E-Payment Systems - Research Paper Example

Table of Contents Table of Contents 2 Introduction 3 Emergence of technology 4 Few years ago, the Internet was almost not available to the majority people. Nowadays, the Internet is the main persuasive tool all over the world. The Internet is an assortment of a variety of resources and services. The Internet has the major components are the World Wide Web and E-mail. There are a large amount of the search engines, up-to-the-second sports scores, celerity web sites, and chat rooms plus E-mail full of negotiations. The Internet is as well positioned as one of the most excellent business tools nowadays. Approximately the entire households have the facility of the Internet; but previous to people attach to the net, they require being aware of its advantages and disadvantages. This technology based transform has changed the way of business cash transaction. Now we have internet banking, mobile cash transfer, and other ways of online case and payment. The internet is growing as the most important technology area for the electronic commerce. Equally essential, Internet technology is being more and more functional to smooth the advancement of the management of rest of the business publishing employee personnel policies and strategies, analyzing account balances and production plans, setting up plant repairs and upholding, and modernizing design documents. Organizations are getting benefit of the connectivity and ease of use of the internet technology to turn out internal commercial networks acknowledged as intranets that are developed on the basis of internet technology. Making use of these classified intranets for the organizational communication, group exertion, and management is eminent. We make use of the phrase electronic business to make a distinction among these uses of internet of digital technology for the management and bringing together the other business activities from the electronic commerce. By giving out information through the electronic networks, electronic business enlarges the reach of on hand management. Managers use email, web documents, and work group software to productively communicate on a regular basis with thousands of employees, and even to administer remote assignments and teams. These jobs would be impracticable in contradictory traditional organizations (Laudon and Laudon, p.25). 5 Virtual cash 6 Forms of E-payment 7 Online cash transfer (through online banks) 8 E-buy payment system 8 PayPal cash transfer system 8 E-gold 9 Card Based cash transfer system 9 E-payment system Advantages 9 E-payment Disadvantages 10 Security problems on E-commerce 11 E-payment system security solution 12 Valid Access 13 Authentication 13 Integrity 13 Privacy 14 Conclusion 14 Works Cited 15 Student Name Professor Name Subject 29 April 2009 E-Payment Systems Introduction This research is about the E-Payment Systems. The main aim of this research is to elaborate the concept of the E-Payment Systems, its emergence, types, benefits and potential threats. E-Payment or electronic payment is new way of payment that does not include customary practice of physical cash transfer. This technique of cash transfer is the most poplar and secure in present technology based age. We have more ease regarding the business transactions, especially in case of distant locations. Emergence of technology Few years ago, the Internet was almost not available to the majority people. Nowadays, the Internet is the main persuasive tool all over the world. The Internet is an assortment of a variety of resources and services. The Internet has the major components are the World Wide Web and E-mail. There are a large amount of the search engines, up-to-the-second sports scores, celerity web sites, and chat rooms plus E-mail full of negotiations. The Internet is as well positioned as one of the most excellent business tools nowadays. Approximately the entire households have the facility of the Internet; but previous to people attach to the net, they require being aware of its advantages and disadvantages. This technology based transform has changed the way of business cash transaction. Now we have internet banking, mobile cash transfer, and other ways of online case and payment. The internet is growing as the most important technology area for the electronic commerce. Equally essential, Internet technology is being more and more functional to smooth the advancement of the management of rest of the business publishing employee personnel policies and strategies, analyzing account balances and production plans, setting up plant repairs and upholding, and modernizing design documents. Organizations are getting benefit of the connectivity and ease of use of the internet technology to turn out internal commercial networks acknowledged as intranets that are developed on the basis of internet technology. Making use of these classified intranets for the organizational communication, group exertion, and management is eminent. We make use of the phrase electronic business to make a distinction among these uses of internet of digital technology for the management and bringing together the other business activities from the electronic commerce. By giving out information through the electronic networks, electronic business enlarges the reach of on hand management. Managers use email, web documents, and work group software to productively communicate on a regular basis with thousands of employees, and even to administer remote assignments and teams. These jobs would be impracticable in contradictory traditional organizations (Laudon and Laudon, p.25). The advancement in the technology is the fundamental motive behind this development in the E-payment system. Now we have internet, mobile and card based payment services. These services has changed the traditional payment practice and offered new methods for the better and secure payment. Virtual cash The thought of E-payment presents the main idea about the Virtual cash. Now we are free from the carrying bundles of money. Technology has transformed the local store purchase to a card. Now we can pay our bills through our mobile. Huge business deals and big case transfer can be carried out through a laptop (PC). This