26-06-2014, 11:00 AM
Electronic Payment Systems
Electronic Payment Systems.ppt (Size: 378.5 KB / Downloads: 62)
Learning Objectives
Understand the shifts that are occurring with regard to noncash and online payments.
Discuss the players and processes involved in using credit cards online.
Discuss the different categories and potential uses of smart cards.
Discuss various online alternatives to credit card payments and identify under what circumstances they are best used
The Payment Revolution
Some crucial factors come into play in determining whether a particular method of
e-payment achieves critical mass:
Independence
Interoperability and portability
Security
Anonymity
Divisibility
Ease of use
Transaction fees
Regulations
Smart Cards
contact card
A smart card containing a small gold plate on the face that when inserted in a smart card reader makes contact and passes data to and from the embedded microchip
contactless (proximity) card
A smart card with an embedded antenna, by means of which data and applications are passed to and from a card reader unit or other device without contact between the card and the card reader
Stored-Value Cards
stored-value card
A card that has monetary value loaded onto it and that is usually rechargeable
Anyone can obtain a stored-value card without regard to prior financial standing or having an existing bank account as collateral
The stored-value card market is growing rapidly
E-Micropayments
e-micropayments
Small online payments, typically under $10
E-Checking
e-check
A legally valid electronic version or representation of a paper check
Electronic Bill Presentmentand Payment
electronic bill presentment and payment (EBPP)
Presenting and enabling payment of a bill online. Usually refers to a B2C transaction
B2B Electronic Payments
EIPP Options
ACH network
Purchasing cards (p-cards)
Fedwire or wire transfer
Letters of credit for global payments
The Sales Tax Issue
A 1992 ruling by the U.S. Supreme Court held that a state cannot force out-of-state businesses to collect sales taxes unless the business has a physical presence—a store, factory, or distribution center—in the state
Researchers at the University of Tennessee estimate that in the United States, state and local governments have lost $15.5 billion in sales taxes because of online sales
Managerial Issues
What B2C payment methods should we use?
What B2B payment methods should we use?
Should we use an in-house payment mechanism or outsource it?
How secure are e-payments