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Digital Payment Requirement

This document discusses digital payments, including requirements, fraud detection methods, online payment methods, types, and the future of payments. It outlines key digital payment requirements such as acceptability, anonymity, convertibility, efficiency and security. It also describes common fraud detection methods used by payment providers and lists online payment methods like credit cards, debit cards, electronic cash systems and smart cards. The document concludes by discussing projects aimed at developing more advanced online payment infrastructure for the future.

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nambiyur
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
3K views

Digital Payment Requirement

This document discusses digital payments, including requirements, fraud detection methods, online payment methods, types, and the future of payments. It outlines key digital payment requirements such as acceptability, anonymity, convertibility, efficiency and security. It also describes common fraud detection methods used by payment providers and lists online payment methods like credit cards, debit cards, electronic cash systems and smart cards. The document concludes by discussing projects aimed at developing more advanced online payment infrastructure for the future.

Uploaded by

nambiyur
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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• Digital Payment Requirements

• Fraud Detection
• Online Payment Methods
• Online Payment Types
• The Future Payment
Digital Payment Requirements
• Acceptability
• Anonymity: privacy & untraceability
• Convertibility
• Efficiency
• Flexibility
• Integration
• Availability
Digital Payment Requirements
• Reliability
• Scalability
• Security
• Integrity
• Authentication
• Usability
Agenda
• Digital Payment Requirements
• Fraud Detection
• Online Payment Methods
• Online Payment Types
• The Future Payment
Fraud Detection
• Methods
• Products
Methods
• Checksum for credit card no.
• Verify the credit card no. and expiration
date with card issuer
• Check postal address with online services
• Confirmation with e-mail address
• Digital certificates for non-repudiation
• Predefined purchase limits each time and
per week
Methods
• Confirmation web page for terms and
conditions
• Data base with credit card no., e-mail
address, and phone no.
• Document the complete online transactions
• Trustworthy logistics partner
• Unique key for online shipping digital
merchandise
Methods
• Business rules for checking suspicious
orders and credit card no.
Products
• Fraud Shield by ClearCommerce
• Visa
Agenda
• Digital Payment Requirements
• Fraud Detection
• Online Payment Methods
• Online Payment Types
• The Future Payment
Online Payment Methods
• Pre-paid
– Electronic cash systems
– Smart cards
• Instant-paid
– Debit cards
• Post-paid
– Credit cards
– Invoices
– Internet cheques
– Cash on delivery
Electronic cash systems
• Saving digital money to the hard disk or floppy disk
• Pros & cons
– Anonymity
– Security with encryption and digital signature
– Splitting value
– Internet usage only
– Easy to lose
– No anonymity with physical delivery
– No open standard
Electronic cash systems
• Products
– DigiCash
– NetCash
– CyberCoins
– IBM micro payment
– MilliCent
Smart Card
• Embedded chips with encrypted digital
money
• Pros and cons
– Use password to ensure the security
– Cyber and real usage
– Low transaction cost
– No open standard
Smart Card
• Types
– Health Care
– Phone
– Debit
• Products
– Mondex
– VisaCash
Instant-paid
• Debit cards
• Pros and cons
– Access to bank’s database
– Less fraud & error
– High security
– Complicated
– Need hardware & software
– Signature through fax
– High communication costs
Instant-paid
• Product
– Direct Debit
Credit Cards
• Four players: customer, merchant, issuer
and acquirer
• Pros & cons
– International
– Low security
– High transaction cost
– Fraud
Credit Cards Security standards
• Secure Socket Layer (SSL)
– By Netscape
– Encrypt traffic between the web browser and
web server
• Secure Electronic Transaction (SET)
– By Visa and MasterCard
– Public key encryption using digital certificates
for both buyer and seller
Credit Cards Security standards
• SET features
– High security
– Low visibility
– Standards
– Non-repudiation
• Chip-secured Secure Electronic Transaction C-
SET
– Use chip card for any network devices
– Reduce cost and complexity for merchant
Invoices
• Business-to-business
• Usage reasons
– High volume transaction
– No need to reorganize the old process
– Low transaction fee
Internet Cheques
• Electronic cheques
• Pros and cons
– Require payer’s digital signature
– Special software & network
– Less manual steps
• Systems
– echeck by US Department of the Treasury
Cash on Delivery (COD)
• Pros and cons
– Require logistics party
– More expensive
– Extra cost paid by customer
Agenda
• Digital Payment Requirements
• Fraud Detection
• Online Payment Methods
• Online Payment Types
• The Future Payment
Online Payment Types
• Micro payments
– Less than $5
– Electronic cash transaction
• Consumer payments
– Between &5 and $500
– Credit card transactions
• Business payments
– Over $500
– Direct debit or invoice transaction
Agenda
• Digital Payment Requirements
• Fraud Detection
• Online Payment Methods
• Online Payment Types
• The Future Payment
The Future Payment
• Projects
– Secure Electronic Marketplace for Europe (SEMPER)
– The Open Trading Protocol (OTP)
– Open Buying on the Internet
– Global Trust Enterprise
• Goal
– Internet payment infrastructure to achieve the digital
payment requirements
Points to Remember
• Digital Payment Requirements
• Fraud Detection
• Online Payment Methods
• Online Payment Types
• The Future Payment

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