1. Payment Systems

2. In the early days of e-commerce, online transactions were not possible. Customers could pay by cheque – post – bank – cleared – despatch goods. Credit Card – telephoning / e-mailing credit card details – not safe – number would be split over several emails – not reliable.

3. Improved technology such as SSL (Secure Socket Layers) and HTTPS has also allowed websites to provide better security to reassure customers. Electronic cheques work in a similar way to paper cheques, although they are instigated digitally. Customer asks their bank to make a payment to a creditor or vendor and the bank can either pay this immediately, if they can accept electronic payment or produce a paper cheque for the company if they cannot.

4. Businesses are protected when payment is by credit card because the bank will provide the money - invoice the customer: so the businesses will always get paid whether or not the customer can pay his/her credit card bill. Debit cards are now accepted as a method of payment as more e-commerce transactions take place and not everyone wants or has a credit card.

5. Paypal Paypal is currently the most popular method of on-line payment. The user uploads money into the paypal account from a bank using a digital transfer. The money can then be used to make safe instant payments. Customers feel this is safer because they are not inputting their bank card details into a variety of websites, just the paypal site.

6. CV2 When making payments on line, several details from a card are necessary: issue number – expiry date – full name on card. Including also the CV2 security number from the back, which was originally introduced just for e-commerce transactions.

7. Splash Plastic Splash Plastic was devised by PrePay technologies from the UK. It is a card that can be loaded with money at the Co-op, Post offices or bank account. It can be used instead of a credit/debit card to make online purchases. March 2006- 360money Splash Plastic: Maestro symbol. It is available for people aged 10 and older and it can be loaded with a maximum of £1000.