handles the complete payment process and
directs the cardholder back to the merchant’s site once payment is
complete. In this case, the merchant’s system deals only with order
information.
• Use a POS system operated by a payment service provider.
Merchants can rely on payment service providers (PSPs), which are
third-party companies that provide services to merchants so they
can accept all kinds of electronic payments.
www.sampath.lk/en/corporate/e-banking/sampath-payment-
gateway
www.payhere.lk MBA 61062: ELECTRONIC COMMERCE, BY S. SABRAZ NAWAZ 16
17. CREDIT CARD PROCESSING…
• For any given type of payment card and processing
system, the processes and participants are essentially
the same for offline (card present) and online (card not
present) purchases.
• The major parties in processing card payments online
are:
• Customer
• Merchant
• Issuing bank
• Acquiring bank. The financial institution offering a special
account called an Internet Merchant Account that enables
payment authorization and processing.
• Credit card association. The financial institution providing
card services to banks (e.g., Visa and MasterCard).
• Payment service provider / payment gateway provider. The
company that provides electronic connections and
transaction services among all the parties involved inMBA 61062: ELECTRONIC COMMERCE, BY S. SABRAZ NAWAZ 17
18. HOW AN ONLINE CREDIT CARD
TRANSACTION WORKS
MBA 61062: ELECTRONIC COMMERCE, BY S. SABRAZ NAWAZ 18
19. COMPARISON OF ONLINE AND OFFLINE CREDIT
CARD PURCHASEOnline purchase Offline purchase
1. The customer decides to purchase a CD on the
Web, adding it to the electronic shopping cart and
going to the checkout page to enter his or her credit
card information
1. The customer selects a CD to purchase, takes it to
the checkout counter, and hands a credit card to the
cashier
2. The merchant’s site receives the customer’s
information and sends the transaction information
to its payment processing service (PPS)
2. The cashier swipes the card and transfers the
transaction information to a point-of-sale (POS)
terminal
3. The PPS routes the information to the processor (a
large data center for processing transactions and
settling funds to the merchant)
3. The POS terminal routes the information to the
card processor via wireline or other connection
4. The processor sends the information to the bank
that issued that credit card
4. The processor transmits the credit card data and
sales amount, requesting payment
5. The issuing bank either authorizes authorizing the
payment or not
5. The issuing bank authorizes (or declines) the
transaction
6. The processor routes the transaction result to the
PPS
6. The processor sends the transaction code (if
authorized) to the POS
7. The PPS passes the results to the merchant 7. The POS shows the outcome to the merchant
8. The merchant accepts or rejects the transaction 8. The merchant tells the customer the outcome of
the transaction (i.e., you are approved or not)As the table demonstrates, there is very little difference between the two.MBA 61062: ELECTRONIC COMMERCE, BY S. SABRAZ NAWAZ 19
20. CREDIT CARD READING
When paying with a credit card, it is necessary for
merchants to read the content of the card and then
transfer the content for approval and processing. This
must be done in almost real time. Several methods are
available.
• Stationary card readers. The most common readers
available are physical POS in stores. They are
wirelined to the authorization and processing
system.
MBA 61062: ELECTRONIC COMMERCE, BY S. SABRAZ NAWAZ 20
21. CREDIT CARD READING…
• Portable card readers. These are used in
places where wirelines do not exist (e.g., on
airplanes). They may be connected wirelessly
to the processing system, or may be stand-
alone systems.
• Mobile readers. These systems enable
payments from mobile devices. They include
credit card readers, which are plugged in to
the smartphones. The intuit GoPayment,
which has a “swiper” that plugs into the
smartphone’s headphone.
MBA 61062: ELECTRONIC COMMERCE, BY S. SABRAZ NAWAZ 21
22. CREDIT CARD READING…
• Image readers. These new systems use smartphone
scanning and imaging capabilities to read the cards,
thus eliminating the need for a card reader.
MBA 61062: ELECTRONIC COMMERCE, BY S. SABRAZ NAWAZ 22
23. FRAUDULENT CARD TRANSACTIONS
• In e-commerce, the merchants usually are liable for
fraudulent transactions.
• In addition to the cost of lost merchandise and
shipping charges, merchants who accept fraudulent
or unauthorized cards for payments may have to pay
penalties to the credit card companies.
