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Electronic payment by ahmad
- 1. Presented by: MohdAhmadPresented by: Mohd Ahmad
- 2. What Electronic Paymentsystem is? Electronic payment system is a system which helps the customer or user to make online payment for their shopping. To transfer money over the Internet. Methods of traditional payment. oCheck, credit card, or cash. Methods of electronic payment. oElectronic cash, software wallets, smart cards, and credit/debit cards.
- 3. Some Examples OfEPS:- Online reservation Online bill payment Online order placing Online ticket booking
- 4. Two storage methods On-line Individual does not have possession personally of electronic cash Trusted third party, e.g. online bank, holds customers’ cash accounts Off-line Customer holds cash on smart card or software wallet Fraud and double spending require tamper-proof encryption
- 5. Authentication Amethod to verify the buyers identity before payment made Encryption A process of making message indecipherable (impossible to read) except by those who have an authorized key (translator) Integrity Ensuring that all information is not altered or destroyed during transmission Non repudiation Protection against customer : denial of order placed Protection against merchant : denial of payment made Essential security requirementsEssential security requirements
- 6. Private key, also called a symmetrical key encryption the same key is used to both encrypt and decrepit the message. key is agreed upon and shared by both the sender and a receiver Public key, public key is known by all authorized users, the sender encrypt the message with receiver public key, receiver public key be delivered in advance, . The message only decrypted by receivers private key Digital signature is used for authentication of sender, is usually attached to sent message like handwritten signature Security Schemes in electronic payment System
- 7. Certificate isissued by a trusted third party Certificate authority is a body like federal postal service. A CA may be certified by another CA Digital envelope is the process of encryption into a secret key Transaction certificate: some undeniable facts of transaction Time stamp: digital attestation that a document was in existence at a particular time
- 8. Types of EPS E-CASH SMART CARDS CREDIT/DEBIT CARDS E- WALLETS
- 9. E-Cash A system thatallows a person to pay for goods or services by transmitting a number from one computer to another. Like the serial numbers on real currency notes, the E-cash numbers are unique. This is issued by a bank and represents a specified sum of real money. It is anonymous and reusable.
- 10. Electronic Cash SecurityElectronicCash Security Complex cryptographic algorithms prevent double spending Anonymity is preserved unless double spending is attempted Serial numbers can allow tracing to prevent money laundering
- 11. E-Cash Processing 3 4 2 1 5 Bank Consumer Merchant 1. Consumerbuys 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
- 12. E-Wallet The E-wallet isanother payment scheme that operates like a carrier of e-cash and other information. The aim is to give shoppers a single, simple, and secure way of carrying currency electronically. Trust is the basis of the e-wallet as a form of electronic payment.
- 13. Procedure for usingan e-walletProcedure for using an e-wallet 1. Decide on an online site where you would like to shop. 2. Download a wallet from the merchant’s website. 3. Fill out personal information such as your credit card number, name, address and phone number, and where merchandise should be shipped. 4. When you are ready to buy, click on the wallet button, the buying process is fully executed.
- 14. Smart Cards A smartcard, is any pocket-sized card with embedded integrated circuits which can process data This implies that it can receive input which is processed and delivered as an output
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- 16. Credit/Debit cards Itis a Plastic Card having a Magnetic Number and code on it. It has Some fixed amount to spend. Customer has to repay the spend amount after sometime.
- 17. Processing a Creditcards payment
- 18. Risk in usingCredit cardsRisk in using Credit cards Operational Risk Credit Risk Legal Risk
- 19. 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 as they travel on the Internet Contrasted with Secure Socket Layers (SSL) protocol, SET validates consumers and merchants in addition to providing secure transmission 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 nonrepudiation
- 20. The SET protocolTheSET protocol
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- 22. What Is paymentGateways?? A payment gateway is an e-commerce application service provider service that authorizes payments for e-businesses, online Shopping, etc. Payment gateway protects credit cards details encrypting sensitive information, such as credit card numbers, to ensure that information passes securely between the customer and the merchant and also between merchant and payment processor.
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- 24. Advantages:Advantages: 1. Time savings. Moneytransfer between virtual accounts usually takes a few minutes, while a wire transfer or a postal one may take several days. Also, you will not waste your time waiting in lines at a bank or post office. 2. Expenses control. Even if someone is eager to bring his disbursements under control, it is necessary to be patient enough to write down all the petty expenses, which often takes a large part of the total amount of disbursements. The virtual account contains the history of all transactions indicating the store and the amount you spent. And you can check it anytime you want. This advantage of electronic payment system is pretty important in this case. 3. User-friendly. Usually every service is designed to reach the widest possible audience, so it has the intuitively understandable user interface. In addition, there is always the opportunity to submit a question to a support team, which often works 24/7. Anyway you can always get an answer using the forums on the subject.
- 25. Disadvantages:Disadvantages: 1. Restrictions. Each paymentsystem has its limits regarding the maximum amount in the account, the number of transactions per day and the amount of output. 2. The risk of being hacked. If you follow the seсurity rules the threat is minimal, it can be compared to the risk of something like a robbery. The worse situation when the system of processing company has been broken, because it leads to the leak of personal data on cards and its owners. Even if the electronic payment system does not launch plastic cards, it can be involved in scandals regarding the Identity theft. 3. The lack of anonymity. The information about all the transactions, including the amount, time and recipient are stored in the database of the payment system. And it means the intelligence agency has an access to this information. You should decide whether it's bad or good. 4. The necessity of Internet access. If Internet connection fails, you can not get to your online account.
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