What Electronic Payment system is?

Electronic payment system is a system which helps the customer or user to make online payment for their shopping. To transfer money over the Internet. Methods of traditional payment. oCheck or cash. Methods of electronic payment. oElectronic cash, software wallets, smart cards, and credit/debit cards.

Some Examples of EPS:Online reservation Online bill payment Online order placing (nirulas)

Online ticket booking ( Movie)

Two storage methods

On-line Individual does not have possession personally of electronic cash Trusted third party, e.g. online bank, holds customers cash accounts Off-line Customer holds cash on smart card or software wallet Fraud and double spending require tamper-proof encryption

E - TOURISM
Electronic tourism or e-tourism is part of electronic

trade, which encompasses the fastest developing technologies, such as communication and information industry, hospitality and management\marketing of strategic planning industry. The e stands for the electronic and represents the emarketplace, where the e- business meets econsumers, e-governing, e-partners and other ebusiness on e-platforms.

E - TOURISM
The specific activities of e-tourism must rely on

tourism operators, tourism agencies and other organisms directly interested in virtual tourism using a specialized website. The phenomenon itself involves both the consumer and the provider of tourism

TOURISM IN THE DOT COM ERA

According to elaborate European studies, of the

International Institute IPK, in 2007, over 30 million Europeans have used the Internet to set their future holiday destinations, and about 8 million have booked their tickets online. By the end of 2008 the world income of e-tourism has been up to 40 billion EURO.

TOURISM IN THE DOT COM ERA

According to the general manager of Ethiopian

Quadrants PLC, if credit card acceptance was more widespread [in Ethiopia] and each visitor spent an additional US$100, it would mean an extra US$22 million a year income for the country. According to the American research, the whole amount coming from personal or business travels booked by tourists all over the world using the Internet raises up to 13 bill. Euro in 2004 and in 2007 it was 75 bill. Euro.

TOURISM IN THE DOT COM ERA

The conclusion is that no other technology, except the television has had such great impact on travellers as the Internet.

THE TOURISM PORTAL

A tourism portal can be seen as an infrastructure of a

business community which offers a transparent environment to promote tourism business. It joins the providers of tourism service (hotels and pensions, holiday resorts), tourism agencies and the consumers of services in the virtual environment of the World Wide Web. All the participants are transparent by using the tools of the Internet.

THE TOURISM PORTAL

Tourism portals offer the most diverse services: Tourists can-t only book their stay online, but they will be provided with all the necessary information by e-mail and may pay on-line by using their credit card.

THE IMPLICATIONS OF E-TOURISM FOR VISITORS

E-tourism involves the following aspects for the final consumers E-information

E-booking
E-payment

E-INFORMATION
This means the tourists are provided with information

from specialized touristic sites, by e-brochures, audio touristic guides, photo albums , real or virtual images, video clips, even travel journals, reading blogs or by accessing virtual communities, such as Virtual Tourist, and why not The guides of virtual cities.

E-BROCHURES

AUDIO TOURISTIC GUIDES

PHOTO ALBUMS

TRAVEL BLOGS

E-BOOKING
This means is mostly used by the hotel, air travel and

rent-a -car sector-booking, as informational services, must submit to the legal requirements which are mentioned in the settlement of laws referring to the Internet services the e-trade and distance individual contract signing.

E-BOOKING

E-PAYMENT
The consumers can use credit cards, e-checks, digital

cash or micro cash, when they only have to pay few cents. Many of the electronic payments are the equivalent of everyday operations and payments, such as credit cards, checks. Even the digital cash are available.

TYPES OF EPS
Prepaid payment systems
Postpaid payment systems

PREPAID PAYMENT INSTRUMENTS

Prepaid payment instruments are those which

facilitate purchase of goods and services against the value stored on such instruments. The value stored on such instruments represents the value paid for by the holder, by cash, by debit to a bank account, or by credit card. E-Cash E-Wallet Smart Cards

E-Cash
A system that allows a person to pay for goods or services by transmitting a number from one computer to another. Like the serial numbers on real currency notes, the E-cash numbers are unique. This is issued by a bank and represents a specified sum of real money. It is anonymous and reusable.

E-Cash Processing

Merchant

1. Consumer buys e-cash from Bank

5 4 Bank 3

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

Consumer

E-Wallet
The E-wallet is another payment scheme that operates like a carrier of e-cash and other information.
The aim is to give shoppers a single, simple, and secure way of carrying currency electronically. Trust is the basis of the e-wallet as a form of electronic payment.

Example for transaction:

Procedure for using an e-wallet

1. Decide on an online site where you would like to shop.

2. Download a wallet from the merchants website. 3. Fill out personal information such as your credit card number, name, address and phone number, and where merchandise should be shipped. 4. When you are ready to buy, click on the wallet button, the buying process is fully executed.

Smart Cards
A smart card, is any pocket-sized card with embedded integrated circuits which can process data This implies that it can receive input which is processed and delivered as an output

Smart card Processing

POSTPAID PAYMENT SYSTEMS

Postpaid payment systems allow the users to buy a

product or service and pay afterwards. Credit cards E- Check

Credit cards
It is a Plastic Card having a Magnetic Number and code on it.

It has Some fixed amount to spend.

Customer has to repay the spend amount after sometime.

Processing a Credit cards payment

Risk in using Credit cards

Operational Risk Credit Risk Legal Risk

ELECTRONIC CHECKS (E-CHECK)

E-check is the result of cooperation among several

banks, government entities, technology companies, and e-commerce organizations. An e-check uses the same legal and business protocols associated with traditional paper checks.

ELECTRONIC CHECKS (E-CHECK)

The key advantages of e-checks are as follows:

Secure and quick settlement of financial obligations Fast check processing Very low transaction cost

OTHER TYPES OF PAYMENT SYSTEMS

ELECTRONIC GIFTS
They are one way of sending electronic currency or gift certificates from one individual to another. The receiver can spend these gifts in their favourite online stores provided they accept this type of currency.

MICRO-PAYMENT
Micro-payments are used for small payments on the

Web. The process is similar to e-wallet technology where the customer transfers some money into the wallet on his or her desktop and then pays for digital products by using this wallet.

ELECTRONIC FUND TRANSFER

Electronic funds transfer is one of the oldest electronic

payment systems. EFT is the groundwork of the cashless and check-less culture where and paper bills, checks, envelopes, stamps are eliminated. EFT is used for transferring money from one bank account directly to another without any paper money changing hands

ELECTRONIC FUND TRANSFER

EFT is considered to be a safe, reliable, and convenient

way to conduct business. The advantages of EFT contain the following: Simplified accounting Improved efficiency Reduced administrative costs Improved security

What Is payment Gateways??

A payment gateway is an e-commerce application service provider service that authorizes payments for e-businesses, online Shopping, etc. Payment gateway protects credit cards details encrypting sensitive information, such as credit card numbers, to ensure that information passes securely between the customer and the merchant and also between merchant and payment processor.

How It works??

HOW TO USE PAY PAL

CONCLUSION Expand Market beyond Traditional geographic market Override traditional marketing system into digital marketing system. Made human life convenient as a person can pay his payments online while he is taking rest.