• There also are the costs associated with combating
fraudulent transactions.
• the costs of tools and systems to review orders
• the costs of manually reviewing orders
• the revenue that is lost from erroneously rejecting valid
orders
MBA 61062: ELECTRONIC COMMERCE, BY S. SABRAZ NAWAZ 23
24. FRAUDULENT CARD TRANSACTIONS:
THE KEY TOOLS USED IN COMBATING
FRAUD• Digital Signature. is a mathematical technique used to
validate the authenticity and integrity of a message,
software or digital document.
• Address verification System (AVS). Used by majority in
US and Canada, compares the address provided with
the one on file.
• If cardholders have a new address or make mistakes, error
occurs. AVS is available only in the United States and
Canada.
• Manual review. Majority do this, merchants’ staff to
manually review suspicious orders.
• Possible for small merchants with a small volume of orders,
this is a reasonable method.
• Fraud screens and automated decision models. Larger
merchants often use fraud screens and automated
decision models.
• These tools are based on automated rules that determine
whether a transaction should be accepted, rejected, or
suspended.
MBA 61062: ELECTRONIC COMMERCE, BY S. SABRAZ NAWAZ 24
26. FRAUDULENT CARD TRANSACTIONS:
THE KEY TOOLS USED IN COMBATING
FRAUD…• Card verification number (CVN). merchants use this 3-
digit to compare to the number stored by the
cardholder’s issuing bank.
• If a fraudster possesses a stolen card, the number is in plain
view and verification becomes difficult.
• Card association payer authentication services. Card
companies have developed a new set of payer
identification services (e.g., Verified by Visa).
• Negative lists. Approximately half of all merchants use
negative lists. A negative list is a database of card
numbers that could potentially be used by fraudsters.
• It is also a database of card numbers used to avoid further
fraud from repeat offenders. The merchants can match each
customer’s card against this database to find customers and
cards with known problems.
Video: Verified by Visa
MBA 61062: ELECTRONIC COMMERCE, BY S. SABRAZ NAWAZ 26
28. 4.4 SMART CARDS
• A smart card is a plastic payment card that
contains data in an embedded microchip.
• The embedded chip can be a microprocessor
combined with a memory chip or just a
memory chip with nonprogrammable logic.
• Information on a microprocessor card can be
added, deleted, or otherwise manipulated
• A memory-chip card is usually a “read-only”
card, similar to a magnetic stripe card.
• The card’s programs and data must be
downloaded from, and activated by, some
other device (such as an ATM).
MBA 61062: ELECTRONIC COMMERCE, BY S. SABRAZ NAWAZ 28
29. SMART CARDS…
• The smart card can perform the multiple functions
• credit card
• debit card
• stored-value card
• various loyalty cards
• security and ID card
• The biggest driver underlying the smart card growth
is its application as credit and debit cards.
• The largest demand for smart cards continues to
come from transportation cards in the Asia-Pacific
region and Europe.
MBA 61062: ELECTRONIC COMMERCE, BY S. SABRAZ NAWAZ 29
30. TYPES OF SMART CARDS
• There are two distinct types of smart
cards.
• contact card, which is activated when it is
inserted into a smart card reader
• contactless (proximity) card, card only has to
be within a certain proximity of a smart card
reader to process a transaction.
• With both types of cards, smart card
readers are crucial, a read/write device.
• The primary purpose of the smart card
reader is to act as a mediator between the
card and the host system that stores
application data and processes
transactions.
• contact and proximity card readers
MBA 61062: ELECTRONIC COMMERCE, BY S. SABRAZ NAWAZ 30
31. TYPES OF SMART CARDS…
• Hybrid cards and combi cards
combine the properties of
contact and proximity cards into
one card.
• A hybrid card has two separate
chips embedded in a card: contact
and contactless.
• A combi card (dual-interface) card
has a single chip that supports
both types of interfaces. The chip
may be attached to the embedded
antenna through a hard connection
MBA 61062: ELECTRONIC COMMERCE, BY S. SABRAZ NAWAZ 31
32. STORED-VALUE CARDS
• A card where a monetary value is prepaid and can be loaded on the
card once or several times.
