...4.1 ELECTRONİC PAYMENT SYSTEMS (EPS) Issues of trust and acceptance play a more significant role in the e-commerce world than in traditional businesses as far as payment systems are concerned. Traditionally, a customer sees a product, examines it, and then pays for it by cash, check, or credit card (Figure 4.1). In the e-commerce world, in most cases the customer does not actually see the concrete product at the time of transaction, and the method of payment is performed electronically. Figure 4.1 Traditional payment scheme EPSs enable a customer to pay for the goods and services online by using integrated hardware and software systems. The main objectives of EPS are to increase efficiency, improve security, and enhance customer convenience and ease of use. Although these systems are in their immaturity, some significant development has been made. There are several methods and tools that can be used to enable EPS implementation (Figure 4.2) Figure 4.2 Electronic payment scheme While customers pay for goods/services by cash, check, or credit cards in conventional businesses, online buyers may use one of the following EPSs to pay for products/services purchased online: • • • • • • • • • Electronic funds transfer (EFT): EFT involves electronic transfer of money by financial institutions. Payment cards : They contain stored financial value that can be transferred from the customer's computer to the businessman's computer. Credit cards : They are the most popular...
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...ELECTRONIC PAYMENT SYSTEM Electronic Payments or e-payments refer to the technological breakthrough that enables us to perform financial transactions electronically. It can also be explain as a way of paying for a goods or services electronically, instead of using cash or a check, in person or by mail. TYPES OF ELECTRONIC PAYMENT SYSTEM Some of the types of electronic payments are the following; • Credit Card • Debit Card • Smart Card • E-Money • Electronic Fund Transfer (EFT) CREDIT CARD Credit card is small plastic card with a unique number attached with an account. It has also a magnetic strip embedded in it, which is use to read credit card via card readers. When a customer purchases a product via credit card, credit card issuer bank pays on behalf of the customer and customer has a certain period after which he/she can pay the credit card bill. It is usually credit card monthly payment cycle. Following are the actors in the credit card system. • The card holder - Customer • The merchant- seller of product who accept credit card payments. • The card issuer bank - card holder's bank • The acquirer bank - the merchant's bank • The card brand - for example , visa or MasterCard Credit card payment process STEP DESCRIPTION 1 Bank issues and activates a credit card to customer on his/her request. 2 Customer presents credit card information to merchant site or to merchant from whom he/she want to purchase a product/service. 3 Merchant validates customer's...
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...Survey of Electronic Cash, Electronic Banking and Internet Gaming 1 2 TABLE OF CONTENTS PREFACE ..........................................................................................................................5 FOREWORD ..........................................................................................................................7 INTRODUCTION ............................................................................................................... 11 ELECTRONIC CASH .......................................................................................................... 15 INTRODUCTION ................................................................................................... SMART CARDS/STORED VALUE CARDS........................................................ The Basics ..................................................................................................... Stored-Value Card Issuers ............................................................................ COMPUTER E-CASH ............................................................................................ The Basics ..................................................................................................... E-Cash Issuers ............................................................................................... REGULATORY POLICY ......................................................................................... SUMMARY OF ELECTRONIC CASH IN THE...
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...Electronic Banking in Bangladesh Mohammad Shamsuddoha Assistant Professor Department of Marketing, University of Chittagong Chittagong, Bangladesh. E- mail: mdsdoha@gmail.com Abstract: In Bangladesh, Banking industry is mature to a great extent than earlier period. It has developed superb image in their various activities including electronic banking. Now modern banking services have launched by some multinationals and new local private commercial banks. Electronic banking is one of the most demanded and latest technologies in banking sector. This paper tried to unearth the present status of electronic banking in banking sector in Bangladesh. Keywords: Electronic Banking, Bank, Bangladesh Introduction: In Bangladesh, multinational banks are operating for long besides our nationalized, private and specialized banks. However, much of the resulting research has concentrated on providing evidence of the association between consumers’ usage patterns of ATMs and their demographic profiles (Hood, 1979; Murphy, 1983) and, more recently, consumer psychographic profiles (Stevens et al., 1986). Besides, the banking services of nationalized, private, and multinationals are different by quality of their services. Multinational banks are offering better services than others. They offer better customer services, personal financial services, corporate facilities, trade services with the help of efficient operational department, credit department, information technology department...
