E-commerce Payment Technology

2 EC  E-commerce Payment Technology List     End E-moneyE-payment SystemInternet and the Banking Industry Main content Case:Super Internet Banking

3 EC  E-commerce Payment Technology List     End Case: Super Internet Banking

4 EC  E-commerce Payment Technology List     End Key Points Various kinds of E-money The basic functions of electronic payment system Internet technologies and the banking industry

5 EC  E-commerce Payment Technology List     End E-money E-money is a kind of currency that realizes its function of circulation and payment through electronic information.

6 EC  E-commerce Payment Technology List     End E-money Types E-cash E-check Bank Card

7 EC  E-commerce Payment Technology List     End E-money Bank Cards Bank Cards are issued by a bank or a finance company, which authorizes the cardholders to make purchases in the appointed shops or other places Merit Popularization Multiple Functions Efficient and Convenient

8 EC  E-commerce Payment Technology List     End E-money  Types of Bank Card Carrier Magnetic Card IC Card Optical card Credit Credit Card Debit Card Charge Card

9 EC  E-commerce Payment Technology List     End E-money E-cash E-cash is a kind of digital currency, so it is also called digital cash. E-cash bank BusinessCustomers Access to E-cash E-cash payment E-cash settlement

10 EC  E-commerce Payment Technology List     End E-money  The type of E-cash  基于交易载体  基于账户的电子现金系统  基于代金券的电子现金系统  是否需要与银行进行联机验证  联机电子现金系统  脱机电子现金系统  是否可以合法的支付多次  可分电子现金  不可分电子现金  根据电子现金的使用功能  专用型电子现金  通用型电子现金  根据电子现金的使用形式  基于卡的预付款式电子现金  纯数字形式电子现金

11 EC  E-commerce Payment Technology List     End E-money  Characteristics of E-cash Cost low Independent Characteristics Small amount of payment Portable

12 EC  E-commerce Payment Technology List     End E-money  E-case’s Problems Problems Anonymous Counterfeited Never used Divisibility

13 EC  E-commerce Payment Technology List     End E-money E-check The E-check is basically an electronic equivalent of the paper check. Rendering the advantage of paper check, E-check will manage the transfer of funds from one account to another over the Internet.

14 EC  E-commerce Payment Technology List     End E-money  Paper Checks CardholderMerchant Acquirer Issuer ACH

15 EC  E-commerce Payment Technology List     End E-money  The Disadvantages of Paper Checks Disadvantages high costs delay forgiving

16 EC  E-commerce Payment Technology List     End E-money  Advantages of E-check Cost low Improved efficiency Advantages Timely payment No error

17 EC  E-commerce Payment Technology List     End E-money The advantages of E-check rest with the following aspects.  It improves the check payments system, enhances the key competitiveness of the banking industry.  Fits with the present business procedure and eliminates the need for expensive process reengineering. It works like a paper check but in pure electronic form with fewer manual steps.  It is designed to meet the needs of businesses and consumers in the 21st century by virtue of the most advanced security techniques.  It can be used by any bank clients who have the check accounts, including those small and medium-sized enterprises that do not possess an electronic payment system.  It adds E-commerce function to current bank account.

18 EC  E-commerce Payment Technology List     End E-money  The Disadvantages of E-check  E-checks involve the technology of digital signatures. The legal validity of digital signatures is ratified by different countries’ law regarding digital signatures.  In addition, E-checks bring about a series of jurisdiction problems.

19 EC  E-commerce Payment Technology List     End E-money E-wallets An E-wallet serving a function similar to a physical wallet, holds Credit Cards, E-cash, owner identification, and owner contact information.

20 EC  E-commerce Payment Technology List     End E-money  Categories of E-wallets  Software  Server-side E-wallet A server-side E-wallet stores a customer’s information on a remote server belonging to a particular merchant or wallet publisher.  Client-side E-wallet A client-side E-wallet stores a consumer’s information on his or her own computer.  Card  Mondex

21 EC  E-commerce Payment Technology List     End E-money  The Advantages of E-wallets  E-wallets make shopping more efficient and convenient for the customer, the merchant and the bank.  Holding E-wallets, consumers enter their information just once and there is no need for them to enter the same information at every Web site.  An future electronic wallet could maintain records of a consumer’s purchases and save the invoice for the consumer. A Web robot can be used to suggest where the consumer might find a lower price item that he or she purchases regularly.  The Disadvantages of E-wallets  An attack on an electronic wallet vendor’s server or consumer’s personal computer will reveal all the sensitive information.

22 EC  E-commerce Payment Technology List     End E-payment System Stage of development of E-payment First stage Second stage Third stage

23 EC  E-commerce Payment Technology List     End E-payment System Fourth stage Fifth stage Finance Private Network (FPN) Finance Private Network (FPN) Internet Consume CA Payment Gateway Bank-IssueBank-Receive Business

24 EC  E-commerce Payment Technology List     End E-payment System E-cash Payment System  Establish E-cash  Store E-cash  Use E-cash  Checking the Balance  Provision of goods E-Mint Cardholder Merchant Issuer Acquirer

25 EC  E-commerce Payment Technology List     End E-payment System  Electronic cash Provider  Electronic Cash

26 EC  E-commerce Payment Technology List     End E-payment System  Clickshare

27 EC  E-commerce Payment Technology List     End E-payment System  eCoin

28 EC  E-commerce Payment Technology List     End E-payment System Bank Card Payment System ① The customer visits the merchant’s home page and gets the inventory. ② The customer selects goods and pays for the goods via Credit Card. ③ The merchant server visits the acquirer to verify the consumer’s Credit Card number and the purchase quantity. After the bank verifies the consumer’s identity, it then informs the merchant to proceed with the process. ④ The merchant informs the customer whether the transaction is accomplished. ⑤ The merchant server visits the acquirer and provides the receipt. ⑥ The acquirer visits the issuer to get transaction amount. ⑦ The issuer credits the merchant’s account with the transaction amount that customers ought to pay for their purchases in a period of time (maybe one month) and informs the customers. IssuerAcquirer Cardholder Merchant

