Electronic Payment System
UNIT - 3 Electronic Payment System
Contents • What is E-payment? • Types of E-payment Systems • Digital Token-based Electronic Payment Systems • Smart Cards & Electronic Payment Systems • Credit Card-based Electronic Payment Systems • Risk & Electronic Payment Systems • Designing Electronic Payment System
What is E-payment ? • E-payment systems is the mechanism of transferring money over the Internet and technology used in this transfer is called as EFT. • EFT defined as “ any transfer of fund initiated through an e-terminal, telephonic instrument, or computer or magnetic tape to order, instruct or authorize a financial institution to debit or credit an account.
It is mostly used for Business to business (B2B) commerce where companies doing business together tend to use electronic data interchange (EDI) system to send each other bills and notices of payment. E-Payment •
Information online offline $
Products/services
Advantages of E-Payment • • • Increase payment efficiency – Reduce transaction costs – Enable trade in goods and services of very low value Increase convenience of making payments – Payment can be made swiftly and remotely using various devices Can be used for – e-commerce / e-Trade – For other purposes like paying bills, taxes, etc
MBA-II, EBF (FT-204C) Unit-3, Study material compiled by Prof. Vanita Joshi, SOM, SIMS, Indore
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Categories of EFT Banking and financial payments * Large-scale or wholesale payment * Small scale or retail payment * Home banking Retailing payments * Credit cards * Debit cards On-line electronic commerce payments * Token-based payment system ~ Electronic cash ~ Electronic checks ~ Smart cards or debit cards * Credit card-based payment systems ~ Encrypted credit cards ~ Third-party authorization numbers Main factors when selecting e-payment method • Availability (bank system, laws and regulations) • The consideration of size and type of business, type of a target group of consumers, types of products and services. • The
Contents • What is E-payment? • Types of E-payment Systems • Digital Token-based Electronic Payment Systems • Smart Cards & Electronic Payment Systems • Credit Card-based Electronic Payment Systems • Risk & Electronic Payment Systems • Designing Electronic Payment System
What is E-payment ? • E-payment systems is the mechanism of transferring money over the Internet and technology used in this transfer is called as EFT. • EFT defined as “ any transfer of fund initiated through an e-terminal, telephonic instrument, or computer or magnetic tape to order, instruct or authorize a financial institution to debit or credit an account.
It is mostly used for Business to business (B2B) commerce where companies doing business together tend to use electronic data interchange (EDI) system to send each other bills and notices of payment. E-Payment •
Information online offline $
Products/services
Advantages of E-Payment • • • Increase payment efficiency – Reduce transaction costs – Enable trade in goods and services of very low value Increase convenience of making payments – Payment can be made swiftly and remotely using various devices Can be used for – e-commerce / e-Trade – For other purposes like paying bills, taxes, etc
MBA-II, EBF (FT-204C) Unit-3, Study material compiled by Prof. Vanita Joshi, SOM, SIMS, Indore
1
Categories of EFT Banking and financial payments * Large-scale or wholesale payment * Small scale or retail payment * Home banking Retailing payments * Credit cards * Debit cards On-line electronic commerce payments * Token-based payment system ~ Electronic cash ~ Electronic checks ~ Smart cards or debit cards * Credit card-based payment systems ~ Encrypted credit cards ~ Third-party authorization numbers Main factors when selecting e-payment method • Availability (bank system, laws and regulations) • The consideration of size and type of business, type of a target group of consumers, types of products and services. • The