1. Payment Systems Unit 34: E-commerce M2 - Compare two different payment systems used in e-commerce systems

2. Early days  Online transactions not possible  Customers paid by cheque in the post  Product not sent until cheque cleared  Credit card over the telephone  Email credit card details over several different emails  If one email lost or the order of emails is incorrect, payment cancelled

3. Digital Methods of Payment  A user uploads money into an online account from their bank using a digital transfer  The money then stays there until it is needed for payment  The user only provides bank details to the online account  Examples: Paypal, NoChex

4. Other Methods  Electronic Cheques  Customer requests their bank to make the payment. Bank then either pays electronically or produces a paper cheque  Credit Card  Bank provides the money and then requests payment from the customer  Debit Card  Electronic payment is provided by the bank direct from the customers account

5. Security  SSL – Secure Sockets Layer  Both server and client need to be identified using public key encryption and certificate-based authentication.  HTTPS – encrypted version of HTTP.  Used when entering payment details  CV2  Introduced specifically for e-commerce  3 digit ‘security number’ on back of card  Splash Plastic  Card loaded with money (upto £1000) in banks or shops  Used as payment online  Available for anyone over 10 years old

6. Activity  Look at several ecommerce websites. What payment methods does each take? Present your findings in a table  Is there a correlation between the size or type of a website and the amount of payment methods it takes?

7. Test your knowledge  Give three examples of how you might pay for goods on the Internet?  What is a CV2 number? What is its purpose?