• From a physical and technical standpoint, a stored-value card is
indistinguishable from a regular credit or debit card.
• What is different about a stored-value card is there is no need for
authorization.
• The most popular applications of stored-value cards are the
transportation cards that are very popular in the large cities in
Asia.
• Stored-value cards come in two varieties: closed loop (single
purpose) and open loop (multiple purposes).
• Closed-loop cards are issued by a specific merchant (e.g., a shopping
mall) and can be used to make purchases only from the card issuer.
Some toll-pay cards and prepaid telephone cards are examples of
closed-loop cards.
• An open-loop card is a multipurpose card that can be used for
transactions at several retailers or service providers.
• Financial institutions with card-association branding, such as Visa
or MasterCard, issue some open-loop cards.MBA 61062: ELECTRONIC COMMERCE, BY S. SABRAZ NAWAZ 32
34. 4.5 MICROPAYMENTS
Micropayments or e-micropayments are small online payments made
online, usually under $10. From the viewpoint of many vendors, credit
cards are too expensive for processing small payments.
Consumers prefer to use credit or debit cards for small value
purchases; but in online, interested in small- value purchases, but not
with credit or debit card.
• Currently, there are five basic micropayment models that do not
depend solely on credit or debit cards.
• Some of these are better suited for offline payments than online
payments. The models include the following:
• Aggregation. Payments from a single consumer are accumulated and
processed periodically or as a certain level is reached. Apple’s iTunes
and App stores use this model
• Direct payment. In this case an aggregation is used but the
micropayments are processed with an existing monthly bill (e.g., a
mobile phone bill). Zong (zong.com), which is used for social network
games and virtual goods
MBA 61062: ELECTRONIC COMMERCE, BY S. SABRAZ NAWAZ 34
35. MICROPAYMENTS…
• Stored value. Funds are loaded into a debit
account from which the money value of purchases
is deducted when purchases are made. Used by
several online gaming companies and social
media sites.
• Subscriptions. A single payment (e.g., monthly)
provides access to content. Online gaming
companies and a number of online newspapers
often use this model.
• À la carte. Payments are made for transactions as
they occur. This model is used in stock trading,
such as at E-Trade. MBA 61062: ELECTRONIC COMMERCE, BY S. SABRAZ NAWAZ 35
37. 4.6 MOBILE PAYMENTS
• The term mobile payment refers to payment
transactions initiated or confirmed using a person’s
mobile device, usually a smartphone.
• The rapid growth in mobile payments is the result of
• the increased use of smartphones
• the increased usage and availability of apps
• Mobile payments come with a variety of features and
methods, including
• mobile proximity
• remote
• POS payments
MBA 61062: ELECTRONIC COMMERCE, BY S. SABRAZ NAWAZ 37
38. MOBILE PROXIMITY PAYMENTS:
• Mobile proximity payments are used for making
purchases in physical stores, vending machines,
transportation services, and much more.
• Proximity payments are frequently done via mobile
phones equipped with an integrated chip or a smartcard,
a specialized reader that recognizes the chip when the
chip comes within a short distance from the reader, and
a network for handling the payment.
• A buyer waves the specially equipped mobile phone near
a reader to initiate a payment. For this reason, proximity
payments are also called contactless payments.
• The payments are accumulated and debited to a mobile
phone monthly account, or charged to a debit card
account.
• Such payments are made from a mobile (digital) wallet,MBA 61062: ELECTRONIC COMMERCE, BY S. SABRAZ NAWAZ 38
39. MOBILE REMOTE PAYMENTS
(MOBILE MONEY):
• Enable clients and consumers to use their mobile
devices to pay their monthly bills, transfer funds to
other individuals (P2P payments), and add money to
their prepaid mobile accounts without having to
purchase prepaid phone cards.
• Prior to starting transactions, the customer needs to
establish an account with a mobile payment service
provider that handles the payment transaction for
the merchant.
• Mobitel’s mCash
MBA 61062: ELECTRONIC COMMERCE, BY S. SABRAZ NAWAZ 39
40. MOBILE POS PAYMENTS:
• With mPOS transactions, the merchant utilizes a special
mobile service to send a payment request to the
customer’s mobile device.
• Once the request is received, the customer enters his or
her PIN.
