Presentation on Topic :

Submitted By : Arun BhattClass : BBA 2nd YearRoll No. : 15

Submitted To: Prof. Vinod Gupta

E-cash

Department of Management Studies (BBA)

Contents : Introduction

Electronic payment

Conceptual framework

E-cash payment system

E-cash security

Advantages

Limitations

conclusion

Introduction

Electronic money is paperless cash. This money is either stored on a card itself or in an account associated with the card

The most common examples are transit cards, meal plans, and PayPal. E-Cash can also mean any kind of electronic payment.

Electronic payment systems come in many forms including virtual cheques, ATM cards, credit cards, and stored value cards. The usual security features for such systems are privacy, authenticity , and no repudiation.

Electronic Payment

The term electronic commerce refers to any financial transaction involving the electronic transmission of information.

The packets of information being transmitted are commonly called electronic tokens.

the storage medium as a card since it commonly takes the form of a wallet-sized card made of plastic or cardboard.

Conceptual Framework

There are four major components in an electronic cash system:

Issuers Customers Merchants or traders Regulators.

Issuers can be banks, or non-bank institutions

customers are referred to users who spend E-Cash

Merchants and traders are vendors who receive E-Cash

regulators are defined as related authorities or state tax agencies.

For an E-Cash transaction to occur, we need to go through at least three stages:

Account Setup: Customers will need to obtain E-Cash accounts through certain issuers. Merchants who would like to accept E-Cash will also need to arrange accounts from various E-Cash issuers. Issuers typically handle accounting for customers and merchants.

Purchase: Customers purchase certain goods or services, and give the merchants tokens which represent equivalent E-Cash. Purchase information is usually encrypted when transmitting in the networks.

Authentication: Merchants will need to contact E-Cash issuers about the purchase and the amount of E-Cash involved. E-Cash issuers will then authenticate the transaction and approve the amount E-Cash involved.

E-cash payment system

For accessing the services online,

e-cash is a prime method for

secure online payments.. The

following model shows how e cash

payment system works :

This is a simple model of E-cash payment system. This gives us the idea of how e-cash payment system works. The model is explained properly in upcoming slides

The customer approaches his issuer(bank’s) site for accessing his account. The issuer in return issues the money in form of a token which is generally in form of tens and hundreds or as per specified by the customer

In second phase the customer will endorse those tokens to the merchant for acquiring services, for which the customer will authenticate the payment for the trader.

In third phase the trader will approach the token issuer(customer’s bank) and after authenticating the tokens the issuing bank will convert the tokens into electronic fund and the same will be transferred into trader’s account

Finally after getting the payment for the respective services the trader provides the requisite service or product and also notifies the customer about the approval of payment made by customer in trader’s account.

E-cash security

Security is of extreme importance while handling the online transactions. Faith in the security of the medium of exchange, whether paper or digital, is essential for the economy to function.E-cash is much secure than other online payment modes because in this case no credential such as card-passwords or anything such is involved. Its like simply the online fund transfer from customer’s account to trader’s account.

However while accessing the customer’s account, the customer must keep in mind the internet security sweep or theft. The online hacking and cracking can be avoided by using SSL and TSL website security systems and keeping the website link with safe “Https:// “ protocols and proper internet security softwares to keep aside the threats of malware, evasdrooping and other security threats.

Advantages We can transfer funds, purchase stocks, and offer a variety of other services without having to handle physical cash or cheques

Electronic cash protects its user against theft With electronic cash, the customer does not need to provide financial information

E-cash supports small payments . Other online payment system charge a fee for every transaction no matter how much high or low it is but e-cash has a specific limit for additional charges that’s why very low payments are not charged a fee.

Limitations

Maybe how much secure the e-cash payment system is but still no one is safe against the online frauds. In this case the trader is referred as fraudulent. The trader may take the amount but may not provide the services

While making the payment, its very important that the internet connection and power supply should be active. If the payment is in process and internet supply fails in between it can lead to loss of information i.e amount will be charged but it wont reach to trader and the refund takes very long time in general the refund time is atleast 30-45 days.

E-Cash is not for everyone. Low income segments without computer and internet access are unable to enjoy the usage of E-Cash.

Conclusion The rise of E-Cash is inevitable, but further improvements are needed. Tackling security, anonymity, low income group readiness and technology reliability issues will make E-Cash more perfect. In countries such as India where people were hesitant to use such methods has shown a tremendous use of online payments and E-cash payment system. Slowly but steadily the growth is seen and improving it technologically will make it more reliable and efficient for customers to use it.