is possible due to emergence of internet banking (E-Payment Solutions, 2009). Internet Banking presents the idea of the Virtual cash that is transferred through on the PC or Electronic Cards. This analysis is basically aimed to discover a gain a deep insight into the contemporary way of electronic payment. As the technology emerges, it also affects the life of the common man. Now we have better ways of trading, earning, transactions, dealings, and business through the internet. Internet gives a new life and strength to traditional business practice. VC or Virtual cash is also acknowledged as the electronic cash possess a number of qualities of physical cash to smooth the progress of the delivery of cash in an online business. Through the Software systems of the online cash this is easy for a person to pay for products or services through conveying a special number from one system to another on the internet. This is a only one of its kind number similar to the serial numbers on real currency. These assigned numbers are unique and secret. These special numbers are issued by the online banks and stands for a particular amount of real money (Griffith, 2001). Forms of E-payment One of the main features of E-payment system is its appearance similar to real cash; it is secret as well as reusable. Through this facility we can send and receive digital amount of money from a purchaser to a seller, there is no means to get data and information regarding the purchaser. The cash on card is also a form of the digital cash. It is also similar to real cash but provides the capability to move with any type of currency. In this way we are able to purchase and pay through this card. But there is little bit distinction among this way of payment1. This is one of the key differences between digital cash and credit is disclosed of the identity of the person paying. In this way the danger of money fraud is expected. Online E-payment system is much safer way of payment for the online web based shopping and other tasks. The digital cash on the cards is updated and stored by means of the electronic/digital card. We have a secret key for the card usage; this secret-key is encrypted for the complete communications (Griffith, 2001). There are lots of types of the E-payment systems, I will present most popular below: Online cash transfer (through online banks) In this type of the E-payment system we can transfer our payments from bank. We can make use of the bank’s online services to transfer the payment. In this scenario we should have an online bank account. By passing the target user bank account number we can set up an online transaction. This all course encompasses the security checks and account verification. E-buy payment system This type is E-payment system is established by the Ebuy.com. This is an online business website for the sales of the diverse products. This type of payment system is established by this company, but also used by different websites (Implement e-Payment Systems, 2009). PayPal cash transfer system This way of payment is innovative and more extensively used by the online traders, business, and different organizations. This is more secure and better way of online transaction. Paypal is one such system that proffers the facility regarding the movement of online cash (E-Payment Solutions , 2009). E-gold (www.e-gold.com), This way of the online payment is digital gold money that is carried out through Silver & Gold Reserve Inc. below e-gold Ltd., as well as is an arrangement which permits the instantaneous transport of gold possession among users. E-gold Ltd. This way of online payment is also a secure and better way of only payment (E-Payment Solutions, 2009). Card Based cash transfer system This way of e-payment system is also most broadly used payment technology. It involves the payment through the credit card. In this process we distribute our card number for the establishment of e-payment. In the past few years this way of e-payment is under attack by hackers. Lots of credit card frauds are done in this way. So now this way of online payment is well thought-out more dangerous as compared to other ways of e-payment. VISA is a most accepted credit card cash transfer company (Internet Shopping Payment Method, 2009). E-payment system Advantages Now I will talk about few advantages of the E-payment system, its main facility is regarding the portability of the ease and its transfer. Here the cash is moveable among diverse devices like that smart cards or computers. This way of payment is widely accepted. Now in the majority of online web based businesses and shopping stores accept Virtual cash. In this way, we can carry out a transaction through the web by sitting at any place, anywhere in the world. Next advantage is regarding the indistinct nature of the E-payment system. In other words, we do not have any expiring of this online money at a certain time. As I have already stated that this cash is similar to physical cash so it also incorporates the quality of the divisibility (Internet Shopping Payment Method, 2009). We can divide big units of the E-payment system merely into slighter ones. The way of online and card based transaction is faster and safer. In other words, no one can take this money from us, until we can provide him our PIN or secret code (Griffith, 2001). E-payment Disadvantages Here I will list few problems that are related to the e-payment systems. I will try to elaborate these problems in scenario of different online transactions. Having an online deal also requires the online payment. In pervious few years this concern has turned out to be immense confront for the online customers. There are lots of cases regarding the online business that have been reported; these encompass online fraud, credit card password theft and prohibited credit transfer. So at the present time the ecommerce appears to be unsafe place for business transactions with e-payment. Here we are danger of credit card information theft, scamming, virus and intelligent spies. These all irritability has goal to exploit the online customer’s information and assists. 