• At this point, the service sends a confirmation to both
the merchant and the customer.
• The transactions are completed by debiting the
customer’s account and crediting the merchant’s
account.
• The cost to the merchant is substantially less than a POS
credit card–based transaction.
• These services are aimed at small businesses and
independent operators such as doctors, dentists,MBA 61062: ELECTRONIC COMMERCE, BY S. SABRAZ NAWAZ 40
41. MOBILE PAYMENT PARTICIPANTS
AND ISSUES
• The major participants in mobile payments are: The
shoppers, the sellers, the network operators, and the
financial institutions (mobile payment service providers).
• To successfully implement mobile payments, it is
necessary to overcome the following issues:
• For Buyer: Security (fraud protection), privacy, ease of use,
choice of mobile device.
• For Seller: Security (getting paid on time), low cost of
operations, adoption by sufficient number of users,
improved speed of transactions.
• For Network Operator: Availability of open standards, cost of
operation, inter-operability, and flexibility and roaming.
• For Financial Institutions: Fraud protection and reduction,
security (authentication, integrity, non-repudiation), and
reputation. MBA 61062: ELECTRONIC COMMERCE, BY S. SABRAZ NAWAZ 41
42. INNOVATIVE MOBILE POS PAYMENT:
SQUARE (SQUAREUP.COM)
• Square Inc. developed a mobile card reader that enables
merchants to accept payments made with credit cards by
using a card reader attached to a smartphone or a
tablet.
• The credit card is inserted into the reader for processing
by the company. Square charges less than Visa and
other card processors, and promises next day deposit
into the merchant’s account.
• The merchants get a free reader and the customer gets
the free Square Wallet smartphone application
(squareup.com/wallet).
• Note: Several other companies offer similar services.
Examples are Brain Tree Payments, Bank of America
Mobile Pay on Demand, Intuit Payments, Phone SwipeMBA 61062: ELECTRONIC COMMERCE, BY S. SABRAZ NAWAZ 42
44. ONLINE BANKING
• In the year 2006, 63 million
Americans reported that they used
online banking
• 43% of internet users in the United
States bank online
45. ONLINE BANKING
• Online banking – also known as internet banking,
allows consumers to complete transactions with
wireless technology. Wireless technology includes:
• Personal Computers (PCs)
• Personal Digital Assistants (PDAs)
• Cellular phones
49. ONLINE BANKING
Advantages
Decreased cost of paper
and postage
Storing all statements
online instead of keeping
a paper copy
Convenience
Paying bills online
Ability to access account
anytime
No waiting for a
monthly statement
Disadvantages
Not as personal
Not able to access without
technology
Decrease in safety features
Increase in risk for fraud
50. ONLINE BILL PAYMENT
• Online bill payment – allows consumers
to send money from one account to a
vendor
• Usually occurs automatically
• Consumers need to check with the vendors
regarding their policy of when the payment
will be processed
51. ONLINE BILL PAYMENT
• Examples of companies that use online bill payment
include:
• Retailer banks
• Credit card companies
• Insurance companies
• Energy and utility companies
• Health care
• Transportation companies
• Education expenses
52. ONLINE BILL PAYMENT
Occurs in two
ways
Consumer works directly
with the depository
institution to pay the
company that is owed
Consumer works directly
with the company in
which the money is owed
53. ONLINE BILL PAYMENT
• Important financial aspects include:
• Checking with the vendor or company to understand
their policy of when transactions are complete
• Confirming there are enough funds in the account to
cover the expense of the bill
• Confirming bill will be paid, money will be taken out of
the account, and the transaction will be completed
• Their financial information is secure and it is safe to
make online transactions
54. DETERMINE SECURITY
• The Uniform Resource Locator (URL) ends
in “s” which stands for secure
• A closed lock to the right of the URL or in
the bottom right hand corner of the web
browser to indicate a secure site
55. INSECURE PRACTICES
• Email accounts are not secure
• Do not send important information such as:
Social security numbers
Bank account numbers
PIN numbers
56. CONSUMER PROTECTION
• The Federal Reserve Bank of Chicago suggests the
following:
• Passwords are a combination of letters and numbers
• Avoid using passwords that would be easy for someone to guess
such as birth dates, phone numbers, names, sequential numbers,
etc.