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...Keywords: smart card, transportation, payment system, technology diffusion, Octopus, Hong Kong A b s t r a c t Although debit/cash cards based on smart card technology promised to bring forth the end of loose change, very few managed to gain critical mass or come close to totally eliminating coins including those supported by major credit card operators (e.g., Visa Cash and Mondex). In this paper, we discuss a specific system – Octopus – which not only gained momentum among the passenger transportation industry in Hong Kong, but also expanded into other payment channels such as fast food outlets and snack machines. We examine the factors why Octopus has been successful despite most micro-payment systems failing to gain critical mass let alone expand their customer base. Finally, we conclude that convenience factors, a specific set of societal factors and its management strategy to expand from a captive market towards a generic micro-payment system had been instrumental to the growth of this e-payment system. A Copyright © 2001 Electronic Markets Volume 11 (2): 97–106. www.electronicmarkets.org Downloaded By: [Schmelich, Volker] At: 12:59 16 March 2010 E-COMMERCE IN AUSTRAL-ASIA u t h o r s Simpson Poon (Spoon@hku.hk) is the Director of the Centre for E-Commerce and Internet Studies at Murdoch University in Australia and a Visiting Associate Professor at the School of Business, The University...
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...Partial Review of the Literature Managers cannot ignore Information Systems because they play a critical role in contemporary organisation. The application of information and communication technology concepts, techniques, policies and implementation strategies to banking services has become a subject of fundamental importance and concerns to all banks and indeed a prerequisite for local and global competitiveness. ICT directly affects how managers decide, how they plan and what products and services are offered in the banking industry. It has continued to change the way banks and their corporate relationships are organized worldwide and the variety of innovative devices available to enhance the speed and quality of service delivery. Harold and Jeff (1995) contend that financial service providers should modify their traditional operating practices to remain viable in the 1990s and beyond, they claim that the most significant shortcoming in the banking industry today is a wide spread failure on the part of senior management in banks to grasp the importance of technology and incorporate it into their strategic plans accordingly, Woherem (2000) claimed that only banks that overhaul the whole of their payment and delivery systems and apply ICT to their operations are likely to survive and prosper in the new millennium. He advices banks to re-examine their service and delivery systems in order to properly position them within the framework of the dictates of the dynamism of information...
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...CHAPTER ONE 1.0 INTRODUCTION 1.1 BACKGROUND OF THE STUDY Electronic banking has long been recognized to play an important role in economic development on the basis of their ability to create liquidity in the economy through financial intermediation between savers and borrowers. It also offers financial services and products that accelerate settlement of transactions and in the process reduce cash intensity in the financial system, encourage banking culture, and catalyses economic growth. However, for the effective functioning of the financial system, the payment systems must be safe and efficient; otherwise they can be a channel for the transmission of disturbances from one part of the economy or financial system to others. This is why central bank have been active in promoting sound and efficient payments system and in seeking the means to reduce risks associated with the system. Nigeria historically operated a cash-driven economy particularly in the consumer sector, however the system has witnessed improvements over the years, and particular in recent times has moved from its rudimentary level of the early years of banking business to the current state of sophistication comparable to other economies at the same level of development. One important reason for financial liberalization and deregulation is the need to develop a good payment system which promotes an appropriate mechanism for efficiency in mobilizing and allocating financial resources in the economy. The payment...
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...1- Briefly explain Electronic Cash A system that allows a person to pay for goods or services by transmitting a number from one computer to another. Like the serial numbers on real dollar bills, the digital cash numbers are unique. Each one is issued by a bank and represents a specified sum of real money. One of the key features of digital cash is that, like real cash, it is anonymous and reusable. That is, when a digital cash amount is sent from a buyer to a vendor, there is no way to obtain information about the buyer. This is one of the key differences between digital cash and credit card systems. Another key difference is that a digital cash certificate can be reused. 2- Briefly explain ActiveX Control ActiveX control is a control using Microsoft ActiveX technologies. An ActiveX control can be automatically downloaded and executed by a Web browser. ActiveX is not a programming language, but rather a set of rules for how applications should share information. Programmers can develop ActiveX controls in a variety of languages, including C, C++, Visual Basic, and Java. An ActiveX control is similar to a Java applet. Unlike Java applets, however, ActiveX controls have full access to the Windows operating system. This gives them much more power than Java applets, but with this power comes a certain risk that the applet may damage software or data on your machine. To control this risk, Microsoft developed a registration system so that browsers can identify...
