E-commerce, E-Banking, Components of e-Banking, e-cheques, smart cards, XML, advantages, and disadvantages of e-banking, ISP, Authorization,

1. Dr. Rajiv Sikroria
Unit:3
Electronic Payment Systems

2. Content
 Electronic Payment Systems: E-Cash, e-cheque, credit cards,
debit cards, smart cards, E-Banking, Manufacturing
information systems.
 EDI introduction, networking infrastructure of EDI,
Functions & Components of EDI File types of EDI.

3. Electronic Payment Systems
 Business to Business, such as EDT: electronic data inter-
change.
 Customer to Business transactions.: COD: Cash on delivery,
pre-payments.
 Customer to Customer transfer through electronic wallets –
Paytm services, Paypal.
 Customer to public administration: e-filing for income tax
return, fees,

4. Electronic Money
 ATM:Automatic teller machines.
 Plastic Money.
 Debit cards :ATM cards, account holders should have money
in their account.
 Credit Card: Installments, money at specific rate interest,
consume now, pay later. Benefit: Consumer gets offers on credit
card transaction.

5. Electronic Money
 Macro vs Micro: Macro for larger or bigger transactions,
while for small payments or retail payments, micro is used.
 E-Cheques:An eCheque is an electronic money transfer
that moves money directly from your bank account, through
your PayPal account, into another user's PayPal account.
eCheques, like paper cheques, can take up to 10 working
days to clear.

6. Electronic Money
 Smart Cards: A smart card is a device that includes an
embedded integrated circuit chip (ICC) that can be either a
secure microcontroller or equivalent intelligence with
internal memory or a memory chip alone.
 The card connects to a reader with direct physical contact or
with a remote contactless radio frequency interface.

7. Smart Card

8. Electronic payment system
 Issuer Bank: Indian Overseas Bank or SBI.(withdrawal )
 Acquirer Bank:The banker who accept money on the behalf
on seller. (Deposit)
 Payment Gateway
 Registration of the payer ( Customer)
 Registration payment authorization payment for payment
transaction.

9. Credit card payment transaction
 Issuer Bank: Customer has put the credit card info
 Acquirer Bank
 Note: Interbank settlement (clearing)network, authorizations
and settlement. Interbank settlement will be done.
 Notification
 Merchant gets notification from acquirer bank

10. E- Banking
 Electronic banking, Use of computers and
telecommunications to enable banking transactions to be
done by telephone or computer rather than through human
interaction.
 Its features include electronic funds transfer for retail
purchases, automatic teller machines (ATMs), and automatic
payroll deposits and bill payments.
 EFT: Electronic FundTransfer.

11. Components of e Banking
 For e.g.Telephone banking,ATM, Door step banking.
 Components of e banking:
 1. Strategic Objective of e banking.
 2. Scope, scale and complexity of equipment, systems and
activities.
 3.Technology expertise.
 4. Security and internal control requirements.

12. E Banking Services: Internal and
Outsourced.
 Such services, can be managed internally and these can also
be outsources.
 Financial Institution.
 ISP: Internet Service Provide.
 Core BankingVendor
 Bill Payment Provider.
 Credit scoring Company.
 Credit Bureau.

13. E- Banking Support Services
1.Weblinking: connecting your site with www.
2. Account Aggregation: They gather information from many
website. Security , User ID, Password, OTP.
3. Electronic Authentication: Electronic Signature System, data
comparison, PIN: Personal Identification number.

14. E- Banking Support Services
 Website Hosting: these services provide host services or host
a business customer’s website. For e.g. XML: Extensible
Make up Language.
 Risk examiners.
 Disclose unauthorized information.

15. Benefits/ advantages of E- Banking
 Banking through remote.

 Prompt Services
 All time services.
 Helpful in payments of fee, license fee, taxes.
 The interface is user friendly.

16. Disadvantages of E Banking
 Security Issues.
 Complex as Online Banking for less educated.
 Crashing of website, overloading.
 Settlement issues may be there.
 Dependent on internet speed.