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Electronic Payment system Ecommerce for college student
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- 2. Electronic Fund Transfer(EFT) refers to the process of transferring money electronically from one bank account to another, without the need for physical checks or cash. EFTs enable individuals, businesses, and financial institutions to send and receive funds quickly, securely, and conveniently. EFTs can be used for various types of transactions, including payments, transfers, deposits, withdrawals, and bill payments.
- 3. What is REALTIME GROSS SETTLEMENT (RTGS) • RTGS or Real Time Gross Settlement is an electronic method to transfer money from one bank to another bank on a real-time or gross basis within the country. • The term Real-Time means that the Payment is made instantly without any delay and may take around 30 minutes from receiving the request for remittance of funds. • The Gross Settlement means the money is transferred on one to one basis.
- 5. NATIONAL ELECTRONIC FUNDTRANSFER(NEFT) • NEFT is a one-to-one payment facility that is regulated by the Reserve Bank of India across various public and private sector banks. • As per NEFT, one can transfer funds to another individual with an account in a different bank. However, to enable this facility, the concerned bank accounts must be NEFT-enabled. • The payments as per the NEFT are processed and settled in half-hourly batches. Who can make NEFT Transactions? • Any Account Holder can make NEFT transfers i.e., Individuals, Firms, Corporates but this can be done when the user’s Bank is NEFT-Enabled Bank. • In NEFT, the transaction Amount limit should be Rs.50000/-.
- 6. What are thebenefits that we get through NEFT? • Transferring funds through electronic mode is time saving and convenient. • NEFT payments are solely electronic. • The payment method is safe and encrypted with firewalled gateways. Thus, safety from frauds and thieves. • Instant confirmation of transfer of funds to both the sender and the receiver. • NEFT dismantled the use of Cheques and Demand Drafts for the transfer of funds; thus, it is economical. What is the Fee charged for the NEFT Transactions? Amount ≤ ₹.10000 – ₹.2.5/- + applicable GST 10000 < Amount ≤ 100000 – ₹.5/- + applicable GST 100000 < Amount ≤ 200000- ₹.15/- + applicable GST Amount >200000 – ₹.25/- + applicable GST.
- 8. IMMEDIATE PAYMENT SERVICE(IMPS) • It is a real-time electronic fund transfer facility like NEFT or RTGS. IMPS service is convenient since it is quick, paperless and does not require one to have a detailed information related bank account to transfer funds. • To avail the IMPS facility, one is required to have the beneficiary’s mobile number linked to the bank account and the MMID(Mobile Money identifier) . The IMPS payments can be made 24/7 and 365 days in a year. • Thus, there is no disparity or hindrance in transferring funds with IMPS even during bank or public holidays. • IMPS has daily transaction limits
- 9. IMMEDIATE PAYMENT SERVICE(IMPS) • The timings for the IMPS transactions are 24/7 • But in some cases, to reduce and prevent the frauds, many banks tend to allow the IMPS transfers for 12 hours i.e., 8am to 8 pm. • MPS Maximum Limit per transaction is Rs.2lakh. Multiple transactions may be permissible depending upon your bank and IMPS Limits approved • Amount ≤ 10000- ₹.2.5/- + applicable GST • 10000 < Amount ≤ 100000 – ₹.5/- + applicable GST • 100000 < Amount ≤ 200000 – ₹.15/- + applicable GST • Amount > 200000 – ₹.25/- + applicable GST.
- 11. UNIFIED PAYMENTS INTERFACE(UPI) • It is a system that powers multiple bank accounts (of participating banks), several banking services like fund transfer and merchant payments in a single mobile application. • Ex: BHIM, SBI UPI app, HDFC UPI app, etc. • UPI is a single platform that merges various banking services and features under one umbrella. A UPI ID and PIN are sufficient to send and receive money. Real-time bank-to- bank payments can be made using a mobile number or virtual paym • UPI is an initiative taken by the National Payments Corporation of India (NPCI) together with the Reserve Bank of India and Indian Banks Association (IBA). NPCI is the firm that handles Ru-Pay payments infrastructure, i.e. similar to Visa and MasterCard. It allows different banks to interconnect and transfer funds. UPI is considered as the advanced version of IMPS.
