1. ASMA BINTI ISMAIL 2011443364KHAIRUNNIZAN 2010314237NUR ATIRA NABILAH 2010715817WAN NUR HAFIZHOH 2010103599

2. Outline Introduction Online Payment Basics Payment Cards Electronic Cash Electronic Wallets Stored-value cards Internet Technologies and the Banking Industry Criminal Activity and Payment Systems: Phishing andIdentity Theft Case study Conclusion 3. INTRODUCTION BY:KHAIRUNNIZAN 4. Introduction Ecommerce architecture/framework What should have in ecommerce site? Software/hardware? 5. Ecommerce architecture/framework To carry out electronic business successfully, Web sites must provide reliable connectivity and 24 by 7 availability. Corporate Web sites must also address user scalability and performance to simultaneously handle thousands of Internet connections to their data repositories. 6. Database Collection information that is stored on a computer in ahighly structured way DBMS is software that makes it easy for users to enter,edit, update and retrieve information in the database Usually the database that serves an online store is thesame one that is used by the companys existing salesoperations. 7. Middleware Middleware can be described as "software glue". Thus middleware is not obviously part of an operatingsystem, not a database management system, and neitheris it part of one software application. Middleware makes it easier for software developers toperform communication and input/output, so they canfocus on the specific purpose of their application. 8. Enterprise Application Integration is defined as the use of software and computer systems architectural principles to integrate a set of enterprise computer applications. the process of linking such applications within a single organization together in order to simplify and automate business processes to the greatest extent possible, while at the same time avoiding having to make sweeping changes to the existing applications or data structures 9. Web Services Software systems that support interoperable machine-to-machine interaction over a network Set of software and technologies that allow computers touse the web to interact with each other directly withouthuman operators directing the specific interactions 10. Web Hosting A web hosting service is a type of Internet hostingservice that allows individuals and organizations tomake their website accessible via the World Wide Web. Web hosts are companies that provide space ona server owned or leased for use by clients, as well asproviding Internet connectivity, typically in a datacenter. 11. BASIC FUNCTIONS OFE-COMMERCE SOFTWARECATALOG DISPLAY A catalog organize goods and services beingsold.SHOPPING CART to assist people making purchases online allows online shopping customers toaccumulate a list of items for purchase 12. TRANSACTION PROCESSING It occurs when the shopper proceeds to thevirtual counter by clicking a checkoutbutton Then the e-commerce software performsany necessary calculation 13. ONLINE PAYMENT BASICS, PAYMENT CASH & ELECTRONIC CASH PREPARED BY: NUR ATIRA NABILAH 14. Online Payment Basics Basic ways to pay: Cash Checks Credit cards Debit cards Other payment medium: Scrip Digital cash issued by a company instead of by a government Cannot be changed for cash Gift certificate 15. Payment Cards General term to describe all types of plastic cardsthat consumers use to make purchasesDebit cards Credit cards Charge cards MainCategoriesof Payment cards 16. Categories of Payment Cards Credit Card Debit Card Charge Card Spending limit based Remove the amount Offered byon the users credit of the sale from thecompanies likehistorycardholders bank American Express User can pay the account and transfers No spending limitentire credit card it to the sellers bank The entire amountbalance / payaccount charged to the card isminimum amount Issued by the due at the end ofeach billing periodcardholders bank billing period Credit card issuersand usually carry the No lines of credit andcharge interest on name of a major no interest chargesany unpaid balance credit card issuer like Visa / MasterCard 17. Advantages and Disadvantages ofPayment cardsAdvantages Disadvantages Providebuilt-in security for The service companiesmerchantscharge merchants per-(fraud protection) transaction fees & monthlyWorldwide acceptanceprocessing fees 18. Payment Acceptance andProcessing card transactions once the merchant Steps in paymentreceives a consumers payment card information: AuthenticationChecking Settlement Merchant Merchant checks Few days after theauthenticates the with payment cardpurchasepayment card to issuer Indicates that fundsensure it is valid to ensure that travel betweenand not stolencredit/funds are banks and areavailableplaced into the Hold the creditmerchants accountline/funds neededto cover the charge 19. Open and Closed Loop Systems Open loop system Involve three/more parties Example: system using Visa/MasterCard Closed