UNIT- V

 Security issues of e-commerce:

 Firewall
 E-locking
 Encryption: Cyber laws
 Payment Gateways
 Visa
 Rupay and
 mastercard

Cyber laws: Cyber laws refer to legal measures and regulations that govern
internet usage, online activities, and digital transactions. These laws are
designed to address various aspects of cybercrime, data protection, privacy,
intellectual property rights, and online behavior. Here are some key areas
typically covered by cyber laws:

1. Cybercrime: Laws define and criminalize activities such as hacking, identity

theft, online fraud, cyberbullying, phishing, malware distribution, and other
malicious acts committed using computers or the internet.
2. Data Protection and Privacy: Cyber laws regulate the collection, storage,
processing, and sharing of personal and sensitive information online. They
often require organizations to implement measures to safeguard data and
inform users about how their information is being used.
3. Intellectual Property Rights: These laws protect digital content such as
software, music, videos, images, and literary works from unauthorized copying,
distribution, and use. They also address issues like copyright infringement and
digital piracy.
4. Electronic Transactions: Cyber laws establish legal frameworks for electronic
contracts, signatures, and records. They ensure that electronic transactions are
legally binding and enforceable.
5. Cybersecurity: Laws may require organizations to implement cybersecurity
measures to protect their systems and networks from cyber threats. They often
outline standards for security practices and incident response.
6. Jurisdiction and Enforcement: Cyber laws clarify jurisdictional issues related
to cybercrimes that crossnational borders. They also outline procedures for
investigating and prosecuting cyber offenders.
7. Consumer Protection: These laws aim to protect consumers from deceptive
or fraudulent practices online, such as false advertising, unfair billing, or the
sale of counterfeit goods.
8. Freedom of Expression: Cyber laws balance the right to freedom of
expression with the need to prevent harmful online content, such as hate
speech, incitement to violence, or child exploitation.

Cyber laws vary from country to country, and they often evolve to keep pace
with technological advancements and emerging threats in the digital realm.
Governments, international organizations, and industry stakeholders work
together to develop and enforce these laws to promote a safe and secure
online environment.

Payment Gateway:
Payment gateways are crucial components of e-commerce and online transactions, facilitating
the secure transfer of funds between buyers and sellers over the internet. They encrypt sensitive
payment information, such as credit card details, to ensure confidentiality and prevent fraud.
Here's how payment gateways typically work:

1. Customer initiates payment: The customer selects products or services on an e-commerce

website and proceeds to the checkout page to make a purchase.
2. Payment information entered: At checkout, the customer enters their payment details, such as
credit card number, expiration date, and security code, into the website's payment form.
3. Encryption and transmission: The payment gateway encrypts the customer's payment
information using secure protocols (such as SSL) to protect it from unauthorized access during
transmission.
4. Authorization request: The encrypted payment information is transmitted to the payment
gateway's server, which then forwards it to the appropriate financial institution (usually the
customer's bank or credit card issuer) for authorization.
5. Authorization response: The financial institution evaluates the transaction based on factors like
available funds, card validity, and fraud risk. It then sends an authorization response (approved
or declined) back to the payment gateway.
6. Transaction processing: If the transaction is approved, the payment gateway notifies the
merchant's website, allowing the customer to complete the purchase. If declined, the customer
may be prompted to use an alternative payment method.
7. Settlement: After the transaction is completed, the funds are transferred from the customer's
account to the merchant's account through the payment gateway. This process typically involves
batch processing and settlement at specific intervals.

Payment gateways may offer additional features and services, such as recurring billing,
subscription management, fraud detection, and integration with accounting or inventory systems.
They may also support multiple payment methods beyond credit/debit cards, such as digital
wallets, bank transfers, and alternative payment solutions.

Popular payment gateway providers include PayPal, Stripe, Square, Authorize.Net, and Adyen,
among others. Businesses choose payment gateways based on factors like transaction fees,
security features, ease of integration, compatibility with their e-commerce platform, and
supported payment methods.

Visa, RuPay, and Mastercard are three prominent payment networks that facilitate electronic
funds transfers and card payments worldwide. Here's a brief overview of each:

1. Visa:
 Visa is one of the largest and most widely recognized payment networks globally. It
offers a range of payment products, including credit cards, debit cards, and prepaid cards.
 Visa cards are accepted by millions of merchants and ATMs in over 200 countries and
territories.
 Visa provides various services and benefits to cardholders, such as fraud protection,
rewards programs, and global acceptance.
2. RuPay:
 RuPay is a domestic payment network in India, launched by the National Payments
Corporation of India (NPCI) to promote digital transactions within the country.
 RuPay cards are issued by Indian banks and are primarily used for domestic transactions,
including online purchases, ATM withdrawals, and point-of-sale transactions.
 RuPay aims to provide a cost-effective payment solution for Indian consumers and
merchants while promoting financial inclusion.
3. Mastercard:
 Mastercard is another major global payment network, offering credit cards, debit cards,
and prepaid cards.
 Like Visa, Mastercard cards are accepted worldwide at millions of locations, including
online merchants, retailers, and ATMs.
 Mastercard provides various features and services, such as contactless payments, identity
theft protection, and travel benefits for cardholders.

