1 / 17

E-Commerce Applications E-payment

E-Commerce Applications E-payment. Overview. Payment process Credit card payment online Payment systems Risks and challenges Chargeback Internet fraud. E-commerce overview. Buying and selling of goods and services over electronic networks. Online Catalogue Currency Tax models Shipping

kerry
Download Presentation

E-Commerce Applications E-payment

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. E-Commerce ApplicationsE-payment Session 3

  2. Overview • Payment process • Credit card payment online • Payment systems • Risks and challenges • Chargeback • Internet fraud Session 3

  3. E-commerce overview • Buying and selling of goods and services over electronic networks. • Online Catalogue • Currency • Tax models • Shipping • Checkout • Exceptions • And then: Inventory, accounts, Fulfilment, Customer Service, Marketing, Measuring success e-shop site customer WWW business Delivery logistics Payment system Session 3

  4. Payment: Customer point of view • Browser or search for products and fill basket • Completes order form • Choose payment method/credit card. Notes that order taken in secure environment and protected by digital certificate • Places Order • Receives email confirmation of order • Receives email receipt of payment Session 3

  5. Payment: Business point of view • Business owners/retailers point of view • Customer places order • Note: the customer receives email confirmation of order which has been edited/configured by retailer • Retailer gets email confirming order has come in. • Retailer logs on to Administration site to collect order and payment details • E-payment supplier request merchant services providers to send funds to retailer’s bank account Session 3

  6. Payment systems • Fundamentals • take money, anyway that suits the customer • manage risk of fraud and chargeback • Options • Credit Card manual processing, or online processing • Digital Cash • Micropayments • Smart cards • Payment of delivery • Direct money transfer Session 3

  7. Credit card payment online • Actors involved: • Customer • E-shop owner (business) might be merchant • Card issuing bank • Merchant service providers • Web agency (ASP) • Regulatory bodies Session 3

  8. Online Credit Card Payment Payment details Card Issuing bank Merchant service provider £$£$ Acquiring bank Account settlement Payment details e-shop site order E-payment gateway e.g. Worldpay Customer/shopper Payment details Session 3

  9. E-Payment Suppliers • Merchant services • CNP (card not present), PDQ/ePDQ • Business plan/prediction of sales • Deposit to cover fraudulent activities • Authorisation Gateways • WorldPay, SecPay, Netbanx, etc. • Authorisation Gateway checks: • Checks account number is valid and sufficient credit. • Check account name and address (recent). • Still a problem if goods delivered to address other than one on the card. • Merchant carries all the risk. Session 3

  10. WorldPay • Checks card validity • Checks account credit balance • Authorises transaction • Transfers payment information directly to VISA and other cards who make the transfer from customer’s account to retailers • Don’t need existing merchant services agreement • Well evaluate business plan – in detail • Ideal for start up Internet businesses http://www.worldpay.com Session 3

  11. SecPay • For businesses with existing merchant accounts with NetWest, Barclays, Bank of Scotland, HSBC and Amex • Apply for on-line account number • Charge to set up the account (+VAT) • Extra transaction cost http://www.secpay.com Session 3

  12. Unique benefits speed convenience, privacy, relative anonymity Challenges Increase Chargeback Legal Risks Internet fraud Product returns E-payment: Risks and Challenges Card not present or mail order/telephone order rules apply: • If goods bought with stolen card, even if obtained authorisation from issuer merchant is 100% responsible for refunding and the chargeback!! Session 3

  13. Chargeback • Card issuer identifies disputed transaction and issues request for information • WorldPay (for example) contacts the E-shop • If the claim is proved issuer raises a chargeback which cannot be reversed WorldPay Chargeback Customer/Card Holder Card Issuing bank NatWest Worldpay e-shop site Session 3

  14. Risk: reasons for chargeback Card holder: • did not receive goods • returned them • states did not authorise transaction • states did not participate in transaction • states that paid by other means • Claims received defective merchandise • Claims goods did not arrive • Card expired, accepted before valid, incorrect card number Session 3

  15. Risks: chargeback burden • Chargeback applies: • Up to 6 months after transaction • If merchants does not have: • Signature or proof of receipt • Email or mail confirmation of order • If any part of the order tracking documentation is incomplete, inaccurate, or not delivered with in a required time limit Session 3

  16. Internet Fraud • Stolen Cards used before owner detects it missing • Identity Fraud where thieves assume identity of owner and use the advantage of anonymity on the Internet • Card Generators where fraudulent credit card numbers are generated using software programs • Post-Purchase “Ship To” charges after valid transaction Session 3

  17. Summary • Payment process • Credit card payment online • Payment systems • Risks and challenges • Chargeback • Internet fraud Session 3

More Related