loop system Card issuer pays the merchants that accept the card directly without an intermediary Example: American Express, Discover Card 20. Merchant Accounts Merchant bank/acquiring bank: A bank that does business with sellers (Internet andnon-Internet) that want to accept payment cards Online merchant must set up a merchant accountto process payment cards for Internet transactions Merchant must provide business informationbefore the bank will provide an account to processpayment card transactions 21. Merchant Accounts New merchant must supply: Business plan Details about existing bank accounts Business and personal credit history The type of the business will influence the banks likelihood of granting the account 22. Processing Payment Cards Online There are few options: Automatically handled by programs packaged with electronic commerce software Contract with 3rd party/payment processing service providers InfoSpaces Authorize.Net 23. Processing Payment Cards Online Payment processing service providers include: InternetSecure FirstData Merchant warehouse Products and services offered by these credit cardprocessing software vendors connect to a networkof banks called Automated Cleaning House (ACH)and to credit card authorization companies 24. Processing Payment Cards Online The merchant sends the card information to a paymentcard authorization company which reviews the customeraccount If approved, sends the credit authorization to the issuingbank The issuing bank deposits the money in the merchants bankaccount through ACH The merchants Web site receives conformation of theacceptance of the consumer transaction After receiving notification of transactionacceptance/rejection, the merchant Web site confirms thesale to the customer over the Internet (via e-mailconfirmation with details about the purchase price andshopping information) 25. Electronic Cash Known as e-cash/digital cash Term that describes any value storage and exchange system created by a private entity that: Does not use paper documents or coins Can serve as a substitute for government-issued physicalcurrency Useful for making micropayments 26. Micropayments and SmallPayments Micropayments Internet payments for items costing from a few cents to around a $1 Small payments Include all payments of less than $10 27. Holding Electronic Cash: Onlineand Offline Cash Online cash storage The consumer does not personally own electronic cash A trusted 3rd party (online bank) involved in all transfersof electronic cash and holds the consumers cashaccounts Require merchants to contact the consumers bank toreceive payment for a consumer purchase, prevent fraudby confirming that the consumers cash is valid 28. Holding Electronic Cash: Onlineand Offline Cash Offline cash storage: Virtual equivalent of money kept in a wallet Customer holds it, no 3rd party is involved Concern on fraud protection Use hardware/software safeguards to prevent fraudulent/double-spending Double-spending: Spending electronic cash twice by submitting the sameelectronic currency to 2 different vendors 29. Advantages and Disadvantages ofElectronic Cash Advantages Disadvantages Transactions are more No audit trailefficient Money launderingTransferring e-cash on theInternet costs less thanprocessing credit cardtransactionsNo distributionmethod/human oversight isrequiredDoes not require that oneparty obtain an authorization 30. Electronic Cash Systems PayPal Provides payment processing services to businesses and to individuals Earns profit on the float, which is money that is deposited in PayPal accounts and not used immediately Provides peer-to-peer (P2P) payment system Free payment clearing service for individuals 31. ELECTRONIC WALLETS & STORED VALUE CARDSPREPARED BY:WAN NUR HAFIZHOH 32. Electronic wallets Serves a function similar to a physical wallet Holds credit card numbers, electronic cash, owner identification and owner contact information Provides information at electronic commerce site checkout counter Benefit: Consumer enters information just once More efficient shopping 33. Electronic wallets Two categories of electronic wallets Server-side electronic wallets Client- side electronic wallets 34. Electronic wallets Server-side electronic wallets Store customer information on a remote server belonging to a particular merchant or wallet publisher. For example: once customers enter their information on a site such as Amazon.com, the information will be stored in a server side electronic wallets. Main weakness: Security breach can reveal thousands of users personal information (credit card numbers) 35. Electronic wallets Client-side electronic wallets Stores information on consumer computer. Advantages: Sensitive information stored on users computer instead ofthe wallet providers central server. Disadvantages: Must download wallet software onto every computer Not portable 36. Electronic wallets Electronic