.. CSE CSO5185Notes-11
.. CSE CSO5185Notes-11
.. CSE CSO5185Notes-11
Organizations are motivated by the needs of deliver products and services of efficiently with less cost and provide higher quality of services to the customers.
Electronic funs transfer (EFT): It is introduced in early 1970s. It is defined as any transfer of funds initiated through an electronic terminal or computer or magnetic tape so as to order , instruct or authorize a financial institution to debit or credit an account.
Electronic funs transfer (EFT ) work divided into three categories : 1.Banking and Financial Systems * large scale / whole sale payments * small scale / retail payments * Home banking 2. Retailing payment systems * credit cards * private label credit /debit cards *charge cards example: American express 3. Online payment system It is further divided into two types which are as follows a) Token based system * e-cash * e-check and Digi cash * net cheques and smart cards b) Credit card system * encrypted credit card * third party authentication or authorization numbers
DIGITAL TOKEN BASED ELECTRONIC PAYMENT SYSTEMS Electronic token is a form of electronic cash or money or cheque. This tokens are designed as electronic analog of various forms of payments backed by bank or financial institution .
1. Cash or real-time : In this transactions are settled with exchange of electronic currency (e cash) 2. Debit /pre paid : In this , users pay in advance for privilege of getting information or service. 3. Credit or post paid : In this users need not pay in-advance but getting the total service. The server authenticates customer and verifies with bank fund or adequate before service. Example : credit card , debit card
The following view points are evaluated for the payment instrument in electronic commerce : 1. The nature of transaction for which the instrument is designed. 2. The means of settlement used tokens are backed by cash , credit , e-cash etc 3. Approaches to the security and anonymity 4. The question of risk at what time occurs , tokens suddenly become worthless and customer have currency that no body will accept.