#6 Payment Systems Flashcards
Scrip
Digital cash minted by company instead of govt
gift certificate
Payment Cards
Credit Cards (present spending limit based on credit limit)
Debit Cards (removes charge from cardholder account to seller bank)
Charge Cards (no preset spending limit)
Adv & Disadv Payment Cards
Adv
fraud protection
worldwide acceptance
online transaction
Disadv
per transaction fee and monthly processing fee
Electronic Cash
companies attempt for a value storage and exchange system
Concerns
Privacy, Security, Independence, Portability, Convenience
Characteristics
Spend only once, Annonymous, Convenience
Online: online bank involved in all transfers
Offiline: virtual wallet
Adv & disadv of Electronic Cash
Adv
* more efficient
* less costly (distance and hardware no cost)
* no party require special authorization
Disadv
* No audit trail
* forgery
* “flop”
Providing Security for Electronic Cash
Threat of prosecution
two part lock for annonymous security that signals when someone is double spending
attach a serial number for each transaction for tracing
Electronic Cash Systems
Compaq Computer
KCOM
CheckFree
Clickshare
Electronic Wallets
Works like a charge card
Holds credit card, electronic cash, owner identification & contact
can be server side or client side
Stored Value Cards
Cash Card, Ezlink card, Flash Card
elaborate smart card or simple plastic card with magnetic strip
Smart Card
Embedded microchip
contains user information
Tokenisation
- When a user makes payment, payment card information sent to tokenisation service provider
- Unique token replaces the card information and sent to merchant while card data stays with service provider
- Merchant submits token to payment network and routes to card issuer for authorization
More secure
Electronic Data Interchange (EDI)
standardised method of exchanging document and information
replaces paper
Encryption, Authentication, Digital Signature, Firewalls
