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Web Payment Systems

This FREE guide covers everything you need to know

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17 views24 pages

Web Payment Systems

This FREE guide covers everything you need to know

Uploaded by

zwtht6h6xf
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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WEB PAYMENT

SYSTEMS
PAYMENT SYSTEM

■A payment system is any system used to


settle financial transactions through the
transfer of monetary value, and includes
the institutions, instruments, people, rules,
procedures, standards, and technologies
that make such an exchange possible.
ELECTRONIC PAYMENT SYSTEM

■It is a system of financial exchange


between buyers and sellers in the online
environment that is facilitated by a digital
financial instrument (such as encrypted
credit card numbers, electronic cheques, or
digital cash) backed by a bank, an
intermediary, or by legal tender.
TYPES OF TRANSACTIONS IN EPS
■ A one time customer to vendor payment
It is used when you shop online at an e-commerce site,
such as Amazon
■ Recurring customer to vendor payment
It is used when you pay a bill through a regularly
scheduled direct debit from your checking account or
an automatic charge to your credit card.
■ Automatic bank to vendor payment
In this, your bank offers a service called online bill pay.
ONLINE PAYMENT SERVICES AND
SYSTEMS
■ Square ■ Intuit goPayment
■ Serve
■ Google wallet ■ Samurai
■ Dwolla ■ Authorize.net
■ Amazon payment ■ Worldpay
■ 2checkout ■ Eway
■ PayPal ■ IcePay
■ WePay ■ Braintree
■ Skrill ■ Stripe
PAYMENT METHODS
PAYMENT CARDS

■Credit cards
■Debit cards
■Charge cards
■Smart cards
CREDIT CARDS

A form of the e-payment system which


requires the use of the card issued by a
financial institution to the cardholder for
making payments online or through an
electronic device, without the use of cash.
DEBIT CARDS

■Plastic card with a unique number.


■Requires a bank account.
■No interest charges related to this card.
CHARGE CARDS

■Are similar to credit cards except they have


no revolving credit line so they have to
make payments every month.
SMART CARDS

■It is similar to credit card and debit card in


appearance but it has a small
microprocessor chip embedded in it.
■The money that is loaded in the smart card
reduces as per the usage by the customer
and has to be reloaded from his/her bank
account.
ELECTRONIC CASH

■It is a form of an electronic payment


system, where a certain amount of money
is stored on a client’s device and made
accessible for online transactions.
■In the case of e-cash, both customer and
merchant have to sign up with the bank or
company issuing e-cash.
E-WALLETS
■E-wallet is a card with microchip
■A form of prepaid account that stores user’s
financial data, like debit and credit card
information to make an online transaction
easier.
■ E-Wallets store your credit or debit card
information in a mobile device; you can use
the e-Wallet either by holding your phone near
a special payment terminal in-store or by
using the e-Wallet app for in-app or web
E-CHEQUE

■A digital version of an old paper cheque. It’s


an electronic transfer of money from a bank
account, usually checking account, without
the use of the paper cheque.
ELECTRONIC FUND TRANSFER

■It is one of the oldest methods to transfer


money.
■It is the groundwork of groundless and
cheque-less culture, it is used to transfer
money without any paper money changing
hands.
DIRECT DEPOSIT
■When customers instruct their banks to pull
funds out of their accounts to complete
online payments. Customers usually inform
their banks on when funds should be pulled
out of their accounts, by setting a schedule
through them.
CRYPTOCURRENCY
■It is a digital currency based on a
cryptographic system.
■Cryptocurrencies are rapidly gaining
interest as a payment method for online
transactions, particularly among young,
moneyed professionals with IT expertise.
DIRECT CARRIER PAYMENTS

■For some products and services, the ability


to bill customers directly through their
existing telephone or utility carrier is the
most efficient way to effectuate payment.
NET BANKING
■It is a simple way of paying for online
purchases directly from the customer’s bank.
It uses a similar method to the debit card of
paying money that is already there in the
customer’s bank. Net banking does not
require the user to have a card for payment
purposes but the user needs to register with
his/her bank for the net banking facility. While
completing the purchase the customer just
needs to put in their net banking id and pin.
ENTITIES
■ Payer-A Payer is a person who makes the payment.
■ Payee- A Payee is a person who receives payment.
■ Issuer- holds payer’s account
■ Acquirer- holds payee’s account and assets.
■ Trustee- an entity that is independent from all parties .
Trustee is asked to adjudicate any disputes between payer
and payee.
■ Payment Gateways- the entities that act as a medium for
transaction processing between the entities ( e.g.
MasterCard visa) and Certification authorities (CA) . They
issue public key certificates to entities.
PHASES IN E-PAYMENT

Registration
■The payee must register themselves with
the site of online service providers.
■By filling a form and creating user ID.
■A payee can access subscribed billing
information and payments, simply by
logging in his ID.
Invoicing
In this phase, payee obtains an invoice for
payment from the payer .
Payment selection and
processing
The payer selects type of payment (card based,
e-cash, e-cheque) based on the type of
payment payee accepts.
Payment authorisation and
confirmation
The acquirer on receiving payment details from
the payee authorises the payment and issues
a receipt containing the success or failure of
payment.

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