L15 Payment systems for electronic commerce

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L15 Payment systems for electronic commerce
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• Advantages of EC payment
• Reduce transaction cost
• Environmental impact
• Four basic ways of payment
• Cash
• Check
• Credit card
• Debit card

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• Ano payment medium
• E.g. Scrip

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• Payment card
• Credit card
• Spending limit based on users credit history
• Permit overdraft
• NRT pay(non-realtime pay)
• Card issuser charge interest on unpaid balance
• Online operation needed(used in EC)

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• Debit card
• Bank account needed
• No credit line,account balance limit
• Charge card
• No spending limit
• Entire amount charged to card is due at the end
  of the billing period

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• Single-use card
• Disposable card num
• Solution to theft of card num in online purchase
• Problemcusts consuming behavior should be
  changed
• Key to a successful payment systransparent to
  cust

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• Advantages of payment cards
• Provide fraud protection
• World-wide acceptance

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• Disadvantages of payment cards
• Fees charged to merchants,that will increase
  price of the product
• That will increase price of the product,so affect
  the custs

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• Process of online payment(using payment card)
• Parties involved
• Merchant
• Merchants bank
• Cust
• Custs bank
• Card issuer

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1 authentication
Merchant
Cust
CA
2 place an order
3 Card info sending
Card reader
driver
browser
server
driver
Payment module
Internet
gateway
4 check card and its credit line
5 transfer fund
ACH network
Issuing bank
Merchant Bank
Authorization company
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• Electronic cash
• Diff from Scripe-cash can be exchanged for
  physical cash
• Standard is need among e-cash issuers
• Most people dont have credit cards

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• Micropayment small payment
• Transfer a small amount of money is costly
• Why?
• Yagas solutionaccumulate individuals charges
  and process in one lump

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• Privacy and security of e-cash
• Characteristics of currency
• Spend only once
• Anonymity
• On-line cash off-line cash
• A trusted third party involved for authentication
• Cash is kept in a e-wallet

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• Advantages of e-cash
• More efficient
• Solution to micropaymente-cash can substitute
  physical currency
• Disadvantages of e-cash
• No audit trailsconvenient for money laundering
• Easy to forge

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• How e-cash works?
• Open an account with a private vendor of e-cash
  issuer
• Exchange money in account with e-cash
• E-cash can be kept in e-wallet in a offline
  situation

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• Providing security for e-cash
• Problem double-spending
• Attach serial num to e-cash
• Process
• Consumer creates a random serial num and sends it
  to e-cash issuer
• Issuer uses the num and its digital signature
  along with e-cash

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• Electronic cash sys
• Click share
• Paypal

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• Electronic wallet
• Function of wallet
• Keep e-cash
• Automatic operation in order placing
• Server-side e-wallet
• Client-side is free
• Security concern
• Client-side e-wallet
• Not portable

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• Issues with on-line payment
• 1 Security
• Phishing attacks
• Disguised url
• E.g. https//paypal.com_at_218.36.41.188/fl/login.htm
  l
• Or using script
• lta onmouseoverwindow.statushttps//www.paypal.
  com return true onmouseoutwindow.statushttp
  s//www.paypal.com hrefhttp//phishing.comgthtt
  ps//www.paypal.comlt/agt
• 2 Fax