Downloaded 41 times
More Related Content
Similar to S.m.o.k.e. technologies
S.m.o.k.e. technologies
- 1. Online Payment: Issues andSolutions S.M.O.K.E TECHNOLOGIES 1
- 2. What is ElectronicPayment? Is a system that permits online payment between parties using an electronic surrogate of a financial tender The electronic surrogate is backed by financial institutions and/or trusted intermediaries The intent is to act as an alternative form of payment to the physical cash, cheque or other financial tender S.M.O.K.E TECHNOLOGIES 2
- 3. Current Status ePayment New opportunities aregrowing albeit slowly players are entering ePayment marketplace Variety of ePayment mechanisms and devices creating state of chaos Infrastructure for ePayment is complex and expensive to deploy Lack of critical mass adoption and acceptance Online payment is hard to implement globally S.M.O.K.E TECHNOLOGIES 3
- 4. ePayment is stillevolving ... Security Infrastructure Business Realities Customer Profiles New ePayment Solutions Authentication Models Payment Types Spa S.M.O.K.E TECHNOLOGIES 4
- 5. ePayment Channels Defined as ‘touchpoints’ where a payment transaction is originated or initiated Can be executed through a variety of channels ◦ Internet based ◦ Kiosks ◦ Contactless or proximity sensors ◦ Mobile eg mobile phones, PDA S.M.O.K.E TECHNOLOGIES 5
- 6. ePayment Instruments Defined as themedium in which the value is recognised in a payment transaction Card-based such as ◦ Credit and charge cards buy now, pay later ◦ Debit cards buy now, pay now ◦ Cash cards, stored-valued, e-cash buy now, prepaid or pay before S.M.O.K.E TECHNOLOGIES 6
- 7. Credit Cards Most widely used ◦banks able to leverage existing card infrastructure ◦ appears ‘defacto’ online payment Largely unencrypted Charge back risk for merchants ◦ ‘card-not-present’ transactions processed without customer & merchant authentication ◦ charge-back is when customer demands a refund ◦ banks transfer liabilities of charge-backs to the merchants ◦ merchants need to have a bond to cover such charges S.M.O.K.E TECHNOLOGIES 7
- 8. Debit Cards Direct electronic transferof account - direct account debiting Uses chip/smart eWallets Digital signature to secure access Connected to eBanking solution S.M.O.K.E TECHNOLOGIES 8
- 9. Digital Cash A system ofpurchasing cash and storing the credits in consumer’s computer Computerised stored value is used as a form of cash to be spent in small increments A third party is involved in the payment transactions Examples: Beenz, Billpoint, Paypal S.M.O.K.E TECHNOLOGIES 9
- 10. Cazh A project by ABN-Amro A debitsystem that creates network between merchant and bank to allow customers pay for the goods by direct debit of customers’ bank account Once customer has been authenticated by his/her bank, he/she can authorise the bank to pay the merchant on the goods purchase Similar to Nets POS but in cyberspace S.M.O.K.E TECHNOLOGIES 10
- 11. Cash Card Payment solution ona proprietary protocol that allows payment over the Internet A digital/virtual wallet with prepaid creditbased/token-based payment system Enables low-value electronic payments on the Limited distribution, proprietary solutions Internet Needs to install card reader and download free eWallet S.M.O.K.E TECHNOLOGIES 11
- 12. eCheque A formatted email messagethat consists of payee name, amount, payment date, payer’s account number, and payer’s bank Digital certificate and signature are used to secure the cheque so that the contents are not tampered with A signed electronic cheque is exchanged between the parties’ financial institutions through automated clearing house S.M.O.K.E TECHNOLOGIES 12
- 13. Mobile Wallet Relatively new spaceexploited by telcos and nonfinancial enterprises Provides ePurse functionality to replace card-type payments Aggregating phone bill micro-payments onto the mobile Can use mobile access device to authenticate payer’s identity SIM card well placed to function and control payment process and authentication S.M.O.K.E TECHNOLOGIES 13
- 14. Components of OnlinePayment System Consumer Online Merchants Payment Enablers Payment Clearinghouses • Merchant Acquirers • Payment Gateways Competing Authentication Services • Shopping Cart Vendors • Non-bank payment Processors S.M.O.K.E TECHNOLOGIES 14
- 15. ePayment Risks Buyer Merchant Private network Payment gateway Bank network Internet • Useof stolen card • Credit card number or password stolen from computer • Unauthorised access • Information modified in transit • Payment info stolen from merchant Internet • Masquerading as legitimate merchant • Information stolen • Information modified in transit • Key info stolen by merchant staff S.M.O.K.E TECHNOLOGIES 15
