Electronic Payments

Dr. Yesha Tomar

• E payment is a subset of an e-commerce
transaction to include electronic payment for
buying and selling goods or services offered
through the Internet.
• electronic payments is referred as an online
transactions on the internet.
 Phases in E-Payment
• Registration
• Invoicing
• Payment selection and processing
• Payment authorization and confirmation
 Benefits of E-payment System
• Paper work is minimized by adopting soft version of
data recording.
• 24*7 facility of transaction.
• Day Sales Outstanding (DSO) Improvements
• Processing Cost Reduction
• Minimize Overdue Payments Simplify Dispute
Management
• Increased Compliance
• Enhanced Security
• Improved Workflow Efficiencies
• Greater Visibility into Financial Supply Chain
• Human entry errors are minimized due to automation
through EDI applications
• EFT is defined as ―any transfer of funds
initiated through an electronic terminal,
telephonic instrument, or computer or
magnetic tape so as to order, instruct, or
authorize a financial institution.
• EFT can be segmented into three broad
categories:
• Banking and financial payments
• Retailing payments
• On-line electronic commerce payments
• Banking and financial payments
• – Large-scale or wholesale payments (e.g.,
bank-to-bank transfer)
• – Small-scale or retail payments (e.g.,
automated teller machines)
• – Home banking (e.g., bill payment)
• Retailing payments
• – Credit Cards
• – Private label credit/debit cards
• – Charge Cards
• On-line electronic commerce payments
Token-based payment systems
• Electronic cash (e.g., DigiCash) gpay; watsapp
pay
• Electronic checks (e.g., NetCheque)
• Smart cards or debit cards
• Electronic purse:
• Transport money
• Transport and micro-purchases
• eCash
• Digital Signatures provide a viable solution for
creating legally enforceable electronic records,
closing the gap in going fully paperless by
completely eliminating the need to print
documents for signing.
• Instead of using pen and paper, a digital signature
uses digital keys (public-key cryptography).
• Digital signatures are easily transportable, cannot
be imitated by someone else and can be
automatically time-stamped. A digital signature
can be used with any kind of message, whether it
is encrypted or plaintext.
• Section 3 deals with the conditions subject to
which an electronic record may be
authenticated by means of affixing digital
signature
• National Payments Corporation of India (NPCI)
has implemented “National Automated Clearing
House (NACH)” for Banks, Financial Institutions,
Corporates and Government a web based
solution to facilitate interbank, high volume,
electronic transactions which are repetitive and
periodic in nature.
• NACH System can be used for making bulk
transactions towards distribution of subsidies,
dividends, interest, salary, pension etc. and also
for bulk transactions towards collection of
payments pertaining to telephone, electricity,
water, loans, investments in mutual funds,
insurance premium etc.
• Risks involved in E-Payments
• Fraud
• Impulse Buying
• Tax Evasion
• Payment Conflict