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CHAPTER 11 : ONLINE PAYMENT SYSTEM - Coggle Diagram
CHAPTER 11 : ONLINE PAYMENT SYSTEM
1) Online payment Basic
Electronic Bill Presentment and Payment Systems
- systems that are designed to deliver bills and and accept payments for them through online.
Overview Of Online Payment
- Cash, credit cards, checks and debit cards the four methods that are used by all consumer to pay purchases overall including pay through online and physical stores.
Micropayments
- Internet payments for items costing from a few cents to approximately a dollar are called micropayments
Small Payments
- is used to describe all payments of less than 10$
PAYMENTS CARDS
Definition
:
Used to describe all types of plastic cards that consumer and businesses use to make purchases
The main categories of investment cards are credit cards, charge cards, prepaid cards and gift cards.
Closed Loop Systems
In some payments cards systems, the card issuer pays the merchants that accept the cards directly does not use an intermediary, such as a bank or cleaninghouse systems
These types of arrangement are called closed loops systems because no other institution is involved in the transaction
American Express and Discover are examples of closed loop systems.
Open Loop Systems
It is the add additional payment processing intermediaries to the structure of a close loop systems and suppose an Internet shopper uses Visa Card issued by the Bank A to purchases a item from WEB, whose merchant account is at bank B.
The banking systems includes one or more intermediaries
(banks or other types of payments processing companies) that coordinates the transfer of funds from a bank yo another bank
Whenever additional parties such as intermediaries in this examples, are included in payment card transaction processing, the system is called an open loop systems
Visa and Master Cards are two of the most widely known examples of open loop systems.
DIGITAL CASH AND DIGITAL WALLET INTERNET TECHNOLOGIES
Definition
Digital or also called as e-cash or e-wallet is a general form that describe any value storage and exchange a systems created by a private (non-government) entity that does not use a paper documents or coins that can serve as a subtitute for government- issued physical currency.
Detecting Double Spending on Digital Cash
It is a particular piece of digital cash twice by a submitting the same electronic currency to to different vendors. When the electronic currency reaches the bank for clearance a second time, it is too late to prevent the fraudulent. Thus the digital cash must be traceable back its origin. A two part lock provides anonymous security but signals when someone is attempting to double spend cash. When a second attempted transaction is made with the same digital cash, the systems must detected and prevent that transaction.
Advantages Using digital cash
- provides no audits trails, digital cash is just like real cash that cannot be easily traced.
Disadvantages
- Emerge on that day that would render existing digital cash systems obsolute, making the digital cash worthless.
INTERNET TECHNOLOGIES AND PAYMENT SYSTEMS THREATS
Check Processing
Check were process physically by banks and clearing houses and in recent bank give access to the customer PDF images of processed checks to account folders.
2.
Mobile Banking
Offer mobile apps that allowed customers using smartphones or tablet devices to obtain their bank balance view their account statements or finds a nearby ATM's.
3. Phisihng Attacks
The basic structure of a phishing attack involves an attacker who send e-mails messages to a large number of recipients who might have an account at a targeted Web Sites.