E-PAYMENT ANDPAYMENT GATEWAYSAN INTRODUCTORY PRESENTATION

CONTRIBUTORS:CHAITRALI MARATHE [08030122129]MOHIT DESHPANDE [08030122001]PRANAY PANDAY [08030122107]SHALET SHAJI [08030122060]BBA (IT), SEM VI, DIV ‘B’,SYMBIOSIS INSTITUTE OF COMPUTER STUDIES & RESEARCH

INTRODUCTION

When it comes to payment options, nothing is more convenient than electronic payment. You don't have to write a check or handle any paper money; all you have to do is enter some information into your Web browser and click your mouse.

TRADITIONAL CASH PAYMENTS

MAKE WAY FORE-PAYMENTS

CHANGING FACE OF MONEY

DEFINITIONAn e-payment transaction may be defined as one in which monetary value is transferred electronically or digitally.However it is obvious that any payment that is not transacted by paper based instruments is considered an e-payment transaction.

TYPES OF E-PAYMENT

For all the methods of e-payment, there are three major types of transactions. These are as follows.

1. One time customer to vendor:This is used when one shops at an e-commerce site (for example amazon.com). As the name implies, this is a one-time payment.

2. Recurring customer to vendor payment:

This is when a bill is paid through a regularly scheduled direct debit from a checking account, or a credit card.

3. Automatic bank to vendor payment:

For this to work, the bank must offer a service called online bill pay. One can log on to the bank’s web site and authorize payment to specific vendors.

E-PAYMENT BENEFITSThere are various reasons why e-payments make our lives easier. A few of these are listed below, in point form:

Potential for great flexibility

Low transaction costs

Rapid and diverse purchase power

BENEFITS: THE 5 ‘C’s

Choice

Convenience

Credit

Concessions

Competitive Edge

INCREASE IN PROFITABILITY DUE TOE-PAYMENT: THE REASONS

ConvenienceImmediacyImproved cash flowGrowthCompetitive advantage

E-PAYMENT: CONCERNSThe main drawbacks to electronic payments are the following:

Concerns over privacy

The possibility of identity theft

Dislike for making electronic payments; preference of familiarity of writing cheques and cash transactions

MODES OF E-PAYMENT

1. OFFLINE MODE :

Where the payment is not done instantaneously. The seller gets his payment after the entire processing is done.

Eg: Off-line credit card payments

OFFLINE MODE

Information

$

Products/services

onlineoffline

Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), 26-28 June 2006, Bangkok

2. ONLINE MODE

It is  specifically designed to address the unique requirements of payments made via the Internet and the payments takes place at the very minute.

Eg:Credit card Debit card Smart card

ONLINE MODE

Information

$

Products/services

onlineoffline

Regional Training Workshop for Enterprise Support Agencies to Promote E-business for SMEs in the Greater Mekong Subregion (GMS), 26-28 June 2006, Bangkok

LIMITATIONS OF E-PAYMENT

1.HACKING.2.LEAKAGE OF CONFIDENTIAL INFO.

3.IDENTITY THEFT.4.USAGE OF STOLEN CREDIT/SMART CARDS.

5.VULNERABILITY OF WORLD WIDE ATTACK.

SETTING UP E-PAYMENT

Say you want to set up online payments via your Web site

outsource In-house handling

2 Solutions

OUTSOURCE

It involves subscription of services likePaypal and paypro.An all-in-one-solution

Your earnings = (A-B)A = Amt paid by customersB = Processing fee per transaction

IN-HOUSE HANDLING /1

Setup a secure webserver

Which uses

IN-HOUSE HANDLING /2Buy a shopping software

IN-HOUSE HANDLING /3

Processing the transaction

E-PAYMENT GATEWAYA payment gateway is an e-commerce application service provider service that authorizes payments for e-businesses, online retailers, bricks and clicks, or traditional brick and mortar.

Payment gateways protect credit card details by encrypting sensitive information.

THANK YOU

QUESTIONS?