Electronic Payments

1
Electronic Payments

• DEAN QUDAH
• INBS 510
• 11/7/2005

2
Electronic Payment

• Electronic payment is a payment that is
• transmitted electronically including
• telephone lines and Internet

3
Electronic Payment Options

• Credit Cards 90 of the transactions are
• made by credit cards
• E-checks encrypted version of paper
• checks
• E-Cash A consumer can by E-Cash and
• store it in a digital wallet. E-Cash
• transactions are anonymous.

4
Electronic Payment Issues

• Electronic payment methods should lower cost
• Stealing of credit card number can be an issue
• Consumer privacy could be a problem

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A credit card paymenttransaction

•  

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An electronic cash payment transaction
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Electronic check transaction 

• clerk authorizes it through the TeleCheck
  terminal

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Smart card(chip)

• A smart card can be programmed as required. It
  can store electronic money, or be used as credit
  card or an electronic check.

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Benefits of Electronic Payment

• - Very convenient for the consumer. In most
  cases, you only need to enter your account
  information -
• -Electronic payment lowers costs for businesses.
  The more payments they can process
  electronically, the less they spend on paper and
  postage.
• - Help businesses improve customer retention. A
  customer is more likely to return to the same
  e-commerce site where his or her information has
  already been entered and stored.

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Benefits

• -24/7 online bill payment. Most of these services
  are free to bank customers and coordinate easily
  with personal software programs such as Quicken
  or MS Money

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Concerns About Electronic Payment

• The privacy and the possibility of identity
  theft.
• Solutions
• - Using virus protection software and a firewall
  on your computer.
• -You should also make sure that you send
  your credit card information over a secure
  server. Your Internet browser will notify you
  when a server is secure by showing a lock or key
  icon. In addition, the URL on a secure site is
  usually designated by the prefix "https" instead
  of "http." Retailers do their part by using data
  encryption, which codes your information in such
  a way that only the key holder can decode it.

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Authentication

• Authentication, is used to verify that the
  information comes from a trusted source
• There are several ways to authenticate a person
  or information on a computer
• -password
• -pass card
• -digital signature
• -Fingerprint scan
• -Retina scan
• -face scan
• -Voice identification

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Set Up E-Payment for A Business

• In-house handling
• All-in-one solution, services like PayPal and
  ProPay make it easy for you to accept credit
  cards and other forms of electronic payment from
  your site. When a customer enters his or her
  information on your site, your payment service
  authorizes the transaction and transfers funds to
  your account.

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PayPal

• No setup fee, No monthly fee, Free tools (
  shopping cart)

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In-House Handling Requires

• Shopping Cart. Coolcart.com.
• Secure Server. Secure Socket Layer (SSL)
  technology is used to encrypt the data.
  www.instantSSL.com.79.05/year
• a system to process credit card payments and an
  Internet merchant account with a bank. Credit
  card payment processing services are available
  through online companies such as Verisign

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veriSign
Payflow Pro
Payflow Link
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References

• http//computer.howstuffworks.com/electronic-payme
  nt.htm
• http//econ.gsia.cmu.edu/ecommerce/Ecommerce8.ppt
• http//www.kentlaw.edu/legalaspects/payment.htm
• http//www.clevelandfed.org/MARKET/Conf2002/PaymtS
  ymp
• http//www.corporate.visa.com/md/dl/documents
• https//www.paypal.com/
• http//www.verisign.com/products-services/index.ht
  ml