- 12. Online Payment System •An online payment system, also known as an electronic payment system or digital payment system, is a mechanism that enables individuals and businesses to conduct financial transactions over the internet. These systems facilitate the transfer of funds electronically between buyers and sellers, allowing for the purchase of goods and services, payment of bills, transfer of money between accounts, and other financial transactions without the need for physical cash or checks. • Online payment systems provide convenience, security, and efficiency in processing transactions, making them integral to e- commerce, online banking, and digital commerce.
- 13. Advantages of OnlinePayment System • Convenience: Online payment systems offer unparalleled convenience, allowing users to make purchases, pay bills, transfer funds, and manage their finances anytime, anywhere, without the constraints of physical location or business hours. • Accessibility: Online payment systems enable access to financial services and electronic commerce for individuals who may not have access to traditional banking services or physical payment methods, such as credit cards or checks. • Speed: Online payments are processed quickly, often in real-time or within a few minutes, allowing for faster transactions and immediate access to goods and services. • Cost Savings: Online payment systems can reduce costs associated with paper- based transactions, such as printing, mailing, and processing physical checks or invoices, leading to cost savings for businesses and consumers.
- 14. • Global Reach:Online payment systems facilitate cross- border transactions and international commerce, enabling businesses to reach customers globally and expand their market reach beyond geographical boundaries. • Security: Many online payment systems incorporate advanced security features and encryption technologies to protect sensitive information, prevent fraud, and ensure the security and integrity of transactions. • Automation: Online payment systems offer automation capabilities for recurring payments, subscriptions, and scheduled transactions, streamlining payment processes and reducing manual effort for businesses and consumers.
- 15. Disadvantages of OnlinePayment System • Security Risks: Online payment systems are susceptible to security risks, including data breaches, identity theft, phishing scams, malware attacks, and unauthorized access to sensitive information, posing risks to users' privacy and financial security. • Technical Issues: Online payment systems may experience technical glitches, system downtime, or interruptions in service, leading to delays, errors, or disruptions in processing transactions and accessing funds. • Fraud and Chargebacks: Online payment systems are vulnerable to fraud, chargebacks, and disputes, resulting in financial losses, reputational damage, and administrative burdens for businesses and financial institutions.
- 16. • Dependency onTechnology: Online payment systems rely on technology infrastructure, internet connectivity, and electronic devices, making them vulnerable to disruptions, outages, or cyberattacks that could impact the availability and reliability of services. • Complexity: Some online payment systems may be complex or difficult to use, requiring users to navigate through multiple steps, authentication processes, or security measures, which can lead to user frustration or abandonment of transactions. • Transaction Fees: Online payment systems may charge transaction fees, processing fees, or service charges for using their platforms or services, which can increase the cost of doing business for merchants and financial institutions and reduce the value proposition for consumers.
- 17. ELECTRONIC PAYMENT METHODS 1.Debit card: It is a small plastic card with a unique number mapped with the bank account number. It is required to have a bank account before getting a debit card from the bank. A debit card is a payment card that allows the cardholder to make purchases or withdraw cash from their bank account electronically. Debit cards are linked directly to the cardholder's checking account or savings account, and transactions are processed using the funds available in those accounts. in case of payment through debit card, the amount gets deducted from the card's bank account immediately and there should be sufficient balance in the bank account for the transaction to get completed Debit cards free the customer to carry cash and cheques. Even merchants accept a debit card readily. Having a restriction on the amount that can be withdrawn in a day using a debit card helps the customer to keep a check on his/her spending.
