With the growing need for the e-commerce transactions, different electronic payment systems have appeared in the last few years. At least dozens of electronic payment systems proposed or already in practice are found (Murthy, 2002). The grouping can be made on the basis of what information is being transferred online.
As payment is an integral part of mercantile process, electronic payment system is an integral part of online transaction. The emergence of e-commerce has created new financial needs that in many cases cannot be effectively fulfilled by traditional payment systems. For instance, new types of purchasing relationships-such as auction between individuals online-have resulted in the need for peer-to-peer3 payment methods that allows individuals to e-mail payments to the other individual.
Recognizing this, virtually all interested parties (i.e. academicians, government, business community and financial service providers) are exploring various types of electronic payment system and issues surrounding electronic payment system and digital currency. Some proposed electronic payment systems are simply electronic version of existing payment systems such as cheques and credit cards, while, others are based on the digital currency technology and have the potential for definitive impact on today financial and monetary system.
While popular developers of electronic payment system predict fundamental changes in the financial sector because of the innovations in electronic payment system (Kalakota & Ravi, 1996). Therefore, electronic payment systems and in particular, methods of payment being developed to support electronic commerce cannot be studied in an isolation. A failure to take place these developments into the proper context is likely to result in undue focus on the various experimental initiatives to develop electronic forms of payment without a proper reflection on the broader implications for the existing payment system.
Nowadays, the modernization and growth of information technology has affected almost all of aspects of the human beings, including business. In the old days, business transactions were done physically as the customers have to meet with suppliers. The information technology makes it possible to carry out business transactions virtually using Internet or electronic commerce (e-commerce). This is because people are able to make enquiry, place order and make payment through the Internet. In order to make the e-commerce of a company successful, an Electronic Payment System is needed for that company.
The main driving motivation for the implementation of the Electronic Payment System for Movie Gallery is the enhancement for transaction effectiveness. Here is what we mean: Picture being in a Movie Gallery store in United States when all of a sudden 40% of people leave their half-empty shopping carts in the middle of aisles and leave the store all at once…
Alternatively, imagine the frustration of a shopper who has taken the trouble to pick out a cart full of DVD’s that he wants to rent, or Video Game accessories that he wants to purchase. Only to be held back by a store clerk insisting that they complete a lengthy questionnaire and remember a password they were assigned when they last visited the store several months ago in order to rent the items.
Our company is an inexperience small company that prides itself in building Electronic Payment Systems for any e-commerce business that want to survive the online competitive market.
The evolution of the company has followed a relatively traditional path that had ownership involved in virtually every step along the way. In the beginning many of the steps were micromanaged directly by the owners. As the company grew and the projects became more numerous it was necessary to delegate and divest from the detail in order to manage the path of EPS.
All small businesses have some sort of accounting and bookkeeping practice. By design, Intuit was the only company that had a working add-on to accept credit cards and communicate with their proprietary products. There is an overwhelming call for a product that would interface and allow merchants to have a choice of service provider. EPS became an independent third- party developer for Intuit, the parent company for all of the Quicken and QuickBooks products. EPS has added functionality that will enhance the offering by generating automated e-mail verifications of payment to the customers and customized reporting for the merchant.
Every organization, company or businesses willing to use electronic payment system must either align themselves with another ISO/MSP that is registered with VISA and MasterCard and therefore become a “Sub-ISO”, or become registered themselves. In order to be registered, an ISO/MSP must be sponsored by a “Member Bank5.” The process of becoming registered is somewhat rigorous and requires a level of comfort on the part of the Member Bank. Financial statements of the business are reviewed as well as the tax returns and asset statements of the principals. A due diligence visit is required by the Member Bank where all facets of the registering candidate are reviewed including but not limited to: the facilities, policies and procedures, background and experience of key employees, history of the business, risk mitigation programs, and utilization of technologies.
The electronic payment system- the ability to pay electronically for goods and services purchased online- are an integral part of e-commerce and an essential infrastructure for e-commerce models. One of the major reasons for the widespread of e- commerce transactions is perhaps the rapid development and growth of various electronic payment systems.
Baddeley, 2004; Oh et al, 2006) of stakeholder benefits are all of importance to the adoption of e-commerce payment system. Thus the factors which are critical for the success of e-commerce payment systems are multifaceted. These include integrity, non-repudiation, authentication, authorization, confidentiality and reliability, which are discussed below:
Integrity: transaction data are transmitted and received unchanged and as intended. Non-repudiation: transactions have the quality of non deniable proof or receipts. Authentication: identities and attributes of parties engaged in commerce are established at some tolerable level of risk.
Authorization: individuals are established and recognized as entitled to receive, send or view transactions. Confidentiality: transactions can be protected from view except by those who are authorized.
Reliability: probability of failure in the transaction-send, receive, acknowledge-is low.
After analysis and comparison of various modes of electronic payment systems, it is revealed that it is quite difficult, if not impossible, to suggest that which payment system is best. Some systems are quite similar, and differ only in some minor details. Further, all these systems have ability or potential to displace cash. Added to this, widely different technical specifications makes it difficult to choose an appropriate payment system.
On the basis of above analysis it is concluded that, smart cards based electronic payment system is best. It has numerous advantages over the other electronic payment systems. Therefore, establishing a standard smart card based system, or making different system interoperable with one another is critical success factor for the smart cards based payment system. Smart card organizations around the world must establish a smart card interface standard and a conformance testing organization to make all smart card system compatible; otherwise smart card related products will not develop fully.
Technology has inarguably made our lives easier. It has cut across distance, space and even time. One of the technological innovations in banking, finance and commerce is the Electronic Payments. Electronic Payments (e-payments) refers to the technological breakthrough that enables us to perform financial transactions electronically, thus avoiding long lines and other hassles. Electronic Payments provides greater freedom to individuals in paying their taxes, licenses, fees, fines and purchases at unconventional locations and at whichever time of the day, 365 days of the year.
On the basis of present study, first remark is that despite the existence of variety of e-commerce payment systems, credit cards are the most dominant payment system. This is consequences of advantageous characteristics, most importantly the long established networks and very wide users base. Second, alternative e-commerce payment systems are some countries are debit cards. In fact, like many other studies, present study also reveals that the smart card based e-commerce payment system is best and it is expected that in the future smart cards will eventually replace the other electronic payment systems. Third, given the limited users bases, e-cash is not a feasible payment option. Thus, there are number of factors which affect the usage of e-commerce payment systems. Among all these user base is most important. Added to this, success of e-commerce payment systems also depends on consumer preferences, ease of use, cost, industry agreement, authorization, security, authentication, non-refutability, accessibility and reliability and anonymity and public policy.
Transaction Security Issues are a major concern, these may include fraud; over e-payment technology has been a pressing issue in recent years.
Hacking into bank accounts and the illegal retrieval of banking records has led to a widespread invasion of privacy, and has promoted identity theft.
The efficiencies achieved by introducing e-commerce have resulted in increased customer satisfaction, helping to shift attitudes to electronic purchasing. However, security issues about credit card payment over the Internet are barriers to the accomplishment of Electronic payment system. Our company offers better security path.
Privacy concerns are a problem that can be completely eradicated. This is because information submitted by customers is coded and therefore free from being scooped. We also acknowledge the fact that issue has lead to worries of privacy intrusion on the part of the customer. We Therefore, Factor in this problem in the implementation of this system.
The most important is to consider the benefits of electronic payment system and their significance.