While Visa and Mastercard operate on an international scale and cater to a global audience,
RuPay primarily serves the Indian market. Each network has its own set of card products,
features, and benefits, but they all play a crucial role in facilitating electronic payments and
driving the adoption of digital payment technologies.
 Visa is one of the largest and most widely recognized payment networks
globally. It operates as an intermediary between financial institutions,
merchants, and cardholders, facilitating electronic funds transfers and card
payments. Here are some key points about Visa:
1. Credit and Debit Cards: Visa offers a wide range of payment products,
including credit cards, debit cards, and prepaid cards. These cards are issued
by banks and financial institutions that are members of the Visa network.
2. Global Acceptance: Visa cards are accepted by millions of merchants and
ATMs in over 200 countries and territories worldwide. Whether you're
shopping online, dining out, or traveling abroad, you're likely to find
merchants that accept Visa cards.
3. Security Features: Visa prioritizes the security of card transactions and offers
multiple layers of protection against fraud and unauthorized use. This includes
features such as EMV chip technology, tokenization, and real-time fraud
monitoring.
4. Contactless Payments: Visa supports contactless payment technology,
allowing cardholders to make payments quickly and securely by tapping their
cards or mobile devices at contactless-enabled terminals.
5. Rewards Programs: Many Visa cards come with rewards programs that offer
cardholders various benefits, such as cashback, travel rewards, discounts, and
loyalty points, based on their spending.
6. Financial Inclusion: Visa works to promote financial inclusion by expanding
access to electronic payments and banking services, particularly in
underserved communities and developing countries.
7. Innovation: Visa is actively involved in driving innovation in the payments
industry, exploring emerging technologies like mobile payments, biometrics,
and blockchain to enhance the payment experience for consumers and
businesses.

Overall, Visa plays a vital role in enabling secure, convenient, and efficient
electronic payments on a global scale, helping to connect merchants and
consumers while driving the evolution of the digital economy.
 RuPay is a domestic payment network in India, developed and operated by the
National Payments Corporation of India (NPCI). Here are some key aspects of
RuPay:

1. Domestic Focus: RuPay primarily serves the Indian market, providing a

payment infrastructure that facilitates electronic transactions within the
country. It was launched with the aim of promoting digital transactions and
reducing reliance on international payment networks.
2. Card Products: RuPay offers a range of payment products, including debit
cards, credit cards, and prepaid cards. These cards are issued by banks and
financial institutions that are members of the NPCI network.
3. Low-Cost Solution: One of the key objectives of RuPay is to provide a cost-
effective payment solution for Indian consumers and merchants. By operating
domestically, RuPay aims to reduce transaction costs and promote financial
inclusion, particularly among underserved segments of the population.
4. Wide Acceptance: RuPay cards are accepted at a growing number of
merchants across India, including online retailers, brick-and-mortar stores,
ATMs, and point-of-sale terminals. NPCI has been actively working to expand
RuPay's acceptance network, making it more accessible to consumers and
businesses.
5. Security: RuPay prioritizes the security of card transactions and incorporates
advanced security features such as EMV chip technology, two-factor
authentication, and real-time fraud monitoring to protect cardholders against
fraud and unauthorized use.
6. Government Support: RuPay has received support from the Indian
government as part of its efforts to promote financial inclusion and digital
payments. Initiatives such as Jan Dhan Yojana, which aims to provide banking
services to all households in India, have contributed to the adoption of RuPay
cards.
7. Partnerships: RuPay has entered into partnerships with various stakeholders
in the Indian financial ecosystem, including banks, merchants, and payment
service providers, to enhance its reach and functionality. These partnerships
have facilitated the integration of RuPay into various payment channels and
platforms.
 Overall, RuPay plays a significant role in driving the digitization of payments in
India, offering a domestic alternative to international payment networks and
contributing to the country's efforts to build a cashless economy.
Mastercard is a global payment network that facilitates electronic funds transfers and card
payments. Here are some key aspects of Mastercard:

1. Global Presence: Mastercard is one of the largest payment networks in the world, operating in
over 210 countries and territories. It connects financial institutions, merchants, and cardholders
worldwide, enabling transactions across borders.
2. Credit, Debit, and Prepaid Cards: Mastercard offers a diverse range of payment products,
including credit cards, debit cards, and prepaid cards. These cards are issued by banks and
financial institutions that are members of the Mastercard network.
3. Acceptance: Mastercard cards are accepted at millions of merchants globally, including online
retailers, brick-and-mortar stores, restaurants, hotels, and other businesses. They can also be used
for ATM withdrawals and cash advances.
4. Security Features: Mastercard prioritizes the security of card transactions and employs various
security measures to protect cardholders' information and prevent fraud. This includes EMV chip
technology, tokenization, biometric authentication, and real-time fraud monitoring.
5. Contactless Payments: Mastercard supports contactless payment technology, allowing
cardholders to make fast and secure transactions by tapping their cards or mobile devices at
contactless-enabled terminals. This feature enhances convenience and reduces transaction times.
6. Rewards Programs: Many Mastercard cards come with rewards programs that offer
cardholders benefits such as cashback, travel rewards, discounts, and loyalty points based on
their spending. These programs incentivize card usage and enhance the cardholder experience.
7. Innovation: Mastercard is actively involved in driving innovation in the payments industry,
exploring emerging technologies like mobile payments, digital wallets, biometrics, and
blockchain to improve the payment experience for consumers and businesses.
8. Financial Inclusion: Mastercard works to promote financial inclusion by expanding access to
electronic payments and banking services, particularly in underserved communities and
developing countries. It partners with governments, NGOs, and financial institutions to
implement initiatives aimed at empowering individuals and businesses through digital financial
services.

Overall, Mastercard plays a crucial role in enabling secure, convenient, and efficient electronic
payments on a global scale, contributing to the growth of the digital economy and enhancing
financial inclusion worldwide.