BM2201B

CHAPTER 6 : ELECTRONIC-PAYMENT

Electronic payment systems or e-payment enable you to pay for goods and services electronically rather than writing a check or using cash. Electronic payment systems include electronic checks, electronic credit cards, purchasing cards, and electronic cash.

         

·       Electronic  Checks

-         E-checks are similar to regular paper checks. They are used mostly in B2B. A customer who wishes to use e-checks must first establish a checking account account with a bank. Then, when a customer buys a product or a service, he or she e-mails an encrypted electronic check to the seller. The seller deposits the check in a bank account, and funds are transferred from the buyer’s account into the seller’s account.

·       Electronic Credit Cards 

-         E-credit cards allow customers to charge online payments to their credit cards account. E-credit cards are used primarily in B2C and in shopping by small-to-medium enterprise (SMEs).

-         Several major credit cards issuers are offering customers the option of shopping online with virtual, single-use credit card numbers. The goal is to thwart criminals by using a different, random card number every time you shop online.

·       Purchasing Cards

-         The B2B equivalent of electronic cards is purchasing cards.

-         In some countries companies pay other companies primarily by means of purchasing cards rather than paper checks.

-         Unlike credit cards, where credit is provided for 30-60 days before payment is made to the merchant, payments made with purchasing cards are settled within a week.

·       Electronic Cash

          E-cash appears in 4 major forms:

-         Stored-value money cards

-         Smart cards

-         Person-to-person payment

-         Digital wallet

1.    Stored-value money cards 

-         Although they resemble credits cards, stored-value money cards actually are a form of e-cash. The cards that you use to pay for photocopies in your library, for transportation, and for telephone calls are stored-value money cards.

2.    Smart cards

-         Although some people refer to stored-value money cards as “smart cards”, they are not really the same.

-         True smart cards contain a chip that can store a considerable amount of information(more than 100 times that of a stored-value money cards)

3.    Person-to-Person Payments

-         A form of e-cash that enables two individuals or an individual and a business to transfer funds without using card credit. They are one of the newest and fastest-growing payment mechanisms.

4.    Digital Wallet

-         Are software mechanism that provide security measures, combined with convenience, EC purchasing. The wallet stores the financial info of the buyer, such as credit card number, shipping information and so on.

-         Thus, the buyer does not need to reenter sensitive information for each purchase.




prepare by : Syamil
prepared for : Miss Ernie