E-COMMERCE E COMMERCE INVOLVES TRANSACTIONS USING

INTERNET

IT DRAWS ON TECHNOLOGIES

E-BANKING IT IS AN ELECTRONIC PAYMENT SYSTEM

IT HELPS FINANCIAL INSTITUTIONS TO CONDUCT FINANCIAL TRANSACTIONS IN A WEBSITE

ELECTRONIC FUND TRANSFER EXCHANGE OF MONEY FROM ONE ACCOUNT TO

ANOTHER THROUGH COMPUTER Cardholder-initiated transactions, using a payment card such as

a credit ordebit card Direct deposit payment initiated by the payer Direct debit payments, sometimes called electronic checks, for

which a business debits the consumer's bank accounts for payment for goods or services

Wire transfer via an international banking network such as SWIFT

Electronic bill payment in online banking, which may be delivered by EFT or paper check

Transactions involving stored value of electronic money, possibly in a private currency

PROCESS OF EFT Entering Supplier Master Information

Entering Payment Instrument Defaults

Entering Bank Account Information

Various modes of EFT in India-NEFT,RTGS,IMPS

NEFT-NATIONAL ELECTRONIC FUNDS TRANSFER

RTGS-REAL TIME GROSS SETTLEMENT

IMPS-IMMEDIATE PAYMENT SERVICE

NEFT-NATIONAL ELECTRONIC FUNDS TRANSFER

The National Electronic Funds Transfer is a nation-wide money transfer system which allows customers with the facility to electronically transfer funds from their respective bank accounts to any other account of the same bank or of any other bank network

Funds transfer through NEFT requires a transferring bank and a destination bank.

NEFT…….. Before transferring funds via NEFT you register the

beneficiary, receiving funds. For this you must possess information such as name of the recipient, recipient’s bank name, a valid account number belonging to the recipient and his respective bank’s IFSC code.

Any sum of money can be transferred using the NEFT system with a maximum capital of Rs. 10, 00, 000.

RTGS-REAL TIME GROSS SETTLEMENT

It is a real time funds transfer system which facilitates you to transfer funds from one bank to another in real time or on a gross basis. The transaction isn’t put on a waiting list and cleared out instantly.

RTGS payment gateway, maintained by the Reserve Bank of India makes transactions between banks electronically. The transferred amount is instantly deducted from the account of one banks and credited to the other bank’s account.

RTGS…… The minimum value that can be transferred using

RTGS is Rs. 2 Lakhs and above. However there is no

upper cap on the amount that can be transacted.

The remitting customer needs to add the beneficiary and his bank account details prior to transacting funds via RTGS. The details required while transferring funds would be the beneficiary’s name; his/her account number, receiver’s bank address and the IFSC code of the respective bank.

IMPS-IMMEDIATE PAYMENT SERVICE

The National Payments Corporation of India introduced a pilot mobile payment project also known as the Immediate Payment Service (IMPS).

IMPS offers instant electronic transfer service using mobile phones. The IMPS service also features a secure transfer gateway and an immediate confirmation on fulfilled orders.

IMPS is offered on all the cellular devices via Mobile Banking or through SMS facility.

IMPS….. To be able to transfer money via IMPS route you must

first register for the immediate payment services with your bank

Thus IMPS enables customers to use mobile instruments as an instant money transfer gateway, facilitating user convenience and saving time and effort involved in other modes of transfer.

EFT ACT The Electronic Fund Transfer Act was passed by

the U.S. Congress in 1978

to establish the rights and liabilities of consumers as well as the responsibilities of all participants in electronic funds transferactivities.

ADVANTAGES OF EFT….. Increase efficiency and productivity.

Manage cash flow easily.

Improve safety and control.

Saves money.

Less paper works.

Eliminate the risks associated with lost, stolen, or misdirected cheques

ADVANTAGES……… EFT Provides our office with the capacity to,

Automate our payments.

Electronically update our accounts information.

Streamline our cash flow.

Reduce administrative cost.

Eliminate overdue accounts.

Manage delayed disbursements.

Get set up and add customers.

“EFT SAVES OUR TIME AND MONEY’’

In short we can say that EFT is FAST, SIMPLE, SAFE, and SECURE.

DISADVANTAGES The fund transfer process generally consists of a

series of electronic messages sent between financial institutions directing each to make debit and credit accounting entries necessary to complete the transaction. The fund transfer can generally be described as a series of payment instruction messages, beginning with the originator’s (Sending customer’s) instructions, and including a series of further instructions between the participating institutions, with the purpose of making payment to the beneficiary (Receiving customer’s).

One of the major disadvantages of EFT is RISK OF SECURITY ISSUE. Electronic banking largest adversary is the hackers who try to steal the customer’s money and their information. When the account has been compromised, money can be stolen. Hacker’s can also use the information obtained to steal one’s identity. This could mean a lots of trouble for the customer that can take years to fix. Ones credit accounts are opened in his or her name it can be many years before the debts are taken care and removed off of their credit report.

If you entered the target account number incorrectly, there is no way to reverse the transaction since the bank would process the transaction under the belief that the information you provided is accurate

Once an amount is transferred, the bank cannot reverse a transaction.

THANK YOU….