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Classification of Electronic Payments
Classification of Electronic Payments
E-commerce
Electronic commerce, commonly known as e-commerce, is the buying and selling of product or service over electronic systems such as the Internet and other computer networks. Electronic commerce draws on such technologies as electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems, and automated data collection systems.
Types of E-commerce
i. Inter-Organizational( business to business) ii. Intra-Organizational(within business) iii.Customer to Business iv. Intermediary and E-commerce
Distribution Management: Purchase orders, advanced ship notices, ensuring the accurate data.
Channel Management: Technical, product, pricing information, distributor etc..mainly information sharing. Payment management: reduces the Clerical errors, increase the speed, lowers the transaction fees and cost.
Intra-Organizational(within business)
Work Group Communications: Enabling the Managers to Communicate with the employees using E-mail, videoconferencing, bulletin boards. Electronic Publishing: help Companies to publish Hr manuals product specifications, online publishing Sales Force productivity: Flow of Information between the production and sales forces, between the sales and customers.
Social interaction: Consumers communicate through E-mail, videoconferences, news groups. Personal finance Management: Quicken the consumers to manage investment and personal finances using online banking.
Purchasing product and information: To find the online information about new products and services.
Information Access providers-netcom, PSI Payment/transaction processors-VISA, mastercard Information directory providers-yahoo, alta vista, lycos
1. Pro: No Standing in Queues or Being Placed on Hold Forever 2. Con: Lack of Personal Touch
For customers, this is one of the most popular conveniences of ecommerce. I miss the personal touch and relationship that develops with a retail store. In comparison, ecommerce is far more sterile.
There are several shopping search engines and comparison shopping websites that help consumers locate the best prices. While buyers love this, sellers find it too restrictive as many of them get filtered out of the consumer's consideration set.
Especially for people who are not situated in major urban centers, this can be a big advantage. Likewise ecommerce opens new markets for ecommerce businesses.
Though there is nothing about ecommerce that makes it intrinsically oriented to discounts, the way online business has evolved has led to lowered prices online. This is an advantage for the buyer, but a disadvantage for the seller.
Since there are no shelf size or store size limitations, ecommerce businesses are able to list many different items
Consumers and businesses alike suffer from credit card fraud. Some doomsayers go so far as to predict that fraud will lead to the demise of online business.
Consumers run the risk of identity fraud and other hazards as their personal details are captured by ecommerce businesses.Businesses run the risk of phishing attacks and other forms of security fraud.
Auction sites and listing sites allow individuals to buy and sell from each other. This opens a whole new paradigm of ecommerce. The most famous enabler of consumer to consumer (C2C) ecommerce is eBay.com.
No longer does one need to go and buy a CD of one's favorite music. Within a few minutes, one can download digital products, such as music, and start using them immediately.
If shopping is about instant gratification, then consumers are left empty-handed for some time after making a purchase on an ecommerce website.
Conventional wisdom lays a lot of emphasis on the location of the physical store. But ecommerce has liberated businesses from the shackles of location.
Since ecommerce processes are automated to a large extent, fewer employees are required for lower-end jobs. Human resources can be used more effectively for higher-level functions.
Electronic Payment
E-Payment
Some Examples
It's safe you don't need to give out your card details when you shop. It's quick just type in your password. It's free no charges for paying or setting up your account.
CLASSIFICATION OF E-PAYMENTS
Micropayment systems
I. VISA cash of VISA International VISA CASH (1995) It provides anonymity- operational cost is high as transactions pass through the network for settlement at banks. II. MONDEX OF Mondex International:
Electronic cash
Electronic cash, e-cash, digital cash -provides the means to transfer money between parties over a internet. Involves a use of computer network. Internet. Digital stored value system. In technical terms, electronic money is an online representation, used to exchange value within another system, or within itself as a stand alone system. In principle this process could also be done offline.
Properties of e-cash
Independence
Non-reusability
Anonymity
Transferability
Diversibility
Secure storage
Working of E-payments
transfer money
credit merchants
Electronic mint
R e d e e m e c a s h
Merchants bank
Send e-cash
merchant
deliver goods
Advantages of E-Cash
I. Advantages
Time saving Useful for individual users International exchange Lots of choice Easy to compare prices
Disadvantages of e-CASH
II. Disadvantages:
Fraud Failure of technology Loss of human interaction Power failure, loss of records
Electronic cheques
Electronic chequeing pertains to the use of networking services to issue and process payments that emulate real world chequeing.
The payer issues a digital cheque to the payee and the payee deposits it in the bank to redeem money, each transaction is carried over the internet.
Merchants bank
v a l i d a t e f o r w a r d
Custome rs browser
Access and browse Select goods and pay echeques Close transaction
Merchant s system
Advantages
Time saved Reduced paper handling cost Reduction in bounced cheques Disadvantage
Customers who opt to pay with e-cheques are often at disadvantage as money is immediately debited from account ,in contrast to paper cheques which has float time during which they can transfer the funds to their account
Forward receipts
Merchants bank
r e q u e s t p r o v i d e
Consumers system
Merchants system
Memory cards
Shared key cards Signature carrying cards
Integrity Authenticatio n
Privacy
Nonrepudiation
SSL encrypts the customer order, which includes the payment information. This data is sent from the customer to the merchant via a secure pipe.
The publicly available encrypting-key is widely distributed, while the private decrypting-key is known only to the recipient. Messages are encrypted with the recipient's public key, and can be decrypted only with the corresponding private key.
Presented by:
Harshini
Ruby Kenen Sravani Sharuna Megha