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Understanding Online Payment Systems for Secure E-commerce Transactions

This session explores online payment systems, costs, security methods, trust development, and legal implications in E-commerce. Discover various systems, benefits, and risks involved in trading online for consumer and business assurance.

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Understanding Online Payment Systems for Secure E-commerce Transactions

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  1. ND e-commerce Carl Arrowsmith Session 14 Consumer Protection & Trust

  2. Last Time • Describe the meaning of market forces • Show how they effect the trading climate

  3. Today's Objectives • Describe what an online payment system is. • Define the costs of an online payment system • List the methods of security • Develop the idea of trust and the legal implications of trading online.

  4. Electronic Payment Systems • A company needs to be paid for the purchase of goods. • e-businesses require payment(s) to be made online • Payment(s) are required in a secure and easy way. • To go with a shopping cart, find several online payment systems to take funds. • Write down the features and costs of each and how they pay you your money.

  5. Online payment systems • Large businesses will receive payments directly • SMEs will use an intermediary service • Can be via a web host to a bank or • Online payment system • Pay Pal • World Pay • Payment Online

  6. Charges • Online payments are not free • Direct transactions will have credit/debit card fee • Online payment companies charge a percentage and/or fee

  7. Security • Payment and confidential details are sent in a secure way • SSL (Secure Socket Layer) • Certificate is required for each site • Works by using a series of programs and encryption/decryption routines at server and web browser levels • We shall look at this in greater detail soon !

  8. Trust • Business is conducted on basis of trust • Risks are in place for both supplier and customer • Consumers are wary of the “unknown” • New company • Unheard of company • Online transactions

  9. What assurances can be made ? • If you owned an online company how would you assure the customer ? • Join trade scheme http://www.imrg.org/ISIS/ • Provide company details history, address and other contact details. Provide a professional web site design

  10. Consumer Assurances • How can you assure your customers that payment will not be taken until product / service has been supplied ? • Consumer trust • Terms and conditions

  11. Business Assurances • Businesses normally supply other businesses on credit (i.e. B2B) • How can you assure suppliers they will be paid? • Trust • Show supplier the books and details of company • Insurance schemes • Supply businesses will usually require pre-payment to new customers until a good record is established

  12. Data Protection act 1998 • Data fairly and lawfully processed • Processed for limited purposes • Adequate, relevant and not excessive • Accurate • Not kept longer than necessary • Processed in accordance with the data subjects rights; • Secure • Not transferred to countries without adequate protection

  13. Consumer Protection (Distance Selling) Regulations 2000 • When buying via a distance (at home), internet, telephone, mail order there are additional legal rights. • Receive clear information about the goods or services before deciding to buy • The right to receive confirmation in a written form (Verbal is not enough) • The right to cancel contracts within a seven day cooling off period – exceptions – next page

  14. Terms & Conditions • Sales of Goods Act 1979 • Must be fair • Unfair Terms in Consumer Contract Regulations 1999 • Must not be one sided (e.g a clause that says a supplier doesn’t have to deliver things in a reasonable time)

  15. Continued… • Consumer Protection act 1987 • Misleading Prices • A trader must display prices and inform the consumer of VAT and delivery charges • Trade Descriptions Act 1968 • Misleading descriptions are unlawful (e.g. the box says the product in blue but when opening the product is red)

  16. Task • Find the terms of conditions of several companies. • Read them trough • What do they all have in common ? • Describe any terms that you feel are unfair to the consumer or the business itself.

  17. Today's Objectives • Describe what an online payment system is. • Define the costs of an online payment system • List the methods of security • Develop the idea of trust and the legal implications of trading online.

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