8/3/2019 Electronic Payment Scheme
1/17
ELECTRONIC PAYMENT SCHEME
8/3/2019 Electronic Payment Scheme
2/17
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.
8/3/2019 Electronic Payment Scheme
3/17
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.
8/3/2019 Electronic Payment Scheme
4/17
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.
8/3/2019 Electronic Payment Scheme
5/17
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.
8/3/2019 Electronic Payment Scheme
6/17
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.
8/3/2019 Electronic Payment Scheme
7/17
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 :
8/3/2019 Electronic Payment Scheme
8/17
Bank draft: a draft drawn by a bank againstfunds deposited in another bank
Tokens:
8/3/2019 Electronic Payment Scheme
9/17
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.
8/3/2019 Electronic Payment Scheme
10/17
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.
8/3/2019 Electronic Payment Scheme
11/17
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.
8/3/2019 Electronic Payment Scheme
12/17
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.
8/3/2019 Electronic Payment Scheme
13/17
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
8/3/2019 Electronic Payment Scheme
14/17
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.
8/3/2019 Electronic Payment Scheme
15/17
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.
8/3/2019 Electronic Payment Scheme
16/17
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
8/3/2019 Electronic Payment Scheme
17/17
SET & JEPI