Class 13

1. Payment Methods

2. Understanding Online Payment

3. Credit Cards Pre-approved credit which can be used for the purchase of items now and payment of them later. Particulars Displayed On Credit Cards Name of the customer 16-digit card number Validity date The VISA hologram and the VISA logo Name of the issuing bank Signature period Magnetic strip PIN

4. CLASSIFICATION OF CREDIT CARDS Based on mode of credit recovery Based on status of credit card Based on geographical validity Based on franchise/ Tie-up Based on issuer Category Charge Card Revolving credit card Standard Card Domestic card Internation al Card Individ- ual Cards Corpor- ate Cards Proprie- tary card Business Card Gold Card Master Card VISA Card Domestic Tie-up Card

5. Mechanics of Credit Card Operation Contract for credit card (1) Issue of credit card (2) Payment of credit card(3) Clearing and settlements (7) Charging of credit card Purchase of and raising bills (4) goods and services (3) Submission of bill for collection (5) Payment for bills (6) Card Issuing Bank Card User / Customer Marchants bank Merchant establishment

6. Credit Card Transaction

7. Credit Card Video

8. What does 16 digit means

9. E-Wallets An Electronic Wallet is any device or software which allows a user to store, manipulate, and pay with various types of payment instruments such as electronic cash and credit cards. They make it unnecessary to retype credit card numbers and addresses each time a purchase is made.

10. Security Your information is protected with a password that you choose. Then when you shop at an Internet store the site will prompt you to select a payment method from your wallet and to authorize it by typing your password. Many newly released E-Wallets will use a new standard called the Electronics Commerce Modeling Language (ECML) that will work with any web security software.

11. Digital Token-Based E-Payments Cash or Real Time e-Cash Debit or Prepaid - Debit Card, Smart Card, e-Wallets Credit or Post paid Credit Cards, e-Cheque

12. Desirable Properties of Digital Money Universally accepted Transferable electronically Divisible Non-forgeable, non forgeable, non-stealable Private (no one except parties know the amount) Anonymous (no one can identify the payer) Work off-line (no on-line verification needed)

13. E-cash Concept Consumer buys e-cash from Bank Bank sends e-cash bits to consumer (after charging that amount plus fee) Consumer sends e-cash to merchant Merchant checks with Bank that e-cash is valid (check for forgery or fraud) Bank verifies that e-cash is valid Parties complete transaction: e.g., merchant present e-cash to issuing back for deposit once goods or services are delivered

14. Properties of e-Cash Monetary Value Interoperability Retrievability Security

15. Two storage methods On-line Individual does not have possession personally of electronic cash Trusted third party, e.g. online bank, holds customers cash accounts Off-Line Customer holds cash on smart card or software wallets Fraud and double spending requires tamper proof encryption

16. Advantages and Disadvantages Advantages More efficient, eventually meaning lower prices Lower transaction costs Anybody can use it, unlike credit cards, and does not require special authorization Disadvantages Tax trail non-existent, like regular cash Money laundering Susceptible to forgery

17. Electronic Cash Security Complex cryptographic algorithms prevent double spending Anonymity is preserved unless double spending is attempted Serial numbers can allow tracing to prevent money laundering Does not prevent double spending, since the merchant or consumer could be at fault

18. Past and Present E-cash Systems Checkfree Allows payment with online electronic checks Clickshare Designed for magazine and newspaper publishers Purchases are billed to a users ISP, who in turn bill the customer

19. Past and Present E-cash Systems CyberCash Combines features from cash and checks CyberCoins Stored in CyberCash wallet, a software storage mechanism located on customers computer Used to make purchases between .25c and $10

20. Past and Present E-cash Systems DigiCash Allowed customers to purchase goods and services using anonymous electronic cash Coin.Net Electronic tokens stored on a customers computer is used to make purchases Works by installing special plug-in to a customers web browser Merchants do not need special software to accept eCoins.

21. Past and Present E-cash Systems MilliCent Developed by Digital, now part of Compaq Electronic scrip system Customers can purchase items of very low value

Class 13

Education

credit card transaction

issue of credit card

status of credit card

credit card numbers

credit card video

smart card

ewallets credit

ecash bits