This document discusses various electronic payment systems including credit cards, debit cards, smart cards, e-money, electronic fund transfers, e-checks, PayPal, digital cash, and smart cards. It provides details on each payment method such as how they work, the parties involved in transactions, and examples of use. The key advantages of electronic payments are described as being paperless, user friendly, and reducing costs of transactions and labor.

1. ELECTRONIC PAYMENT
SYSTEMS
INTRODUCTION TO INTERNET & OTHER EMERGING
TECCHNOLOGYUNIT I

2. ELECTRONIC PAYMENT SYSTEMS-
FEATURES
Paperless money
transactions
User friendly
Reducing paper work
Reducing transaction costs
Reducing labor costs

3. MODES OF ELECTRONIC
PAYMENT
Credit
card
Debit
card
Smart
card
E-
mone
y
Electr
onic
fund
transf
er
(EFT)
E-
Chequ
e
paypal

4. CREDIT CARD
 Most common mode
 It is a Small plastic card with
unique number attached with
an account
 Also has magnetic strip
embedded in it which is used
to read card by a machine
 After purchase Bank pays on
behalf of customer
 Customer has certain time
period to pay credit card bill

5. ACTORS INVOLVED IN CREDIT CARD
SYSTEM
Card holder
• customer
merchant
• Seller of the
product
• Who can
accept
credit card
payments
Card issuer
bank
• Card
holder’s
bank
Acquirer bank
• The
merchant
bank
Card brand
• Visa or
MasterCard

6. CREDIT CARD PAYMENT
SYSTEM
Step 1
• Bank issues
& activates
a credit card
to customer
on his/her
request
Step 2
• Customer
presents
credit card
information
to merchant
site or to
merchant
from whom
he/she want
to purchase
a
product/serv
ice
Step 3
• Merchant
validates
customer’s
identity by
asking for
approval
from card
brand
company
Step 4
• Card band
company
authenticate
s the credit
card & paid
the
transaction
by credit.
Merchant
keeps the
sales slip
Step 5
• Merchant
submits the
sales slip to
acquirer
banks &
gets the
service
charges
paid to
him/her
Step 6
• Acquirer
bank
requests the
card brand
company to
clear the
credit
amount &
gets the
payment
Step 7
• Now card
brand
company
asks to clear
amount from
the issuer
bank &
amount gets
transferred
to card
brand
company

7. DEBIT CARD
 Like credit card, a Small plastic card
with unique number attached with an
account
 Also has magnetic strip embedded in
it which is used to read card by a
machine
 Major difference is that in case of
payment through debit card, amount
gets deducted from card’s bank
account immediately
 There should be sufficient balance in
bank account for a transaction to get

8. E-MONEY
 E-money transactions refers
to situation where payment is
done over the network &
amount gets transferred from
one financial body to another
financial body without any
involvement of a middleman
 E-money transactions are:
 Faster
 Convenient
 Saves lot of time

9. E-CASH
 Both customer & merchant have to
sign up with the bank or company
issuing e-cash.
 E-cash is used over the Internet,
email, PCs in the form of secured
payments.
 User must have e-cash software
program & e-cash bank account
 Other than making purchase e-
cash can also be found used in
entertainment sites- ex. Casino

10. ELECTRONIC FUND
TRANSFER
 Popular method to
transfer money
 Accounts can be in
the same bank or
different banks
 Fund transfer can be
done through ATM or
using computer

11. PAYPAL
 International money transfer
through internet
 Uses encryption software to
make it secure
 We can send funds to anyone
with an e-mail address,
whether or not they have a
PayPal account.
 To receive the funds, recipient
must have PayPal account
associated with that e-mail

12. E-CHEQUE
 E-cheque is an
electronic copy
(scanned copy) of a
real cheque, which is
then transferred by e-
mail.
 Moreover cheque’s real
signature, transfer
amount must be
digitally signed using

13. DIGITAL CASH
 System that allows a person to pay
for goods or services by transmitting
a no. from one computer to another.
 Like the serial no.s on real bank
notes, the digital cash certificate no.s
are unique.
 Each digital cash is issued by a bank
& represents a specified sum of ‘real
money’.
 Key feature: like real cash, it is
anonymous & reusable.
 Only vender need to clear the

14. SMART CARDS
 Looks just like credit cards
 They differ that they have
microchip embedded in their
surface that can be used to store
a wide range of information
about the holder of a card.
 Customers can load their card
with cash & then use this to pay
for gods in a merchant’s outlet,
or on merchant’s web site.
 Smart cards can be accessed
only by using customer PIN.

15. SMART CARD EXAMPLE :
DOCTOR VISIT
 On arrival at the surgery, you
hand over your smart card to
the receptionist to check in.
 Once in seeing the doctor you
give him/her your card so
they can review & prescribe
medication.
 At the pharmacy, you hand
over your card to receive your
prescription, and to pay for it
as you can also use the smart
card as a credit or debit card.

16. THANK YOU!
-By Arti Gavas