ecommerce applications 2007/8 session 61 e-commerce applications process views
TRANSCRIPT
Session 6 1
Ecommerce Applications 2007/8
E-commerce ApplicationsProcess views
Session 6 2
Ecommerce Applications 2007/8
Secure Transmission Process
e-shop site
customer
business
bank
carrier
payment service e.g. Datacashbank
ISP
ASP
WWW
Remember that blue arrows represent secure connections
Session 6 3
Ecommerce Applications 2007/8
Process elements
customer
MERCHANT(business)
goods
securityinformation
Web, Internet BrowserWeb TV, Digital TVPC, Kiosk
delivery logistics payment system
e-shop site
Now study this. What are the options for each of the elements?
Session 6 4
Ecommerce Applications 2007/8
Process elements
Options and alternatives
• Payment system• Security
Session 6 5
Ecommerce Applications 2007/8
Payment systems
• Fundamentals– take money, anyway that suits the customer– manage risk of fraud and chargeback
• Options– Credit Card manual processing, or online processing– Digital Cash– Micropayments– Smart cards
• What about the Euro? payment system
Session 6 6
Ecommerce Applications 2007/8
E-commerce processes: the players
• Customer• Merchant (business)• Banks : Acquiring bank, issuing bank• Merchant service providers• Third party processors• Web agency (ASP)• Regulatory bodies• Logistics companies payment system
Session 6 7
Ecommerce Applications 2007/8
Online Credit Card Payment
Issuing bank
shopperMERCHANT(business)
goods
Acquiring bank £$£$£$
£$£$£$
e-shop site
Merchant service provider e.g. Net West streamline
E-payment gateway e.g. Worldpay
investigate authorisation/notification transfer funds
Session 6 8
Ecommerce Applications 2007/8
Merchant services
• Merchant services– CNP (card not present), PDQ/ePDQ– Business plan/prediction of sales– Deposit to cover fraudulent activities
• Authorisation Gateways: WorldPay, SecPay, Netbanx, Safedoor
Checks account number is valid and sufficient credit. Does not check account name/address.
Merchant carries all the risk.
Session 6 9
Ecommerce Applications 2007/8
Payment systems – Digital Cash
• Used as general term to describe electronic money, but some specific systems
• Designed for low cost items e.g. clip art, sound files, utility programmes
• 3V Vouchers (by VISA)– Just need a mobile phone number and an email address– Disposable VISA number for credit (£20-£200)– Can not be used in gambling sites– Can not be used in places where business will expect to see
credit card (e.g. hotels, car hire, etc).– www.3vcash.com
Session 6 10
Ecommerce Applications 2007/8
Payment systems – Micropayments
• Payment for information (pass packaging and shipping) e.g. online news, stock market quote, weather, cartoon of the day
• Example Millicent based in the USA– Millicent uses electronic tokens called ‘scrip’– Customers buy ‘scrip’ using credit card from an authorised
broker, ‘scrip’ are held in a wallet on the customer’s PC– Content provider or merchant website will take and process
orders– Vendor will validate and check status of ‘scrip’ – Broker service responsible for conversion - ‘scrip’ <> money
Session 6 11
Ecommerce Applications 2007/8
Payment systems – Smart cards
• Look like credit cards• Microchip embedded into surface• Store information about holder of card or means of
carrying electronic cash• Customers load smartcard with cash via phone and
ATM machines • Smart card readers in shops and attachment on PC• Disposable• Reloadable
Session 6 12
Ecommerce Applications 2007/8
Process elements
MERCHANT(business)
goods
securityinformation
Web, Internet BrowserWeb TV, Digital TVPC, Kiosk
delivery logistics payment system
e-shop site
What are the options for each of the elements?
Session 6 13
Ecommerce Applications 2007/8
Process elements
customer
MERCHANT(business)
goods
securityinformation
Web, Internet BrowserWeb TV, Digital TVPC, Kiosk
delivery logistics payment system
e-shop site
What are the options for each of the elements?
Session 6 14
Ecommerce Applications 2007/8
Security
• Secure transactions (Privacy, clarity, integrity, confidentiality)
• Security system– Public-key encryption (control vs. freedom)– (SSL) Secure Socket Layer encryption of data as it
passes to and from the server and browser– (SET) Secure Electronic Transfer specific to credit
card transactions over the Internet– Firewalls are like gatekeepers allowing specific
information through and rejecting other types
security
Session 6 15
Ecommerce Applications 2007/8
Security risk management
• Employ a fraud screening system• Fraud risk management • Use online real-time authorisation• Integrate credit card processing with back end
applications• Detailed credit card processing report
security