2 There are lot of solution have emerged to tackle such problems, like that we can prevent illegal intrusion through accomplishment of system firewall. “The enhancement of safe information transfer protocol is also a noteworthy development in this issue. This protocol is acknowledged as the HTTPS protocol”3. That makes certain the hazard less information travel and submission. Security problems on E-commerce The new techniques of the e-commerce business are totally regarding producing funds as well as then judgment how to build additional cash. Undoubtedly, its nonflexible to create (additional) capital, once customers dont experience security by performing a deal on our website. That’s where Secure Socket Layer or SSL appears into cooperation. Accepting how Secure Socket Layer influences ecommerce production is able to as well possibly assist us to get (additional) cash from our clients4. Sufficient protection is currently established as imperative necessities for each e-commerce or ecommerce networked structure. This relates to every the fundamental mechanisms, the Routers, Firewall, Internet, Local Area Network or LAN as well as so on. To provide through each these matters, a complete on the other hand tremendously easiness to utilize goods is at the present obtainable. This is a sequence of pinnacle excellence safety checklists in addition to feedbacks, paying attention entirely leading the safety of our e-commerce as well as IT structure (Griffith, 2001). The majority momentous partitions of the US financial system rely on continuation of protected e-payment system networks and online payment computer systems. Power manufacturing delivery, transport and emergency services, banking and economics, telecommunications are the absolute fraction of the imperative nationwide structure. This effort is basically to protect USs e-payment system, transportation, as well as financial safety. An extensive assortment of security problems for ecommerce exists. A few of them are given below5: Disturbance or DOS Illegal Use of credit cards Distribution of viruses Defected web site’s e-payment system Attack of privacy, especially associated to financial accounts Illegal transforms to online financial database reports Online money Fraud Worker solitude Email persecution Worker exploitation of the internet financial facility Exploitation of data regarding susceptible e-payment system The safety vulnerabilities influence public and private entities, together persons also groups, as well as huge and little businesses. E-payment system security solution In this section I will talk about the different e-payment system security solutions. Here I will try to present the latest solutions regarding this technology to encounter different online cash transfer security problems. Valid Access Ever since form the introduction of Secure Socket Layer (SSL) in year 1994, the Secure Socket Layer is well-known under the de facto standard for the e-commerce online e-payment system and transaction safety, as well as its apparent to persist thus well into the prospect. Secure Socket Layer is a procedure that is about the encryption. Secure Socket Layer encrypts the e-payment, business information and data; such information can be the credit cards numbers or some person’s personal particular information that stays away from the hackers from hacking of data and information for malevolent goal. Internet browser changes/encrypts the information/data as well as drives to the target website by means of any 128-bit or 40-bit encryption procedure (Griffith, 2001). Authentication Simply right authenticated shared group, persons, or main employees, must be capable to make use of our e-payment information and data files. If a data thief/hacker or an illegal insider has extensive right to use to useful components of a business network, that ways open right of entry to the every the business data files and e-payment system significant documents within except they are confined, for instance by means of powerful cryptography (E-Payment Solutions, 2009). Integrity Unluckily, primary key or PKI is not a well-organized technique for distribution of huge quantity of e-payment data and information, as well as frequently employed simply because an initial step to permit two gatherings to convince upon a main symmetric furtive key for the e-payment data encryption. At this time the e-payment data sender and receiver make use of keys that are generated for the correct data message through a third organizer: a most important portion center. The e-payment data keys are not the same; on the other hand is common through the data key allocation center that permits the data message to be interpreting. Apparently, the business private keys embrace to be reserved concealed, as well as the majority safety lapses certainly occur here6. Privacy Business e-payment system solution is carried out through the techniques of encryption. In public key structure or PK1 a business is changed/encrypted through a public-key, as well as decoded/decrypted using a private-key. The e-payment system database’s public key is extensively dispersed; on the other hand merely the addressee has the private-key. In support of authentication (viewing the distinctiveness of the message sender, because simply the data sender contains the particular key) the changed/encrypted data message is hiding once more, however this time by means of a private-key. Comparable measures outline the foundation of PGP and RSA7. Conclusion In this research I have presented the detailed analysis of the e-payment systems. I have discussed the main concepts and provided a deep insight into the e-payment system. I have discussed more widely used e-payment types, their main advantages and disadvantages. Then I have discussed about the main security concerns regarding this technology. I have also provided the solutions to these security problems. I hope this research will present a deep insight into the e-payment system. Works Cited E-Payment Solutions. 29 04 2009 . Griffith, Reynolds. IS VIRTUAL CASH A REALITY. 2001. 29 04 2009 . Implement e-Payment Systems. 29 04 2009 . Internet Shopping Payment Method. 29 04 2009 . Laudon, Kenneth. C. and Jane. P. Laudon. Management Information Systems, Sixth Edition. New Jersey: Prentice Hall , 1999. Binary Signatures, Virtual Cash. 29 04 2009 Read More