Different Types of Payment Modes in E-Commerce

8/3/2019 Different Types of Payment Modes in E-Commerce

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CaseStudy

Topic:-Payment modes in E-

Commerce

Presented By:-

Nishant Pardeshi


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Amol Jogal

Gaurav Poudwal

What is E-Commerce?

E-Commerce is Electronic Commerce whcich consists of buying

and selling of products or services over electronic systems such

as the Internet and other computer networks.

E-commerce payment system

An e-commerce payment system facilitates the acceptance of

electronic payment for online transaction. Also known as financial

electronic data interchange (FEDI), e-commerce payment systems

have become increasingly popular due to the widespread use of

the internet based shopping and banking.

A payment gateway is an e-commerce application application

service provider service that authorizes payments for e-

businesses, online retailers, bricks and clicks, or traditional brick

and mortar. It is the equivalent of a physical point of sale terminal

located in most retail outlets. Payment gateway protects credit

cards details encrypting sensitive information, such as credit cardnumbers, to ensure that information passes securely between the

customer and the merchant and also between merchant and

payment processor.
http://en.wikipedia.org/wiki/Ebusinesshttp://en.wikipedia.org/wiki/Ebusinesshttp://en.wikipedia.org/wiki/E-tailerhttp://en.wikipedia.org/wiki/Bricks_and_clicks_business_modelhttp://en.wikipedia.org/wiki/Brick_and_mortarhttp://en.wikipedia.org/wiki/Brick_and_mortarhttp://en.wikipedia.org/wiki/Point_of_salehttp://en.wikipedia.org/wiki/Gatewayhttp://en.wikipedia.org/wiki/Credit_cardhttp://en.wikipedia.org/wiki/Payment_processorhttp://en.wikipedia.org/wiki/E-tailerhttp://en.wikipedia.org/wiki/Bricks_and_clicks_business_modelhttp://en.wikipedia.org/wiki/Brick_and_mortarhttp://en.wikipedia.org/wiki/Brick_and_mortarhttp://en.wikipedia.org/wiki/Point_of_salehttp://en.wikipedia.org/wiki/Gatewayhttp://en.wikipedia.org/wiki/Credit_cardhttp://en.wikipedia.org/wiki/Payment_processorhttp://en.wikipedia.org/wiki/Ebusinesshttp://en.wikipedia.org/wiki/Ebusiness


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A payment gateway facilitates the transfer of information

between a payment portal (such as a website, mobile phone or

IVR service) and the Front End Processor or acquiring bank. When

a customer orders a product from a payment gateway enabled

merchant, the payment gateway performs a variety of tasks to

process the transaction.

Payment modes in E-Commerce:-

* Credit Card

* Debit Card

* Gift Card

* Paypal Account

Credit Card
http://en.wikipedia.org/wiki/Acquiring_bankhttp://en.wikipedia.org/wiki/Acquiring_bank


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Credit card is plastic smart card issued by a bank to customer

with a defined credit limit that the customer can use to purchase

goods and services.

It allows its holder to buy goods and services based on the

holder's promise to pay for these goods and services.Credit cards

look almost exactly like debit cards, and using them is sometimes

referred to as paying with plastic.

When a purchase is made, the credit card user agrees to pay the

card issuer.

The card holder indicates consent to pay by signing a receipt with

a record of the card details

Electronicverification systems allow merchants to verify in a few

seconds that the card is valid and the credit card customer has

sufficient credit to cover the purchase, allowing the verification tohappen at time of purchase.

The verification is performed using a credit card payment

terminal or point-of-sale (POS) system with a communications link

to the merchant's acquiring bank.
http://en.wikipedia.org/wiki/Receipthttp://en.wikipedia.org/wiki/Electronicshttp://en.wikipedia.org/wiki/Credit_card_verificationhttp://en.wikipedia.org/wiki/Credit_card_terminalhttp://en.wikipedia.org/wiki/Credit_card_terminalhttp://en.wikipedia.org/wiki/Point_of_salehttp://en.wikipedia.org/wiki/Acquirerhttp://en.wikipedia.org/wiki/Receipthttp://en.wikipedia.org/wiki/Electronicshttp://en.wikipedia.org/wiki/Credit_card_verificationhttp://en.wikipedia.org/wiki/Credit_card_terminalhttp://en.wikipedia.org/wiki/Credit_card_terminalhttp://en.wikipedia.org/wiki/Point_of_salehttp://en.wikipedia.org/wiki/Acquirer


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Customer is also allowed a defined number of days to pay the

amount back to the bank.

