Electronic Payment Systems
Contents
Introduction 2
History of the On-line Payment System 2
Payment Service Providers 3
Credit cards 3
E-wallet 3
Online Bill Payments 4
Online Bank Transfers 4
PayPal 4
Benefits of using E-Payment: 6
Customer confidence in Payment systems 6
Reliable protection when using Payment Systems 7
How do customers benefit? 8
Drawbacks of On-line Payment Systems 10
Card Holder Based On Biometrics: 11
ONLINE BANKING SERVICES 12
Disadvantages of Banking Services 12
Small and Big companies in On-line Payment System 13
RISK 14
Theft: 15
How can the On-line Payment Systems improve? 17
Conclusion 18
Bibliography: 19
Introduction
On-line Payment System can be defined as the method used to pay for the purchases of goods and services over the internet. On-line shopping and on-line banking are both good examples of On-line payment Systems. Nowadays it is very important to have these services as they are convenient and people do not have to leave the comfort of their house to make purchases. It is now a necessity for companies to have On-line systems available to their competitors will gain advantage over them. It is also important that these companies have a secure online payment system for the security of their customers.
History of the On-line Payment System
Online payment system has a very short history which only expands to about seventeen years and is still changing to this day. In 1991, Tim Berners-Lee created the World Wide Web and in 1994 “Stanford Federal Credit Union” was the first financial institution to offer online internet banking services to all of its members (http://en.wikipedia.org/wiki/Onlinebanking#History). The internet banking of Stanford Federal would have been the first online payment system to exist to customers. Also, in 1994, Pizza Hut set up the first online delivery system. By having the first online delivery system, Pizza Hut gained an advantage over its competitors. Being the first, Pizza Hut will always be one step
Introduction 2
History of the On-line Payment System 2
Payment Service Providers 3
Credit cards 3
E-wallet 3
Online Bill Payments 4
Online Bank Transfers 4
PayPal 4
Benefits of using E-Payment: 6
Customer confidence in Payment systems 6
Reliable protection when using Payment Systems 7
How do customers benefit? 8
Drawbacks of On-line Payment Systems 10
Card Holder Based On Biometrics: 11
ONLINE BANKING SERVICES 12
Disadvantages of Banking Services 12
Small and Big companies in On-line Payment System 13
RISK 14
Theft: 15
How can the On-line Payment Systems improve? 17
Conclusion 18
Bibliography: 19
Introduction
On-line Payment System can be defined as the method used to pay for the purchases of goods and services over the internet. On-line shopping and on-line banking are both good examples of On-line payment Systems. Nowadays it is very important to have these services as they are convenient and people do not have to leave the comfort of their house to make purchases. It is now a necessity for companies to have On-line systems available to their competitors will gain advantage over them. It is also important that these companies have a secure online payment system for the security of their customers.
History of the On-line Payment System
Online payment system has a very short history which only expands to about seventeen years and is still changing to this day. In 1991, Tim Berners-Lee created the World Wide Web and in 1994 “Stanford Federal Credit Union” was the first financial institution to offer online internet banking services to all of its members (http://en.wikipedia.org/wiki/Onlinebanking#History). The internet banking of Stanford Federal would have been the first online payment system to exist to customers. Also, in 1994, Pizza Hut set up the first online delivery system. By having the first online delivery system, Pizza Hut gained an advantage over its competitors. Being the first, Pizza Hut will always be one step
Bibliography: • Anon, Disadvantages of Electronic Payment Systems. Buzzle. Available at: http://www.buzzle.com/articles/disadvantages-of-electronic-payment-systems.html [Accessed November 14, 2012] • Biz-Rate.com (Accessed 23/11/2012) • http://searchcio-midmarket.techtarget.com/podcast/Improvements-to-online-banking-services-enhance-customer-experience • Metro Herald Newspaper( 3/12/2012) • Millard, S., Haldane, A.G. & Saporta, V., 2008. The future of payment systems, London; New York: Routledge. Available at: http://search.ebscohost.com/login.aspx?direct=true&scope=site&db=nlebk&db=nlabk&AN=222297 [Accessed November 30, 2012]. • Radu, C., 2003. Implementing electronic card payment systems, Boston: Artech House. Available at: http://www.books24x7.com/marc.asp?bookid=7908 [Accessed November 18, 2012]. • Schneider, G.P. & Perry, J.T., 2000. Electronic commerce, Cambridge, Mass.: Course Technology • www.mastercard.com/us/company/en/docs/BENEFITS OF ELECTRONIC PAYMENTS - US EDITION.pdf