Online payment and e cash

ABHISHEK KUMAR VERMAIPCC REG NO CRO - 0487353

BATCH COMMENCEMENT DATE 24-November-2014

PROJECT TOPIC ONLINE PAYMENTS CONCEPT OF E-CASHamp SAFEGUARDS

SUBMITTED BY

ITT CENTRE NAME BIKANER BRANCH OF CIRC OF ICAI

1

2

This Is To Certify That Mr ABHISHEK

KUMAR VERMA Has Under Taken A Project On

ldquoONLINE PAYMENTSE-CASH amp SAFEGUARDSrdquo

After Going Through The Report We Wish To

Record Our Satisfaction amp Commend To MR

ABHISHEK KUMAR VERMA For The Effort Put

In By Their In This Exercise

3

SUBMITTED BY ABHISHEK KUMAR VERMA UNDER THE GUIDANCE OF MISS SONALI JAIN (ITT FACULTY)

Submitted In Partial Fulfillment For The IT Training Conducted By

Bikaner Branch Of ICAI For The Course Of IPCCBATCH NO BIKANER-1114IT-05

REG NO BKN2014-15075

ONLINE PAYMENTS E-CASH amp SAFEGUARDS

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While coming on acknowledgement it seems to me closing oflong chapter of reminiscences which bloomed and gloomed at BRANCHCHAIRMEN BIKANER BRANCH OF CIRC OFICAI BIKANER

This is my proud privilege to express my sincere and deepsense of gratitude my faculty member Ms SONALI JAIN for inspirationguidance persistent involvement scholarly suggestion and constructive criticalsupervision throughout the pursuit of present study

And finally many thanks to all those friends who keptcompany and who directly or indirectly helped me in the completing of thisproject work

ABHISHEK KUMAR VERMA

5

6

INDEX

Contents

1 Introduction

2 Requirements of Online payments

3 TypesModes of E-Payments

4 Advantages and Limitations

5 Security

6 conclusion

Sr no

7-8

9-11

12-25

26-28

29-30

31-32

Submitted By - ABHISHEK KUMAR VERMA ITT REG NO - BKN2014-15075

bull To transfer money over the Internet

7Submitted By - ABHISHEK KUMAR VERMA

ITT REG NO - BKN2014-15075

8

bull Methods of traditional payment

Cheques letter of credit and cash

bull Methods of electronic payment

bull Electronic cash

bull software wallets

bull smart cards and

bull creditdebit cards


bull Atomicity

ndash Money is not lost or created during a transfer

bull Good atomicity

ndash Money and good are exchanged atomically

bull Non-repudiation

ndash No party can deny its role in the transaction



bull For making online payments we need

bull A merchant account

bull An account with the service provider

bull A button such as Buy Join on the webpage so as to initiate the transaction





bull E-cash

bull Electronic wallets

bull Smart card

bull Credit card





bullElectronic money is paperless cash This money is either

stored on a card itself or in an account associated with the cardbullThe most common examples are transit cards meal plans and PayPal E-Cash can also mean any kind of electronic payment

bullElectronic payment systems come in many forms including virtual cheques ATM cards credit cards and stored value cards The usual security features for such systems are privacy authenticity and no repudiation

Submitted By - ABHISHEK KUMAR VERMAITT REG NO - BKN2014-15075 14

Past and Present E-cash Systems

bull Cyber Cash

bull Cyber Coins

bull DigiCash

bull CoinNet



This is a simple model of E-cash payment system This gives us the idea of how e-cash payment system works



Conceptual Framework

There are four major components in an electronic cash system

bull Issuers

bull Customers

bull Merchants or traders

bull Regulators

bull Issuers can be banks or non-bank institutions

bull Customers are referred to users who spend E-Cash

bull Merchants and traders are vendors who receive E-Cash

bull Regulators are defined as related authorities or state tax agencies



Desirable Properties of Digital Money

bull Universally accepted

bull Transferable electronically

bull Divisible

bull Private (no one except parties know the amount)

bull Anonymous (no one can identify the payer)