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...credit cards online. 3. Discuss the different categories and potential uses of smart cards. 4. Discuss various online alternatives to credit card payments and identify under what circumstances they are best used. 5. Describe the processes and parties involved in e-checking. 6. Describe payment methods in B2B EC, including payments for global trade. Content Opening Case: Pay-per-View Pages: The Next iTunes 11.1 The Payment Revolution 11.2 Using Payment Cards Online 11.3 Smart Cards 11.4 Stored-Value Cards 11.5 E-Micropayments 11.6 E-Checking 11.7 B2B Electronic Payments Managerial Issues Closing Case: The Check Is in the Network Answers to Pause/Break Section Review Questions Section 11.1 Review Questions 1. Describe the trends that are occurring in cash and non-cash payments in the United States. Today, we are in the midst of a payment revolution, with cards and electronic payments taking the place of cash and checks. In 2003, the combined use of credit and debit cards for in-store payments for the first time exceeded the combined use of cash and checks (Federal Reserve System 2004). 2. What types of e-payments should B2C merchants support? For online B2C merchants, the implications of these trends are straightforward. In the United States and Western Europe it is hard to run an online business without supporting credit card payments, despite the costs. It also is becoming increasingly important to support payments by debit card. Under...
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...COURSE MODULE ABI 204 / ECOMM INTRODUCTION TO E-COMMERCE Unit 1) Introduction to E-Commerce Objectives In this chapter, you will learn about: • The basic elements of electronic commerce • Differences between electronic commerce and traditional commerce • Advantages and Disadvantages of E-Commerce • Business Process Suitability for E-Commerce • Economic forces that have created a business environment that fosters electronic commerce • The ways in which businesses use value chains to identify electronic commerce opportunities Traditional Commerce and Electronic Commerce To many people, the term electronic commerce means shopping on the part of the Internet called the World Wide Web. But it is much broader and encompasses many more business activities than just Web shopping. Electronic commerce refers to business activities conducted using electronic data transmission via the Internet and the World Wide Web. The three main elements of e-commerce are: • Business-to-consumer • Business-to-business • The transactions and business processes that support selling and purchasing activities on the Web Other categories include: consumer-to-consumer and consumer-to-government. Electronic Commerce Electronic Funds Transfers (EFTs) have been used by banks for many years. Electronic Data Interchange (EDI) occurs when one business transmits computer-readable data in a standard format to another business. Businesses who engage in EDI with each other are called trading...
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...Resent trends of banking system in India 1. Introduction The economy can be divided in the entire spectrum of economic activity into the real and monetary sectors. The real sector is where production takes place while the monetary sector supports this production and in a way is the means to the end. We know and we accept the financial system is critical to the working of the rest of the economy. In fact, the Asian crisis of the nineties, or for that matter what happened in Latin America and Russia subsequently and also Dubai Crisis have shown how a fragile financial sector can wreak havoc on the rest of the economy. Therefore the banking sector is crucial and we want to express our views to explore how this sector can work in harmony with the real sector to achieve the desired objectives. The Banking sector has been immensely benefited from the implementation of superior technology during the recent past, almost in every nation in the world. Productivity enhancement, innovative products, speedy transactions seamless transfer of funds, real time information system, and efficient risk management are some of the advantage derived through the technology. Information technology has also improved the efficiency and robustness of business processes across banking sector. India's banking sector has made rapid strides in reforming and aligning itself to the new competitive business environment. Indian banking industry is the midst of an IT revolution. Technological infrastructure has...
