ON-LINE MONETARY TRANSACTION

Marketing in IT

Money is a unit of account.

Storage of value.
Medium of exchange. We accept money as a medium of exchange because we expect others to accept it too

Early history: Blood-money, bride-money

Stone Age: Silver and other precious metals

3rd millennium BC: Earliest banking (Babylon first) 2200 BC Standardized silver ingot 118 BC Fiat money (China)

800 AD Printed bank note ( China)

17th Century Modern bank notes ( Amsterdam)
3

PAYMENT OPTIONS
E-cash Credit Card Electronic wallets Barter System Smart card Digital Cash

Net Checks

Online Bill Payment

4

 Basically the exchange of goods and services with goods and services. The oldest form of payment that is still in use today.

Popular form of payment for online purchases Resistance due to security concerns Many cards offer capabilities for online and offline purchases i. Visa Card ( the most widely used card in the world) With a well expanded network of ATMs ii. MasterCard
6

1981 - MasterCard introduced the first gold bankcard program 1992 - Maestro completed the first-ever coast-to-coast national online debit transaction in the United State 2000 - MasterCard became the first in the industry to establish a U.S. rule of no liability for the consumer from the unauthorized use of payment cards
7

CREDIT CARD PROCESSING

2/16/00

EMTM 553 8

 Money securely in the bank No need to open a new account

Lack of privacy

Keep track of your billing and shipping information so that it can be entered with one click at participating sites Store e-checks, e-cash and credit-card information Credit-card companies offer a variety of ewallets I. Visa e-wallets II. MBNA e-wallet allows one-click shopping at member sites III. Entrypoint.com offers a personalized
10

Card with computer chip embedded on its face, holds more information than ordinary credit card with magnetic strip Require password

Types : I. Contact
To read information on smart cards and update information, contact smart cards need to be placed in a smart card reader

II.

Contactless
Have both a coiled antenna and a computer chip enabling the cards to transmit information 11

inside,

 Introduced by David Chaum and his Company DigiCash Aimed at providing anonymous on-line digital money scheme that was easy to implement and to use

12

E-CASH CONCEPT
Merchant

5 4 Bank 3

2 1

1. Consumer buys e-cash from Bank 2. Bank sends e-cash bits to consumer (after charging that amount plus fee) 3. Consumer sends e-cash to merchant 4. Merchant checks with Bank that e-cash is valid (check for forgery or fraud) 5. Bank verifies that e-cash is valid 6. Parties complete transaction: e.g., merchant present e-cash to issuing back for deposit once goods or services are delivered Consumer still has (invalid) e-cash

Consumer

2/16/00

EMTM 553 13

PayPal enables everybody who has an email account to send money.

Secure Convenient (Free)

14

THE SECURITY ISSUES RELATED TO CREDIT CARDS

CARD NOT PRESENT FRAUD Fraudsters may access your credit card details from old receipts to purchase high value items on the internet or phone where the retailer does not need to see the card to authorize the purchase, for example: card not present. CASH MACHINE (ATM) FRAUD Devices are planted in cash machines by fraudsters in order to skim the card details and use them for unauthorized purchases at a later date. The fraudster may also be watching at the cash machine to steal your card and PIN. COUNTERFEIT FRAUD Counterfeit is a term used to describe the manufacture of a credit card so it looks like a genuine card. Genuine credit cards are then skimmed and the details duplicated onto the counterfeit card via the magnetic strip.

MAIL NOT RECEIVED FRAUD Cards are stolen in the post before the cardholder receives them and used for fraudulent purchases.
15

Describe the security issues related to smart cards, credit cards and other electronic payment system

16