Question

E-Commerce Payment Systems 1. Discuss the following online payment methods: a. Payment cards b. E-cash c. E-wallet Include the advantages and disadvantages 2. Describe the steps in processing a payment card transaction 3. Discuss phishing scams and countermeasures 3. Student should Add Plagiarism report should not exceed 20%

Answer 1

1.E-commerce payment system in which physical currency not needed but different types of cards,mobile application used for payment of transaction.

a) Payment Cards- Payment cards are different types of card used for payment of financial transactions.these cards include  Debit card ,credit card.In debit card we can load money so we need not to carry physical currency anywhere and we can pay through card.Debit card also linked with saving or deposit account.Credit card provides certain monetary limit which user can withdraw.These cards have a magnetic strip and also have a specific number which makes financial transaction safe and secure.Payments through these cards can be made by physical card or by entering code on the website.Payment cards can be used in Automatic teller machine for withdrawing physical currency.

b)E-Cash- E-cash is also known as Digi-cash which is a type of Digital Token.These Digital Tokens are Digitally signed by Financial Institutes like Banks etc.Customer Transfers this token in payment of financial Transaction . Seller transfers these token to his account which seller gets in form of currency in his account.In these transactions e-cash gets transferred .These transactions are safe and secure because these digital-cash are encrypted by financial institutes.

c)E-Wallet- E-wallet means electronic wallet.E-wallet is a source of keeping currency in the form of Digital.E-wallet can be linked to bank account or the payment card.While paying online , E-wallet can be used for transaction and the amount gets deducted directly from the bank account.E wallet can be used for payment of different utilities.

ADVANTAGES-These online payment methods have following advantages-

1)These Online payment methods are safe and secure.

2)These can save a lot of time form our daily busy life.

3)These online payment methods are easy to track and easy to process.

4)These are easy to access and easy to operate.

DISADVANTAGES-These online payment methods have some following disadvantages -

1)The Data can be misused if the Bank systems gets hacked.

2)Financial Institutes charges high processing fees which is a big disadvantage for middle and poor class population.

3)Online theft can also be a big disadvantage of online payment methods.