No known system satisfies all



E-cash ConceptMerchant

Consumer

Bank

1

2

3

4

5

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 eg merchant

present e-cash to issuing back for deposit

once goods or services are delivered



bull Stores credit card electronic cash owner identification and address

ndash Makes shopping easier and more efficient

bull Eliminates need to repeatedly enter identifying information into forms to purchase

bull Works in many different stores to speed checkout

ndash Amazoncom one of the first online merchants to eliminate repeat form-filling for purchases



bull Plastic card containing an embedded microchip

bull Available for over 10 years

bull So far not successful in US but popular in Europe Australia and Japan

bull Smart cards gradually reappearing in US



bull Credit card

bull Used for the majority of Internet purchases

bull Has a preset spending limit

bull Currently most convenient method

bull Most expensive e-payment mechanism

bull MasterCard $029 + 2 of transaction value

bull Disadvantages

bull Does not work for small amount (too expensive)



bull A debit card is a plastic card which provides an alternative payment method to cash when making purchases Physically the card is an ISO 7810 card like a credit card

bull Depending on the store or merchant the customer may swipe or insert their card into the terminal or they may hand it to the merchant who will do so





Credit card Debit card

bull You can obtain credit in credit card but not in debit card

bull Credit card charges interest for using the banks money (debit card is free from this problem)



bull We can transfer funds purchase stocks and offer a variety of other services without having to handle physical cash or cheques

bull Electronic cash protects its user against theft With electronic cash the customer does not need to provide financial information

bull E-cash supports small payments Other online payment system charge a fee for every transaction no matter how much high or low it is but e-cash has a specific limit for additional charges thatrsquos why very low payments are not charged a fee





bull More efficient eventually meaning lower prices

bull Lower transaction costs

bull Anybody can use it unlike credit cards and does not require special authorization

bull Maybe how much secure the e-cash payment system is but still no one is safe against the online frauds In this case the trader is referred as fraudulent The trader may take the amount but may not provide the services

bull While making the payment its very important that the internet connection and power

supply should be active If the payment is in process and internet supply fails in between it can lead to loss of information ie amount will be charged but it wont reach to trader and the refund takes very long time in general the refund time is atleast 30-45 days

bull E-Cash is not for everyone Low income segments without computer and internet access are unable to enjoy the usage of E-Cash

bull Susceptible to forgery



bull Security is of extreme importance while handling the online

transactions Faith in the security of the medium of exchange whether

paper or digital is essential for the economy to function

bull E-cash is much secure than other online payment modes because in this case no credential such as card-passwords or anything such is involved Its like simply the online fund transfer from customerrsquos account to traderrsquos account

bull However while accessing the customerrsquos account the customer must keep in mind the internet security sweep or theft The online hacking and cracking can be avoided by using SSL and TSL website security systems and keeping the website link with safe ldquoHttps ldquo protocols and proper internet security softwares to keep aside the threats of malware evasdrooping and other security threats



bull Security must be provided for customer transaction

bull Secure Sockets Layer (SSL) technology provides encrypted transmission of data between customer and a secure server



bull The rise of E-Cash is inevitable but further improvements are needed bull Tackling security anonymity low income group readiness and technology reliability issues will make E-Cash more perfectbull In countries such as India where people were hesitant to use such methods has shown a tremendous use of online payments and E-cash payment system



