DIGITAL

PAYMENTS - PROCESS
AND
SAFEGUARD
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Table of contents

Title Slide No.

What is digital payment

________________________________________________________________ 05
Modes of digital payment
______________________________________________________________ 06
Pros & Cons of digital payment
________________________________________________________ 16
Safeguard digital transactions______________________________________________________ 17

Digital Payments – Process & Safeguard

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Objective

Concept of Modes of Pros & Cons of Safeguard

digital payment digital payment digital payment digital transactions

Digital Payments – Process & Safeguard

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What is digital payment?

Way of making cashless payment

Transaction between payer and payee takes place online, without physical exchange of money.

Money exchanged digitally using banking cards, internet, smartphones.

Digital Payments – Process & Safeguard

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Modes of digital payment

Internet Mobile Point of Banking

USSD
Banking wallets Sale Cards

Mobile Aadhar Enabled

Micro Unified Payments
Banking Payment System
ATMs Interface
(AEPS)
(UPI)

Digital Payments – Process & Safeguard

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Bank cards

Debit Cards Credit Card Prepaid Cards

Linked to your Issued by banks Preloaded from

bank account based on credit your bank
history account
Used to pay at
Widely accepted Safe to use,
shops, online limited amount
shopping of transaction

Digital Payments – Process & Safeguard

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Internet banking

NEFT RTGS IMPS

Instant interbank
Transferring electronic fund
Payment technique transfer through
for transferring funds on real
time on gross mobiles or online
funds banking
settlement basis
Money transferred Beneficiary's mobile
Fastest way of
within two hours of number & Mobile
remitting funds
transaction done via banking Money Identifier is
channel required for doing
transaction

Digital Payments – Process & Safeguard

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Unified payments interface (UPI)

Platform for accessing different bank accounts by

one mobile application

UPI ID and 4-digit PIN are required to send and

receive money

Apps like Google Pay, BHIM, Phone Pe supports

UPI payments

Digital Payments – Process & Safeguard

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Mobile banking

System that allows customers to perform a

number of financial transactions through a mobile
device

Every bank provides their own mobile banking

App

Scope increasing with introduction of mobile wallets,

digital payment applications and other services like
the UPI.

Digital Payments – Process & Safeguard

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Mobile wallet

Virtual wallet service that can be used by

downloading an app for making payments

Services offered includes paying utility bills,

recharging mobile, sending and receiving money,
online shopping

Example are Paytm, Mobikwik, Airtel Money

Digital Payments – Process & Safeguard


USSD based mobile banking – *99#
Mobile banking facility for doing
mobile banking without internet
connection or using smartphones
Dial *99# from your phone and
follow the instructions on your
screen
Digital Payments – Process & Safeguard
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How do u Register ?
Dial *99# from your Registered
Mobile Number (RMN).
Enter your Bank’s name or Bank
IFSC.
Select your Bank Account
Enter Last 6 digits of your debit card.
Enter your expiry.
Create your UPI PIN
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Point of sale (POS)

Point-of-sale (POS) terminal captures the card data and secure transfer of funds from the
customer’s account to the merchant’s account.

Physical, Mobile & Virtual PoS

Use in 3 easy steps

Swipe/Scan Input amount Generate receipt

Digital Payments – Process & Safeguard

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Micro ATMs
Card swiping machines through which Business
Correspondents (BC) deliver essential banking services

Conduct transactions like withdrawing cash, balance

enquiry, cash deposits, etc.

Operate via fingerprint scanner

Portable machines having connectivity through GSM,

makes it possible to travel from village to village

Digital Payments – Process & Safeguard

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Aadhar enabled payment system (AEPS)

What can you do?

AEPS allows Aadhaar-linked bank Account balance

accounts to transfer money between
two bank accounts Aadhar to Aadhar fund transfer
Prevalent where there are no branches Cash deposit
(rural areas)
Cash withdrawal
Can do transactions at any AEPS point
without any pin or password (AEPS Payment transactions
points – Micro ATMs)

Digital Payments – Process & Safeguard

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Pros and cons of using digital payments

Advantages Disadvantages

Ease and convenience Password Threats

Instant Payment
Low risk of theft
Availability of many options
Risk of Being Hacked
Processing fees, set up fees adds
to the cost
Risk of theft or loss of Smart
Cards

Digital Payments – Process & Safeguard

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Safeguarding digital payments – DO’s

Change password assigned by bank for the first time

Download app from trusted source

Use trusted Wi-Fi network and computer for digital transactions

Install an antivirus on computer to remove viruses that steal important information

Always clear your browser cache after each session

Log off completely from banking website, close the browser and log off computer, when not in use

Register for SMS alerts to keep track of transactions in your account

Digital Payments – Process & Safeguard

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Safeguarding digital payments – DONT’s

Don’t disclose your personal or confidential information to anyone over email/SMS/phone call

Don’t enter login or other sensitive information in any pop up window

Avoid accessing Internet banking accounts from cyber cafes or shared computer

Do not share confidential information like PIN with anyone

Never use the ‘Remember Password’ feature provided by browsers to save your net banking password

Don’t use mobile devices to store User ID, password and other account related sensitive details

Don’t leave your internet banking session unattended. Always logout completely.

Digital Payments – Process & Safeguard

To reach out to your nearest Chartered Accountant (CA)
visit caconnect.icai.org