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.

1. Prepared By:
Khurram shafique
Roll no 281
Payment Systems for
Electronic Commerce

2. Index
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 Introduction to E-payment
 Modes of E-payment
 Payment cards-
 Intro to credit card, debit card & charge card
 Acceptance and processing
 Advantages and Disadvantages
 Electronic cash-
 Introduction and concern of cash
 Advantages
 Disadvantages
 Click Free
 Click Share
 Electronic Wallet
 Smart Card

3. Traditional Payment Methods
Payment: The transfer of money from one individual or legal
entity to another
 Cash
 Personal Cheques
 Money orders (Bank note)
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4. Electronic Payment Systems
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E-payment or Electronic payment is any digital financial
payment transaction involving currency transfer between two
or more parties
Implementation of electronic payment systems is in its
infancy and still evolving.
Electronic payments are far cheaper than the traditional
method of mailing out paper invoices and then processing
payments received.

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 Payment Cards
 Electronic Cash
 Check free
 Check share
 Internet Cash
 Wallet
 Smart Card
Modes of E-Payment

6. Payment Cards
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Payment cards are all types of plastic cards that consumers
use to make purchases:
Credit cards
such as a Visa or a MasterCard, has a preset spending limit based
on the user’s credit limit.
Debit cards
removes the amount of the charge from the cardholder’s account
and transfers it to the seller’s bank.
Charge cards
such as one from American Express, carries no preset spending
limit.

7. Payment Acceptance and Processing
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Open and closed loop systems will accept and process
payment cards.
A merchant bank or acquiring bank is a bank that does
business with merchants who want to accept payment cards.
Software packaged with your electronic commerce software
can handle payment card processing automatically.

8. Payment Acceptance and Processing
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9. Advantages and Disadvantages
of Payment Cards
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Advantages:
• Payment cards provide fraud protection.
• They have worldwide acceptance.
• They are good for online transactions.
Disadvantages:
• Payment card service companies charge merchants per-
transaction fees and monthly processing fees.

10. Electronic Cash
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Electronic cash is a general term that describes the attempts
of several companies to create a value storage and
exchange system that operates online in much the same
way that government-issued currency operates in the
physical world.
Concerns about electronic payment methods include:
• Privacy
• Security
• Independence
• Portability
• Convenience

11. Holding Electronic Cash: Online and Offline Cash
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Two approaches to holding cash: online storage and offline
storage.
Online cash storage means that an online bank is involved
in all transfers of electronic cash.
Offline cash storage is the virtual equivalent of money you
keep in your wallet. However, it must prevent double or
fraudulent spending.

12. Advantages of Electronic Cash
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Electronic cash transactions are more efficient and less costly
than other methods.
The distance that an electronic transaction must travel does
not affect cost.
The fixed cost of hardware to handle electronic cash is nearly
zero.
Electronic cash does not require that one party have any
special authorization.

13. Disadvantages of Electronic Cash
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Electronic cash provides no audit trail.
Because true electronic cash is not traceable, money
laundering is a problem.
Electronic cash is susceptible to forgery.
So far, electronic cash is a commercial flop.

14. Check Free
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Check Free provides online payment processing services to
both large corporations and individual Internet
users.
Check Free permits users to pay all their bills with online
electronic checks.
Check Free provides part of the technology that the Web
portal Yahoo! uses to provide its Yahoo! Bill Pay service.

15. Check Free
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16. Click share
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Click share is an electronic cash system aimed at magazine
and newspaper publishers.
Users with an ISP that supports Click share are automatically
registered with Click share.
Click share tracks users with the standard HTTP Web
protocol.

17. Electronic Wallets
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An electronic wallet serves a function similar to a
physical wallet:
• holds credit cards, electronic cash, owner identification,
and owner contact information
• provides owner contact information at an electronic
commerce site’s checkout counter
Some electronic wallets contain an address book.

18. Electronic Wallets
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 Electronic wallets make shopping more efficient.
 Electronic wallets fall into two categories based on where they
are stored:
• Server-side electronic wallet
• Client-side electronic wallet
 Electronic wallets store shipping and billing information,
including a consumer’s first and last names, street address, city,
state, country, and zip or postal code.
 E.g. Microsoft .NET passport ,yahoo! Wallet

19. Mobile banking and Easypaisa
In 2008, Telenor acquired majority shares of Tameer
Microfinance Bank Limited for its mobile financial services
project.They named the branchless banking service
"Easypaisa" and launched it in October 2009.In a country of
over 180 million, with only 10,000 bank branches and
approximately 15 million bank accounts, easypaisa was
Pakistan's first branchess banking deployment aimed to
increase access to financial services for the people of
Pakistan. With over 25,000 easypaisa shops across the
country, Easypaisa was also quoted by CNN as the 'model to
follow' in Mobile Banking at launch.
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20. Smart Card
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A smart card is a plastic card with an embedded microchip
containing information about you.
A smart card can store about 100 times the amount of
information that a magnetic strip plastic card can store.
A smart card contains private user information, such as
financial facts, private encryption keys, account information,
credit card numbers, health insurance information, etc.
E.g. Mondex smart card , Octopus smart card

21. Mondex Smart Card
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22. Setting up PayPal Account
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Open PayPal Account https://www.paypal.com
Click on Sign up
A new page will open on screen where you select your
country and then you have two options.
i- PayPal for your personal use.
ii- PayPal for your business.
Now you will click on “Get started” either for personal use
or for business use.

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A form will open where put information and then click on
“Agree and Create Account”
After this, a new page will open where you will add payment
method. Here you can add you Bank Account and Credit
Card /Debit Card A/c and then click on Continue
Now your Bank A/C is your PayPal A/C. With the help of
your PayPal account you can pay and receive money
easily.
Now PayPal will give you some instructions and you will
read and follow them carefully. Mostly these are for testing
the function of your PayPal,

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Bank and Credit Card accounts. They want to check that
either money can transfer from PayPal to your bank
Account or not
Associate eBay Account with you PayPal
Account:
After this, you will login from your eBay account with
your eBay-id and password. In the payment option, you
have three methods of payments.
(1) PayPal Account
(2) Credit Card detail and
(3) Bank Account. You will put all the demanded
information in the fields.
Now this is the stage where you can start selling or
buying on eBay.

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31. Thank you!!
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