29 EC  E-commerce Payment Technology List     End E-payment System  The Participants of Bank Card Payment System The Cardholder The Merchant The Card IssuerThe Acquirer Bank Card AssociationsCertificate Authority

30 EC  E-commerce Payment Technology List     End E-payment System  Credit Card Service Provider  First Virtual First Virtual Customer Merchant Credit Card Company

31 EC  E-commerce Payment Technology List     End E-payment System The E-check System  The Process of Bank for E-check ① The customer visits the merchant’s server and gets the inventory. ② The customer chooses some goods and sends an E-check to the merchant. ③ The merchant verifies the consumer’s payment and validity of the E-check via the acquirer. ④ If the check is valid, the merchant will accept this transaction. ⑤ The merchant sends the check to the acquirer. When to send it can be decided according to merchants’ own demands. ⑥ The acquirer sends the check to ACH to exchange it for cash. ⑦ ACH cashes the check from customers’ acquirer and sends the cash to merchants’ acquirer. ⑧ The acquirer of customers bills the customers. ACH Cardholder Merchant Issuer Acquirer

32 EC  E-commerce Payment Technology List     End E-payment System  Illustrations of E-check Net Bill servers Clients Merchants

33 EC  E-commerce Payment Technology List     End Internet Technologies and the Banking Industry E-bank The so-called E-bank is the bank that provides banking services on the Internet in a virtual form by virtue of modern network technology to ensure customers to enjoy secure and efficient services at home.

34 EC  E-commerce Payment Technology List     End Internet Technologies and the Banking Industry  The Components of E-bank Customer System Internet CA Network in bank Pay gateway Inside firewall Outside firewall Two database servers & application servers are backup of each other Database in bank Web server

35 EC  E-commerce Payment Technology List     End Internet Technologies and the Banking Industry  The Business of E-bank Business Transaction Services Enquiry Extended Services

36 EC  E-commerce Payment Technology List     End Internet Technologies and the Banking Industry  The Characteristics of E-bank Low Running Cost Services Without Borders Varied Services Convenient and Real-time Services Easy-to-use Characteristics

37 EC  E-commerce Payment Technology List     End Internet Technologies and the Banking Industry Mobile Bank Mobile bank offers banking service via the mobile phone, which is a channel for bank to realize its electronic services. 支付网关 金融机构 商家 用户 即支付者。在移动商务环境 中，支付者使用手机或其他 移动终端通过移动因特网与 商家或支付网关交易。在移 动支付中，支付者的最大特 点就是他们拥有经认可的 CA 发行的数字证书。 即卖方。商家是指具有货物 或服务提供给支付者的组织。 参与到移动支付系统中的商 家，如商场、零售店或加油 站等，通过减少支付的中间 环节，降低经营、服务和管 理成本，提高支付的效率， 提高用户的满意度。 移动支付系统中的金融机构 包括银行、信用卡发行商等 组织，主要为移动支付平台 建立一套完整、灵活的资金 转账服务和安全体系，并管 理基于手机 SIM 卡的银行账 户，保证用户支付过程的顺 利进行。 支付网关以金融机构代理的 身份出现在移动商务环境中， 实现核准支付功能。

38 EC  E-commerce Payment Technology List     End Internet Technologies and the Banking Industry  移动支付流程 移动支付系统 金融机构 商家 用户         ① 注册。消费者必须向 移动支付提供商提出开 户申请。这个步骤是必 需的，只有在完成这一 步之后，消费者才可以 进行以下一系列的移动 商务活动。 ② 提交购物支付申请。 消费者在注册成功之后 就可以通过短信服务或 者其他方式向移动交互 平台来提出自己原始的 购买以及支付要求。 ③ 提交处理后的支付申 请。移动交互平台首先 根据服务号对消费者的 支付申请进行分类，然 后把这些申请压缩成 CMPP （ China Mobile Peer to Peer ，中国移动 点对点协议）格式，最 后把他们转交给移动支 付系统。 ④ 商家确认。在收到 CMPP 格式的申请后，移 动支付系统会向商家查 询并验证一些细节问题， 商家在之后会给出相应 的反馈。 ⑤ 转账申请。如果商家 同意消费者的支付申请， 系统就会处理消费者的 申请，比如验证行为的 有效性，计算业务总额 以及向金融机构申请转 账等。 ⑥ 确认转账申请的有效 性。金融机构会对转账 申请的合法性进行验证 并给出系统反馈。 ⑦ 向商家返回支付结果。 在收到金融机构的反馈 之后，移动支付系统就 会向商家发出转账成功 的信息和递送货物的要 求。 ⑧ 递送。商家把货物通 过一定形式发送给消费 者。 ⑨ 返回确认结果。在收 到金融机构的反馈之后， 移动支付系统立刻把这 一反馈转发给移动交易 平台。  ⑩ 反馈消费者。移动支 付平台会把从移动支付 系统那里得到的支付结 果返回给消费者。

39 EC  E-commerce Payment Technology List     End Summary Electronic currency  Bank Card  E-cash  Electronic-Checks  E-wallets Payment media  Bank Card  E-cash  E-wallets  E-checks Internet Technologies and the Banking Industry  E-bank  mobile bank