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ELECTRONIC PAYMENT ELECTRONIC PAYMENT MECHANISM MECHANISM

Electronic Payment Mechanism Cr-01

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Page 1: Electronic Payment Mechanism Cr-01

ELECTRONIC PAYMENT ELECTRONIC PAYMENT MECHANISMMECHANISM

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PRESENTATION ON E PAYMENT MECHANISMPRESENTATION ON E PAYMENT MECHANISM

BY :BY :

1.1. Anil KumarAnil Kumar

2.2. Chandan SinghChandan Singh

3.3. Sambit GantayatSambit Gantayat

4.4. Sunil Bihari DasSunil Bihari Das

5.5. Sushil Kumar SinghSushil Kumar Singh

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E- Payment mechanismE- Payment mechanism

Application in power industryApplication in power industry

Application in railway SectorApplication in railway Sector

ConclusionConclusion

Question AnswerQuestion Answer

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2/16/00 EMTM 553 4

E-payment systemsE-payment systems

To transfer money over the InternetTo transfer money over the Internet Methods of traditional paymentMethods of traditional payment

• Cheque , DD, Money order, challan or Cheque , DD, Money order, challan or cashcash

Methods of electronic paymentMethods of electronic payment• Electronic cash, software wallets, smart Electronic cash, software wallets, smart

cards, and credit/debit cardscards, and credit/debit cards• Scrip is digital cash minted by third-Scrip is digital cash minted by third-

party organizationsparty organizations

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Advantages of E-Billing

• Reduction in expenses related to billing and processing payments

• Electronic advertising inserts can be customized to the individual customer

• Reduces customer’s expenses & time

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Growth in online banking usage in IndiaGrowth in online banking usage in India

According to the survey conducted by the Internet and Mobile According to the survey conducted by the Internet and Mobile Association of India (IAMAI), expected no. to grow to 16 million plus.Association of India (IAMAI), expected no. to grow to 16 million plus.

Online booking user were 43 per cent (age group 25-35 yrs).Online booking user were 43 per cent (age group 25-35 yrs). Male user 83 per cent Male user 83 per cent Users uses 3 to 4 bank for online payment 60% had relationships Users uses 3 to 4 bank for online payment 60% had relationships

with two or three banks.with two or three banks. 16 per cent of the users preferred using online banking services 16 per cent of the users preferred using online banking services

over the weekend.over the weekend. 39 per cent preferred weekdays.39 per cent preferred weekdays. 7 per cent of users bank online between 12 midnight and 8 a.m.7 per cent of users bank online between 12 midnight and 8 a.m. 28 per cent between 8 a.m. and 12 noon28 per cent between 8 a.m. and 12 noon 20 per cent between noon and 3 p.m.20 per cent between noon and 3 p.m. 13 per cent between 3 p.m. and 6 p.m. 13 per cent between 3 p.m. and 6 p.m. 17 per cent use online banking between 6 p.m. and 9 p.m. 17 per cent use online banking between 6 p.m. and 9 p.m. 15 per cent prefer using it between 9 p.m. and midnight.15 per cent prefer using it between 9 p.m. and midnight.

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E-PAYMENT TECHNOLOGYE-PAYMENT TECHNOLOGY

Electronic payment systems broadly Electronic payment systems broadly divided into three categoriesdivided into three categories : :

Encrypted Credit Cards Approach.

(It use the netscape browser & (It use the netscape browser & transaction realise if the merchant transaction realise if the merchant has also a secure netscape server)has also a secure netscape server)

Email Approach. Electronic Cash Approach. Electronic Cash Approach.

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Encrypted Credit CardsEncrypted Credit CardsSET (secure electronic transaction) :SET (secure electronic transaction) :

SET is a standard protocol for secure credit card SET is a standard protocol for secure credit card transaction on the internet over open network. This transaction on the internet over open network. This protocol uses a new technology called DUAL protocol uses a new technology called DUAL SIGNATURE for extra levels of authentication.SIGNATURE for extra levels of authentication.

It uses of multilevel of cryptography (authenticate It uses of multilevel of cryptography (authenticate both merchants & card holder)both merchants & card holder)

SET has following security features : SET has following security features : . . • Confidentiality of information. Confidentiality of information. • Integrity of data. Integrity of data. • Cardholder account authentication.Cardholder account authentication.• Merchant Authentication. Merchant Authentication. • Interoperability. Interoperability. • Anonymity.Anonymity.