wallets can: Store shipping and billing information Hold credit card names and numbers Offers consumer choice of credit cards at online checkout Hold electronic cash from various providers 37. Electronic wallets Two electronic wallet arena survivors Microsoft Windows Live ID Yahoo.wallet 38. Electronic wallets Microsoft Windows Live ID Formerly called Passport, Microsoft.NET Passport Single sign-in service Includes server-side electronic wallet Operated by Microsoft All personal data entered into Windows Live ID wallet Encrypted and password protected 39. Electronic wallets Four integrated services Single sign-in service (SSI) Allows user to sign in using usernameand password Wallet service Provides electronic wallet functions Kids service Helps parents protect, controlchildrens online privacy Public profiles Allows consumers to create public pageof information about themselves 40. Electronic wallets Yahoo! Wallet Server-side electronic wallet offered by Yahoo! Completes order forms automatically Identifying information, credit card payment information Allow user to stores information about several major credit and charge cards. Accepted by: Thousands of Yahoo! Store merchants, Yahoo! Travel Yahoo! Services Premium e-mail storage, Webhosting fees 41. Electronic wallets Yahoo! Wallet Yahoo! advantage Hosts many services and shops Large number of merchants accept Yahoo! wallet Privacy concern Company issuing wallet has access to much information about individual using wallet 42. Google Wallet a mobile payment system developed by Google that allowsits users to store credit cards, loyalty cards, and gift cardsamong other things, as well as redeeming sales promotionson their mobile phone. Google Wallet uses near field communication to makesecure payments fast and convenient by simply tapping thephone on any PayPass-enabled terminal at checkout.http://www.google.com/wallet/ 43. Google Wallet 44. Google Wallet 45. Stored-value cards Stored-value cards can be an elaborate smart card with a microchip or a plastic card with magnetic strip that records a currency balance 46. Stored-value cards Magnetic strip cards Hold value that can be recharged by inserting them intoappropriate machines Cannot send or receive information Cannot increment or decrement value of cash stored onthe card Processing must be done on a device into which the isinserted 47. Stored-value cards Smart card A stored value card that is a plastic card with an embedded microchip that can store information Hold private user data such as financial facts , encryption keys, account information, credit card numbers, medical records Can store about 100 times more information than a magnetic strip plastic card Safer than conventional credit cards 48. Stored-value cards Smart card Popular in Europe, parts of Asia Use for public telephone calls, cable television programs Hong Kong Retail counters, restaurant cash registers have smart card readers Octopus: public transportation smart card 49. Stored-value cards Smart card Beginning to appear in United States TransLink: first integrated ticketing system for public transportation in the United States. Smart Card Alliance Advances smart card benefits Promotes widespread acceptance of multiple-application smart card technology Promotes compatibility among smart cards, card reader devices, applications49 50. INTERNET TECHNOLOGIES AND THE BANKINGINDUSTRY & CRIMINAL ACTIVITY AND PAYMENTSYSTEMS: PHISHING AND IDENTITY THEFT PREPARED BY:ASMA 51. Internet Technologies and theBanking Industry Check Processing Mobile Banking 52. Check Processing 2. Deposit the check in bankaccount3. Bank send the1. Write a check to check to apayclearinghouse 4. Paper checktransport toconsumers bank 53. Check Processing (cont.) Disadvantages Transportation costs increased Time delay 54. Mobile Banking Allow customers to: Obtain bank balance View account statement Find a nearby ATM Future plans Offering downloadable applications Install and use to transact all types of banking business Allow users to copy and paste information easily 55. Criminal Activity and PaymentSystems: Phishing and IdentityTheft Average consumers who engage in online payment transactions are easy prey for expert criminals Phishing Attacks Using Phishing Attacks for Identity Theft Phishing Attack Countermeasures 56. Phishing Attacks2. The messages3. The recipient1. Attacker sendstell the recipient enters logine-mail messagesto correct thename and to recipientmatter password5. The4. The perpetrator perpetratoraccess the captures the personallogin name andinformation password 57. Phishing Attacks (cont.) 58. Phishing Attacks (cont.) One research firm estimates that phishing victims lost$1.2 billion between April 2003 and April 2004.