1. April 20023CSG11 Electronic Commerce Payment systems John Wordsworth Department of Computer Science The University of Reading J.B.Wordsworth@rdg.ac.uk Room 129, Ext 6544

2. April 20023CSG12 Lecture objectives Review the mechanics of credit card processing. Explain how a secure electronic transactions (SET) is managed. Review the use of electronic cash systems. Look an example of online banking.

3. April 20023CSG13 Credit card processing Consumer gets a card from the issuing bank. Consumer uses card to make a purchase, or sends the card details over the Internet. Merchant gets authorisation from the card brand, and the customer gets the goods or sevices. Merchant deposits slips with the acquiring bank. Acquirer asks the card brand for payment. The card brand gets payment from the issuing bank, which puts the item on the consumer's next statement.

4. April 20023CSG14 Secure Electronic Transactions Consumer and merchant both have certificates. Consumer keeps the certificate in an electronic wallet. The wallet is either on the consumer's PC, or is on a smartcard.

5. April 20023CSG15 SET – getting a certificate Cardholder Certificate Authority Card issuer

6. April 20023CSG16 SET – merchant registration Merchant Certificate Authority Acquirer

7. April 20023CSG17 SET – making a purchase CardholderMerchant Payment Gateway Card Issuer

8. April 20023CSG18 Electronic cash systems User gets a smartcard and charges it with value (from bank account). Value is transferred from the user's card to the merchant's card. Merchant transfers value to bank account. Privacy is the same as for cash transactions. Mondex and VisaCash are the main applications.

9. April 20023CSG19 Online banking and billing Many banks offer online access to accounts, including setting up payments, standing orders, direct debits. Some offer online billing facilites: your electricity bill can be presented online, and a payment made. Integrion: a US consortium of banks and IT companies to provide banks with an e-banking service.

10. April 20023CSG110 Integrion Web Browser Customisable Web Server IFS Service Provider Adapter Back End Bill Payment Engine

11. April 20023CSG111 Key points SET uses digital certificates, and mimics credit card processing. Electronic cash systems use smart cards to store value. Electronic cash systems preserve the consumer's privacy. Online banking can provided bill presentment and bill payment services.