28-12-2012, 07:01 PM
E-Payment Methods
1E-Payment.ppt (Size: 142 KB / Downloads: 25)
Traditional Payment Methods
Payment: The transfer of money from one individual or legal entity to another
Cash
Personal Cheques
Money orders (Bank note)
Credit cards
Debit cards
Selection of Payment Method
Based on:
Convenience
Trace-ability
Repudiation
Financial risk
Fraud protection
Attacks on traditional methods?
Credit Cards
A very common method of payment
Cards are issued by a bank
Unique 16-digit number (including check digits) and an expiration date
Third party authorization companies verify purchases
Requirements ofE-Payment Methods
Enable an honest customer to convince a seller to accept payment
Prevent a dishonest customer from making unauthorized or fraudulent payments
Ensure the privacy of honest participants
Scalable to very large numbers of customers
Integrate with existing and evolving systems
E-Payment Pros/Cons
Pros:
Potential for great flexibility
Low transaction costs
Rapid and diverse purchase power
Cons:
Perfect copying of transactions is possible
Vulnerability to world-wide attack
Lack of anonymity, potential for privacy intrusion
Digital Currency
Digital cash accounts like traditional bank accounts
Buyers deposit cash in the account and spend it at E-Commerce sites (acct # is passed using secure proprietary protocol)
E-Comm merchants can feel sure of payment
Customers do not need a credit card and spending is limited to account balance
E-Wallets
Established by financial institutions in partnership with member E-Commerce sites
Allows customer to submit billing and shipping info with one click at member sites
Also can store e-Cheques, e-Cash and credit card information
Not as popular as originally projected