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Encrypted Credit CardsEncrypted Credit Cards NetBillNetBill..

The Net Bill system enables consumers and merchants to The Net Bill system enables consumers and merchants to communicate directly with each other, using Net Bill to confirm & communicate directly with each other, using Net Bill to confirm & ensure security for all transaction. Net bill system will only deal ensure security for all transaction. Net bill system will only deal with soft goods i.e. book that can be transferred electronically with soft goods i.e. book that can be transferred electronically over the internet.over the internet.

Net Bill security features are :Net Bill security features are :• Cryptography. ( It is based on Kerberos security protocol)Cryptography. ( It is based on Kerberos security protocol)

  (It Uses symmetric key cryptography & asymmetric key cryptography   (It Uses symmetric key cryptography & asymmetric key cryptography • Passwords.Passwords.

                    • Challenge-Responses.Challenge-Responses.

 This provides an additional layer of security for the consumers and their  This provides an additional layer of security for the consumers and their accounts. accounts.

• Financial Security.Financial Security. All Net Bill accounts are held by Mellon Bank N.A., a federally insured  All Net Bill accounts are held by Mellon Bank N.A., a federally insured institution and one of the leading banks in the United States. institution and one of the leading banks in the United States.

• Privacy.Privacy. Any information about user account will not be shared with anyone except  Any information about user account will not be shared with anyone except as required by law. as required by law.

• FraudFraud Net Bill protects both consumers and merchants from fraud because net  Net Bill protects both consumers and merchants from fraud because net bill server has information about the product only bill server has information about the product only

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Encrypted Credit CardsEncrypted Credit Cards Open Market. Open Market.

Open Market´s products provide centralized internet commerce & Access control Open Market´s products provide centralized internet commerce & Access control services to N no . Of servers product for sale that may be accessed only by services to N no . Of servers product for sale that may be accessed only by paying subscribers or by authorized users. paying subscribers or by authorized users.

There are five products of the Open Market system used to accomplish the There are five products of the Open Market system used to accomplish the Electronic Commerce transactions :Electronic Commerce transactions :

• OM-Transact.OM-Transact.          It provides a back-office infra-structure, responsible for secure Internet Commerce,           It provides a back-office infra-structure, responsible for secure Internet Commerce, enabling secure payment, complete order management, and online customer service. enabling secure payment, complete order management, and online customer service.

• OM-AccessOM-Access..          It enable centralized authentication and authorization for messages transfer over the           It enable centralized authentication and authorization for messages transfer over the Internet. Internet.

• OM-SecureLink Executive.OM-SecureLink Executive.          It adds to a web server ability to provide a protected web-site´s content, so that it can           It adds to a web server ability to provide a protected web-site´s content, so that it can only be accessed by authorized individuals. only be accessed by authorized individuals.

• ActiveCommerce DB.ActiveCommerce DB.          It allows a web content to be dynamically generated on the basis of queries to a           It allows a web content to be dynamically generated on the basis of queries to a relational database. relational database.

• Secure WebServer.Secure WebServer.          It provides a web server with a secure (encrypted) communication using Secure           It provides a web server with a secure (encrypted) communication using Secure Socket Layer. Socket Layer.

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This mechanism enable customers to use credit This mechanism enable customers to use credit cards for online transactions without sending cards for online transactions without sending their credit card information over the Internet. their credit card information over the Internet. The card numbers are stored away on a secured The card numbers are stored away on a secured computer system and never passed over the computer system and never passed over the Internet. The customer is given an ID to identify Internet. The customer is given an ID to identify himself or herself during the online transaction. himself or herself during the online transaction.

First Virtual.First Virtual.• It never asks for the credit card information. It never asks for the credit card information. • All transactions will use Virtual PIN, which works like an All transactions will use Virtual PIN, which works like an

ID.ID.• Virtual PIN no provided by first Virtual Co. (eg. ATM)Virtual PIN no provided by first Virtual Co. (eg. ATM)• The card (credit/debit card no is stored offline on secured The card (credit/debit card no is stored offline on secured

computer not connected to the internet.computer not connected to the internet.• The security mechanism for First Virtual protocol is very The security mechanism for First Virtual protocol is very

minimal.minimal.

