Automatic Generation of B2C E-Commerce Payment Process By Jinglei Mei Thursday, November 09, 2000

Introduction  E-Commerce Overview?  Problem Description  Research Objectives

E-Commerce Overview  What is E-Commerce?  What is B2C E-Commerce?  Current E-Commerce framework  Future of E-Commerce

What is E-Commerce?  E-Commerce is the conducting of business transactions, sharing of business information, delivery of information/goods and maintaining business and customer relationships via an electronic network.

What is E-Commerce?  E-Commerce affects the way that business interactions occur, influences how end customers negotiate, order, and pay for goods and services.

What is B2C E-Commerce?  B2C means Business-To-Consumer  B2C transactions where a consumer seeks goods and services over a network

Current E-Commerce framework  E-Commerce is an environment that facilitates business and organizational transactions over networks  E-Commerce is a new term for an old practice, which was standardized as Electronic Data Interchange (EDI)  The TCP/IP protocol, Internet, WWW, and international networks are increasing being used for traditional labor-intensive business processes

Future of B2C E-Commerce  Consumer confidence/security becomes more important in B2C  Reliable/convenient Consumer Relationships is one of the most important parts in B2C  Consumers want to purchase in a distributed environment

Problem Description  The current existing payment protocols still lack of supporting for simultaneous atomic purchases from multiple sources

Problem Description (Cont.)  When a customer interacts with multiple merchants within one single E-Commerce transaction, the traditional bilateral communication between participants cannot provide a feasible solution.

Research Objectives  Intend to propose and implement B2C E- Commerce payment by a transactional process encompassing the diverse interactions between all participants

Research Objectives  Introduce a mechanism to generate processes at the payment coordinators site based on a generic payment process template, which is filled with the description of customer’s E-Commerce transaction

Research Objectives(Cont.)  Intend to develop a payment coordinator which allows the combination of different interactions into one E-Commerce transaction.

Literature Reviews  Several agent-based approaches exist –L.Kerschberg and S. Banejee presented an agency-based framework for E-Commerce –Peter Cassidy presented “Online payment systems for retail E-Commerce activating the automated Till”

Literature Reviews (Cont.)  Several payment models exist –Direct cash-like /account-based system FirstVirtual, NetCheque –Electronic wallets –Electronic Bill Presentment and Payment(EBPP)

Literature Reviews (Continues)  E-Commerce payment infrastructure –Electronic cash and Electronic checks –Internet-based Credit card payments Secure Electronic Transaction(SET) Secure Socket Layer(SSL)

Importance/Benefits of Research  E-Commerce is a very interdisciplinary research area.  The most important phase in E-Commerce interactions is the payment, due to the transfer of sensitive information(e.g. credit card number)

Importance of Research(Cont.)  The accomplishment of payments is the crucial part in B2C E-Commerce interactions, since this phase does not only determine the success or failure but also requires sensitive information to be transferred.

Research Design 1. Requirements of B2C E-Commerce payment process 2. Basic structure of payment process 3. Generation of payment process 4. Architecture of payment coordinator

1.Requirements of B2C payments  Security –Use current cryptographic technologies –Key transfer in an encrypted way  Anonymity –Protect customer and his/her spending patterns –Partial anonymity

Requirements (Cont.)  Verification and Provability –Customers and merchants must be able to prove/verify the transactions  Atomicity –Includes Money transfer, Goods Delivery and Distributed purchase atomictiy

3. Generation of Payment Process  Architecture of B2C Payment System  Execution of Distribution Payment Transactions

4. Payment Coordinator i. Shopping Assistant ii. Payment Process Generator iii. Process Engine

i.) Shopping Assistant  It collects and performs all payment information captured during the initial negotiation phase, where data is exchanged by MIME types.  It runs at the customer’s site and is plugged into customer’s web browser.  It contains a wallet to manage electronic cash tokens and stores.

ii.)Payment Process Generator  The execution of payment process  Handles the transformation  Is plugged into the process engine  Consists of order,merchant and payment information

iii.) Process Engine  Workflow based Internet Services(WISE) is driven the design and implementation of software tools for E-Commerce.  WISE is based on virtual business process, virtual enterprises, and trading communities.

WISE Engine  WISE functionalities include Exception Handling, Event management and inter- process communication, Quality of Service and Execution Guarantees.

Data Analysis  Properties of Transactional Payment Processes –Guaranteed Termination of Payment Process –Compliance of Payment Process Requirements –Cryptographic Security –Handling of System Failure

Data Analysis  Laboratory/Simulation may be used to analyze the characterization of conventional/digital payment mechanisms

Schedule  Preliminary approval (1 month)  Literature reviews (2 month)  Research Design (3 month)  Research Implementation (3 month)  Evaluation (1 month)  Documentation (1 month)

Facilities and Special Resource  WISE Process Engine  Protocols for secure E-Commerce  Visa/MasterCard Supports

Summary  This research shows the structure of Automatic Generation of B2C payment process  This research presents a system allowing a customer to encompass different independent interactions with different merchants into one single E-Commerce transaction

Summary (Cont.)  This research will extend and generalize the idea of dynamically generating payment process by allowing to use different payment methods for different goods within one single process.

Questions?