E-PAYMENT

 . What is E-Payment?E-payment defined as electronic payment, is asubset of an e-commerce transaction. It includeselectronic payment for buying/selling goods orservices which are offered on the internet.Generally we think of electronic payments asonline transactions made over internet. Actually,there are many forms of electronic payments. Withthe development of the technology, the range ofdevices and processes to transact electronicallycontinues to increase while cash and checktransactions decreases.  3. E-payment systemGood or Service that Good or Service that is bought is soldBUYER SELLERBetween the buyer and seller there is always an epaymentsystem. In electronic environment, the buyer and seller do notsee each other. Between them, there is a secure paymentmethod made, which is called the e-payment system.  4. E-payment typesThere are several e-payment types. The e-payment types also depends on thecountry where you live in. Day by day world widely, the use of e-payment increases.There are still countries that epayment process is not in a range variety of use. Themost general ones of e-payment types are:• E-Cash• Micropayments• E-Wallets• Debit and Credit Cards• Smart Card• Peer to Peer Payments• B2B and B2C Transactions  5. E-CashE-cash defined as electronic cash, is an internet based systemgenerated by a computer. It allows funds to be transferred anditems to be purchased by debit/credit card, check or moneyorder. Secure online transaction processing is provided.It’s more efficient and has lower transaction costs. Anybody canuse it and does not require special authorization. You can makepayments less than a 1$, which costs cents, and that’s calledmicropayment.  6. 2 BANK 4 1 5 Buyer Seller 31. Firstly the buyer buys e-cash from the bank2. The bank sends e-cash bits to buyer (after charging thatamount

You do not need each time to enter information into forms to purchase. address informationand provides it at e-commerce sites. It also gives you the ability to take directly cash money from ATM’s (Automatic or . All your information is stored in. seller takesdeposited e-cash. Most ofthe services related to e-payment now provide ewallet. Buyer sends the e-cash to the seller4. Click2Pay andMoneybookers are other big ones. It transfers immediately money from the client’s account to the business account. such as an application download. a service or Webbasedcontent. E-WalletE-wallet stands for electronic wallet.Neteller is one of the biggest and first e-wallet. An e-wallet provides security andencryption for personal information. Then the buyer and seller complete transaction.You can make shopping easier and more efficiently with an e-wallet. A specialtype of system is required for such payments. electronic money. which keeps your electronicmoney exactly as same as your wallet in your pocket. It removes the need to go to your bank to make payments. Oncegoods or services are delivered to buyer. It’s very convenient and secure. And there are a lot more. Identity Card Credit and Debit Card Money e-WalletYour e-wallet is your wallet in the electronicenvironment. Micropayments are sometimes defined as anything lessthan 75 cents and can be as low as a fraction of a cent. Debit and Credit Cards• A Debit Card is a plastic card that provides the cardholder electronic access to his/her bank account to withdraw cash or pay for goods and services.  10. Seller checks that e-cash with the bank if it’s valid5.  9.plus fee)3. MicropaymentsA micropayment is an e-commerce transaction involving a verysmall sum of money in exchange for something made availableonline. owner identification. Thereare lots of organizations providing secured e-wallets. It stores yourcredit card.  8. which are toosmall to be feasible for processing through credit cardcompanies. The bank verifies that e-cash is valid6.  7.

