Professional Documents
Culture Documents
An Overview
• As payment is an integral part of mercantile process,
electronic payment system is an integral part of e-commerce.
• Electronic commerce, commonly known as e-commerce or e
Commerce, or e-business consists of the buying and selling of
products or services over electronic systems such as the
Internet and other computer networks
• Thus it is a system that transfer money through Internet
Conventional vs. Electronic Payment System
• A conventional process of payment and settlement involves a buyer-to-
seller transfer of cash or payment information (i.e., cheque and credit
cards).
SELLERS’S
DEPOSITS
BANK
SELLER
GOODS &
INFO FLOW FOR PAYMENTS SERVICES
NOTATIONAL
CHANGES
BUYER
BUYER’S
BANK
• An electronic fund transfer is a financial application of EDI (Electronic Data Interchange),
which sends credit card numbers or electronic cheques via secured private networks between
banks and major corporations.
SELLERS’S
INTERMEDIAR
BANK Y CONVERTS
SELLER
OUTSIDE &
INSIDE MONEY
BUYER
TYPES OF ELECTRONIC PAYMENT SYSTEMS
• Most of the developing countries like India rely much more on electronic
funds transfer and smart cards based electronic payment system.
• But in 2009 E-PAYMENT SYSTEM PERCENT RANK
AGE
CREDIT CARD 35 1
DEBIT CARD 26.5 2
CASH ON DELIVERY 23.5 3
BANK TRANSFER 9 4
MONEY TRANSFER 5 5
POSTAL TRANSFER 1 6
PREPAID CARD 0 0
PAYMENT THROUGH 0 0
CONVENIENCE STORE
TOTAL 100 0
CRITICAL SUCCESS FACTORS OF E-COMMERCE PAYMENT
SYSTEM
Encrypt (code and scramble) the data passing between the customer and merchant
Encrypt the data passing between the customer and the company authorizing the credit card
transaction
Take sensitive information offline
• http
://globip.com/pdf_pages/globalinternational-v
ol2article2.pdf
•
• http://rbidocs.rbi.org.in/rdocs/PublicationRep
ort/Pdfs/62764.pdf
•
• http://www.dnaindia.com/money/report_nati
onal-e-payment-system-will-be-a-game-chang
er_1460876
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