E-COMMERCE

CHAPTER 8

ELEC PAYMENTS SYSTEM

E - Payment

1. Prepaid. When both confirmation and payment, are done at the same time is
called prepaid.
2. Postpaid. It is referred to a bank cheque when payment and the confirmation
is done at later stage.
E - Payment Standard
1. SET (Secure Electronic Transaction). SET protocol was initially designed by
Visa and Mater Card and has evolved since then. SET Protocol possess follows
four entities that includes Cardholders, Merchant, C.A and Payment gateway. It
meets four security requirements for EC as SSL:-
a. Authentication. Verify buyers identity before payment is authorized.
b. Encryption. Making message impossible to read except for those
authorized with decryption key.
c. Integrity. Ensures information is nether accidentally nor maliciously
altered during transmission.
d. No repudiation. Protection against customers denial of orders and
against merchants denial of payment made.
2. SSL (Secure Socket Layer Protocol. The SSL protocol performs message
exchanges and use certificates. It is currently adopted widely. The protocol
security HTTP applies SSL between Web servers and browser. It meets same
security requirements for EC as SET above.

E-Payment Modes
Prepaid
1. Digital / E-Cash
2. Debit Card.
3. Point of Sales
Postpaid
1. Smart Card.
2. Cheque System
3. Credit Card.

Security Schemes

1. Encryption & Decryption. Cryptography comes to play when the purpose is to

ensure the confidentiality & privacy of messages even they fall in wrong hands.
2. Digital Envelopes. It is the process of encrypting a secret key with a receivers
public key. The DES key encrypted in this manner is called digital envelope
3. Digital Signature. It is used for authentication of senders by applying public
key cryptography in reverse. To make a digital signature a sender encrypts
a message with her private key.
4. Digital Passports. It is an online individual identification which can be
acquired from Standard plate forms ie. Yahoo, MSN etc.
5. Biometric Controls. It is something physically unique of an individual ie. eye
retina , thumb impression.
6. Traditional Techniques. Coding /decoding, signature. mark etc