Email ApproachEmail Approach

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Electronic CashElectronic Cash

Electronic CashElectronic Cash  It is a digital equivalent of dollars and cents. It uses electronic It is a digital equivalent of dollars and cents. It uses electronic credit card transaction technology. credit card transaction technology.

CyberCash.CyberCash.CyberCash is one of the company with world-wide export license CyberCash is one of the company with world-wide export license of 1024-bit RSA encryption algorithm. CyberCash offers a real-of 1024-bit RSA encryption algorithm. CyberCash offers a real-time and secured credit card authentication service over the time and secured credit card authentication service over the Internet based on digital signatures. Internet based on digital signatures.

The CyberCash protocol has addressed the following issues to The CyberCash protocol has addressed the following issues to create a perfect electronic payment system : create a perfect electronic payment system : • Universal.Universal.

Any consumer with a valid credit card can take advantage of this system. Any consumer with a valid credit card can take advantage of this system. • ConvenientConvenient

All transactions are performed on-line, and are typically concluded in less All transactions are performed on-line, and are typically concluded in less than 20 seconds. than 20 seconds.

• AutomatedAutomated

• SecureSecureCard information is automatically encrypted using highly secure 768-bit Card information is automatically encrypted using highly secure 768-bit and soon to be 1,024-bit public key encryption technology. and soon to be 1,024-bit public key encryption technology.

• ExportableExportableThe CyberCash system is approved for export by the United States The CyberCash system is approved for export by the United States government. government.

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DigiCash.DigiCash.

DigiCashDigiCashDigi Cash (Electronic cash) is based on the Digi Cash (Electronic cash) is based on the increasingly used cryptographic systems for "digital increasingly used cryptographic systems for "digital signatures" and "blind signatures".signatures" and "blind signatures".

It uses digital money for security and privacy It uses digital money for security and privacy advantages that improved over the real paper cash. advantages that improved over the real paper cash. The following features of DigiCash fulfill the The following features of DigiCash fulfill the requirement of the electronic payment systemrequirement of the electronic payment system : :• Authentication and IntegrityAuthentication and Integrity

 ECash can not be forged, because of the use of "digital  ECash can not be forged, because of the use of "digital signatures". signatures".

• Privacy and Anonimity.Privacy and Anonimity.With the use of "blind signatures", the customer can be With the use of "blind signatures", the customer can be protected from the Bank. The coin issued by the Bank protected from the Bank. The coin issued by the Bank cannot be linked back to a particular owner. cannot be linked back to a particular owner.

• AuthorizationAuthorizationThe particular Bank is the only party that can create the The particular Bank is the only party that can create the ECash, and every "coin" issued will be signed using the ECash, and every "coin" issued will be signed using the Bank´s digital signatures. Bank´s digital signatures.

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Electronic cashElectronic cash

Millicent.Millicent.

It uses a kind of currency, called scrip. Scrip is like cash. You can spent with a It uses a kind of currency, called scrip. Scrip is like cash. You can spent with a specific merchant. specific merchant.

Like electronic cash, scrip consist of a signed message attesting that a particular Like electronic cash, scrip consist of a signed message attesting that a particular serial number holds a particular value. Unlike typical cash, the message will contain serial number holds a particular value. Unlike typical cash, the message will contain an expiration date, and a particular vendor with whom the scrip can be redeemed.an expiration date, and a particular vendor with whom the scrip can be redeemed.

The security preventions of Millicent protocol come from several The security preventions of Millicent protocol come from several aspects : aspects :

Privacy and IntegrityPrivacy and Integrity..All transactions are protected. Millicent protocol establishes a All transactions are protected. Millicent protocol establishes a shared secret key between the parties involved and then use shared secret key between the parties involved and then use the secret key to encrypt messages. the secret key to encrypt messages. • Prevention of Replay attackPrevention of Replay attack

 The scrip that has been used previously, cannot be reused. Each  The scrip that has been used previously, cannot be reused. Each request is signed with the secret key, so there is no way to request is signed with the secret key, so there is no way to intercept scrip to make a different request. intercept scrip to make a different request.

• Inexpensive transactions limit the value of fraud.Inexpensive transactions limit the value of fraud. The transaction involved in this protocol usually deals with  The transaction involved in this protocol usually deals with inexpensive goods.inexpensive goods.

