E commerce

PRESENTATION

Name: Neha Gupta

20BPD058 SECTION D

Name: Ayush Garg 20BPA030

SECTION A
E-PAYMENT
SYSTEM
An e-payment or Electronic Payment system allows customers to pay for the
services via electronic methods.
They are also known as online payment systems. Normally e-payment is
done via debit, credit cards ,direct deposit and e-checks, other alternative e-
payment methods like e-wallets, bitcoin, cryptocurrencies, bank transfers
are also gaining popularity.
E - p a y m e n t M e t ho ds -

Debit Card : This card is used for online payment also but in this card a
person must have sufficient balance in his / her account and the total
payment made in one day is also specified. User of this card can withdraw
upto a certain amount with the help of this card.

Credit Card : This card is also used for online payment also but in this
card a person must not have sufficient balance in his / her account and
the total payment made in one day is also specified. User of this card can
withdraw upto a certain amount with the help of this card and upto
certain limit purchase can also be done without having funds into
accounts. Bill of the credit card can pay after few days.
Smart Card : These cards are used with Balance in hand. This means that in you card must have
balance before using this card like Debit Card. Metro Smart Card, Patanjali Smart Card and
Mother Dairy Smart card are best examples.

E wallets : These are used for online payment using mobile phones. The following applications
are very popular.
1. Paytm 2. Google pay 3. UPI 4. Jio Money are the best examples

Direct deposit:A direct deposit can be defined as a payment made directly into a payee’s account. The
payment can be made electronically from one account to another, instead of the traditional check deposit.
Direct deposits are especially common for businesses, as they make use of the transaction to pay their
employees.

E-checks : An electronic check, or e-check, is a form of payment made via the Internet, or
another data network, designed to perform the same function as a conventional paper check.
Since the check is in an electronic format, it can be processed in fewer steps.
Payment g a t e w a y

A payment gateway is a software application that payment service

providers use to process payments for online purchases
originating on a merchant’s website.
It acts as an interface between the merchant’s website and a
payment processing bank known as an acquirer.
Generally, a gateway can be used for many types of payment
method but we will solely focus on online credit card payments.
 How p a y m e n t g a t e w a y w o r k
The Gateway encrypt sensitive credit card details to ensure that information is
passed through security between the customer and the acquiring Bank when a
customer purchase a product or services on a website that is connected to a
payment gateway,
the gateway perform a variety of tasks to process the transaction. once the
customer places their order on merchant’s website they choose to check out or
pay and are then redirected payment page to enter their credit card details.
If the merchant is fully compliant with the necessary security standards, the
payment page can be generated on the merchant’s servers and the cart
information collected and passed on to the payment application in a secure way.
the payment page can be also generated by the payment gateway application
itself and then information can be collected there.
Either way, the card and transactions detailed are gathered and stored on the secure
surface of the payment getaway from their the payment gateway process the transactions
and sends all information to the issuing Bank for approval via acquirer and relevant card
scheme. once the payment has been confirmed by the cards scheme, the payment
gateway send the approved transaction back to the merchant’s website and then
merchants inform the customer that the Purchase has been successfully completed.
ofcourse, the payment gateway perform a lot of other tasks as well when but when it
comes to credit card payment these are the main step to processing and transactions can
you believe that the entire process is only takes around 2-3 seconds.
RISK MANAGEMENT OPTIONS FOR E-
PAYMENTS
Following are the most important procedures for managing risk in e-commerce transactions.

1. Understand the risks and train your staff

Your staff should know clearly what risks your e-commerce business may have to deal with.
Everyone in your business structure needs to understand the types of risks inherent in online
Payments. Then, establish a procedure on avoiding and solving risks, which is a must for all staff to

follow.

2. Ensure information
security Information here includes customer databases, buying requests, payment process. etc.
Internet is easily hacked by hackers so you need to ensure
good security all the time to avoid data being changed or stolen. You need to set up a secure and
efficient process for submitting authorization requests over the internet, before you can start
accepting card payments online.

3. Select the right acquiring bank and merchant services provider.

The right acquiring bank and merchant services provider will provide effective risk management
support have a complete understanding of e-commerce fraud risk and liability associated with
4. Create and display effective policies
Your website must list your privacy, shipping, return and refund policies on each page. Customers
should not be forced to search for them. This will also create satisfaction and convenience for
customers to visit your page more often.

5. Use collection efforts to minimize losses

You have control over most types of charge-backs and especially the ones resulting from processing
errors. A well-designed collection system can help recover unwarranted chargeback losses.

So, all methods above are just some among a lot of methods to limit risks in e-commerce transactions. You
should follow these suggestions to develop your online store more effectively.