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PRESENTATION FLOW
Introduction. Working principle. Conventional vs. Electronic payment system Requirements of Electronic payment system Types of Electronic payment system E-cash E-wallet E-check Smart cards Credit & debit cards Protocol Risk management option Conclusion . References.
INTRODUCTION
The term Electronic Payment is a financial exchange that takes place online between buyers and sellers. The content of this exchange is usually some form of digital financial instrument (such as encrypted credit card numbers, electronic cheques or digital cash) that is backed by a bank or an intermediary, or by a legal tender.
WORKING PRINCIPLE
E-WALLETS
SMART CARDS
E-CHEQUES
E-CASH
These are Digital forms of value storage and value exchange that have limited convertibility into other forms of value and require intermediaries to convert.
MERCHANT 5 4
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Consumer buys e-cash from Bank Bank sends e-cash bits to consumer (after charging that amount plus fee) Consumer sends e-cash to merchant
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BANK 2 1
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CONSUMER
E-WALLET
The E-wallet is another payment scheme that operates like a carrier of ecash and other information. likes credit card, owner identification ,address and etc..
Procedure
1. Decide on an online site where you would like to shop. Download a wallet from the merchants website. Fill out personal information such as your credit card number, name, address and phone number, and where merchandise should be shipped. When you are ready to buy, click on the wallet button, the buying process is fully executed.
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E-CHECK
E Check is like writing a check, only faster and more secure. E-check is instruction to financial institution to pay a given amount of money to the payee. It is specially formatted email message sent over the internet.
State ment
SMART CARDS
Debit card
Used for the majority of general purchases Has no spending limit Currently most convenient method Most non-expensive e-payment mechanism Special feature helps to withdraw from ATM as hard cash Advantages Operates like cash or a personal check Disadvantages Money is immediately deducted from users account balance
PROTOCOL
Secure Electronic Transaction (SET) Protocol
Jointly designed by MasterCard and Visa with backing of Microsoft, Netscape, IBM, GTE, SAIC, and others Designed to provide security for card payments.
SET specification Uses public key cryptography and digital certificates for validating both consumers and merchants Provides privacy, data integrity, user and merchant authentication, and consumer no repudiation
CONCLUSION
EPS is a process to protect multiple spending. Token forgery can be prevented . It requires digital signature for authorization
REFERENCE
1.http://www.scribd.com/doc/13419829/electronic payment system.pdf 2. http://seminar.basicknowledge.co.in/seminar-reports/e-
payment.html
3. http://pdf-ebooks.org/ebooks/online payments-pdf.pdf 4. http://www.encyclopedia.com/doc/1O11seminars.smart+cards.html
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