Uses of Electronic Payment - Synapse Financial Technologies

1. PRESENTATION ON ELECTRONIC PAYMENT SYSTEMS (EPS) )

2.  Definition  Uses of Electronic Payment  Requirements  Types of E-Payment System  Benefits of E- Payment System  Types of Transactions  Security Issues  Conclusion

3.  An e-commerce payment system facilitates the acceptance of electronic payment for online transactions.  Also known as a sample of Electronic Data Interchange (EDI), payment systems increasingly popular widespread use of the internet- shopping and banking.  EPSs enable a customer to pay for the goods and services online by using integrated hardware and software systems. e-commerce have due to become the based

4.  An electronic payment is defined as a payment services that utilize ICT, including cryptography and telecommunications networks.  EPS increase efficiency, improve security, enhance customer convenience and ease of use.  Electronic transfer: small but growing.

6. The various factors that have lead the financial institutions to make use of electronic payments are:  Reliability: As in any other business activity, even in on- line payment methods, the user expects a reliable and an efficient system. Any on-line payment system would fail, despite of it's advanced technological features, if it fails to get the users acceptance and pass their reliability tests. Atomicity: Atomicity guarantees that either the user's on-line payment transaction is completed or it does not take place at all. If the current on-line payment transaction fails then it should be possible to recover the last stable state. This feature resembles the transactional database systems, in which either a transaction is committed or rolled back.    

7. Payment Cards E-Cash Types of EPS E-Wallets E-Cheque

8. Payment cards are all types of plastic cards  that consumers use to make purchases: Credit cards  such as a Visa or a MasterCard, has a preset spending limit based on the user’s credit limit. Debit cards  removes the amount of the charge from the cardholder’s account and transfers it to the seller’s bank. Smart cards  similar to a credit card; however it contains an embedded 8-bit microprocessor and uses electronic cash which transfers from the consumers’ card to the sellers’ device.

9.  Open and closed loop systems will accept and process payment cards.  A merchant bank or acquiring bank is a bank that does business with merchants who want to accept payment cards.  Software packaged with your electronic commerce software can handle payment card processing automatically.

11. Advantages: Payment cards provide fraud protection. They have worldwide acceptance. They are good for online transactions. Disadvantages: Payment card service companies charge merchants per-transaction fees and monthly processing fees.

12.  Electronic cash is a general term that describes the attempts of several companies to create a value storage and exchange system that operates online in much the same way that government-issued currency operates in the physical world. Concerns about electronic payment methods include:  Privacy  Security  Independence  Portability  Convenience

13. 1) Consumer buys e-cash from Bank 2) Bank sends e-cash bits to consumer (after charging that amount plus fee) 3)Consumer sends e-cash to merchant 4)Merchant checks with Bank that e-cash is valid (check for forgery or fraud) 5) Bank verifies that e-cash is valid 6)Parties complete transaction MEMRERCCH HAANNT T 4 5 3 BANK 2 1 CUSTOMERS

14.  ADVANTAGES:  Electronic cash transactions are more efficient and less costly than other methods.  The distance that an electronic transaction must travel does not affect cost.  DISADVANTAGES:  Electronic cash provides no audit trail. Because true electronic cash is not traceable, money laundering is a problem. 

15.  An electronic wallet serves a function similar to a physical wallet:  holds credit cards, electronic cash, owner identification, and owner contact information.  provides owner contact information at an electronic commerce site’s checkout counter. Some electronic wallets contain an address book.

16.  Electronic wallets make shopping more efficient.  Electronic wallets fall into two categories based on where they are stored:  Server-side electronic wallet  Client-side electronic wallet  Electronic wallets store shipping and billing information, including a consumer’s first and last names, street address, city, state, country, and zip or postal code.  E.g. Microsoft .NET passport ,yahoo Wallet.

17. USER POST JOB IN WORKROOM SEE REGISTRATION PROPOSAL PUT MONEY INTO E- WALLET APPROVE PAYMENT REQUEST ACCEPT JOB RELAESE FUNDS TO PROJECT FROM WALLET

18.  E-Cheque is the result of co-operation between several banks, government entities, technology companies and e-commerce organizations.  These can be used for small and large organizations.

20. BENEFITS OF E- PAYMENT SYSTEM BENEFITS TO SELLERS BENEFITS TO BUYERS

21. BENEFITS TO BUYERS • Electronic payment methods provide a wide range of payment options and enhanced financial management tools through which individuals can pay for numerous different types of transactions ranging from parking payments to travel tickets pr payments in foreign currency. 1. Convenience of global acceptance • With electronic payment methods payments can be made over the phone, on the internet, and through the post and accepted everywhere. 2. Universal acceptance • Electronic payment system is safe and secure as it follows strict encrypted secure system for making payments keeping buyer’s identity and details completely confidential and reduced liability for stolen or misused cards. 3. Greater security

22. • The electronic payment system provides additional insurance by facilitating disputes resolution in the case of unsatisfactory receipt of goods and services . 4. Consumer protection • E-payment system allow consumers to transfer funds, purchase stocks, and offer a variety of other services without having to handle physical cash. Using credit card it is very easy to make payments. 4. Accessibility to immediate credit • Electronic payment also provides the ability to control payment for goods and services over time by allowing buyers to pay at will whenever they want or have sufficient funds to make payments. 6. Better control over payments

23. BENEFITS TO SELLERS 1. Speed and security • EPS ensure faster processing of transaction from verification and authorization to clearing and settlement . It reduces the visibility of information. 2. • EPS provides companies freedom from more costly labour, materials and accounting services hat are require in paper based processing. Reduces cost • It leads to better management of cash flow, inventory and financial planning due to swift bank payment. 3. Efficiency

24. TYPES OF TRANSACTIONS IN EPS 1. A ONE TIME CUSTOMER TO VENDOR PAYMENT • It is used when you shop online at an e-commerce site, such as Amazon . 2. • It is used when you pay a bill through a regularly scheduled direct debit from your checking account or an automatic charge to your credit card. RECURRING CUSTOMER TO VENDOR PAYMENT 3. AUTOMATIC BANK TO VENDOR PAYMENT • In this, your bank offer a service called online bill pay.

25. Security Issues of EPS Integrity Privacy Authentication Non-Repudiation Safety

26.  Advantages:  Increased speed and convenience.  Increased sales.  Reduced transaction costs.  Disadvantages:  Security concerns.  Disputed transactions.

27.  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.  Increasing the cardholder base will bring challenges to banks: Designing new products and services, managing default rates and loyalty programs, etc.

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