- 16. Research on onlineshopping Survey By Question Asked Results Odyssey, 2000 Features that will increase the likelihood to buy online? 88% of online shoppers said “guaranteed credit card security”, 2nd highest feature cited. Cyber Dialogue, 2000 Important features of online shopping sites? 85% of online shoppers said “secure transactions,” the highest cited feature. Pricewaterhouse Coopers, 2000 Barriers to online purchasing? 79% of Internet users said “credit card security,” the number one cited barrier. Greenfield Online, 2000 Barriers to online purchasing? 47% of Internet users said “credit card security,” the 3rd highest barrier cited. Pew Internet & Am Life Project, June 2000 Worries and concerns regarding online activities? 68% of Internet users said “hackers getting credit card number,” 2nd highest concern cited Jupiter Research, May 2000 Factors that would motivate new users to purchase online? 58% of new Internet users said “better security,” the 3rd highest factor cited. Odyssey, 2000 Factors that would convert nonbuyers to buyers online? 60% of non-buyers said “credit card security,” the highest factor cited. S.M.O.K.E TECHNOLOGIES 16
- 17. How can wesecure ePayment? The Trust Principle ◦ The parties to the transaction must trust each other ◦ Buyer must believe that seller is legitimate and will deliver the goods ◦ Buyer must believe that goods are as represented and are worth the price ◦ Seller must believe that buyer is legitimate and will pay for the goods purchased S.M.O.K.E TECHNOLOGIES 17
- 18. How can wesecure ePayment? The Security Principle ◦ Parties need a secure environment in which to conduct the electronic transactions ◦ Seller needs to protect the details of the transactions ◦ Buyer needs to be certain that his/her information is securely handled and stored ◦ Buyer needs to be certain that information is not stolen that it can be inappropriately used S.M.O.K.E TECHNOLOGIES 18
- 19. ePayment Solutions Must providesecurity: resistance to fraud and online attacks Reliable: highly available and accessible at all times Cost effective: cost per transaction should be low even for micro-payment Integrated and scaleable: interoperable amongst different systems, payment methods and multiple servers distributed across the Internet Convenient devices and easy to use: should support several Anonymity: should protect the identities of parties to the transactions and should not monitor the sources of finance S.M.O.K.E TECHNOLOGIES 19
- 20. Securing ePayments Identification andauthenticate ◦ the ability to verify both the transacting parties Authorisation ◦ the ability to validate the rightful owner to the transaction Integrity and confidentiality ◦ the ability to transmit the transaction securely ◦ the ability to store the transaction properly Accountability ◦ The ability to provide audit trail as evidence in dispute Policies for sharing risks and liabilities ◦ the mechanism to settle disputes/non-repudiation S.M.O.K.E TECHNOLOGIES 20
- 21. Authentication Models Something you haveand something you know – ATM card model Known to the back-end (server), synchronize with each transaction using a one time random number – Secur-ID model “Sign” Tie each transaction – PKI-model into a real person – Biometrics S.M.O.K.E TECHNOLOGIES 21
- 22. ePayment Transaction Cycle er Pa9 ys ba nk Transaction 4 bu ye r t 8 s od go rs rde 1 O an Bil ls ch Issuing Bank pays Visa / 5 Mastercard i B k M I u ss ng an ds oo rg live Voucher to De Acquiring Bank Buyer voucher to Issuing Bank 2 7 Reimburses merchant is as te rc A M cq a/ 3 B uir an in k g V Sends transaction voucher to Visa / Mastercard ar 6 d Visa / Mastercard reimburses Acquiring Bank S.M.O.K.E TECHNOLOGIES 22
- 23. Secure Sockets Layer (SSL) A securityprotocol to protect sensitive data transmitted over the Internet Uses data encryption to protect the transmission of When SSL session starts, server sends key to the browser, which returns random key to the server Ensures that data are not tampered with or stolen en route S.M.O.K.E TECHNOLOGIES 23
- 24. Secure Electronic Transfer -SET Protocol 1996 by Visa and MasterCard released in 3 party system - cardholder, merchant and bank using SET-enabled systems Uses digital certificate to ensure cardholder is who he/she says he/she is or claims to be Credit card details are invisible to merchants, protected by encryption for clearing bank S.M.O.K.E TECHNOLOGIES 24
- 25. 3D SET (Server-basedSET) Overcome Uses the resistance of original SET server-based implementation of SET Reduces technology that must be deployed by merchant and customer ◦ Merchants use ‘thin’ modules ◦ Customers use ‘slim’ digital wallets Not inter-operable with SSL websites S.M.O.K.E TECHNOLOGIES 25
- 26. How 3D SETworks ... Cardholder Certificates WTLS SSL Customer 1. Cardholder Authentication Merchant Certificates Wallet Server Issuer API or URL SET Merchant 2. Wallet Initiates Purchase Payment Gateway SET Acquirer 3. Payment Request 4. Payment Authorisation S.M.O.K.E TECHNOLOGIES 26
- 27. Features of 3DSET Certificate is stored in a central server of the issuer and not at the cardholder computer Cardholder is flexible to use certificates with other devices Cardholder can only use certificate issued by the CA - a limitation Theft of certificate is still possible from the server-based SET - a problem S.M.O.K.E TECHNOLOGIES 27
- 28. Thank You … S.M.O.K.ETECHNOLOGIES 28