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8/7/2019 Group5_Section A_Electronic Payment Mechanisms
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Group 5 Section A
Saurabh Gothoskar (10P017)Arjun Mehra (10P029)Pratyaksh Mehra (10P039)Saumya Sinha (10P048)Shiv Socrates Kapoor (10P050)Vishal Shah (10P060)
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E-payment systemsy To transfer money over the Internet
y Methods of traditional payment
y Cashy Cheque
y Methods of electronic payment
y Electronic cash
y Software wallets
y Smart cards
y Credit/Debit cards
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Requirements for e-paymentsy Atomicity
y Money is not lost or created during a transfer
y Atomicity of goodsy Money and goods are exchanged atomically
y Non-repudiation
y No party can deny its role in the transaction
y Digital signatures
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2/16/00 EMTM 553 5
E-cash ConceptMerchant
Consumer
Bank
1
2
3
4
5
1. Consumer buys e-cash from Bank
2. Bank sends e-cash bits to consumer (after
charging that amount plus fee)
3. Consumer sends e-cash to merchant
4. Merchant checks with Bank that e-cash
is valid (check for forgery or fraud)
5. Bank verifies that e-cash is valid
6. Parties complete transaction: e.g., merchant
present e-cash to issuing back for deposit
once goods or services are delivered
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Smart Cardsy Plastic card containing an embedded microchip
y Common applications
y Ticketless travely Authentication, ID
y Store loyalty programs
y Government ID cards
y Licenses
y Mall parking
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Credit Cardsy Used for the majority of Internet purchases
y Has a preset spending limit
yCurrently most convenient method
y Most expensive e-payment mechanism
y Merchant to authenticate payment card
y Merchant must check with card issuer to ensure funds are
available and to put hold on funds needed to make currentcharge
y Settlement occurs in a few days when funds travel throughbanking system into merchants account
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Credit Card Processing
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Google Checkouty Users store their credit or debit card and shipping
information in their Google Account
y Purchase at participating stores at the click of a button
Google Checkout
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PayPaly An e-commerce business for money transfers
y Payment processing for online vendors, auction sites and
other commercial usersy Operates in 190 markets
y Manages more than 232 million accounts, more than 87million of them active
y
Applicationsy Only payment mechanism for Blackberry App World
y Student Accounts for teens
y Peer-to-peer online transactions
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E-payments in India (2008)
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Disadvantages of e-paymentsy Lack of authentication
y Repudiation of charges
y Fraudulent transactionsy Opening of an online account with password
protection
y Identity theft over unsecure networks
y Communication overheads
y High initial implementation expenditure
y Non-immediate prevention from thefts
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THANK YOU
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