At the end of each month, customer will receive a credit card

statement with an itemized list of all your purchases.Therefore, rather than paying the retailer directly, you pay off

your bill to the bank.

If you dont pay the entire balance of the bill, the bank is

authorized to charge you interest on your remaining balance.

Credit cards can be used for both online purchases and at

physical retailers.

There are 7 major credit card issuing authorities

worldwide: -

Master cards

Visa Cards

American Express cards

Diner's Club cards

Discovery cards

JCB cards

Delta cards

Debit Card


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A Debit card (also known as a bank card or check card) is a plastic

card that provides an alternative payment method to cash when

making purchases.

It is an increasingly popular way to pay for both online and

retailer purchases.

It looks exactly like a credit card, but it functions in a different

manner.

Unlike a credit card, paying with a debit card takes the money

directly out of your checking account.

In this way, card acts like a cheque with the money withdrawn

from the existing account balance.

Debit cards can be acquired from your bank.

Maestro & Visa Electron are two major service providers that

power the debit card and help banks to offer banking services

through debit card internationally.

Debit cards may also allow for instant withdrawal of cash, acting

as the ATM card for withdrawing cash and as a check guarantee

card.
http://en.wikipedia.org/wiki/Cashhttp://en.wikipedia.org/wiki/ATM_cardhttp://en.wikipedia.org/wiki/Check_guarantee_cardhttp://en.wikipedia.org/wiki/Check_guarantee_cardhttp://en.wikipedia.org/wiki/Cashhttp://en.wikipedia.org/wiki/ATM_cardhttp://en.wikipedia.org/wiki/Check_guarantee_cardhttp://en.wikipedia.org/wiki/Check_guarantee_card


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Online debit cards require electronic authorization of every

transaction and the debits are reflected in the users account

immediately.

The transaction may be additionally secured with the personalidentification number (PIN) authentication system and some

online cards require such authentication for every transaction,

essentially becoming enhanced automatic teller machine(ATM)

cards.

There are currently three ways that debit card transactions are

processed:

1) Online debit (also known as PIN debit)

2) Offline debit (also known as signature debit)

3) The Electronic Purse Card System.

Although many debit cards are of the Visa or MasterCard brand,

there are many other types of debit card, each accepted only

within a particular country or region.

