Ecommerce Applications 2007/8 Session 61 E-commerce Applications Process views

Ecommerce Applications 2007/8 Session 62 Secure Transmission Process e-shop site customer business bank carrier payment service e.g. Datacash bank ISP ASP WWW Remember that blue arrows represent secure connections

Ecommerce Applications 2007/8 Session 63 Process elements customer MERCHANT (business) goods security information Web, Internet Browser Web TV, Digital TV PC, Kiosk delivery logistics payment system e-shop site Now study this. What are the options for each of the elements?

Ecommerce Applications 2007/8 Session 64 Process elements Options and alternatives Payment system Security

Ecommerce Applications 2007/8 Session 65 Payment systems Fundamentals –take money, anyway that suits the customer –manage risk of fraud and chargeback Options –Credit Card manual processing, or online processing –Digital Cash –Micropayments –Smart cards What about the Euro? payment system

Ecommerce Applications 2007/8 Session 66 E-commerce processes: the players Customer Merchant (business) Banks : Acquiring bank, issuing bank Merchant service providers Third party processors Web agency (ASP) Regulatory bodies Logistics companies payment system

Ecommerce Applications 2007/8 Session 67 Online Credit Card Payment Issuing bank shopperMERCHANT (business) goods Acquiring bank £$£$£$ e-shop site Merchant service provider e.g. Net West streamline E-payment gateway e.g. Worldpay investigateauthorisation/notificationtransfer funds

Ecommerce Applications 2007/8 Session 68 Merchant services –CNP (card not present), PDQ/ePDQ –Business plan/prediction of sales –Deposit to cover fraudulent activities Authorisation Gateways: WorldPay, SecPay, Netbanx, Safedoor Checks account number is valid and sufficient credit. Does not check account name/address. Merchant carries all the risk.

Ecommerce Applications 2007/8 Session 69 Payment systems – Digital Cash Used as general term to describe electronic money, but some specific systems Designed for low cost items e.g. clip art, sound files, utility programmes 3V Vouchers (by VISA) –Just need a mobile phone number and an address –Disposable VISA number for credit (£20-£200) –Can not be used in gambling sites –Can not be used in places where business will expect to see credit card (e.g. hotels, car hire, etc). –

Ecommerce Applications 2007/8 Session 610 Payment systems – Micropayments Payment for information (pass packaging and shipping) e.g. online news, stock market quote, weather, cartoon of the day Example Millicent based in the USA –Millicent uses electronic tokens called ‘scrip’ –Customers buy ‘scrip’ using credit card from an authorised broker, ‘scrip’ are held in a wallet on the customer’s PC –Content provider or merchant website will take and process orders –Vendor will validate and check status of ‘scrip’ –Broker service responsible for conversion - ‘scrip’ <> money

Ecommerce Applications 2007/8 Session 611 Payment systems – Smart cards Look like credit cards Microchip embedded into surface Store information about holder of card or means of carrying electronic cash Customers load smartcard with cash via phone and ATM machines Smart card readers in shops and attachment on PC Disposable Reloadable

Ecommerce Applications 2007/8 Session 612 Process elements MERCHANT (business) goods security information Web, Internet Browser Web TV, Digital TV PC, Kiosk delivery logisticspayment system e-shop site What are the options for each of the elements?

Ecommerce Applications 2007/8 Session 613 Process elements customer MERCHANT (business) goods security information Web, Internet Browser Web TV, Digital TV PC, Kiosk delivery logisticspayment system e-shop site What are the options for each of the elements?

Ecommerce Applications 2007/8 Session 614 Security Secure transactions (Privacy, clarity, integrity, confidentiality) Security system –Public-key encryption (control vs. freedom) –(SSL) Secure Socket Layer encryption of data as it passes to and from the server and browser –(SET) Secure Electronic Transfer specific to credit card transactions over the Internet –Firewalls are like gatekeepers allowing specific information through and rejecting other types security

Ecommerce Applications 2007/8 Session 615 Security risk management Employ a fraud screening system Fraud risk management Use online real-time authorisation Integrate credit card processing with back end applications Detailed credit card processing report security