Downloaded 61 times
More Related Content
Similar to Electronic payment system
Electronic payment system
- 1.
- 2. • Technology hasbecome an integral part of our life and we can see that there is hardly any shpere of life,where we don’t use technology. • The banking sector is no escape to this rule,as banking transaction,which used to happen in the traditional ways,are also done with the help of technology.
- 3. Electronic Payment • ElectronicPayment is a financial exchange that takes place online between buyers and sellers. • The content of this exchange is usually some form of digital financial instrument (such as encrypted credit card numbers, electronic cheques or digital cash) that is backed by a bank or an intermediary, or by a legal tender.
- 4. Electronic payment system Electronicpayment system is a system which helps the customer or user to make online payment for their shopping. ie,To transfer money over the Internet. Methods of traditional payment. o Check, credit card, or cash. Methods of electronic payment. o Electronic cash, software wallets, smart cards, and credit/debit cards.
- 5. Requirements For E-payments •Decreasing technology cost • Reduced operational and processing cost • Increasing online commerce
- 6. Some Examples OfEPS:- Online reservation Online bill payment Online order placing (nirulas) Online ticket booking ( Movie)
- 7. 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
- 8. ATMs: Automated Teller Machines •An automated teller machine (ATM) is a computerized telecommunications device that provides the customer of a financial institutions / bank with access to financial transactions in a public space without the need for a human clerk or bank teller round the clock (24 hrs a day)
- 9. History Of ATM •The ATM was invented by Scot John shepherd-Barron. • The world's first ATM was installed in a branch of Barclays in the northern London borough of Enfield, Middlesex, in 1967. • A mechanical cash dispenser was developed and built by Luther George Simjian and installed in 1939 in New York City by the City Bank of New York. • The first person to use the machine was Reg Varney of "On the Buses" fame, a British Television programme from the 1960s. • The idea of a PIN stored on the card was developed by the British engineer John Rose in 1965. • The modern, networked ATM was invented in Dallas, Texas, by Don Wetzel in 1968. • Notable historical models of ATMs include the IBM 3624 and 473x series, Diebold 10xx and TABS 9000 series, and NCR 5xxx series.
- 10. ATM Card • Onmost modern ATMs, the customer is identified by inserting a plastic ATM card with a magnetic stripe or a plastic smartcard with a chip, that contains a unique card number and some security information. • Security is provided by the customer entering a personal identification number(PIN).
- 11.
- 12. Functions of ATM •24-hour access to cash • View Account Balances & Mini-statements • Order a Cheque Book / Account Statement • Transfer Funds between accounts • Refill your Prepaid card • Pay your utility bills • Deposit cash or cheques • Change your PIN • Learn about other products
- 13. E cash Asystem that allows 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.
- 14. E-wallet The E-walletis another 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.
- 15.
- 16. Debit card ncredit card introduced -1970’s • Corporation Bank-Debit card • Andhra Bank -Credit Card
- 17. Debit card • Plasticcard - provides a alternative payment method to cash when making purchases • Electronic check - the funds are withdrawn directly from the account • BANK CARD or CHECK CARD • Instant withdrawal of cash, acting as the ATM • No annual fee
- 18. Types of DebitCards DEBIT CARD OFFLINE DEBIT SYSTEM ONLINE DEBIT SYSTEM PREPAID DEBIT CARD ELECTRONIC PURSE CARD SYSTEM
- 19. Credit 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. • Card entitling its holder to buy goods and services based on the holder's promise to pay for these goods and services • User can borrow money for payment to a merchant and then pay it later with an amount of interest charged • Issued to an account holder who has a regular income not less than 15k • The concept of using a card for was first described in 1887 by Edward Bellamy in his utopian novel Looking Backward. • The size of most credit cards is 85.60 × 53.98 mm
- 20. Particulars Displayed OnCredit Cards • Name of the customer • 16-digit card number • Validity date • The VISA hologram and the VISA logo • Name of the issuing bank • Signature period • Magnetic strip • PIN
- 21. What does 16digit means
- 22. Types of creditcards CREDIT CARD BUSINESS CREDIT CARD PREPAID CREDIT CARD DIGITAL CREDIT CARD SECURED CREDIT CARD
- 23. Processing a Creditcards payment
- 24. 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
- 25. DEBIT CARD CREDITCARD It is a pay now product. It is a pay later product. Payment is immediately debited in card holders account. The card holder can avail credit for 30- 45 days. No interest charge on the use of debit card. Interest and other charges have to be paid on credit card. A bank account and minimum balance should be maintained. This is not compulsory in case of credit cards. Probability of risk of fraud is lower. Probability of risk and fraud is higher. No risk of over spending as the customer can spend what he has. The holder tends to overspend because he is using the credit provided by credit card issuer. It can be used at ATM terminals to withdraw cash. Also known as ATM cum debit card. It is commonly used to make payment at POS/online.it can be used in ATMs with restrictions. Known as plastic money.
