Electronic Funds Transfer
e-payment system
ELECTRONIC FUND TRANSFER
By Prof T.R. Vaidyanathan
e-payment system
As payment is an integral part of mercantile process, electronic payment system is an integral part of ecommerce. The emergence of e-commerce has created new financial needs that in many cases cannot be effectively fulfilled by traditional payment systems. E-payment systems are becoming central to ecommerce as companies look for ways to server customers fasters and at lower cost, thereby paving way for new business opportunities
E-payment system
These payment systems have number of requirements Security Anonymity Control Low financial risks Traceability Privacy Integrity Standards(for Good transaction efficiency interoperability) Acceptability Convenience Cost
e-payment system
Conventional Vs Electronic Payment System To get into the depth of electronic payment process, it is better to understand the processing of conventional or traditional payment system. A conventional process of payment and settlement involves a buyer-to-seller transfer of cash or payment information (i.e. cheque and credit cards). The actual settlement of payment takes place in the financial processing network. A cash payment requires a buyer’s withdrawal from his/ her bank account, a transfer of cash to the seller, and the seller’s deposit of payment to his/her account. Non-cash payment mechanism are settled by adjusting i.e. crediting and debiting the appropriate accounts between banks based on payment information conveyed via cheque or credit cards.
e-payment system
Process of Electronic Payment System Electronic payment systems have been in operations since 1960s and have been expanding rapidly as well as growing in complexity. After the development of conventional payment system, EFT (Electronic Fund Transfer) based payment system came into existence. A real revolution in the meaning of electronic payment system came with the development of EFT technology. EFT is a technology
ELECTRONIC FUND TRANSFER
By Prof T.R. Vaidyanathan
e-payment system
As payment is an integral part of mercantile process, electronic payment system is an integral part of ecommerce. The emergence of e-commerce has created new financial needs that in many cases cannot be effectively fulfilled by traditional payment systems. E-payment systems are becoming central to ecommerce as companies look for ways to server customers fasters and at lower cost, thereby paving way for new business opportunities
E-payment system
These payment systems have number of requirements Security Anonymity Control Low financial risks Traceability Privacy Integrity Standards(for Good transaction efficiency interoperability) Acceptability Convenience Cost
e-payment system
Conventional Vs Electronic Payment System To get into the depth of electronic payment process, it is better to understand the processing of conventional or traditional payment system. A conventional process of payment and settlement involves a buyer-to-seller transfer of cash or payment information (i.e. cheque and credit cards). The actual settlement of payment takes place in the financial processing network. A cash payment requires a buyer’s withdrawal from his/ her bank account, a transfer of cash to the seller, and the seller’s deposit of payment to his/her account. Non-cash payment mechanism are settled by adjusting i.e. crediting and debiting the appropriate accounts between banks based on payment information conveyed via cheque or credit cards.
e-payment system
Process of Electronic Payment System Electronic payment systems have been in operations since 1960s and have been expanding rapidly as well as growing in complexity. After the development of conventional payment system, EFT (Electronic Fund Transfer) based payment system came into existence. A real revolution in the meaning of electronic payment system came with the development of EFT technology. EFT is a technology