Explain any two systems of payments that can be implemented on e-commerce websites? List their advantages and issues.
E-commerce sites use electronic payment, where electronic payment refers to paperless monetary transactions. Electronic payment has revolutionized the business processing by reducing the paperwork, transaction costs, and labor cost. Being user friendly and less time-consuming than manual processing, it helps business organization to expand its market reach/expansion. Listed below are some of the modes of electronic payments −
- Credit Card
- Debit Card
- Smart Card
- E-Money
- Electronic Fund Transfer (EFT)
Credit Card
Payment using credit card is one of most common mode of electronic payment. Credit card is small plastic card with a unique number attached with an account. It has also a magnetic strip embedded in it which is used to read credit card via card readers. When a customer purchases a product via credit card, credit card issuer bank pays on behalf of the customer and customer has a certain time period after which he/she can pay the credit card bill. It is usually credit card monthly payment cycle. Following are the actors in the credit card system.
The card holder − Customer
The merchant − seller of product who can accept credit card payments.
The card issuer bank − card holder's bank
The acquirer bank − the merchant's bank
The card brand − for example , visa or Mastercard.
Credit Card Payment Proces
StepDescription
Step 1 Bank issues and activates a credit card to the customer on his/her request.
Step 2 The customer presents the credit card information to the merchant site or to the merchant from whom he/she wants to purchase a product/service.
Step 3 Merchant validates the customer's identity by asking for approval from the card brand company.
Step 4Card brand company authenticates the credit card and pays the transaction by credit. Merchant keeps the sales slip.
Step 5 Merchant submits the sales slip to acquirer banks and gets the service charges paid to him/her.
Step 6 Acquirer bank requests the card brand company to clear the credit amount and gets the payment.
Step 6 Now the
____ _____ __________ _____ ___ _________ __________ __________ ___ _______ __________ ___.
___ _______ _________ ________ _____ ___ ___.
_____ ________ _________ ___ ___ ______.
___ _____ _________ _____ __________ _______ ___ ______ _____.
__________ ______ ______ _____ ____ _______ _________ __________ _________.
________ _________ __________ ________ _______ _______ _________ _____.
____ _________ _______ __________ ___.
_______ ______ ________ ___ _________ __________ ___.
_________ _________ ____ ________ ______ ____ ______ __________ _______ __________ ______.
__________ ____ ______ _____ ________ ______ _____ ___ _____ _________ ___ __________.
________ ____ ________ _______ ___ _________ ______ __________ _______ _____.
___ __________ ______ ___ ______.
_____ ________ ________ _________ ___ ______ ________ __________ _______ __________.
______ _______ _______ ___ __________ _________ _______ ___ __________.
______ _____ ________ ____ _______ ________ ___.
___ __________ _____ _____ _____ ___ _____ ______ ______ _____ ______ ____.
________ ________ _______ _________ ________.
___ _________ ______ _________ __________ ___ _____ _______ ________ _________ ____ ____.
____ ____ ________ ______ ______ _________ _________ ________ ________.
_____ _______ _________ ___ __________ ___ __________ _______ _________ _____.
______ _____ ___ __________ ___ _______ __________ ______.
________ ___ ________ ________ ________ ______ ______ ______ _______ _________ _______.
_____ _____ _________ ______ ______.
_______ ______ _____ ___ _______.
_____ _______ _______ ___ ________ _______ _______ ______ ___ _____.
_________ ________ _______ ______ _______ ___ __________ _______.
______ __________ ________ _____ ________ ______ ________ __________.
_______ ______ _______ _______ _______.
____ ___ _________ ________ ______ __________ _________ ___.
____ ______ __________ ______ ________ _____ ______ _____ ________ __________ _______.
_____ ______ _____ ___ __________ _____ __________ _____.
______ _________ _____ __________ __________ ________ ___.
_______ ________ _________ _____ __________ _______ ________.
_________ _______ ____ _____ ___ ____.
____ __________ _______ ___ _________.
_____ _____ ___ __________ ___ ________ _____ ______.
__________ _____ __________ __________ ____ ____ _____ ___ ____.
_______ ____ ______ ___ _____ __________ _____ _________ _____ _______.
__________ _______ ___ _______ ___ _____ ________ ______ ________.
___ ________ _________ ___ ____ _________ _____.
_______ _________ ____ ___ ______ ___ ________ _____ _______.
______ ________ _____ __________ ________ _______ ____.
____ ____ _____ ____ __________ _________ ______ ________ ___ _____ ___.
________ ________ ________ _________ ________ ____ ___.
_________ _____ ______ ___ ________ ______ ___ _________ _________.
________ ___ ______ ______ ________ _______ _____ _______ __________ _______.
________ ____ _____ _____ _____ ___ _________ _______.
_________ _________ __________ ________ ____.
_________ _________ ___ _______ ___ ________ _______ ______ _________ __________ ____.
_________ _____ _____ ___ ____ _________ ______ ___ ______.
______ ________ ______ __________ _________.
_____ ________ _____ ___ ____ _____ ___ ___.
__________ _________ ____ ___ _______ _____.
___ _____ _______ _________ _______.
_____ ________ __________ ____ ________ _________ ___ ____ ___.
____ _____ __________ _________ ______ ______ ______ ____ __________ ______ _________ _________.
________ _____ _____ __________ ________ ________.
____ __________ ___ __________ __________ _________.
______ ______ ______ __________ ______ _________ _____ ____ ________.
______ ______ _________ ___ ____.
- Solved Assignments
- Study Notes
- Guess Papers
- Question Papers
✓ Unlock up to 60% of the answer
✓ No payment required