For example

Switch (now: Maestro) and Solo in the United Kingdom,

Interac in Canada, Carte Bleue in France

Laser in Ireland

"EC electronic cash" (formerly Eurocheque) in Germany

EFTPOS cards in Australia and New Zealand.
http://en.wikipedia.org/wiki/Personal_identification_numberhttp://en.wikipedia.org/wiki/Personal_identification_numberhttp://en.wikipedia.org/wiki/Authenticationhttp://en.wikipedia.org/wiki/Automatic_teller_machinehttp://en.wikipedia.org/wiki/ATM_cardhttp://en.wikipedia.org/wiki/ATM_cardhttp://en.wikipedia.org/wiki/Visa_(credit_card)http://en.wikipedia.org/wiki/MasterCardhttp://en.wikipedia.org/wiki/Switch_(debit_card)http://en.wikipedia.org/wiki/Solo_(debit_card)http://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/Interachttp://en.wikipedia.org/wiki/Canadahttp://en.wikipedia.org/wiki/Carte_Bleuehttp://en.wikipedia.org/wiki/Francehttp://en.wikipedia.org/wiki/Laser_(debit_card)http://en.wikipedia.org/wiki/Republic_of_Irelandhttp://en.wikipedia.org/wiki/Eurochequehttp://en.wikipedia.org/wiki/Germanyhttp://en.wikipedia.org/wiki/EFTPOShttp://en.wikipedia.org/wiki/Personal_identification_numberhttp://en.wikipedia.org/wiki/Personal_identification_numberhttp://en.wikipedia.org/wiki/Authenticationhttp://en.wikipedia.org/wiki/Automatic_teller_machinehttp://en.wikipedia.org/wiki/ATM_cardhttp://en.wikipedia.org/wiki/ATM_cardhttp://en.wikipedia.org/wiki/Visa_(credit_card)http://en.wikipedia.org/wiki/MasterCardhttp://en.wikipedia.org/wiki/Switch_(debit_card)http://en.wikipedia.org/wiki/Solo_(debit_card)http://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/Interachttp://en.wikipedia.org/wiki/Canadahttp://en.wikipedia.org/wiki/Carte_Bleuehttp://en.wikipedia.org/wiki/Francehttp://en.wikipedia.org/wiki/Laser_(debit_card)http://en.wikipedia.org/wiki/Republic_of_Irelandhttp://en.wikipedia.org/wiki/Eurochequehttp://en.wikipedia.org/wiki/Germanyhttp://en.wikipedia.org/wiki/EFTPOS


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Gift Card

A Gift Card is almost similar to debit card.

It is a restricted monetary equivalent that is issued by retailers orbanks to be used as an alternative to a non-monetary gift.

The card is identified by a specific number or code, not usually

with an individual name, and thus could be used by anybody.

Thus, it is increasingly becoming a popular form of payment.

Gift card is essentially prepaid card with a certain amount of

money added to that card.

Some gift cards can be reloaded by payment and can be used

thus multiple times.

The giver would buy the gift card (and may have to pay an

additional purchase fee), and the recipient of the card would use

the value of the card for payment.


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Gift cards can also be custom tailored to meet specific needs.

By adding a custom message or name on the front of the card, it

can make for an individualized gift or incentive to an employee to

show how greatly they are appreciated.Some companies offer custom designs on the cards for

businesses wishing to add their logo.

Special order cards are available for businesses.

Gift cards are divided into "open loop" or "network" cards and

"closed loop" cards.

The former are issued by banks or credit card companies and canbe redeemed by different establishments, the latter by a specific

store or restaurant and can be only redeemed by the issuing

provider.

The latter, however, tend to have lesser problems with card value

decay and fees.

In either case the giver would buy the gift card (and may have to

pay an additional purchase fee), and the recipient of the card

would use the value of the card at a later transaction.

A third form is the "hybrid closed loop" card where the issuer has

bundled a number of closed loop cards; an example is a gift card

for a specific mall.

Gift cards differ from gift certificates, in that the latter are usually sold as a paper

document with an authorized signature by a restaurant, store, or other individual

establishment as a voucherfor a future service; there is no electronic authorization.

A gift certificate may or may not have an expiration date and generally has no

administrative fees.

Bank-issued gift cards may be used in lieu of checks as a way to disburse rebate

funds.
http://en.wikipedia.org/wiki/Shopping_mallhttp://en.wikipedia.org/wiki/Scriphttp://en.wikipedia.org/wiki/Voucherhttp://en.wikipedia.org/wiki/Rebate_(marketing)http://en.wikipedia.org/wiki/Shopping_mallhttp://en.wikipedia.org/wiki/Scriphttp://en.wikipedia.org/wiki/Voucherhttp://en.wikipedia.org/wiki/Rebate_(marketing)


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Some retailers use the gift card system for refunds in lieu of cash thereby assuring

that the customer will spend the funds at their store.

Paypal Account

PayPal is an e-commerce business allowing payments and money

transfers to be made through the Internet.

PayPal serves as an electronic alternative to traditional paper

methods such as checks and money orders.

On October 3, 2002, PayPal became a wholly owned subsidiary of

eBay.Currently PayPal operates in 190 markets,and it managesover 175 million accounts (70 million active accounts).