32

Bibliography

Miss sonali jain

WWWSlidesharecom

WWWPowershowcom

Self efforts




2








3






4





5

6

INDEX

Contents

1 Introduction




5 Security

6 conclusion

Sr no

7-8

9-11

12-25

26-28

29-30

31-32





8









bull Atomicity


bull Good atomicity














bull E-cash


bull Smart card

bull Credit card










bull Cyber Cash

bull Cyber Coins

bull DigiCash

bull CoinNet








bull Issuers

bull Customers


bull Regulators










bull Divisible







Consumer

Bank

1

2

3

4

5


























bull Credit card






bull Disadvantages














































32

Bibliography

Miss sonali jain

WWWSlidesharecom

WWWPowershowcom

Self efforts











3






4





5

6

INDEX

Contents

1 Introduction




5 Security

6 conclusion

Sr no

7-8

9-11

12-25

26-28

29-30

31-32





8









bull Atomicity


bull Good atomicity














bull E-cash


bull Smart card

bull Credit card










bull Cyber Cash

bull Cyber Coins

bull DigiCash

bull CoinNet








bull Issuers

bull Customers


bull Regulators










bull Divisible







Consumer

Bank

1

2

3

4

5


























bull Credit card






bull Disadvantages














































32

Bibliography

Miss sonali jain

WWWSlidesharecom

WWWPowershowcom

Self efforts









4





5

6

INDEX

Contents

1 Introduction




5 Security

6 conclusion

Sr no

7-8

9-11

12-25

26-28

29-30

31-32





8









bull Atomicity


bull Good atomicity














bull E-cash


bull Smart card

bull Credit card










bull Cyber Cash

bull Cyber Coins

bull DigiCash

bull CoinNet








bull Issuers

bull Customers


bull Regulators










bull Divisible







Consumer

Bank

1

2

3

4

5


























bull Credit card






bull Disadvantages














































32

Bibliography

Miss sonali jain

WWWSlidesharecom

WWWPowershowcom

Self efforts








5

6

INDEX

Contents

1 Introduction




5 Security

6 conclusion

Sr no

7-8

9-11

12-25

26-28

29-30

31-32





8









bull Atomicity


bull Good atomicity














bull E-cash


bull Smart card

bull Credit card










bull Cyber Cash

bull Cyber Coins

bull DigiCash

bull CoinNet








bull Issuers

bull Customers


bull Regulators










bull Divisible







Consumer

Bank

1

2

3

4

5


























bull Credit card






bull Disadvantages














































32

Bibliography

Miss sonali jain

WWWSlidesharecom

WWWPowershowcom

Self efforts




6

INDEX

Contents

1 Introduction




5 Security

6 conclusion

Sr no

7-8

9-11

12-25

26-28

29-30

31-32





8









bull Atomicity


bull Good atomicity














bull E-cash


bull Smart card

bull Credit card










bull Cyber Cash

bull Cyber Coins

bull DigiCash

bull CoinNet








bull Issuers

bull Customers


bull Regulators










bull Divisible







Consumer

Bank

1

2

3

4

5


























bull Credit card






bull Disadvantages














































32

Bibliography

Miss sonali jain

WWWSlidesharecom

WWWPowershowcom

Self efforts







8









bull Atomicity


bull Good atomicity














bull E-cash


bull Smart card

bull Credit card










bull Cyber Cash

bull Cyber Coins

bull DigiCash

bull CoinNet








bull Issuers

bull Customers


bull Regulators










bull Divisible







Consumer

Bank

1

2

3

4

5


























bull Credit card






bull Disadvantages














































32

Bibliography

Miss sonali jain

WWWSlidesharecom

WWWPowershowcom

Self efforts




8









bull Atomicity


bull Good atomicity














bull E-cash


bull Smart card

bull Credit card










bull Cyber Cash

bull Cyber Coins

bull DigiCash

bull CoinNet








bull Issuers

bull Customers


bull Regulators










bull Divisible







Consumer

Bank

1

2

3

4

5


























bull Credit card






bull Disadvantages














































32

Bibliography

Miss sonali jain

WWWSlidesharecom

WWWPowershowcom

Self efforts




bull Atomicity


bull Good atomicity














bull E-cash


bull Smart card

bull Credit card










bull Cyber Cash

bull Cyber Coins

bull DigiCash

bull CoinNet








bull Issuers

bull Customers


bull Regulators










bull Divisible







Consumer

Bank

1

2

3

4

5


























bull Credit card






bull Disadvantages














































32

Bibliography

Miss sonali jain

WWWSlidesharecom

WWWPowershowcom

Self efforts












bull E-cash


bull Smart card

bull Credit card










bull Cyber Cash

bull Cyber Coins

bull DigiCash

bull CoinNet








bull Issuers

bull Customers


bull Regulators










bull Divisible







Consumer

Bank

1

2

3

4

