Payment Methods in Ecommerce

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Contents
Executive Summary………………………………………………………………Page 2 Introduction……………………………………………………………………….Page 3 Concept and Size of Electronic Payment…………………………………………Page 5 Modes of Payment in Electronic Payment system in E- commerce……..……......Page 6 Online Credit Card Payment System…………………………………………Page 7 Process of using Credit Card……………………………………………………..Page 8 Steps involved in the online transaction…………………………………………..Page 9 Credit Card Transaction Security………………………………………………....Page 11 Terms related to online Credit card frauds………………………………………..Page 12 Security measures in online credit card payment systems……………………...…Page 13 Security Schemes………………………………………………………………….Page 14 Secret Key encryption……………………………………………………………..Page 15 Public key cryptography…………………………………………………………..Page 15 Electronic Protocols……………………………………………………………….Page 16 Electronic Fund Transfer…………………………………………………………..Page 19 Electronic Checks………………………………………………………………….Page 19 Electronic Wallets………………………………………………………………….Page 20 Virtual Credit Cards………………………………………………………………..Page 20 Concluding Remarks……………………………………………………………….Page 21 References………………………………………………………………………….Page 22

Executive summary

With the rapid advancement in technology and the expansion of business, more and more companies are venturing into E-commerce in a race to grow not just regionally but also internationally. E-commerce adaption necessitates the change of the business model companies have been following traditionally and with it comes the change in the modes to make the payments. With the popularity of the internet for common use in business since 1990, E-commerce has been growing and touching the new horizons in every category of business , there are organizations today that depends heavily upon the E-commerce and there are examples amongst the fortune 500 giants which have seen tremendous growth in the era of E-commerce conducting the business online .(“Microsoft”,n.d) When the companies conduct business online the modes of financial payments become different from that of the traditional business payment ways like cash , checks, debit cards etc. Since while buying online, there is generally no physical presence involved and customers could order the products sitting anywhere using their computers. B2B ( Business to Business)E-commerce today accounts for more than the 95 percent of total E-commerce and the B2B E-commerce means both the buying companies and the selling companies are the organizations and which consequently refer to larger amount of payment flow which is linked with buying or selling the products online , so electronic payment systems that are in place have to be very advanced when it comes to preciseness, security, privacy and the speed of processing the amount.(“Turban et al” , 2004) There are always risk associated with the information that could be revealed over the internet while making a transaction and could lead to something unexpected like misuse of the instruments like credit cards and E-checks used to make the payment online. In an effort to make electronic payments more robust and error free, there are various protocols that are being utilized to encrypt the information being sent over the internet and these protocols differ in the encryption techniques. (“Electronic Commerce,” n.d) E-commerce is based on an ever advancing technology that gives birth to high end safety measures that could be applied while making the financial payments over the internet however internet Frauds, thefts still take place and need to be addressed since E-commerce is growing and would keep on growing at a fast pace as companies look to expand and make technology their platform for success in the retail market particularly.

Introduction E -commerce is not limited only to buying and selling it also is...
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