electronic payment scheme

8/3/2019 Electronic Payment Scheme

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ELECTRONIC PAYMENT SCHEME


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INTRODUCTION

Any electronic instrument, device or system

used for the purpose of facilitating paymenttransfers through internet and/or wirelesscommunication network, and by use of servicedelivery product such as electronic card, mobile

banking internet banking, ATM, point of saleterminal etc.


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FEATURES/ADVANTAGES

Making payment on internet.

Every thing is digital & designed to handleelectronically.

No tension to keep the physical currency.

An option to pay other than hard cash.

Easy payment no geographical boundariesrestriction.


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TRADITIONAL PAYMENT METHOD

Cash:

Debit card: is a way to pay now, when you usea debit card the amount is immediately deductedfrom your saving account. Allows to spend whatis in your bank account. A debit card is an

alternative to carry Cheque book or cash.


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Travelers' cheque:

are a safe and easy way to protect your money whenyou travel. You can encash them only when you need to,and only against your signature, unlike cash which can

be stolen and misused by anybody, immediately. Lossof Travellers Cheque can be reported anywhere in the

world by making a single phone and the pre-fixedamount on the cheques are made refundable.

Travellers Cheques are offered in major currencies likeUSD, GBP, Euro, CAD, AUD and JPY. These are

available in various denominations to suit your needs.At present HDFC Bank offers American ExpressTravellers Cheques which are widely accepted atMerchant Establishments and Financial Institutionsacross more than 200 countries.


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Credit cards:Acredit card is part of asystem of payment named after the small plasticcard issued to users of the system. It is a cardentitling its holder to buy goods and services

based on the holder's promise to pay for thesegoods and services. The issuer of the card grantsa line of credit to the consumer(or the user) from

which the user can borrow money for payment

to a merchant or as a cash advance to the user.


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Cheque:Acheque, also spelled checkis anegotiable instrument instructing a financialinstitution to pay a specific amount of a specific

currency from a specified demand account heldin the maker/depositor's name with thatinstitution.

Money orders :

Barter system :


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Bank draft: a draft drawn by a bank againstfunds deposited in another bank

Tokens:


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INTERNET PAYMENT PROCESS

Customer fills shopping form on merchant

website & is ready for payment. The transaction information is transmitted to

merchant server.

The web merchant forwards digital order to pay

seal server in encrypted format Pay seal authenticate the merchant & provides

payment option and payment detail screen onthe customers browser.


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The customer provides credit card details whichis send to payment server.

Credit card details are submitted to ICICI bankfor authentication ICICI issues payment

authorization transmit combination toacquiring bank .

On securing authorization & authentication payseal forwards the validation to merchant server.

The merchant server transmitsacknowledgement of payment to customer

browser.


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POINT OF SALEpoint ofsales (POS) or checkout refers to both acheckout counter in a shop, and the location where atransaction occurs. Colloquially, a "checkout" refers

to a POS terminal or more generally to the hardwareand software used for checkouts, the equivalent ofan electronic cash register. A POS terminal managesthe selling process by a salesperson accessibleinterface. The same system allows the creation and

printing of thevoucher.


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An automated teller machine (ATM) is a computerizedtelecommunications device that provides the customers of a financialinstitutionwith access to financial transactions in a public space without theneed for a human clerk orbank teller. On most modern ATMs, the customer isidentified by inserting a plasticATM cardwith a magnetic stripe or a plasticsmartcardwith a chip, that contains a unique card number and some securityinformation, such as an expiration date . Securityis provided by the customerentering a personal identification number (PIN).Using an ATM, customers can access their bankaccounts in order to makecashwithdrawals (or credit card cash advances) and check their accountbalances as well as purchasing mobile cell phone prepaid credit. ATMs areknown by various other names including automated transaction machine,[1]

automated banking machine, money machine, bank machine, cash machineATMs are placed not only near or inside the premises of banks, but also

in locations such as shopping centers/malls, airports, grocery stores,petrol/gas stations, restaurants, or any place large numbers of people maygather.


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DEBIT CARD

card with a magnetic strip and an embossed

identification number debit card are used byconsumers to obtain money from automaticteller machine to pay for goods or services atretail location and to access home banking or bill

payment services. The major point is that debitcard provide no line of credit purchases aredirectly debited to a consumers bank accountthey are substitute for cash


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SMART CARD

Smart card is a plastic card with an embeddedchip and a tiny display that provide user withnew password each time they log in a system thesmart card also called a memory card is aportable data storage device with provision foridentity and security. It differs from the prepaid

telephone card or debit cards. It is very popularin Europe because it contains microprocessorsand memory chips that provide intelligence andthe ability to store a significant amount of

information.


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DIGITAL CASH

A system that allows a person to pay for goodsand services by transmitting a number from onecomputer to another. Like serial numbers onreal currency notes digital cash nos. are unique.Each one is issued by a bank and represents aspecified sum of real money.The main difference

between digital cash and credit cards are thatwhen a digital cash amount is sent from buyer toa vendor there is no way to obtain informationabout the buyer.


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Most digital cash system starts with aparticipating bank that issues cash nos. orunique identifiers that carry a given value like $5

and to obtain such certificate we must have anaccount at the bank and when we ourchasedigital cash certificate, the money is withdrawnfrom our account


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SET & JEPI

electronic payment scheme

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