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...A RESARCH REPORT On CUSTOMER SATISFACTION ON ATM SERVICES: A CASE STUDY OF DENA BANK At [pic] Submitted to (Jiwaji University, Gwalior) For the partial fulfillment of the award of Master of Business Administration (2007-2009) Submitted by (Shilpa Senger) [pic] Estd. 2002 Institute of Information Technology & MANAGEMNT DECLARATION This is to declare that the Research Report has been accomplished by me and being submitted in partial fulfillment of requirement for the award of the Degree of Master of Business Administration from institute of Information technology and management affiliated to Jiwaji University Gwalior This work has not been submitted by me anywhere else for the award of any degree or diploma. All sources of information are based on my on job training experience and lea Shilpa Senger MBA-4th Semester ACKNOWLEDGEMENT It is a great pleasure for me to put on records my appreciation and gratitude towards Mrs. Vandana Bharti (A.H.O.D. of M.B.A. Department) for his encouragement towards preparation of this report. I would like to express my deep sense of gratitude to prof. Preeti singh for giving me valuable suggestion and encouragement. I offer heart felt thank to my Parents, Brothers and all my friends for their moral support and...
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...all the banks in Kuwait use the smart cards instead of the regular credit and debit cards. A smart card resembles a credit card in size and shape, but inside it is completely different. First of all, it has an inside -- a normal credit card is a simple piece of plastic. The inside of a smart card usually contains an embedded microprocessor. The microprocessor is under a gold contact pad on one side of the card. Think of the microprocessor as replacing the usual magnetic stripe on a credit card or debit card. The microprocessor on the smart card is there for security. The host computer and card reader actually "talk" to the microprocessor. The microprocessor enforces access to the data on the card. If the host computer read and wrote the smart card's random access memory (RAM). The Smart Cards provides unlimited benefits to the customers, and its used recently almost in every organization and the business benefit from implementing the smart card. The most common smart card applications are: Credit cards Electronic cash Computer security systems Wireless communication Loyalty systems (like frequent flyer points) Banking Satellite TV Government identification Advantages and Disadvantages: Advantages: 1- Flexibility: Smart cards have a lot of flexibility. They can store multiple types of information including identification, credit cards, business and family contacts. 2-Cost and Availability: Smart card readers are expensive to produce...
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...credit card services. They have intensely used advertisements as the main method of attracting customers using the message peace of mind to attract their customers to use their cards. However, recently many new entrants have entered the market to drive competition up and reduce the value of each Barclaycard credit cards. The following is a list of recommendations that Barclaycard should implement to remain competitive. 1. Barclaycard can introduce credit cards that have a lower APR to compete with the new entrants. 2. To encourage spending Barclaycard can introduce incentive programs to stimulate spending. For example, they can follow Novus® with a cash back program on spending. 3. Discourage consumers from using cash and a main method of payment. 4. Be the first mover again and introduce other programs that allow a consumer’s life to be easier. For example, they can start implementing services where a consumer can pay with their cell phones using the IR feature, or start emplacing smart card technology in retail outlets as this is seen as the next possible trend in the future. Introduce services that allow consumers to purchase things at home with a touch of a button (internet credit cards e.g. one time use cards) SWOT Analysis*[1] Strengths • Market leadership with a market share of 34% in terms of credit cards issued, and 27% in transaction value. * • Low cost production, resulting from accumulated experience as the first credit card issuer...
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...global sales are expected to be worth $1.29 trillion in 2013 n Retailers, card issuers, technology companies, banks, mobile network operators and start-up companies are vying for share of online spend n Devices are affordable: tablets cost less than $200 and smart-phones are available at $50 n Secure technology developments are driving mobile commerce n Companies are making increasing use of consumer data to inform and guide their operations 21st Century Themes Mobile and e-commerce are reshaping consumer behaviour Affordable tablets, smart-phones and portable computers are changing the way that consumers shop and pay, whether online or on the go. In 2012, global e-commerce sales topped the $1 trillion mark for the first time and these sales are expected to grow to $1.29 trillion in 2013.1 The proliferation of internet-connected devices is helping to create new technologies, consumer applications, personal finance services and payment options. There will be considerable commercial opportunities linked to this changing consumer behaviour as merchants and payments companies seek to enhance their understanding of consumption patterns through analytics. The companies most able to collect and exploit unstructured data could be in a very strong position to understand the intricacies of consumer behaviour. Mass expansion of devices, networks and software In the race to win market share, retailers, card issuers, tech companies, banks, mobile network operators (MNO) and start-up...
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