1. Chapter 5: Online security and payment systems Subtopics: Type of payment systems Prepared for: Sir Shamsul Baharin Bin Saihani Prepared by: Ain Syafiqa Bt Hamzah (2013571169) Aina Nadira Bt Mohd Israk (2013544775) Date of submission: 28 th April 2014

2. Payments systems Emergence of e-commerce has created new financial needs Cannot be fulfilled by traditional payment system Eg:Auctions between customers require a peer-to-peer payment method via e-mail Eg: Some types of online products require micropayments where price of merchandise is very small (Subscription of music RM 1.99 to RM 4.99)

3. Types of Traditional Payment Systems Foreign Currency similar like cash but needs to be converted first before payment can be made Cash Coin and currency (paper money) but not redeemable online Personal Cheque A cheque is an order authorizing the transfer of money from one account to another; it is not a token that represents value, as cash does. Unlike USA, you cannot apply personal cheque to online purchases in Malaysia. See how pay by cheque online works in USA

4. Types of Traditional Payment Systems Money Order Lot like a personal cheque but without the possibility of “bouncing.” Bouncing a cheque is when somebody writes a cheque without having any money in his or her account to cover the expense Gift certificate/voucher Essentially prepaid certificates with a certain amount of money added to that certificate. Gift certificates come in several forms e.g. plastic card form, paper form, or electronic form.

5. Stored value Represents money on deposit with the issuer, and is similar to a debit card The difference between stored value cards and debit cards is that debit cards are usually issued in the name of individual account holders, while stored value cards are usually anonymous Types of Traditional Payment Systems Credit card Financial instrument, which can be used more than once to borrow money or buy products and services on credit Ty p es of Traditional Payment Systems