1. CHAPTER 10 Created by, David Zolzer, Reversed By ::Oldog Workshop::, Roger Lan E-commerce Payment Systems

2. Learning Objectives (45 minutes)  Understand the features and functionality of the major types of digital payment systems in the B2C arena  Able to analyze current E-commerce websites’ payment systems

3. B2C Digital Payment Systems  Digital Wallets  Digital Cash  Online Stored Value Systems  Smart Card Stored Value Systems  Digital Credit Card Payment Systems  Digital Checking Payment Systems

4. Digital Wallets  Definition: Authenticates the consumer through the use of digital certificates or other encryption methods, stores and transfers value, and secures the payment process from the consumer to the merchant  http://supermart.stockstar.com/supermarket/chinabank/aqzs.htm http://supermart.stockstar.com/supermarket/chinabank/aqzs.htm  http://www.800buy.com.cn/hlp/hlp_payment_chinabank.htm http://www.800buy.com.cn/hlp/hlp_payment_chinabank.htm

5. Promised Functionality of Digital Wallets Page 297, Table 6.2

6. Types of Digital Wallets Page 298, Figure 6.6

7. Case Study One: BOC E-wallet  Step 1: Download a E-Wallet program from website of Bank of China… Step 1: Download a E-Wallet program from website of Bank of China…  Step 2: Run the program on your computer and initiate the ID and password… Step 2: Run the program on your computer and initiate the ID and password…  Step 3: Obtain a digital certificate for your E-Wallet from Bank of China… Step 3: Obtain a digital certificate for your E-Wallet from Bank of China…  Step 4: Restart your E-Wallet, and add your bank card into it… Step 4: Restart your E-Wallet, and add your bank card into it…  Step 5: Verify your account and be ready to purchase… Step 5: Verify your account and be ready to purchase…  Step 6: Online shopping and choose to pay via your E-Wallet… Step 6: Online shopping and choose to pay via your E-Wallet…  Step 7: Confirm your order and enter your card password… Step 7: Confirm your order and enter your card password…  Step 8: Check the bill statement and feedback from your wallet and the website… Step 8: Check the bill statement and feedback from your wallet and the website…

8. Case Study Two: Microsoft’s Passport Wallet Page 300, Figure 6.7

9. Digital Wallets  Client-based digital wallets are software applications that consumers install on their computer, and that offer consumer convenience by automatically filling out forms at online stores; merchants install software on their servers to receive information from the client-based wallet.  Server-based digital wallets are software-based authentication and payment services and products sold to financial institutions; no need to install any program; no need to download digital certificates; offers customers Single Sign-In service (SSI) and Express Purchase (EP).

10. Digital Credit Card Payment Systems  Seek to extend the functionality of existing credit cards for use as online shopping payment tools

11. How a Digital Credit Card Payment System Works Page 310, Figure 6.10

12. Case Study Three: Credit Card Payment System of CMB

13. Digital Cash  Also called e-cash  Digital forms of value storage or value exchange that have limited convertibility into other forms of value and require intermediaries to convert

14. Examples of Digital Cash Page 302, Table 6.3

15. Digicash: How First Generation Digital Cash Worked Page 303, Figure 6.8

16. Digital Cash  Online stored value payment systems permit consumers to make instant, online payments to merchants and other individuals based on value stored in an online account  Smart cards as store value systems are based on credit-card-sized plastic cards that have embedded chips that store personal information

17. Online Stored Value Systems Page 305, Table 6.4

18. How Ecount.com Works: A Stored Value System Page 305, Figure 6.9

19. Digital Credit Card Payment Systems Page 309, Table 6.6

20. Digital Checking Payment Systems  Seek to extend the functionality of existing checking accounts for use as online shopping payment tools

21. Digital Checking Payment Systems Page 312, Table 6.7

22. How Digital Checking Works: Echeck Page 313, Figure 6.11

25.  Restart your E-Wallet Add your Bank card ->

26. Obtain another certificate for your card account, which will verify your account balance and record…

27.  Online shopping… Choose the means of payment 

28.  Confirm your order… Enter the password of your bank card 

29.  Transaction records in your wallet… Confirmation from the website 