Module 10. Electronic Payment Systems

In this section we examine the characteristics of traditional and e-Business payment systems. We look at billing and payment techniques, and the advantages and disadvantages of each. Emerging billing and payment systems will conclude our look of this module.

Payment Methods and Systems
When considering a payment method or system, one must consider;
 * Set-up costs and costs per transaction
 * 'Repudability' and Authentication
 * Acceptance and convenience
 * Integrity of Transaction
 * Security - for customers AND vendors/ Risk of Loss
 * Confidentiality/ Privacy/ Anonymity
 * Standards/ Regulation (infastructure)

Traditional Payment Systems (Brick and Mortar)

 * Cash
 * Charge/Credit card
 * Debit Cards
 * Cheques

ePayment Systems

 * Credit Cards / SET
 * Digital Cheques
 * Smart Cards
 * Prepaid Cards
 * Digital Cash
 * Micro-Payments
 * EDI / EFT
 * Mobile/ Wireless


 * Cost-per-transaction - in terms of overhead they have to pay and risk assessment of payment via debit verses credit card, encryption and reputability to ensure that no party can deny payment later

Issues: Confidentiality, anonymity and privacy-concerns that credit card companies know too much about your personal info. Trust that the companies will not sell your information.

When you deal with an intermediary (such as PayPal) industry standards are followed, and the responsibility and security is moved to the proven company.

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