Electronic Payments

Electronic Payment

 • Electronic payment is a payment

that is transmitted electronically
including telephone lines and
Internet
Electronic Payment Options

 • Credit Cards: 90% of the transactions

are made by credit cards
 • E-checks: encrypted version of paper
checks
 • E-Cash: A consumer can by E-Cash and
store it in a digital wallet. E-Cash
transactions are anonymous.
Electronic Payment Issues

 • Electronic payment methods

should lower cost
 • Stealing of credit card number can
be an issue
 • Consumer privacy could be a
problem
A credit card payment
transaction


An electronic cash payment transaction
Electronic check transaction

 clerk authorizes it through the

TeleCheck terminal
Smart card(chip)
 A smart card can be
programmed as required. It can
store electronic money, or be
used as credit card or an
electronic check.
Benefits of Electronic Payment
- Very convenient for the consumer. In most cases,
you only need to enter your account information -

-Electronic payment lowers costs for businesses. The

more payments they can process electronically, the
less they spend on paper and postage.

- Help businesses improve customer retention. A

customer is more likely to return to the same e-
commerce site where his or her information has
already been entered and stored.
Benefits

-24/7 online bill payment. Most of

these services are free to bank
customers and coordinate easily
with personal software programs
such as Quicken or MS Money
Concerns About Electronic Payment
The privacy and the possibility of identity theft.
 Solutions
 - Using virus protection software and a firewall on
your computer.
-You should also make sure that you send your
credit card information over a secure server. Your
Internet browser will notify you when a server is
secure by showing a lock or key icon. In addition,
the URL on a secure site is usually designated by
the prefix "https" instead of "http." Retailers do
their part by using data encryption, which codes
your information in such a way that only the key
holder can decode it.
Authentication
 Authentication, is used to verify that the
information comes from a trusted source
 There are several ways to authenticate a
person or information on a computer;
 -password
 -pass card
 -digital signature
 -Fingerprint scan
 -Retina scan
 -face scan
 -Voice identification
Set Up E-Payment for A Business

 In-house handling
 All-in-one solution, services like PayPal
and ProPay make it easy for you to accept
credit cards and other forms of electronic
payment from your site. When a customer
enters his or her information on your site,
your payment service authorizes the
transaction and transfers funds to your
account.
Payment Gateway
 A payment gate way is nothing but
a transaction of money between the
user and merchant.
 In payment gateway we need two
types of accounts
1. Business Account (User)

2. Merchant Account (Owner)

Types of Payment Gateways
 PayPal (Global)
 Authorized. Net (US)
 VeriSign (Global)
 Link Point (US)
 Checkout (Global)
 World Pay (Global)
 Cyber Source (US)
 QuickBooksMerchantServices(US)
Gateway Advantages
 Credit card validation and
processing in real time
 Less Fraud
 Money is normally allowed via
browser by gateway company
Gateway Disadvantages
Every gateway charges the fees, these
fees can include some or all of the
following:
Fixed fees per month

Percentage fees per transaction

In, addition your own bank or gateway’s

bank will charge a merchant fee for the
privilege of allowing credit card purchase.
This can range from 1-5% or more
 PayPal

No setup fee, No monthly fee, Free tools ( shopping cart)

Standard Rate Merchant Rate (qualification required)

Monthly $3,000.01 $10,000.01
$0.00 USD- >
Received USD- USD-
$3,000.00 $100,000.00
Payment $10,000.00 $100,000.00
USD USD
(USD) USD USD
Fees per
2.9% + $0.30 2.5% + $0.30 2.2% + $0.30 1.9% + $0.30
transaction
USD USD USD USD
(USD)
In-House Handling Requires;
 Shopping Cart. Coolcart.com.
 Secure Server. Secure Socket Layer
(SSL) technology is used to encrypt the
data. www.instantSSL.com.$79.05/year
 a system to process credit card payments
and an Internet merchant account with a
bank. Credit card payment processing
services are available through online
companies such as Verisign
 veriSign
Payment Service Platform Service Overview Setu Monthly Mont
p Transact hly
Fee ions Fee
Credit card and $249 Up to $59.9
electronic check .00 1,000* 5
Payflow
Payflow Link®
Pro®
processing
Purchase cards Level
2 & 3 support (for
supported processors)
Toll-free telephone
support
5:00am to 6:00pm
PST
Monday through
Friday,
(except VeriSign
holidays)
Full support descriptio
n
Credit card (Level 1) $179 Up to $19.9
and electronic check .00 500* 5
processing
E-Mail and Web
support
Full support
description
* Additional transactions will be charged at $0.10 per transaction
 References
 http://computer.howstuffworks.com/electronic-
payment.htm
 http://econ.gsia.cmu.edu/ecommerce/
Ecommerce8.ppt
 http://www.kentlaw.edu/legalaspects/
payment.htm
 http://www.clevelandfed.org/MARKET/
Conf2002/PaymtSymp
 http://www.corporate.visa.com/md/dl/documents
 https://www.paypal.com/
 http://www.verisign.com/products-services/
index.html