CSE:18CS013 LM15

Contents
E-MONEY
E-money Payment Networks
Hard Electronic Currency
Soft Electronic currency
E-money Delivery Systems
Identified and Unidentified E-money
Online and Offline E-transactions
TYPES OF E MONEY
Credit Cards
Debit card
Smart Card

E-MONEY
E-Money virtual money stored in the banking computer systems. It doesn’t have a physical form
like regular paper currency. Nowadays E-money is trending because of its flexible and safe
features rather than physical cash. Let’s take a look at the common types of E-Money.

E-money Payment Networks

E-money is electronic money that can be transferred through debit cards, credit cards, computer
systems and smartphones. It gives customers the possibility to make bank to bank transactions
and buy goods and services online.

Hard Electronic Currency

Non-reversible transactions are dealt through hard electronic currency, such as those drawn
through a bank. The best part about this type of e-money is its cost efficiency of operations and
limited paperwork.

Soft Electronic currency

Reversible transactions are dealt through soft electronic currency. It includes products like UPIs
and credit cards. The benefit of reversible transactions include that users can take back a
transaction or cancel the transaction within a defined period of 72 hours.
E-money Delivery Systems

E-money can be conveniently stored on your phone, computer, a USB card(in code) or a smart
money card. Credit and debit cards are a form of digital money. You can make use of any of the
payment methods to transfer money easily.

Identified and Unidentified E-money

Identified E-money is a form of e-money that allows the user who withdraws the money to be
tracked such as credit/debit card transactions. Banks can easily track your payments.
Unidentified money is usage of physical cash which can be withdrawn from the bank and used
anywhere.

Online and Offline E-transactions

For online e-transaction one does require a proper internet connection as it conducts
transactions from bank to the third parties. But an offline e-transaction does not require internet
connection as it does not involve a bank and the e-money is stored on a card, chip or other media
and can be used by anyone.

TYPES OF E MONEY

Credit Cards
Credit is small plastic card with a unique number linked with an account. It has magnetic strip
or chip embedded init which is used to read by credit card reader.

Parties involved in credit card payment :

•A cardholder obtains a credit or debit card from an issuing bank, uses the account to pay for
goods or services.

•A merchant is any type of business that accepts card payments in exchange for goods or
services.

•A merchant bank establishes and maintains merchant accounts. Merchant banks allow
merchants to accept deposits from credit and debit card payments.

•Payment processors are companies that process credit and debit card transactions. Payment
processors connect merchants, merchant banks, card networks and others to make card
payments possible.

•Issuing banks are the banks, credit unions and other financial institutions that issue debit and
credit cards to cardholders through the card associations.

•Card associations include Visa, Mastercard, Discover and American Express. The card
associations set interchange rates and qualification guidelines, and act as the arbiter between
issuing banks and acquiring banks among other vital functions.

Debit card
It is also like credit card. It is required to have a bank account before having debit card.

How to Use a Debit Card Online?

If you're paying for something online, you can use your Debit Card. Here is a step-by-step guide
to help you complete your payments online using Debit
Cards-

•Once you are at the payment checkout, you need to choose “Pay Using Debit/ Credit Card. Once
you select on the option, you need to specify the type of card, i.e., Debit Card and whether it is a
Visa or Mastercard.

•Then, type the 16-digit Debit Card number which is on the front side of your Debit Card. You will
also have to enter the expiration date of the card.

•Once you’ve entered the Debit Card details, you may be asked for a CCD, CVV, or similar security
code. In most cases, it is a three or four- digit code that helps prove that you are authorised to use
the card. This code is mostly
found on the back of the cards.

•Once you are through the payment portal, you will be asked to enter a unique transaction code
or an OTP (one-time password) that is sent to the mobile number linked to your Debit Cards.
Once you enter the number, your
transaction is verified, and you receive a notification.

•To use a Debit Card online, you will need to know the correct billing address which is linked to
the card being used.

Smart Card
Secure and reliable Smart Card has played a key role in improving multifaceted digital security.
A smartcard is capable of storing and processing the data securely in a network of computers.
The scope ofsmart cards is increasing day by day in diverse applications like banking, telephone
services, and medical
records systems etc. Smart-Card is a secure portable storage device which
is used in various applicationsrequiring controlled access to sensitive information. It is in the
size of a credit/ debit card, incorporatedwith one or more integrated circuit chips.

It functions as a microprocessor, memory and provides an input-output interface. The

International Organization for Standardization (ISO) specifies certain voluntary international
standards in manyscientific and technological fields. However, till to date, ISO has not defined
any standards for the devicestermed as “Smart Cards.

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This page was last edited on 1 October 2022, at 09:48.