digital payment requirement
TRANSCRIPT
• Digital Payment Requirements
• Fraud Detection
• Online Payment Methods
• Online Payment Types
• The Future Payment
Digital Payment Requirements
• Acceptability
• Anonymity: privacy & untraceability
• Convertibility
• Efficiency
• Flexibility
• Integration
• Availability
Digital Payment Requirements
• Reliability
• Scalability
• Security
• Integrity
• Authentication
• Usability
Agenda
• Digital Payment Requirements
• Fraud Detection
• Online Payment Methods
• Online Payment Types
• The Future Payment
Fraud Detection
• Methods
• Products
Methods
• Checksum for credit card no.• Verify the credit card no. and expiration
date with card issuer• Check postal address with online services• Confirmation with e-mail address• Digital certificates for non-repudiation• Predefined purchase limits each time and
per week
Methods
• Confirmation web page for terms and conditions
• Data base with credit card no., e-mail address, and phone no.
• Document the complete online transactions• Trustworthy logistics partner• Unique key for online shipping digital
merchandise
Methods
• Business rules for checking suspicious orders and credit card no.
Products
• Fraud Shield by ClearCommerce
• Visa
Agenda
• Digital Payment Requirements
• Fraud Detection
• Online Payment Methods
• Online Payment Types
• The Future Payment
Online Payment Methods
• Pre-paid– Electronic cash systems– Smart cards
• Instant-paid– Debit cards
• Post-paid– Credit cards– Invoices– Internet cheques– Cash on delivery
Electronic cash systems
• Saving digital money to the hard disk or floppy disk
• Pros & cons– Anonymity– Security with encryption and digital signature– Splitting value– Internet usage only– Easy to lose– No anonymity with physical delivery– No open standard
Electronic cash systems
• Products– DigiCash– NetCash– CyberCoins– IBM micro payment– MilliCent
Smart Card
• Embedded chips with encrypted digital money
• Pros and cons– Use password to ensure the security– Cyber and real usage– Low transaction cost– No open standard
Smart Card
• Types– Health Care– Phone – Debit
• Products– Mondex– VisaCash
Instant-paid
• Debit cards• Pros and cons
– Access to bank’s database
– Less fraud & error
– High security
– Complicated
– Need hardware & software
– Signature through fax
– High communication costs
Instant-paid
• Product– Direct Debit
Credit Cards
• Four players: customer, merchant, issuer and acquirer
• Pros & cons– International – Low security– High transaction cost– Fraud
Credit Cards Security standards
• Secure Socket Layer (SSL)– By Netscape– Encrypt traffic between the web browser and
web server
• Secure Electronic Transaction (SET)– By Visa and MasterCard– Public key encryption using digital certificates
for both buyer and seller
Credit Cards Security standards
• SET features– High security
– Low visibility
– Standards
– Non-repudiation
• Chip-secured Secure Electronic Transaction C-SET– Use chip card for any network devices
– Reduce cost and complexity for merchant
Invoices
• Business-to-business
• Usage reasons– High volume transaction– No need to reorganize the old process– Low transaction fee
Internet Cheques
• Electronic cheques
• Pros and cons– Require payer’s digital signature– Special software & network– Less manual steps
• Systems– echeck by US Department of the Treasury
Cash on Delivery (COD)
• Pros and cons– Require logistics party– More expensive– Extra cost paid by customer
Agenda
• Digital Payment Requirements
• Fraud Detection
• Online Payment Methods
• Online Payment Types
• The Future Payment
Online Payment Types
• Micro payments– Less than $5– Electronic cash transaction
• Consumer payments– Between &5 and $500– Credit card transactions
• Business payments– Over $500– Direct debit or invoice transaction
Agenda
• Digital Payment Requirements
• Fraud Detection
• Online Payment Methods
• Online Payment Types
• The Future Payment
The Future Payment
• Projects– Secure Electronic Marketplace for Europe (SEMPER)
– The Open Trading Protocol (OTP)
– Open Buying on the Internet
– Global Trust Enterprise
• Goal– Internet payment infrastructure to achieve the digital
payment requirements
Points to Remember
• Digital Payment Requirements
• Fraud Detection
• Online Payment Methods
• Online Payment Types
• The Future Payment