1. ELECTRONIC
PAYMENT
SYSTEM

2. INTRODUCTION :
E payment is a subset of an e-commerce transaction to include electronic payment for buying and selling goods or services offered through the internet.
Generally we think of electronic payments as referring to online transactions on the internet, there are actually many forms of electronic payments

3. OBJECTIVES To understand the concept & security services of e-payment
To know about working of various electronic payment system based applications

4. TRADITIONAL PAYMENT METHODS
Payment: The transfer of money from one individual or legal entity to another
Cash
Personal Cheques
Money Orders (Bank note)
Credit cards
Debit cards

5. REQUIREMENT FOR E-PAYMENTS
To reduce the cost
To reduce the waste of paper
To reduce the waste of time
Atomicity
Good atomicity
Non-repudiation

6. Desirable Properties of digital money
Universally accepted
Transferable electronically
Divisible
Private
Anonymous
No known system satisfies all

7. VARIOUS E-PAYMENT METHODS
Credit and Debit card
Digital Currency
E-Wallets
Peer-to-Peer Methods
Smart card
Micro-payments
B2B

8. SELECTION OF PAYMENT METHOD
Based on:
* Convenience
* Trace-ability
* Repudiation
* Financial risk
* Fraud protection
Attacks on traditional methods ?

9. CREDIT Cards A very common method of payment
Cards are issued by a bank
Unique 16-digit number (including check digits) and an expiration date
Third party authorization companies verify purchases

10. E-Payment – BUSINESS MODEL LOGICAL MONEY FLOW
3. Clearance/Settlement
Customer
Bank
Visa
(3rd Party)
Store’s
Bank
2. Credit
Authorization
4. Payment
Store
Customer
1. Charge

11. E-Payment PROS/CONS Pros: * Potential for great flexibility
* Low transaction costs
* Rapid and diverse purchase power
Cons:
* Perfect copying of transactions is possible
* Vulnerability to world-wide attack
* Lack of anonymity, potential for privacy intrusion

12. Risk in using e-payment methods
Operational Risk
Credit Risk
Legal Risk

13. Conclusion Expand Market beyond Traditional geographic market
Override traditional marketing system into digital marketing system
Made human life convenient as a person can pay his payments online while he is at his own place

14. THANK YOU