• Fraud is detectable and traceable.Fraud is detectable and traceable.  

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Electronic Bill Presentment and Electronic Bill Presentment and PaymenPayment IN Power sectort IN Power sector

Bill Presentment and Payment application enables customers to present their bills on Internet and make payments through debit and credit cards.

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Online Utility bill payment- ICICI BankOnline Utility bill payment- ICICI Bank

There are three ways of paymentThere are three ways of payment

PresentmentPresentment: In case of Billers in the Presentment Mode, the : In case of Billers in the Presentment Mode, the Bills can be viewed on Bills can be viewed on ICICI Bank.comICICI Bank.com before payment. This is before payment. This is in addition to the Physical Bills received by the Customers in addition to the Physical Bills received by the Customers through normal mode. Customers have to register themselves through normal mode. Customers have to register themselves for each Biller for which they want to avail the facility. for each Biller for which they want to avail the facility. Registration is a one-time process. The Bills are presented from Registration is a one-time process. The Bills are presented from the next billing cycle.the next billing cycle.

PaymentPayment : In case of Billers in the Payment Mode, Bills are not : In case of Billers in the Payment Mode, Bills are not presented on presented on ICICI Bank.comICICI Bank.com Customers can pay any amount in Customers can pay any amount in favor of the Biller. Customers can make a payment as soon as favor of the Biller. Customers can make a payment as soon as they register.they register.

ShoppingShopping : : In this Mode, Customers have to login to the In this Mode, Customers have to login to the website of the Biller for paying Bills. website of the Biller for paying Bills.

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ONLINE RESERVATION-INDIAN RAILWAYONLINE RESERVATION-INDIAN RAILWAY

CRIS –Responsible for IT-implementation in Indian Railway CRIS –Responsible for IT-implementation in Indian Railway

The Key Elements Play while on-line reservation bookings are :The Key Elements Play while on-line reservation bookings are :• CRS –Central Reservation SystemCRS –Central Reservation System• Transaction Gate Way ( Maintain by Bank)Transaction Gate Way ( Maintain by Bank)• Provider of Web application ( Broad Vision).Provider of Web application ( Broad Vision).

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ADVANTAGE OF E-RESERVATIONADVANTAGE OF E-RESERVATION

IRCTC statistics suggest that in a month the IRCTC statistics suggest that in a month the success rate on transaction for bookings done by success rate on transaction for bookings done by credit cards is around 72-75 per cent, while in credit cards is around 72-75 per cent, while in case of net banking/debit card, it is around 67-70 case of net banking/debit card, it is around 67-70 per cent,”per cent,”

Average number of booking done in a day is Average number of booking done in a day is around 3 lakh in comparison to a thousand around 3 lakh in comparison to a thousand booking done some years agobooking done some years ago

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ONLINE RESERVATION-INDIAN RAILWAYONLINE RESERVATION-INDIAN RAILWAY

Indian Railway offers online railway reservation through Indian Railway offers online railway reservation through www.irctc.co.in. IRCTC also offers rail reservation through mobiles www.irctc.co.in. IRCTC also offers rail reservation through mobiles using Speech recognition, GPRS and CDMA technologies available using Speech recognition, GPRS and CDMA technologies available on various mobile Operators. on various mobile Operators.

IRCTC also introduced the simplest way to book your Railway IRCTC also introduced the simplest way to book your Railway ticket using just two SMS messages (Short Messaging Service). ticket using just two SMS messages (Short Messaging Service). This service is introduced with the following mobile operators This service is introduced with the following mobile operators across the India.across the India.

IDEA Cellular – Maharashtra, Goa, Gujarat, Andhra Pradesh, IDEA Cellular – Maharashtra, Goa, Gujarat, Andhra Pradesh, Madhya Pradesh, Delhi & NCRMadhya Pradesh, Delhi & NCR

MTNL /Delhi – Delhi & NCRMTNL /Delhi – Delhi & NCR Reliance Infocomm – All circlesReliance Infocomm – All circles Other operators like BSNL, Hutch,MTNL-Mumbai and Tata Indicom Other operators like BSNL, Hutch,MTNL-Mumbai and Tata Indicom

will soon integration with Indian Railway for SMS booking.will soon integration with Indian Railway for SMS booking.

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