It’s the most used form of payment system given its high convenience.Debit cards all carry the symbol of one of the major types ofcredit cards on them. Debit cards offer the convenience of a creditcard but works in a different way. But with a creditcard you can spend up to the limit your bank allows you. They both offer convenience. It provides the cardholder to make purchases up to the amount fixed by the card issuer.  11. Borrowing limits are pre-set according to the individual’s credit rating. Difference between Debit and Credit CardDebit cards and credit cards are accepted at the same places.• A Credit Card is a card issued by a financial company giving the holder an option to borrow funds. used . Smart CardsA smart card is a plastic card in the size of a credit card with anembedded microchip that can be loaded with data. Payment acceptance and ProcessingMerchants has to set up merchant accounts in order to acceptpayments. The payment card transaction requires:• Merchant to authenticate payment card• Merchant must check with card issuer to ensure funds are available and to put hold on funds needed to make current charge.  14.  12. With a debit card you canspend as much as you have in your account. 1 2 3 Merchant processes Electronically Customer pays by credit card using submitted to credit card software provided by principal bank PPI 4 5 6 Issuing bankPrincipal bank sends approves/declines Principal bank sends request to issuing sends transaction transaction back to bank back to the principal merchant. Youspend a borrowed money that you will pay in further with fees.Automated Teller Machine). Credit cards charge interest and are primarily used for short-term financing.• Settlement occurs in a few days when funds travel through banking system into merchant’s account. and can be used anywhere that creditcards are accepted. Thefundamental difference between a debit card and a credit cardaccount is where the card pulls the money. A debit card takes itfrom your banking account and a credit card charges it fromyour line of credit. bank All Process takes 5-15 seconds  13.

There are 2leading smart card operating systems: JavaCard and MULTOS(Multiple Operating System). It containsuser information. It can be programmed for different applications and somecan be updated to add new applications after they are issued. B2B and B2C TransactionsThe fastest grossing sector of e-commerce payments is business-to-business(B2B) transactions. For example.regardless of what bank either person uses. Paymentech is one of the largest payment solutionsproviders for point-of-sale transactions on the Internet.B2C market transactions are less complicated than B2B transactions. Another standard is called OpenCard. It stores more information than a magnetic stripecard. Merchants using Paymentech can customize their paymentprocessing. AlertPay. The service providesreporting and processing tools and services to help manage amerchant account and electronic check processing. It also gives you theability to add your credit/debit card. electronic cash payments and otherapplications. Paymentsare generally electronic transfers from consumer checking . ePay etc… Peer-to-peer transactionsallow online financial transfers between consumers. These are servicessuch as PayPal. such as account information. Paymentech supports alltypes of credit and debit cards and conducts all transactions in a secureenvironment. Peer to Peer PaymentsA peer-to-peer payment service allows the transfer ofelectronic cash (e-Cash) via e-mail between two peoplewho have accounts at e-Cash-enabled banks. your bank account toperform transactions through them. It allows auser to send money to anyone with an e-mail address.fortelephone calling. These payments are often much larger than business-to-customer (B2C) transactions and involve complex business accountingsystems.  16. credit cardnumbers.  15. health insurance etc… Smart cards are disposable andreloadable. UsingElectronic Bill Presentment and Payment (EBPP) a company can display a billon multiple platforms online and offer actual payment processes.Smart cards are designed to be inserted into a slot that can beread by a special reader or to be read at a distance.

com/definition/smart-card• http://www.asp#axzz27J TfBvz9• http://en. References• http://www1.htm • http://www. The developing is taking placein every sector.  18.comfort ability is being wider and wider day by day.au/2003/exhibits/s334853/thesi s.techtarget.Governments support e-payment system.org• The evolution of electronic payments Thesis by Benjamin Graham http://innovexpo.american. Also governments aredeveloping their e-payment based system and setup e-paymentsystems where there is no support of e-payment.scribd. Gatheringpayments in an easier. more comfortable and convenient waycan be made by e-payment.accounts.edu/initeb/sm4801a/epayment1.edu.itee. e-Payment is usable in every placewhere a payment is to be made. ConclusionE-payment is improving and developing very fast.pdf .com/doc/29030723/Types-of-EPayments• http://searchsecurity. The usage. This isconducted through the ACH (Automated Clearing House).com/• http://www.  17.com/terms/d/debitcard. In somecountries there is approximately no Merchant that doesn’tsupport credit or debit card payment and those Merchants thatdoes not support are starting to setup their e-payment system.uq.investopedia. the current methodfor processing electronic monetary transfers.wikipedia.ecash.