IN2263 Assignment Week12

IN2263
Global E-Business Management
Group Assignment - 12
Team number - 10
Group members :- Submitted To :-
Tony Bejjani
Jay Kadu - 202004291
Ravneet Kaur - 202004588
1. Discuss the most common online payment systems and their functions.
The transfer of money using digital or electronic means is called electronic payments or online
payments. E-payments are rapid and effective, and the money usually transfers right away. Some of
the online payment methods are as follows:
* PayPal: PayPal serves as a link between a customer and a bank. All transactions are handled by
PayPal rather than your bank. All that is required is to link the bank account to PayPal. It is a useful
method for internet purchasing.
*Google Pay: Google Pay is a quick and easy method to make payments in many locations. A user
can use their phone to pay in stores or for transportation after adding a card. When a user touches
the Google Pay payment button, a list of accepted payment methods appears on a payment sheet.
Google Pay securely returns a payment token for the user's chosen payment method to your app
after they've made their selection.
*Online banking transfers: Using the relevant bank's mobile app, you can make an online banking
transfer. With this payment option, customers can send money to a bank account anywhere in the
world.
2. Discuss how payment cards are used in online retail transactions.

Payments cards in online retaik transactions: Payment card is a quicker and more affordable and
effective way than using a check. Payment Cards can be used online and over the phone.
Depending on the card issuer you use, credit or charge cards can offer an interest-free period of
varying lengths. As Payment cards are pre-funded, host-based, stored-value cards that employees
can use to make point-of-sale (POS) purchases or access their net pay at an ATM or bank. In
accordance with the NACHA regulations, the employer funds the cards in the same way that it
funds direct deposit of payroll. In order to receive payment, the acquirer sends the transactions to
the credit card network and funds the merchant's account. The acquirer is paid by the credit card
network, which also bills the issuing bank. The transaction is posted by the issuer to the
cardholder's account. When the monthly statement arrives, the cardholder pays it.
3. Discuss stored-value cards and their usage in e-commerce.
a. A stored-value card is a type of debit card that has been pre-loaded with money that can be
used to make purchases.
b. It is a card with a predetermined monetary value.
c. After the value has been used, the card can either be discarded or recharged.
d. The main benefit of the stored-value card is that customers can purchase prepaid cards
without having a bank account.
e. The stored-value cards come in two different types.
Closed Loop
In closed-loop cards, money is symbolically stored as binary-coded data on the card.
Closed-loop cards, like the Chennai metro rail travel card, are issued by a particular retailer or
retailer and can only be used to make purchases from that particular location.
Open-loop (multipurpose) cards can be used to conduct debit transactions at a number of
merchants.
4. Discuss the challenges and opportunities of the use of digital cash.

In the twenty-first century, electronic payment methods are widely used. Cash has been replaced
by debit and credit cards as the standard method of payment. Due to some advantages that cash
has, many people still favour using it. People have previously had to decide between using cash or
an electronic medium. However, it is now possible to combine the benefits of both digital
technologies and cash thanks to the new idea of digital cash.
The use of digital money has several benefits. Some of them are mentioned further down.
Lower Cost: To begin with, using digital currency has a very low cost. Large amounts of
infrastructure are needed for typical bank transactions. Transactions are made possible by bank
branches, tellers, clerks, and electronic systems working together. Only banking transactions may
be conducted using this infrastructure. Digital money, however, does not require any unique
infrastructure. It can facilitate the same transactions using simple services like the internet. Thus,
there is no longer a need for specialized infrastructure. The price of transactions is decreased as a
result.
Long Distance Transactions:
Sending money over great distances can be very expensive when using physical currency. This is
also true for electronic cash because third parties like SWIFT are involved and must be
compensated. However, sending digital money internationally is not too difficult. In a digital cash
system, the cost to send money to your next-door neighbor and someone on the other side of the
world is equal.
Disadvantages
Not Traceable: Because digital currency is used online, tracing it is challenging. As a result, the
system offers anonymity. This has the potential to be both good and bad. The digital cash system,
for instance, could be used by criminals to transfer money abroad. For governments and legal
authorities, the absence of traceability is a serious issue. The user base is not significantly impacted
by it.
Digital cash systems are particularly vulnerable to fraud. Since money is digital, it's possible that
hackers could access the system. Even though they did not pay anything to earn that money, they
might still produce more coins. The value of the other coins in the system is decreased when an
excessive amount of coins are produced. Consequently, this risk has an equal impact on banks and
users.
5. Discuss how digital wallets facilitate online transactions through computers and mobile
devices.
Software for digital wallets is typically contained within a mobile app on a smartphone, but it can
also be used in a variety of other formats, such as on a physical device or on your personal
computer. Due to its adaptability and mobility, the smartphone app version of the digital wallet is
currently by far the most popular. You typically need to download a digital wallet app on your
smartphone in order to use these digital wallets. These may be produced by your preferred bank or
another reliable party. Before providing your financial information to an app, make sure you do
your homework and confirm the company's credibility.
In order to use your digital wallet, you typically need to locate a point of sale (POS) system terminal
that is compatible with it. Typically, you can tell this by looking at the contactless symbol at the
register. You can also use Magnetic Secure Transmission technology to pay with some POS systems.
Many contemporary POS systems can support Magnetic Secure Transmission payments, even
though contactless payments can be more challenging to find.
References
https://www.bankrate.com/finance/credit-cards/guide-to-using-paypal/

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IN2263

Global E-Business Management

2. Discuss how payment cards are used in online retail transactions.

4. Discuss the challenges and opportunities of the use of digital cash.

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