(ComputerCrime Research Center) Spear Phishing Purposely created to target a particular person ororganization Do considerable research on the intended person 59. Phishing Attacks (cont.) The links are disguised One common way to disguise the real URL is to use the @ sign. https://www.paypal.com@218.36.41.188/fl/login.html The link in the phishing email includes Javascript codewhich it is invisible Phishing perpetrators often include graphics from theWeb site 60. Phishing Attacks (cont.) 61. Using Phishing Attacks for IdentityTheft Identity theft A criminal act in which the perpetrator gathers personal information about a victim and then uses that information to obtain credit The perpetrator runs up the charges and then disappears Personal information that most wanted: Social Security number Drivers license number Credit card numbers Card verification numbers Passwords (PINs) 62. Using Phishing Attacks for IdentityTheft (cont.) Use phishing attacks to gather personal informationand then use it to perpetrate identity theft and othercrimes Two elements in phishing Collection of the information (collectors) The use of the information (cashers) More than a million people fall victim to phishing attack each year and as a group financial losses exceeding $500 million 63. Phishing Attack Countermeasures Educate the Web site users Warn the customers Provide information about phishing attacks Have contracted with consulting firms Monitor online chat rooms that are used by criminals 64. COMPARISON BETWEEN UK, JAPAN AND MALAYSIA/SINGAPOREPREPARED BY: KHAIRUNNIZAN 65. COMPARISON BETWEENUK, JAPAN AND MALAYSIA/SPOREJAPAN Engineer Kaizuka-shi, Osaka, Japan 7-years living in JapanUNITED KINGDOM Medical Student Isle of Wright, UK 4-years living in UKMALAYSIA Lawyer Kuching, Sarawak Has been buying online since 2006 66. Malaysia/Singapore 1. jipaban.comMalaysia/Singapore online shopping mallSingapore online databaseAct as an online mall where shopper can build their own shopping mall and add/drop stores according to their preferenceDelivery methodJPB express delivery (the fastest)Standard postageRegistered postagePayment methodCredit card/paypalInternet banking/bank transferShopper credit 67. Malaysia/Singapore2. thepoplook.com/fashionvalet.net Malaysian famous online shopping website Typical/usual ecommerce website with shopping cartwhere buyer can select item and put in cart, thenproceed with payment Delivery method Poslaju (the fastest) Payment method Interbanking Pay with FPX Pay with MEPS Cash Paypal/ Credit card 68. United Kingdom1. Tesco British multinational grocery and general merchandise retailer headquartered in Cheshunt, United Kingdom. It is the third-largest retailer in the world measured by revenues (after Wal-Mart and Carrefour) and the second-largest measured by profits (after Wal-Mart). Delivery Method Home delivery ( can book delivery slot with charge) By call / set appointment (extra charge) Click and Collect Find a collection point, or Book a collection slot Payment Method Pay by credit card / debit card 69. United Kingdom2. Brandalley.co.uk /asos.com Famous online shopping website worldwide Offer free deliver and free return ( in certain period of time) Delivery Method Courier Service ( worldwide) Payment Method Pay by credit card / debit card Paypal 70. Japan1. rakuten.co.jp Largest internet service company in Japan Largest e-commerce (online database) website in Japan Flagship : B2B2C Facts : > 90mill products, >38,000 merchants, >75 mill membership nationwide Serves as an online shopping mall : merchants register under rakuten to sell their products 71. Japan Sells everything under the sun, from groceries, to apparel, to flight/bus ticket and also you can book hotels/accomodation at rakuten Payment method Credit card Rakuten bank Cash on delivery Interbanking/ bank transfer By convenience store Lawson (convenience store franchise chain in Japan) Pay using a machine called loppi 72. Japan Delivery method Courier Service Shipping company Kuroneko yamato / sagara Top shipping company in Japan 73. Japan2. Yahoo auction Yahoo Auctions Japan is the largest online auction in Japan where you can bid and buy anything you want. It has the same business model as ebay Interested in thing? Bid. Best price wins They even sell second hand cars on Yahoo Auction Products > 5000yen needs to be registered and fees to be imposed on seller 74. Japan3. Zozotown (zozo.jp) / uniqlo.com ZOZOTOWN is an internet retailer of fashion products originating in Japan with over 700 popular brands Delivery Method Courier Service ( worldwide) Payment Method Pay by credit card / debit card paypal 75. Why shop online?JAPAN UK MALAYSIA Super fast internet Sales online is Easier for peopleconnectionmuch more cheaper who live afar User friendly/easy Cant get them in Cant get them into navigate website store store Easy for foreigner to Buying experience (used to be)look for imported cheaper than inproductsstore Variety of products Buying experience Cheaper and variety Reliable and trustedweb services 76. THANK YOU