By J. ZAVERI E-Payments
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Online Payment Processing Basics Online Purchase USING WEBSITE quick and easy, instantaneous.
Merchants (SELLER) must connect to a network of banks (both acquiring and issuing banks), processors, and other financial institutions so that payment information provided by the customer can be routed securely and reliably. The solution is a payment gateway that connects the online store to these institutions (e.g. bank) Payment information is highly sensitive Trust and confidence are essential. So gateway should be provided by a company with in-depth experience in payment processing and security (e.g. VISA) E-Payments
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e-payment or ONLINE PAYMENT PROCESS Information is encrypted
CLIENT BROWSER
CUSTOMER BROWSES E-COMMERCE WEBSITE
CREDIT CARDS e.g. VISA www.dnserp.com
MERCHANT’S SERVER
PAYMENT SERVER
BANK ACCOUNTS e.g. ICICI, SBI, HDFC
PRIVATE LABEL CARDS e.g. J.C. PENNY 3
Credit cards Represents an account that extends credit to consumers, permits them to purchase items while deferring payment, and allows payments to multiple vendors at a time. Credit card associations – Visa Issuing banks (process transactions)- Citibank Processing centers (clearing house)- verify accounts and balances : 3rd party. OR DEBIT CARD INSTANT DEBIT E-Payments
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# Credit cards # The parties involved : Consumer / CUSTOMER (BUYER) Merchant Web server (SELLER) Payment gateway Merchant’s bank (SELLER) Consumer’s card issuing bank (BUYER’S BANK)
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What is SSL? SSL is an abbreviation for Secured Socket Layer SSL technology secretly encodes (or encrypts) information as it is being sent over the Internet between your computer and Bank's Server computer system This encryption technology is designed to ensure that account information travels securely over the Internet and remains confidential.
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The transaction processing 1: Consumer makes purchase 2: SSL provides secure connection through internet to merchant server 3: Merchant software contacts clearing house 4: Account verification done by C/H 5: Issuing bank credits merchant account 6: Monthly statement issued with debit for purchase.
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Front side of Credit Card:
(1)
is the bank logo. (2) is the EMV chip (commonly referred to as 'Chip And Pin') (3) is the Hologram (4) is the 16 digit card number (5) is the logo of the card type (6) is the expiry date (7) is the name of the cardholder E-Payments
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A diagram showing the reverse side of a typical credit/debit card.
(1) is the magnetic stripe. (2) is the signature strip (3) is the CVC2 code
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Credit Card Issuing Banks in India HSBC ICICI Bank Deutsche Bank SBI Barclays Bank Canara Bank Standard Chartered Amex HDFC Kotak Mahindra ABN Amro American Express Axis Bank Bank o Baroda City Bank. E-Payments
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Type
Public (NYSE: V)
Type
Public (NYSE: MA)
Founded
Delaware (1970)
Founded
1966
Headquarters
San Francisco, California
Headquarters
Purchase, New York, United States
Area served
Worldwide
Key people
Key people
Richard N. Haythornthwaite (Chairman) Robert W. Selander (CEO, President & Director)
Joseph Saunders (Chairman, CEO) John (Hans) Morris (President) Byron Pollitt (CFO) John Partridge (COO)
Industry
Financial Services
Industry
Financial services
Products
Payment systems
Products
Payment systems
Market cap
US$ 75.20 billion (2008)
Market cap
US$27.36 billion (2008)
Revenue
▲ US$5 billion (2008)
Revenue
▲US$3.5898 billion (2007)
Operating income
▲ US$1.108 billion (2007)
Operating income
▼US$-1.449 billion (2007)
Net income
▼US$-1.076 billion (2007)
Net income
▲ US$1.085 billion (2007)
Total assets
▲US$4.390 billion (2007)
Total assets
▲ US$6.260 billion (2007)
Total equity
▼US$-501.33 million (2007)
Total equity
▲ US$3.027 billion (2007)
Website
Visa.com
Employees
5,000 (2008)
Website
MasterCard.com
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Bitter facts of Plastic money!!! ICICI Bank, lost more than Rs 11 crore due to over 8,000 cases of credit card frauds last year. A total of 703 and 2,484 cases were received by American Express Bank and HSBC Bank related to credit card frauds, in which they lost Rs 6.04 crore and Rs 4.90 crore, respectively. Citibank, which lost Rs 4.73 crore, Standard Chartered Bank Rs 2.39 crore and Deutsche Bank with a loss of Rs 2.09 crore E-Payments
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$ Payment gateway $ A service that provides connectivity among merchants, customers, and financial networks to process authorizations and payments. The service is usually operated by a third-party provider such as VeriSign. A gateway that translates SET messages to and from standard bank financial data formats.
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Why is Payment Gateway needed? Payment Gateway holds the essence of any ecommerce site. One cannot think of making or receiving on-line payments without a Payment Gateway. Payment Gateway basically refers to an e-commerce service that authorizes payments for e-businesses & online retailers. It, in a way, represents a physical POS (Point-of-sale) terminal located in most retail outlets. Payment gateways encrypt sensitive information, such as credit card numbers to ensure that information passes securely between the customer and the merchant.
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Alternative payment solutions P2p = Person-to-person (No account- only mail) like www.PayPal.com Multicurrency credit card acceptance services
Token Value and Store-Based Credit www.internetcash.com
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Digital Wallets http://www.webewallet.com/faq.cfm Smart cards (embedded chips to verify the card’s presence in a smart card reader). Visa: Fusion card
MasterCard: Mondex American express: Blue Auction resources & electronic bill presentment and payment (EBPP) & < checkfreecorp.fiserv.com>
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THANK$ A MILLION JYOTINDRA ZAVERI Twitter handle @followERP www.dnserp.com
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