Shopping experience! Is it safe to pay online? Ian Ramsey C of E School GCSE ICT Shopping experience! Is it safe to pay online?

Starter: 3-2-1 Lift off! Complete this paragraph about using credit and debit cards online. A debit card transfers money from a bank account and does not give you . When using a card online you will be asked to enter the card and expiry . You will also be asked for the CCV or code. If you use the Verified by Visa scheme you also have to enter a . Apart from using cards you can also pay using a third-party payment such as PayPal. credit number date security date processor Drag and drop each word into the correct gap. date credit security number password processor

Lesson Objectives: By the end of this lesson you will be able to: explain the methods of making online payments explain security systems for online payments

Online payment systems: There are 4 ways of paying online: Credit/debit cards Online bank transfer Third party payment processors Online coupons/gift vouchers/eVouchers

Credit/Debit cards: When you pay with a credit or debit card you are authorising the organisation you are buying from to transfer money from your account to its own bank account. Debit cards let the customer pay by taking money directly out of their bank account. Credit cards allow the customer to borrow the money. The customer pays the money back at a later date, often with interest. The Credit Card Verification (CCV) code is the number on the back of the card which is not included on the magnetic stripe or chip. Entering the CCV means the person entering the code must have seen the card.

Credit/Debit cards: Explain the difference between a credit card and a debit card. (Type in the box below) A debit card is where the money comes directly from the persons bank account but a credit card is where somebody can borrow money. Using the image to help you, make a list of the details that you are asked to enter when you pay online. Card type Name on card Card number Expiry date CCV code Which item do you not have to enter which you would when you buy in person in a shop? PIN code

Making sure a website is secure: A change in the address bar’s colour (often to green) The URL changing from http to https 3 things to look out for Verified by Visa is a scheme which gives an extra layer of security. When you make an online purchase it produces an online receipt which you sign off using a personal password. A padlock symbol

SSL encryption: The padlock symbol indicates that the website owners have been investigated and found to be trustworthy by the organisations that issue security certificates. If you click on the padlock you can view the certificate. The website used an encryption system called SSL (Secure Sockets Layer). How SSL encryption works The browser checks the certificate to make sure that the site you are connecting to is the actual site and the certificate is up to date. The host and your computer determine the encryption types that they can both use to understand each other. The browser and the server send each other unique codes to use when scrambling (or encrypting) the information that will be sent. The browser and server start talking using the encryption, the web browser shows the encrypting icon, and web pages are processed securely.

Online bank transfer: Customers can make online payments directly from their account to other accounts as long as they know the bank account details of the organisation they are paying. This method would not normally be used for everyday online shopping. It might be used for larger purchases such as for a car or a deposit on a house. In order to make online bank transfers you would need to have online banking facilities with your own bank. Advantages of using online banking include: Being able to log on to your account at any time to see how much money you have and manage your finances. Make direct payments without the need for cheques or cards. Transfer money between accounts. Use online statements instead of paper statements (greener).

Third party payment processors: These are trusted organisations who stand between the customers and the retailers so payments are not made directly. is a third party payment processor. PAYMENT Buyer’s bank Paypal Seller’s bank TRANSFER OF GOODS Buyer Seller Advantages: Sellers do not need to offer a secure site (which can be expensive). Buyers are not exposed to fraud.

Online coupons and eVouchers: Many online shops now offer ‘online’ eVouchers or money off coupons. These can be sent to people electronically by e-mail or printed out and sent by post. To redeem the voucher the customer enters the unique reference number on the voucher or coupon.

Exam questions: Stevie buys some T-shirts from an online store. She is worried about entering her card details online. State one other way she could pay online. (1 mark) Online coupons or eVouchers

Exam questions: Laura and Shameela are going to a Hi-Riderz concert at the City Arena. Laura buys e-tickets using this booking screen. Four areas of the booking screen have been labelled A, B, C and D. Which one identifies that the site is safe to use? A B C D

Exam questions: Which one of these processes is used to improve security on the booking system? A Deleting B Encryption C Phishing D Reporting (1 mark) The booking screen displays Laura’s card number like this: Explain why the card number is displayed like this: (2 marks) To enhance security and protects Laura’s information by stopping information being read from people who may be looking at the screen.

Exam questions: Ryan pays for some flights with his debit card. He enters his three-digit CCV code. Why does he have to do this? (1 mark) A To validate his bank’s branch number B To add another level of security to the transaction C To verify the card number D To include his PIN number with the transaction

Exam questions: Rini orders pizza using her home PC. State one way that Rini could pay for the pizza online (1 mark) Paypal Give two advantages to Rini and her friends of ordering pizza online. (2 marks) 1. So they don’t have to leave the house. 2. They might get discounts or deals from ordering online.

Exam questions: Rini makes an online purchase and enters her card details to pay. She sees this screen: State one reason why a password is required. (1 mark) To stop others using her card

Knowledge check Match the key terms with the definitions: https:// A type of encryption used to secure online transactions Credit card A card that allows you to borrow money Debit card Start of a secure URL PayPal Credit card validation code CCV Icon that shows a site is secure Verified by Visa Converting plain text into a non-readable form Encryption A scheme that uses an extra password to make online payments more secure Padlock A third party payment processor SSL A card that deducts money from your bank account