- 18. ELECTRONIC PAYMENT METHODS 1.Debit card: Debit cards can be used for withdrawals at automatic teller machines (ATMs) as well as for purchases at retailers in-store and online. Debit cards have a unique personal identification number (PIN), which you punch in on the ATM keypad or the merchant's point-of-sale terminal. Most debit cards are linked to a processing network, such as Visa or Mastercard, allowing them to be used anywhere cards in that network are accepted.
- 21. Rupay Cardis an Indian domestic card conceived and launched by NPCI in 2012. RuPay Card is an Indian Domestic Debit Card whereas Visa or MasterCard is an International System debit card. The main difference between RuPay, MasterCard, and Visa Debit Card is the operating costs. Since every transaction through RuPay will take place within India, the banks will have to pay less service charges to the payment gateway as compared to Visa, and MasterCard.
- 22. • Visa orMasterCard is an American company and when we use its card, then for data processing and verification, the server goes to the company's server, which reduces processing. Whereas RuPay card is used for data processing and verification in India only so, its processing is fast. • Banks are required to pay a quarterly fee for joining a foreign payment network such as Visa Debit Card or MasterCard but do not have to do so in RuPay Card. Any bank can join the RuPay network at no charge. • There are some limitations to using the RuPay card because it provides only a debit card for online transactions, whereas Visa or MasterCard provides both a debit and credit card. • As mentioned above, a RuPay card has been created for domestic use, so it cannot be used at international level transactions such as Visa or MasterCard.
- 23. Credit card • Creditcard is small plastic card with a unique number attached with an account. It has also a magnetic strip embedded in it which is used to read credit card via card readers. When a customer purchases a product via credit card, credit card issuer bank pays on behalf of the customer and customer has a certain time period after which he/she can pay the credit card bill. It is usually credit card monthly payment cycle. • Each credit card has a maximum credit limit, which is the maximum amount of money that the cardholder can borrow on the card. The credit limit is determined by the card issuer based on factors such as the cardholder's credit history, income, and creditworthiness. • Credit card issuers require cardholders to make minimum monthly payments on their credit card balances to keep the account in good standing. The minimum payment is typically a small percentage of the outstanding balance, plus any fees and interest charges accrued during the billing cycle.
- 24. Credit card • Creditcards may have various fees and charges associated with them, including annual fees, late payment fees, over-limit fees, cash advance fees, foreign transaction fees, and balance transfer fees. Cardholders should review the terms and conditions of their credit card agreement to understand the fees and charges applicable to their card. • Responsible use of a credit card, including making timely payments and keeping credit utilization low, can help build and maintain a positive credit history and improve the cardholder's credit score. On the other hand, missed payments, high credit card balances, and excessive credit card debt can have a negative impact on the cardholder's credit score.
- 26. Smart Card • Asmart card, also known as an integrated circuit card (ICC) or chip card, is a type of plastic card embedded with a microprocessor chip or integrated circuit (IC) that stores and processes data. Smart cards are used for various applications, including identification, authentication, payment, access control, and secure data storage. • It was invented by Robert Noyce at Fairchild Semiconductor in 1959. • Smart cards can provide personal identification, authentication, data storage, and application processing. Applications include identification, financial, public transit, computer security, schools, and healthcare. • Smarts cards may have up to 8 kilobytes of RAM, 346 kilobytes of ROM, 256 kilobytes of programmable ROM, and a 16-bit microprocessor. The smart card uses a serial interface and receives its power from external sources like a card reader.
- 27. SMART CARD APPLICATION Smartcards are used in a wide range of industries and applications, including: • Banking and Payment: Smart cards are used as credit cards, debit cards, and prepaid cards for secure payment transactions at point-of-sale terminals and ATMs. • Government and Identification: Smart cards are used for government-issued identification cards, national ID cards, passports, driver's licenses, and voter ID cards. • Access Control: Smart cards are used for access control systems in buildings, facilities, and secure areas, providing secure authentication and authorization for entry. • Healthcare: Smart cards are used for healthcare applications such as patient identification, electronic health records (EHRs), prescription management, and health insurance cards.
