Dezyne E’Cole College

106/10, Civil Lines, Ajmer.

ELECTRONIC COMMERCE

Submitted By:

Siddharth Gaur

BCA Final Year

Introduction Of Electronic Commerce

Electronic commerce is a modern business methodology that addresses the needs of organization, merchants, and consumers to improving the quality of goods and services and increasing the speed of service delivery.

E-commerce is associated with:-

The buying and selling of information,

Products and services via computer network.

1. In 1970 EFT (Electronic fund transfer) incorporated into the banks to fund transfer.2. Form 1972 to1980 increases the properly e-commerce in cooperated sector. These

sector included the fallowing services :-Electronic messaging technology,Electronic data Interchange,E-mail.

3. From 1982 to 1990 the electronic messaging technology becomes a vital part of information in group computing system.

4. In mid of 1980 e-commerce technique is used by consumers, and that time online services started.

5. In 1990 the introduction of World Wide Web over the internet, that was a revolution aryl change in the e-commerce era.

What is E Payment

E payment is a subset of an e-commerce transaction to include electronic payment for buying and selling goods or services offered through the Internet.

Electronic Funds Transfer (EFT)

“EFT is defined as “any transfer of funds initiated through an electronic terminal, telephonic instrument, or computer or magnetic tape so as to order, instruct, or authorize a financial institution to debit or credit an account.” EFT utilizes computer and telecommunication components both to supply and to transfer money or financial assets.”

Work on EFT can be segmented into three broad categories:

1. Banking and financial payments large-scale or wholesale payments(e.g., bank-to-bank transfer) Small-scale or retail payments(e.g., automated teller machines and cash

dispensers) Home banking(e.g., bill payment)

2. Retailing payments Credit cards(e.g., VISA or MasterCard)

Private label credit/debit cards(e.g., J.C. Penney Card) Charge cards(e.g., America Express)

3. On-line electronic commerce payments Electronic cash(e.g., DigiCash) Electronic checks(e.g., NetCheque) Smart cards or debit cards(e.g., Mondex Electronic Currency Card)

E cash:

“Electronic cash, also known as digital cash, is a technology that uses varied electronic methods to execute financial transactions. The electronic cash technology is fast replacing the physical cash i.e. bank notes and coins, in the day-to-day use, for small transactions. Electronic cash (e-cash) is a new concept in on-line payment systems because it combines computerized convenience with security and privacy.”

How it is used:

E-cash is used over the Internet, email, or personal computer to other workstations in the

form of secured payments of "cash" that is virtually untraceable to the user. It is backed by

real currency from real banks.

The way e-cash works is similar to that of electronic fund transfers done between banks. The

user first must have an e-cash software program and an e-cash bank account from which e-

cash can be withdrawn or deposited. The user withdraws the e-cash from the account onto her

computer and spends it in the Internet without being traced or having personal information

available to other parties that are involved in the process. The recipients of the e-cash send

the money to their bank account as with depositing "real" cash.

The technology is classified into two types that are the online form and the offline form.

1. ONLINE FORM: The online form of electronic cash involves

conducting transactions through the Internet, means we need to

interact with a bank (via a network) to conduct a transaction with a

third party.

ONLINE FORM

2. OFFLINE FORM: The offline form involves the usage of the digitally

encoded smart cards, like the ATM cards or even credit cards.

Offline means we can conduct a transaction without having to

directly involve a bank.

OFFLINE FORM

PROS OF E-CASH

The online electronic cash systems that are operated through the Internet

provide convenience to the user and the banker.

The online system can be accessed through the Internet from anywhere in the

world. Hence, the user does not have to actually go to the bank to transact any

business.

Another advantage of online shopping is that the shopper can sit at home and

purchase the goods he wants, with the help of a credit card.

The concept of smart card also reduces the possibility of robbery. The smart

cards for withdrawal, like the ATM cards, are protected by passwords.

CONS OF E-CASH

The system of electronic cash is extremely convenient, but it is not a

foolproof system. The online electronic cash system has the same

problems as your email account and personal computer.

The online facility can be hacked or can also be infected with a virus,

if sufficient security is not provided. Some of the disadvantages of

electronic cash include serious misuse of a stolen smart card.

Electronic Cheque

Electronic cheques are another form of on line payment system. They are designed to

accommodate the many individuals and entities that might prefer to pay on credit or

through some mechanism other than cash.

SMART CARD

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A smart card, chip card, or integrated circuit card (ICC) is any pocket-sized card with embedded integrated circuits. Since April 2009, a Japanese company has manufactured reusable financial smart cards made from paper.Currently or soon, we may be able to use a smart card to:

Dial a connection on a mobile telephone and be charged on a per-call basis

Establish your identity when logging on to an Internet access provider or to

an online bank

Make small purchases at electronic stores on the Web (a kind of cyber cash)

Buy gasoline at a gasoline station

Definition of 'Debit Card'

An electronic card issued by a bank which allows bank clients access to their account to withdraw cash or pay for goods and services. This removes the need for bank clients to go to the bank to remove cash from their account as they can now just go to an ATM or pay electronically at merchant locations. This type of card, as a form of payment, also removes the need for checks as the debit card immediately transfers money from the client's account to the business account.

Pros of Using a Debit Card or smart card:

1. Convenience.

2. It takes less time to complete a purchase.

3. It keeps you within budget.

4. They're easier to get than a credit card.

5. You can easily get cash.

Cons of Using a Debit Card or smart card:

1. Disputed charges can be more difficult to resolve.

2. Some banks may charge you extra fees.

3. You don't improve your credit score.

4. You can't take advantage of reward points.

5. It gives you lower levels of fraud protection.

Electronic payment systems in India

Due to the efforts of the RBI and the BPSS [BASELINEPERSONNEL SECURITY STANDARD] now over 75% of all transaction volume are in the electronic mode, including both large-value and retail payments. Out of this 75%, 98% come from the RTGS (Real time gross settlement, large-value payments) whereas a meager 2% come from retail payments. This means consumers have not yet accepted this as a regular means of paying their bills and still prefer conventional methods. Retail payments if made via electronic modes are done by ECS (debit and credit), EFT and card payments.

In India ‘plastics’ have been fast over-taking ‘papers’. With 130 million cards in circulation currently, both credit and debit, and an increasing consumer base with

disposable income, India is clearly one of the fastest growing countries for payment cards in the Asian-Pacific region. Behavioral patterns of Indian customers are also likely to be influenced by their internet accessibility and usage, which currently is about 32 million PC users, 68% of whom have access to the net. E-payments have to be continuously promoted showing consumers the various routes through which they can make these payments like ATM’s, the internet, mobile phones and drop boxes.

The Indian payments systems have however undergone a change with respect to methods of payments, there now being card-based payments, Electronic Funds Transfers, Electronic Clearing Services and ways to pay via the mobile and internet. Most large-scale payments concern corporate or government payments and are settled by the RBI. Small-scale payments are mainly retail payments concerning individuals which are generally paper-based transactions. Most large-value payments are handled electronically.

Thank You

Siddharth Gaur

Bachelor of Computer Application

Final Year

Dezyne E’Cole College

www.dezyneecole.com

dezyneecole@gmail.com