Question

The success of E-Commerce system is based on how fast your company process the transactions. Today the world is digitalized and digital payment methods are introduced. If you are running an Online Store name Nazeer’s Faison in Pakistan. What will be the payment processors used in this website? Can Bitcoin and other Cryptocurrencies include in your website? Justify your answer with an example.

Answer 1

introduction :-

the emergence of the internet throughout the world has been contributing such a variety medium in doing business as well as people lifestyle .infact, the internet is the essential prerequisite for the existence of e-commerce .electric commerce or e-commerce has been defined as the ability to perform the transaction involving the exchange of goods or service between two or more parties using electric tools and technique. the explosion of e-commerce has created new phenomena in our lifestyle especially in shopping activities .consumers can easily buy product or service like magazines and airlines tickets via the internet

electronic payment system for E-commerce site

1. cash on delivery

the first and most secured payment system in the online purchase is cash on delivery, which customers can pay the amount only after they got the product

2. electronic fund transfer(EFT)

EFT is defined as any transfer of funds initiated through an electronic terminal, telephonic instrument, or computer or magnetic tape to order instruct or authorize a financial institution  

EFT can be segmented into three broad categories

banking and financial payment

1. large scale payment

2. retail payment

3. home banking

retail payment

1. credit cards

2. private label credit

3. charge card

online electronic commerce payment

1.token based payment system

2. electronic cash

3.electronic checks

4.smart card

5 encrypted credit card

6. third party authorization numbers  

ELECTRONIC TOKEN

an electronic token is a digital-analog of various forms of payment backed by a bank or financial institution electronic token are three type

1. cash or real-time

2. debit or prepaid

user pay in advance for the privilege of getting information

3.credit or postpaid

  the server authenticates the customers and verified with the bank that funds are adequate before purchase

ELECTRONIC CASH  

e-cash is based on a cryptographic system called digital signatures, this method involves a pair of numeric keys one for locking /encoding )and other for unlocking (recording)

purchase e-cash from currency server

DIGITAL CURRENCY

once the token is purchased the e-cash software on the customers PC stores digital money undersigned by a bank .the user can spend the digital money at any shop accepting e-cash, without having to open an account there or having to transmit credit card number. as soon as the customer wants to make payment the software collects the necessary amount from store taken

ELECTRONIC CHECKS

it is another form of electronic tokens buyer must register with third party account server before they can write electronic checks.

ELECTRONIC CARD PAYMENT SYSTEM

1. CREDIT CARD:- such as visa or master card, has preset spending limit based on the user's credit limit

2. debit card:- removes the amount of the charge from the holders account and transfer it to the seller's account

3.charge card:- such as American Express, carries no preset spending limit

ELECTRONIC PURSES

to replace cash and place a financial instrument are racing to introduce electronic purses wallet-sized smart card

embedded with programmable microchips that store sums of money for people to use instead of cash

the above method is various form of online payment which can use an online e-commerce site to access cash from its customer