- 29. Ecommerce security • E-commercesecurity refers to the measures and practices implemented to protect online transactions, customer data, and sensitive information in electronic commerce (e- commerce) environments. As online shopping and digital transactions continue to grow, ensuring the security and integrity of e-commerce platforms is crucial to building trust with customers, mitigating risks, and preventing fraud
- 30. Ecommerce security issues •Payment Card Fraud: Payment card fraud is a significant concern for e- commerce businesses, involving unauthorized transactions, stolen credit card details, and fraudulent purchases. Cybercriminals may exploit vulnerabilities in payment processing systems, intercept payment data during transmission, or use stolen credit card information to make fraudulent transactions. • Data Breaches: Data breaches occur when cyber attackers gain unauthorized access to e-commerce databases, servers, or customer accounts, resulting in the theft or exposure of sensitive information, such as personal data, payment card details, login credentials, and transaction records. Data breaches can occur due to various factors, including weak security controls, unpatched software vulnerabilities, insider threats, and social engineering attacks. • Phishing Attacks: Phishing attacks involve fraudulent emails, messages, or websites designed to deceive users into disclosing sensitive information, such as login credentials, payment card details, or personal data. E-commerce phishing scams may impersonate legitimate businesses, banks, or payment providers, tricking users into clicking on malicious links, downloading malware, or entering sensitive information on fake websites.
- 31. Attacking methods • BruteForce Attacks: In a brute force attack, hackers attempt to gain unauthorized access to a system or account by systematically trying all possible password combinations until the correct one is found. • Phishing: Phishing attacks involve tricking users into revealing sensitive information, such as login credentials or financial data, by impersonating legitimate entities through fraudulent emails, messages, or websites. • SQL Injection (SQLi): SQL injection attacks target web applications and databases by inserting malicious SQL code into input fields or URLs, exploiting vulnerabilities in input validation mechanisms to manipulate database queries and extract sensitive information. • Cross-Site Scripting (XSS): Cross-Site Scripting attacks inject malicious scripts into web pages viewed by users, compromising their accounts, stealing session cookies, or redirecting them to phishing websites. 1. HACKING
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- 33. Encryption • Encryption isa process of converting plaintext (unencrypted data) into ciphertext (encrypted data) using an encryption algorithm and a cryptographic key. Encryption is used to protect sensitive information, such as personal data, financial transactions, and communication, from unauthorized access, interception, and tampering by malicious actors • It is a very effective and practical way to safeguard the data being transmitted over the network. Sender of the information encrypts the data using a secret code and only the specified receiver can decrypt the data using the same or a different secret code.
- 34. secure channel ofcommunication A secure channel of communication refers to a method or protocol used to transmit information securely between two or more parties, ensuring that the data exchanged remains confidential, integral, and authenticated. Secure channels are essential for protecting sensitive information, such as personal data, financial transactions, and confidential communications, from unauthorized access, interception, tampering, or manipulation by malicious actors.
- 35. secure channel ofcommunication • Transport Layer Security (TLS): TLS is a cryptographic protocol used to secure communication over computer networks, such as the internet. It encrypts data exchanged between clients and servers to prevent eavesdropping, tampering, and data interception by unauthorized parties. TLS provides secure connections for web browsing (HTTPS), email (SMTPS), file transfer (FTPS), and other network protocols. • Secure Sockets Layer (SSL): SSL is a predecessor to TLS and provides similar functionality for securing network communication. Although SSL has been deprecated due to security vulnerabilities, some legacy systems and applications still use SSL for encryption and secure communication. • Virtual Private Network (VPN): A VPN creates a secure, encrypted tunnel between a user's device and a remote server or network, allowing users to transmit data securely over public networks, such as the internet. VPNs protect privacy, hide IP addresses, and encrypt traffic to prevent interception and monitoring by third parties.