INTRODUCTION
E- commerce, which is simply the system of transacting business through the use of electronic and digital media as the computer and mobile devices, has become not just a necessary but also an effective means of global economic development. The astronomical growth of interconnectivity through the computer network (I.e., internet) has made e-commerce a veritable tool for quick business relationships to be formed without any form of physical contact. At the click of the mouse, business transactions ranging from banking, shopping and all manner of trading are carried out by millions of internet users on a daily basis.
Due to the impersonal nature of communication over the internet, and obviously, these processes take place in a
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The goods can be physical goods, such as books, equipments or CDs, or electronic goods, such as electronic documents, images, or music. Similarly, there are “traditional” services, such as hotel or flight booking, as well as electronic services, such as financial market analyses in electronic form.
E- payment systems are not a novel idea. “Electronic money” has been used between banks in the form of funds transfer since 1960. For nearly as long, customers have been able to withdraw money from ATMs (automatic teller machines), and the use of credit cards has also become increasingly common since then.
Credit Cards
Credit cards are currently the most popular payment instrument on the Internet. The first credit cards were introduced decades ago (Diner’s Club in 1949, American Express in 1958). For a long time, credit cards have been produced with magnetic stripes containing unencrypted, read-only information. Today, more and more cards are “smart cards” containing hardware devices (chips) offering encryption and far greater storage capacity. Recently even virtual credit cards (software digital or e-wallets) are gaining progressive patronage.
Typically, the customer gives his credit card information (i.e., issuer, expiry date, number) to the merchant. The merchant asks the acquirer bank for authorization. The acquirer bank sends a message over the interbank network to the issuer bank asking for
Furthermore, upon swiping the card the processing machine interprets the code extracting the data routing it to the proper bank to obtain approval. The data can process around the world in 120 milliseconds. Nevertheless, making cards frequently compromised due to the thirty-second window which the cards information is not encrypted. Hackers once tapped into the system use this gateway to extract consumer 's information each time a debit or
In this system security parameters were embedded to ensure that credit card numbers are replaced with other numbers termed First Virtual Personal Identification Number. A person’s account was not charged till e-mail verification was obtained from the person confirming the purchase.
As technology advances over the years, we have experienced and noticed that the trend in how payment are received have shift tremendously. Twenty years ago, check was the preferred way of payment. In today’s world, more and more payments are done by credit cards. Credit card transactions are instance that provides a faster payment method.
Card holders have several countermeasures, including complex software which can assemble a vest interaction and guesstimate the possibility of fraud. For example, a large trade occurring in a great distance from the cardholder’s home might seem mistrustful. Merchants may be commanded to call the card holder for authentication, or reject the transaction or do whatever they want. Customers must call the issuer and prove their identity to get their card back.
Point to Point Encryption: P2P encryption gives encryption at the purpose of swipe when utilizing your credit or charge card. In the utilization instance of debit cards, it even encodes your 4-digit PIN code you enter. The greater part of this is done before the information achieves memory, which keeps information from being caught in memory. The gadget that is utilized for swiping the Visa is infused with a determined one of a kind key for each exchange. This is utilized for the installment card encryption and isn't a similar key utilized for the PIN encryption when utilizing a debit card. When you swipe your card, the credit card information is scrambled inside an alter safe security module with the credit card industry standard 3DES calculation, utilizing the inferred unique key for the exchange (TSYS, 2014). That encoded information is then sent safely to an off-site equipment security module possessed by the POS arrangement supplier, where the credit card information is decripted (Knopp, 2013). The decoded card information is then encoded again utilizing the bank's encryption key and sent to the bank where the information is decripted once
Since the 1980’s, online banking has made the lives of everyday people more convenient. With the new innovations and creations to computers, online banking has grown to become the most used form of banking in the US (5). From the first ATM to mobile banking technology has helped shape One of the first computerized innovations to online banking, the credit card, revolutionized how cash was money was used in society.
Every day, everywhere, MasterCard Worldwide uses technology and expertise to make payments safe, simple and smart.
Credit cards have become an integral part of our lives. We rely them for enjoying small pleasures and while making big purchases.
Electronic commerce has been there for a long time now, and it is a practice that is practiced by peoples from Germany, France, and the US on a daily basis. Since its inception around 40 years ago, e-commerce has continued to grow as innovations, technologies and a lot of business reverting to the use of the e-commerce. The aspect of buying and selling of goods in the early 1960s was sluggish with the traditional way of mailing of documents being replaced with the Electronic Data Interchange (EDI), which would later pave a way to the electronic commerce. After the e-commerce, however, the practice was not more reliable as it still had many challenges (Tsolis, 2009). For instance, it was not easy for buyers to see products from the comfort of their homes and more so, the methods of accessing the information were limited.
Many financial institutions across the world have adapted to the change towards the cashless society by implementing electronic funds transfer via automated teller machines (ATM’s) and of late, the internet. By having a simple plastic card, society could completely eliminate the need for cash. The benefits range from the end user through to the government and the
To start an online payment system requires the creation of a merchant account and then establishing a payment getaway provider such as PayPal. A merchant account is set up
The widespread application of internet and prevalence of globalization give rise to various influential trends in business context, one of which is e-Commerce. According to (Browne et al., 2004), e-Commerce refers to a commercial platform that allow transactions to happen via electronic devices and digital environment that requires no face-to-face or human interaction as opposed to traditional mode of purchase. E-Commerce is revolutionizing the landscape of modern business environment by offering a convenient, rapid, borderless and timely mechanism for commercial transactions. Moreover, e-Commerce provides an alternative to traditional value chain in which manufactured products need to move through multiple layer of distribution to reach the end-users. In other words, via electronic platforms, suppliers can now access their end customers directly via web-based ordering system without the needs for wholesalers
Mobile Payments will similarly experience this trend. The MIT Technology Review recently created a report, entitled “The Future of Money,” which looks at the overall industry and factors leading to greater digitization of payments. Mobile phones have been a catalyst for much of the change, but it is important to remember that it is still very much a cash-based world, as estimates show that 85% of consumer transactions worldwide are still done with paper bills and metal coins. With 2.5 billion people unbanked, it is clear banks have not been able to appeal to or service this segment in a cost-effective manner using today’s cash-based and card-based payment services. New digital and mobile technologies provide a potential solution which can lead to much greater financial inclusion.
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
Progress in civilization in its turn has brought out radical changes in the manner of trading. The need for something intrinsically useful and easily applicable in everyday dealing is clearly felt. Cash in the form of currency notes and coins makes up just one form of the payment system. Development in banking while also giving inputs to the further development of cash brought about a second phase in payment namely paper instructions such as cheques and credit transfers. The requirement for greater flexibility and convenience has led to electronic payments, and this is where plastic cards have proved their worth. It allows the card issuers to limit the sum of money the card-holders wish to spend. The spending of card-holders who have defaulted on payments or who are over their credit limit can be restricted until the balances are cleared.