5


























bull Credit card






bull Disadvantages














































32

Bibliography

Miss sonali jain

WWWSlidesharecom

WWWPowershowcom

Self efforts






bull E-cash


bull Smart card

bull Credit card










bull Cyber Cash

bull Cyber Coins

bull DigiCash

bull CoinNet








bull Issuers

bull Customers


bull Regulators










bull Divisible







Consumer

Bank

1

2

3

4

5


























bull Credit card






bull Disadvantages














































32

Bibliography

Miss sonali jain

WWWSlidesharecom

WWWPowershowcom

Self efforts




bull E-cash


bull Smart card

bull Credit card










bull Cyber Cash

bull Cyber Coins

bull DigiCash

bull CoinNet








bull Issuers

bull Customers


bull Regulators










bull Divisible







Consumer

Bank

1

2

3

4

5


























bull Credit card






bull Disadvantages














































32

Bibliography

Miss sonali jain

WWWSlidesharecom

WWWPowershowcom

Self efforts











bull Cyber Cash

bull Cyber Coins

bull DigiCash

bull CoinNet








bull Issuers

bull Customers


bull Regulators










bull Divisible







Consumer

Bank

1

2

3

4

5


























bull Credit card






bull Disadvantages














































32

Bibliography

Miss sonali jain

WWWSlidesharecom

WWWPowershowcom

Self efforts









bull Cyber Cash

bull Cyber Coins

bull DigiCash

bull CoinNet








bull Issuers

bull Customers


bull Regulators










bull Divisible







Consumer

Bank

1

2

3

4

5


























bull Credit card






bull Disadvantages














































32

Bibliography

Miss sonali jain

WWWSlidesharecom

WWWPowershowcom

Self efforts





bull Cyber Cash

bull Cyber Coins

bull DigiCash

bull CoinNet








bull Issuers

bull Customers


bull Regulators










bull Divisible







Consumer

Bank

1

2

3

4

5


























bull Credit card






bull Disadvantages














































32

Bibliography

Miss sonali jain

WWWSlidesharecom

WWWPowershowcom

Self efforts









bull Issuers

bull Customers


bull Regulators










bull Divisible







Consumer

Bank

1

2

3

4

5


























bull Credit card






bull Disadvantages














































32

Bibliography

Miss sonali jain

WWWSlidesharecom

WWWPowershowcom

Self efforts






bull Issuers

bull Customers


bull Regulators










bull Divisible







Consumer

Bank

1

2

3

4

5


























bull Credit card






bull Disadvantages














































32

Bibliography

Miss sonali jain

WWWSlidesharecom

WWWPowershowcom

Self efforts







bull Divisible







Consumer

Bank

1

2

3

4

5


























bull Credit card






bull Disadvantages














































32

Bibliography

Miss sonali jain

WWWSlidesharecom

WWWPowershowcom

Self efforts





Consumer

Bank

1

2

3

4

5


























bull Credit card






bull Disadvantages














































32

Bibliography

Miss sonali jain

WWWSlidesharecom

WWWPowershowcom

Self efforts

















bull Credit card






bull Disadvantages














































32

Bibliography

Miss sonali jain

WWWSlidesharecom

WWWPowershowcom

Self efforts










bull Credit card






bull Disadvantages














































32

Bibliography

Miss sonali jain

WWWSlidesharecom

WWWPowershowcom

Self efforts




bull Credit card






bull Disadvantages














































32

Bibliography

Miss sonali jain

WWWSlidesharecom

WWWPowershowcom

Self efforts














































32

Bibliography

Miss sonali jain

WWWSlidesharecom

WWWPowershowcom

Self efforts










































32

Bibliography

Miss sonali jain

WWWSlidesharecom

WWWPowershowcom

Self efforts








































32

Bibliography

Miss sonali jain

WWWSlidesharecom

WWWPowershowcom

Self efforts



































32

Bibliography

Miss sonali jain

WWWSlidesharecom

WWWPowershowcom

Self efforts






























32

Bibliography

Miss sonali jain

WWWSlidesharecom

WWWPowershowcom

Self efforts

























32

Bibliography

Miss sonali jain

WWWSlidesharecom

WWWPowershowcom

Self efforts


















32

Bibliography

Miss sonali jain

WWWSlidesharecom

WWWPowershowcom

Self efforts











32

Bibliography

Miss sonali jain

WWWSlidesharecom

WWWPowershowcom

Self efforts







32

Bibliography

Miss sonali jain

WWWSlidesharecom

WWWPowershowcom

Self efforts




32

Bibliography

Miss sonali jain

WWWSlidesharecom

WWWPowershowcom

Self efforts