PayPal allows customers to send, receive, and hold funds in 19

currencies worldwide. PayPal operates locally in 13 countries.
http://en.wikipedia.org/wiki/E-commercehttp://en.wikipedia.org/wiki/Moneyhttp://en.wikipedia.org/wiki/Internethttp://en.wikipedia.org/wiki/Chequehttp://en.wikipedia.org/wiki/Money_orderhttp://en.wikipedia.org/wiki/October_3http://en.wikipedia.org/wiki/2002http://en.wikipedia.org/wiki/Subsidiaryhttp://en.wikipedia.org/wiki/EBayhttp://en.wikipedia.org/wiki/E-commercehttp://en.wikipedia.org/wiki/Moneyhttp://en.wikipedia.org/wiki/Internethttp://en.wikipedia.org/wiki/Chequehttp://en.wikipedia.org/wiki/Money_orderhttp://en.wikipedia.org/wiki/Money_orderhttp://en.wikipedia.org/wiki/October_3http://en.wikipedia.org/wiki/2002http://en.wikipedia.org/wiki/Subsidiaryhttp://en.wikipedia.org/wiki/EBay


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Residents in 190 markets can use PayPal in their local markets to

send money online.

For online purchases, Paypal has become the gold standard for

payment.Whether youre using Ebay.com, some other auction site, or an

increasing number of non-auction websites, Paypal is the most

popular way to pay without sending your bank information

through a potentially unsecured website.

Paypal is a lot like an online bank account.

The money in your account is linked to your checking or savings

account, so you can transfer money to yourself and/or pay foryour purchases.

The benefit of Paypal is that you do not give the retailer your

credit card, debit card, or bank information.

They simply give you their Paypal email address, and thats all

the information you need to transfer funds.

Paypal merchant accounts are easier to set up than most other

merchant accounts.

Paypal has no fixed costs and offers a similar product with slightly

higher transaction fees.

But this difference in transaction fees is only $.05 per transaction.

With such a small difference, Paypal is still a bargain up until

around 1000 transactions per month.

At this point (1000+ transactions) the Versign "per transactionfee" drops to $.10 per transaction and makes Verisign's fee

structure more appealing.


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Paypal has always had a very fair deal going ever since they

launched in 1998, and as of October 2002 they have 20 million

members.

Unique features of PayPal.com :-

It offers transactions in 18 currencies.

One can send and receive money through its online account

and can send invoices requests of payments using Paypal.

One can use his/her credit cards to pay online through

Paypal, which makes it more secure. Paypal serves around

190 markets.

One can withdraw money through checks or directly to

your own bank account (available to limited countries). Itis free to withdraw money in US Bank account though

transactions to other countries might involve some fee.

Paypal outgrow every other service by providing you free

sign-up for using their services.

Paypal is believed to be the safest way for online

transactions. The encryption system is quite good.

Paypal.com gives you a sort of online bank that handles

almost all your needs for online business: whether it is

shopping, selling or just transactions of money, one can

rely on Paypal.com for its services.
https://www.paypal.com/in/cgi-bin/webscr?cmd=p/req/index-outside&nav=1.2https://www.paypal.com/in/cgi-bin/webscr?cmd=_registration-runhttps://www.paypal.com/in/cgi-bin/webscr?cmd=p/req/index-outside&nav=1.2https://www.paypal.com/in/cgi-bin/webscr?cmd=_registration-run


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Paypal accounts have transactional limist and also limits

on the money that various types of accounts can receive

and withdraw. A Paypal account holder can make a

maximum single transaction of USD 10,000. If you do not

have a Paypal account, you can make a one-time, singletransaction of USD 4,000. There is a receiving and

withdrawl limit for personal types of accounts. So you

need to check what type of account would suit your needs.

Paypal offer a Security Key System that allows the users to

generate a security key for their accounts and make it

safe.One can order your security key on Paypal and keep it

with his/her key-chain. It is that small but keeps your online

Paypal account safe from theft.

Different Types of Payment Modes in E-Commerce

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