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An electronic cash payment system uses an electronic payment protocol to facilitate a series of payment transactions using electronic tokens. Security schemes like SSL, SET, and S-HTTP are implemented to encrypt communication and confirm integrity. SSL is widely used for e-commerce websites to securely transmit credit card and order information. While SET aims to be more secure than SSL, it is slower, more complex for users, and rarely used in practice.

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82 views2 pages

Market 8

An electronic cash payment system uses an electronic payment protocol to facilitate a series of payment transactions using electronic tokens. Security schemes like SSL, SET, and S-HTTP are implemented to encrypt communication and confirm integrity. SSL is widely used for e-commerce websites to securely transmit credit card and order information. While SET aims to be more secure than SSL, it is slower, more complex for users, and rarely used in practice.

Uploaded by

harold_sernadilla
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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HAROLD S.

SERNADILLA BSBA-MM4 Electnic Cash Payment System An electronic cash payment system usually is developed based on an electronic payment protocol which supports a series of payment transactions using electronic tokens or coins issued by a third party. Security Schemes Security schemes are implemented by protocols SSL (Secure Socket Layer) SET (Secure Electronic Transaction) Secure-HTTP (S-HTTP) applies SSL used for HTTP communication SSL requires all communication is encrypted by RSA/DES, and integrity is confirmed S-HTTP is widely used for e-commerce web sites (e.g. for orders, credit card information etc.) S-HTTP requires an SSL compliant browser and server SSL vs. SET SET (Secure Electronic Transfer) developed jointly by Visa, MasterCard & American Express SET is built on top of SSL, and is much more secure Customer downloads and installs a digital wallet The digital wallet contains the customers certificate SET is slower than S-HTTP SET is much more complex for the user Very rarely used Where SET is used, S-HTTP is offered as an alternative Wells Fargo have developed a smart card based certificate for use with SSL Electronic Payment in E-commerce Business to Business Payments small to very large sums Consumer Payments

small to medium sums usually credit card transactions Micropayments (consumer) very small sums credit card transactions are much too expensive

SEPTEMBER 20, 2011 MKTMAN 8

Electronic Fund Transfer (EFT) Designed to transfer funds from one account to another Customer instructs bank (e.g. using ATM) Bank debits the customers account and submits payment notification to an automated clearing house Clearing house submits payment notification to merchants bank, which credits the merchant's account Traditionally this has used dedicated networks called VAM (Value Added Networks) The Internet may now be used in place of VAM Internet banking Cyberbanks SSL is always used Certificates are currently rarely used (this may change in the future) Financial EDI EDI (Electronic Data Interchange) The electronic interchange of standardized business documents between commercial partners Orders Bills Credit approval Shipping notices Confirmations Etc. Financial EDI extends this to incorporate EFT

EDI is traditionally implemented on VAN, but is increasingly implemented on the Internet Financial EDI on the Internet uses SSL Credit Card Payments Credit card payments are by far the most popular means of consumer electronic payment Conventionally credit card payment is only partially automated Cardholder shows card to merchant Merchant asks for approval from the credit card company The bill is then considered paid by credit - the merchant keeping a sales slip The merchant sells the slip to a bank, and pays a fee for the service The bank requests that the credit card company reimburses the debt The credit card company pays the bank, and bills the cardholder the same amount

Piggybacks on existing credit card and checking payment systems Weakness: suffers from relatively high levels of fraud Competitors include Western Union (MoneyZap), AOL (AOLQuickcash) and Citibank (C2it) Smartcards Magnetic strips have been used to store personal ID numbers since the 1970s Smartcards (IC cards) are programmable devices with local storage that can store much more information These provide the ideal places to store certificates and encryption keys Rechargeable electronic purse or Stored Value cards Examples Mondex in UK VisaCash in US Electronic delivery vehicle for cash Card is recharged from a bank account (effectively EFT) Individual transactions are then effectively cash (i.e. no central communication, and no charge) NB open (Mondex) vs. closed systems Micropayments Making numerous very small charges for electronic goods or services Not feasible using credit cards or EFT these are much too expensive Possible through: Digital Cash Smartcards (stored value systems) Digital Accumulating Balance payment systems

Online Credit Card Transaction

Digital Cash PayPal One of e-commerces major success stories: Went public in 2002; acquired by eBay October 2002 for $1.5 billion An example of a peer-to-peer payment system Fills a niche that credit card companies avoided individuals and small merchants

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