Contemporary Security Issues in E-Payment Systems

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Contemporary Security Issues in E-Payment Systems

A Thesis Proposal
By
Oladotun Dawodu
1. Introduction
This work is a contribution to the security of e-payments system: the efforts to make them able to continue to fulfill their mission even in adverse environments or conditions - despite attacks failures or accidents - and hence confidence earning. Globally, the use of non-cash payments is increasingly being adopted. The global volume of non-cash payments has continued to grow, even quickly in developing countries, and payments have proved resilient to the effects of the financial crisis. Although macroeconomic weakness decreased the rate of growth in non-cash payments volumes in 2008-09, the initial data suggests that volumes resumed a
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In this approach, the merchant receives all the private information of client, forwards it to the PP and the PP connects to the issuer bank.
b. Online client authentication: Where the PP checks the client information, which is received from merchants, by means of an online authentication mechanism (PIN, password, certificates, etc.). To achieve this, the PP establishes an authentication channel with the client.
3. Authorization response: Where the PP sends the response (successful or unsuccessful depending on issuer decision) of the authentication process to the merchants. If it is successful, the response is sent to the acquirer, in order to conclude the purchase.
4. Payment clearing: An interaction between IR and AQ concludes the payment process, the goal being to transfer the requested amount from the account of the client to that of the merchant. Normally, this type of transaction is performed under a private banking network, once the acquirer has received a successful authorization response. The interaction ends when AQ forwards the payment receipt to MT through a PP.
In figure 1 the arrows represent the directions of these transactions. Work on the system has proceeded in two directions: the e-payment model itself and the security considerations.
The former is based on the assumption that each of the interacting entities consists of a single element; one client buying from one merchant with
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