- 26. Smart Cards • ASmart card is a plastic card about the size of a credit card, with an embedded microchip that can be loaded with data, used for telephone calling, cash payments , and other applications, and then periodically refreshed for additional use. • A smart card is a plastic card with a small, built in microcomputer chip and integrated circuit that can store and process a lot of data
- 27. Smart Card Readers •Computer based readers Connect through USB or COM (Serial) ports • Dedicated terminals Usually with a small screen, keypad, printer, often also have biometric devices such as thumb print scanner.
- 28. Electronic signature • Anelectronic signature, or e-signature, refers to data in electronic form, which is logically associated with other data in electronic form and which is used by the signatory to sign. • This type of signature provides the same legal standing as a handwritten signature as long as it adheres to the requirements of the specific regulation. • An electronic sound, symbol, or process, attached to or logically associated with a contract or other record and executed or adopted by a person with the intent to sign the record.
- 29. Digital signatures • Digitalsignatures are cryptographic implementations of electronic signatures used as a proof of authenticity, data integrity and non-repudiation of communications conducted over the Internet. • When implemented in compliance to digital signature standards, digital signing should offer end-to-end privacy with the signing process being user-friendly and secure. • Digital signatures are generated and verified through standardized frameworks such as the Digital Signature Algorithm(DSA)
- 30. Biometric signatures • Electronicsignature may also refer to electronic forms of processing or verifying identity through use of biometric "signatures" or biologically identifying qualities of an individual. • Such signatures use the approach of attaching some biometric measurement, or hash of said measurement, to a document as evidence. • For instance, fingerprints, hand geometry (finger lengths and palm size), iris patterns, or even retinal patterns. All of these are collected using electronic sensors of some kind. • Since each of these physical characteristics has claims to uniqueness among humans, each is to some extent useful as a signature method.
- 31. Magnetic ink character recognition •MICR Code is a character-recognition technology used mainly by the banking industry to ease the processing and clearance of cheques and other documents. • The MICR encoding, called the MICR line, is at the bottom of cheques and other vouchers and typically includes the document-type indicator, bank code,bank account number,cheque number, cheque amount, and a control indicator.
- 32. • The technologyallows MICR readers to scan and read the information directly into a data- collection device. • Unlike barcodes and similar technologies, MICR characters can be read easily by humans. • The MICR E-13B font has been adopted as the international standard in ISO 1004:1995, but the CMC-7 font is widely used in Europe, Brazil and Mexico.
- 33. MICR reader • MICRcharacters are printed on documents in either of the MICR fonts. • The ink used in the printing is a magnetic ink or toner, usually containing iron oxide. • The MICR text is passed before a MICR reader. The ink in the plane of the paper is first magnetized. Then the characters are passed over a MICR read head, a device similar to the playback head of a tape recorder. As each character passes over the head it produces a unique waveform that can be easily identified by the system.
- 34. What Is TheDifference Between IFSC Code And MICR Code? • IFSC code is developed to initiate electronic money transfer between banks within India, MICR is a Magnetic Ink Recognition technology for making cheque processing faster and simpler. • IFSC code is alphanumeric 11 digits unique code, whereas MICR is a 9 digit numeric code.
- 35. LIMITATIONS OF EPS LACK OF APPLICABILITY HIGHUSAGE COST FOR MERCHANTS UNSUITABILITY LACK OF SECURITY
- 36. CONCLUSION Expand Market beyondTraditional geographic market Override traditional marketing system into digital marketing system. Made human life convenient as a person can pay his payments online while he is taking rest.
- 37. PRESENTED BY, ATHULY ROLL M MAR IVANIOSCOLLE THIRUVANATHAPURAM