E-COMMERCE PAYMENT SYSTEMS

E-COMMERCE PAYMENT SYSTEMS. Members: Reyes, Shahanie Joy G. Rivera, Renalyn P. Sario, Gerald Y. Tañag, Jennyfer Umban, Cyrene.

Learning Objectives. In this chapter, you will learn: What is the most common online payment systems are and how they function? How payment cards are used in online retail transactions? What stored-value cards are and how they are used in electronic commerce?.

Learning Objectives. How digital wallets facilitate online transactions through computers and mobile devices? How the banking industry uses Internet technologies? What challenges and opportunities are presented by the use of digital cash?.

Electronic Payment Systems. Electronic commerce involves the exchange of some form of money for goods and services. Electronic payments are far cheaper than the traditional method of mailing out paper invoices and then processing payments received. Sending bills and receiving payments over the Internet promises to drop the transaction cost to an average of 50 cents per bill..

Common Online Payment Methods. Cash, checks, credit cards, debit cards are the most common world methods used to pay for purchases More than 90% of all US consumer payments Electronic transfer is a small percentage Mostly automated payments from checking accounts Credit and debit cards used for more than 60% of online payments with alternative systems such as PayPal used for the remainder Convenient for customers and cost effective for businesses and provides a significant environmental impact.

Micropayments and Small Payments. Micropayments are Internet payments for items costing few cents to a dollar Barrier is people prefer to buy small value items in fixed price chunks rather than small payments in varying amounts Many companies have developed micropayment systems but none gained broad acceptance Small payments are payments of less than $10 Offered through mobile telephone carrier but held back by substantial charges for providing service One of the largest markets is music downloads.

Payment Cards. Payment cards are plastic cards used for purchases EXAMPLE: credit cards debit cards charge cards prepaid cards gift cards.

Payment Cards. Credit cards such as a Visa or a MasterCard, has a preset spending limit based on the user’s credit limit..

Payment Cards. Debit cards removes the amount of the charge from the cardholder’s account and transfers it to the seller’s bank..

Payment Cards. Charge cards such as one from American Express, carries no preset spending limit..

Advantages & Disadvantages of Payment Cards. ADVANTAGES:.

Payment Acceptance and Processing. Fig11-03.

Electronic Cash. Electronic cash is a general term that describes the attempts of several companies to create a value storage and exchange system. Concerns about electronic payment methods include: Privacy Security Independence Portability Convenience.

Electronic Cash. Electronic cash should have two important characteristics in common with real currency: It must be possible to spend electronic cash only once. Electronic cash ought to be anonymous. The most important characteristic of cash is convenience. If electronic cash requires special hardware or software, it will not be convenient for people to use..

How Electronic Cash Works. To establish electronic cash, a consumer goes in person to open an account with a bank. The consumer uses a digital certificate to access the bank through the Internet to make a purchase. Consumers can spend their electronic cash at sites that accept electronic cash for payment. The electronic cash must be protected from both theft and alteration..

Advantages of Electronic Cash. Electronic cash transactions are more efficient and less costly than the other methods The distance that an Electronic transaction must travel does not affect cost. Customer Convenience.

Disadvantages of Electronic Cash. Electronic cash provides no audit trail. Because true electronic cash is not traceable, money laundering is a problem. Electronic cash is susceptible to forgery..

CheckFree. CheckFree provides online payment processing services to both large corporations and individual Internet users. CheckFree permits users to pay all their bills with online electronic checks..

InternetCash. InternetCash provides electronic currency that is very similar to traditional cash. Customers must first purchase an InternetCash card from stores, such as Circle K. Customers then go online and activate their cards by entering a 20-digit code and creating a PIN. After their card is activated, customers can pay for purchases using the InternetCash card at any site that accepts it..

Paypal. PayPal.com is a free service that earns a profit on the float, which is money that is deposited in PayPal accounts. The free payment clearing service that PayPal provides to individuals is called a peer-to-peer payment system. PayPal allows customers to send money instantly and securely to anyone with an address, including an online merchant..

Electronic Wallet. An electronic wallet serves a function similar to a physical wallet: holds credit cards, electronic cash, owner identification, and owner contact information provides owner contact information at an electronic commerce site’s checkout counter Electronic wallets store shipping and billing information, including a consumer’s first and last names, street address, city, state, country, and zip or postal code. Electronic wallets automatically enter required information into checkout forms..

Microsoft .NET Passport. Microsoft Passport Wallet comes preinstalled in Internet Explorer 4.0 and higher versions. All the personal data you enter into your Microsoft Passport, including your name, address, and credit card information, are encrypted and password-protected. Passport consists of four integrated services: Passport single sign-in service, Passport Wallet Service, Kids Passport service, and public profiles..

Yahoo! Wallet. Functions the same way as other electronic wallets, but with certain advantages: Yahoo! hosts several services and shops that can accommodate its own wallet Can be used at more than 10,000 Yahoo! Store merchants.

Smart Card. A smart card is a plastic card with an embedded microchip containing information about you. A smart card can store about 100 times the amount of information that a magnetic strip plastic card can store. A smart card contains private user information, such as financial facts, private encryption keys, account information, credit card numbers, health insurance information, etc..

Mondex Smart Card. Mondex is a smart card that holds and dispenses electronic cash. Mondex requires special equipment, such as a ‘card reader’, to process. Containing a microcomputer chip, Mondex cards can accept electronic cash directly from a user’s bank account..

Phishing Attacks. Attacker sends e-mail message to accounts with potential for an account at targeted Web site E-mail message tells recipient account compromised and recipient must log in to correct problem Includes link that appears to be Web site login page Actually leads to perpetrator’s site so that victim’s log in information can be captured and used Spear phishing is a carefully designed phishing attack targeting a particular person or organization Requires considerable research which increases change of e-mail being opened.

Types of personal information most useful to identity thieves:.

Phishing Use for Identity Theft. Phishing is a method of identity theft that relies on individuals unwittingly volunteering personal details or information that can be then be used for nefarious purposes. It is often carried out through the creation of a fraudulent website, email, or text appearing to represent a legitimate firm..

Protection from Phishing Attacks. Agari Phishing Defense is a cloud-native application that uses an API integration to quickly deploy along-side all secure email gateways to protect Office 365, G Suite or Microsoft Exchange environments (on-premises or hybrid) from phishing attacks..

Phishing Attack Countermeasures. 1. Update Email Policies. 2. Plan for ID Theft After a Data Breach. 3. Regular OS Updates and Backups. 4. Implement Message Authentication. 5. Increase Collaboration Efforts..

Thank you and Godbless !!!.

sources: https://slideplayer.com/slide/7040948/#.YV-RNUuIuG8.gmail Schneider_PPT_ch11.pdf https://www.cutimes.com/2016/08/26/5-countermeasures-to-phishing-attacks/?slreturn=20211018173717.