• Change passwords once a month
• Keep all receipts and compare them to bank statements monthly
• Log out of depository institution Web sites immediately after you
finish working
• Contact the depository institution directly with any questions or
concerns
57. RECURRING PAYMENT
• Recurring payment – bills are set to be paid on the
due date or a previous date set by the consumer
• Payment will happen automatically electronically
• Advantages of recurring payment include:
• Save money on postage
• Saves time for the consumer
• Bills are paid on time
58. REGULATION E
• Regulation E – covers all electronic fund transfers
including transfers occurring through an electronic
terminal, computer, telephone, or magnetic tape
• The transfer must be conducted with the purpose of
authorizing a depository institution to debit or credit a
consumer's account
59. CONSUMER PROTECTION
• Privacy Policy outlines how a consumer’s information
will be used and protected
• Opting out of a financial policy allows a consumer to
request a depository institution to share only a
limited amount of personal information
60. CONCLUSION
• Review
• Define online banking
• Review what transactions can be completed through
online banking
• Discuss advantages and disadvantages of online
banking
• Discuss online bill payment
• What are secure and insecure online banking practices?
• Any questions?
61. DIGITAL WALLETS
• In B2C e-commerce Must move money
and other information such as
shipping address
• Digital wallets can help
• Digital wallet – software and
information
• Software provides transaction security
• Information includes delivery
information and other forms of
necessary information
62. DIGITAL WALLETS
• Can be…
• Client-side – you create this digital
wallet and keep it on your computer
• Server-side (also called a thin wallet) –
an organization creates this for you and
keeps it on its servers
63. B2B PAYMENT SYSTEMS
• Business customers…
• Make large purchases
• Will not pay with credit card or financial
cybermediary
• Use financial EDI
• Pay for many purchases at once (perhaps
the end of the month)
64. EDI
• Electronic data interchange (EDI) –
direct computer-to-computer transfer
of transaction information in standard
business documents, such as invoices
and purchase orders, in a standard
format
65. EDI
• How businesses communicate with
each other
• Used in e-marketplaces and value-
added networks (VANs) – B2B service
that offers information-sharing
services among organizations
• VANs support the sending and receiving
of purchase orders, for example
66. FINANCIAL EDI
• Financial EDI – an electronic process
used primarily within B2B for the
payment of purchases
• This is electronic money in B2B
• Often occurs through an automated
clearing house
A crucial element in the success of any e-payment method is the “chicken-and- egg” problem: How do you get sellers to adopt a payment method when there are few buyers using it? Further, how do you get buyers to adopt a method when there are few sellers using it?
The overall impact of these tools is that merchants are still rejecting a significant number of orders due to a suspicion of fraud.
The problem with these rejection rates is that a number of the rejected orders are valid, resulting in lost revenue.
When the card is inserted into the card reader, the gold color plate makes electronic contact and data are transferred to and from the chip.
A contactless card has an embedded antenna that facilitates data transfer to another antenna.
Contactless cards are especially useful where data must be processed (e.g., paying toll road fees, bus or train fares) or when contact may be difficult.
Most proximity cards work at short range (just a few inches). For some applications, such as payments at highway tollbooths, longer range proximity cards are available.
In the past, the money value was stored on the magnetic strip, but recently, most stored-value cards use the technology of smart cards.
With stored-value cards, the chip stores the prepaid value. Consumers can use stored-value cards to make purchases, offline or online, in the same way that they use credit and debit cards.
Employers or government agencies may issue them as payroll cards or benefit cards in lieu of checks or direct deposits.
Various financial institutions and nonfinancial outlets sell prepaid cards by telephone, online, or in person.
In the past few years, micropayments have come to represent a growth opportunity for credit card companies, because credit cards are being used increasingly as a substitute for cash. There are a number of new micropayment start-ups that are focused solely on social networks (e.g., zong.com).
Among wireless carriers, smartphone vendors, and mobile operators, there is a strong belief that mobile payments will emerge as a primary way to pay, potentially eliminating dependence on credit and debit cards, as well as cash.
Changes to slide 7, 13, 15
Changed the picture so that the magnified picture of the lock and https were bigger
Added “Reserve” to “Federal Bank of Chicago” Added 2nd bullet point