Group5_Section A_Electronic Payment Mechanisms

8/7/2019 Group5_Section A_Electronic Payment Mechanisms

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Group 5 Section A

Saurabh Gothoskar (10P017)Arjun Mehra (10P029)Pratyaksh Mehra (10P039)Saumya Sinha (10P048)Shiv Socrates Kapoor (10P050)Vishal Shah (10P060)


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E-payment systemsy To transfer money over the Internet

y Methods of traditional payment

y Cashy Cheque

y Methods of electronic payment

y Electronic cash

y Software wallets

y Smart cards

y Credit/Debit cards


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Requirements for e-paymentsy Atomicity

y Money is not lost or created during a transfer

y Atomicity of goodsy Money and goods are exchanged atomically

y Non-repudiation

y No party can deny its role in the transaction

y Digital signatures


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2/16/00 EMTM 553 5

E-cash ConceptMerchant

Consumer

Bank

1

2

3

4

5

1. Consumer buys e-cash from Bank

2. Bank sends e-cash bits to consumer (after

charging that amount plus fee)

3. Consumer sends e-cash to merchant

4. Merchant checks with Bank that e-cash

is valid (check for forgery or fraud)

5. Bank verifies that e-cash is valid

6. Parties complete transaction: e.g., merchant

present e-cash to issuing back for deposit

once goods or services are delivered


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Smart Cardsy Plastic card containing an embedded microchip

y Common applications

y Ticketless travely Authentication, ID

y Store loyalty programs

y Government ID cards

y Licenses

y Mall parking


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Credit Cardsy Used for the majority of Internet purchases

y Has a preset spending limit

yCurrently most convenient method

y Most expensive e-payment mechanism

y Merchant to authenticate payment card

y Merchant must check with card issuer to ensure funds are

available and to put hold on funds needed to make currentcharge

y Settlement occurs in a few days when funds travel throughbanking system into merchants account


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Credit Card Processing


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Google Checkouty Users store their credit or debit card and shipping

information in their Google Account

y Purchase at participating stores at the click of a button

Google Checkout


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PayPaly An e-commerce business for money transfers

y Payment processing for online vendors, auction sites and

other commercial usersy Operates in 190 markets

y Manages more than 232 million accounts, more than 87million of them active

y

Applicationsy Only payment mechanism for Blackberry App World

y Student Accounts for teens

y Peer-to-peer online transactions


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E-payments in India (2008)


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Disadvantages of e-paymentsy Lack of authentication

y Repudiation of charges

y Fraudulent transactionsy Opening of an online account with password

protection

y Identity theft over unsecure networks

y Communication overheads

y High initial implementation expenditure

y Non-immediate prevention from thefts


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THANK YOU

Group5_Section A_Electronic Payment Mechanisms

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