Electronic Payment

Amounts transferred through accounts Money transfer instructions Bank’s computer system Other banks / Businesses

Bank Computer System ETF Instruction Business Toys Max Inc. -$4000 Pay employees Employees´ Accounts +$2000 +$1000 +$1000 Toys Max Inc.

Banking services Withdrawing cash Depositing money Checking the balance of accounts Transferring money between accounts Paying bills

identifies a customer and their bank account inserted Smart card reader Magnetic strip reader read by ETF compatible

customer of Red Bank uses her debit card to withdraw cash from an ATM belonging to Blue Bank owed money by ETF instruction to transfer money from account to Blue Bank

Banks allow goods to be paid for electronically, using a system called Electronic Fund Transfer at Point-of- Sale (EFTPOS).

It is the place in a store where you pay for your purchases. It is usually where the till (cash register) is located. Method of inputting codes (bar-code scanner) to find info about goods System to accept EFTPOS System to update stock-level and automatically re-order goods Method producing receipts (small dot-matrix printer)

The Electronic Fund Transfer at Point-of- Sale system is used when paying with a bank card. The Electronic Fund Transfer at Point-of- Sale system is used when paying with a bank card Enter PIN Enter value of purchase Can account number afford $100?

access the customer’s record with account number and checks the balance Client affords $100 EFT message: transfer $100 from account to store’s account Account Store’s account - $100 +$100

8 8 Cashier returns credit card with receipt Smart cards with small amount of computer memory (chip) with the account information stored inside. Smart cards with small amount of computer memory (chip) with the account information stored inside. more secure (encrypted data) and more reliable than magnetic strip cards more secure (encrypted data) and more reliable than magnetic strip cards PIN (Personal Identification Number) as identity proof PIN (Personal Identification Number) as identity proof

Goods sold, POS system sends details of sale to stock-control system stock-control system updates stock-levels in the stock database for purchased goods If stock-level falls below a pre-set value, stock-control system sends order to suppliers Suppliers send a delivery to store Stock-control system updates stock-levels in stock database for the delivered goods

Increasing popularity Increasing popularity large retail businesses : large retail businesses : Customers purposes Convenience: browse goods from your home open 24 hours every day of the year wider range of choice limited mobility often cheaper than in stores Payment is simple using credit cards or services such as PayPal

Businesses’ purposes Lower costs since no expensive retail stores and less staff Lower costs = lower selling prices = higher sales = bigger profits more potential customers more potential customers PROBLEMSPROBLEMS cannot try items before purchasing (e.g. clothes) wait several days before receiving your goods Returning goods or getting help can be difficult security risk using credit cards online. The card details may be stolen and used to commit fraud.

designed to fool recipients into divulging personal data such as account numbers and passwords, credit card and Social Security numbers. technique used to gain personal information for purposes of identity theft using fraudulent messages that appear to come from legitimate businesses

shing Images from Google Images from Google