Chapter 9: Payment System for Electronic Commerce

电子商务概论（双语）教研组 Summary  In last lecture, you learned about  1 、 Online Banking Industry  2 、 Payment Cards  3 、 Online Payment Basics （ 1 ） Stored-Value Cards Electronic Wallets

电子商务概论（双语）教研组 Contents Electronic Check Electronic Cash Credit card Online Payment Basics

电子商务概论（双语）教研组 Contents Electronic Check Electronic Cash Credit card Online Payment Basics

电子商务概论（双语）教研组 I. Credit Cards  A credit card refers to commercial banks or other financial institutions have issued payment cards, all or some functions of credit card included consume payment( 消费 支付 ), credit savings ( 信用贷款 ) and loans, transfer balance( 转账结算 ), access to cash( 存取现金 ) and so on.

电子商务概论（双语）教研组 I. Credit Cards  Credit Card  Quasi Credit Card  Debit Card

电子商务概论（双语）教研组 123 I. Credit Cards -> Models Third-Party 通过第三方 代理的信用 卡支付 Encrypted 简单加密信 用卡支付 SET Protocol 基于 SET 的 信用卡支付

电子商务概论（双语）教研组 1 23 I. Credit Cards -> Models Third-Party 通过第三方 代理的信用 卡支付 Encrypted 简单加密信 用卡支付 SET Protocol 基于 SET 的 信用卡支付

电子商务概论（双语）教研组 7.Credit Card Info. Confirm Payment 1.Credit Card Info. 1. Third-Party Card Holder Merchant Third-Party Bank 2.Account 5.Authorization 3. Purchase Order and Account 6.Confirm Order Figure 1: Contract with a third-part to handle credit card payment processing 4.Account

电子商务概论（双语）教研组 1. Third-Party  Advantage a. Non- encrypted 、 Low transaction cost b. Providing security  Disadvantage a. Register both buyer and vendor b. Account within third-party stolen possibly

电子商务概论（双语）教研组 123 I. Credit Cards -> Models Third-Party 通过第三方 代理的信用 卡支付 Encrypted 简单加密信 用卡支付 SET Protocol 基于 SET 的 信用卡支付

电子商务概论（双语）教研组 I. Credit Cards -> Models Third-Party 通过第三方 代理的信用 卡支付 Encrypted 简单加密信 用卡支付 SET Protocol 基于 SET 的 信用卡支付

电子商务概论（双语）教研组 2. Encrypted Merchant Buyer Third-Party Merchant’s Bank Issuing Bank 2. Encrypted Credit Card Info. 4.Request for verifying Credit Card Info. Figure 2: Simple encrypted credit card payment processing 1.Encrypted Credit Card Info. And Purchase Order 8. Purchase Info. 7. Confirm Info. 3. Decrypted Credit Card Info. 5.Authorization 6. Confirm Info.

电子商务概论（双语）教研组 2. Encrypted  Advantage a. Providing more security  Disadvantage a. High transaction cost

电子商务概论（双语）教研组 123 I. Credit Cards -> Models Third-Party 通过第三方 代理的信用 卡支付 Encrypted 简单加密信 用卡支付 SET Protocol 基于 SET 的 信用卡支付

电子商务概论（双语）教研组 12 3 I. Credit Cards -> Models Third-Party 通过第三方 代理的信用 卡支付 Encrypted 简单加密信 用卡支付 SET Protocol 基于 SET 的 信用卡支付

电子商务概论（双语）教研组 3. SET Protocol Acquiring Bank Issuing Bank Payment Gateway Certificate Authority Figure 3: Credit card payment processing based on SET Protocol Card Holder Online Merchant 6.Confirm 2.verify 1.Order 5.Confirm 4.Approve 3.verify Certificate

电子商务概论（双语）教研组 3. SET Protocol  Advantage a. Ensure transmission of data is not stolen by hackers b. Order information and individual account information isolation c. Different manufacturer of software development is compatible and interoperability function

电子商务概论（双语）教研组 3. SET Protocol  Disadvantage a. The processing speed of payment gateway is fail-soft b. High transaction cost c. Pay rise to delay d. Pay for tracking, sense of insecurity to user

电子商务概论（双语）教研组 Contents Electronic Check Electronic Cash Credit card Online Payment Basics

电子商务概论（双语）教研组 Contents Electronic Check Electronic Cash Credit card Online Payment Basics

电子商务概论（双语）教研组 II. Electronic Cash -> Definition  Electronic cash (also known as electronic money, electronic currency, digital money, digital cash or digital currency) refers to Data representing money, which data can be transferred by means of a computer network and can be traded as a token exchangeable for real money.

电子商务概论（双语）教研组 II. Electronic Cash Buyer Bank Vendor Date- base of E-cash 1.Opens an account with an E-cash issuer 2.Account 3.Establish credit and deposit 4.Gives a specific amount of E-cash 7. Check Figure 4: Process a Electronic Cash Transaction 9.Confirm Info. 5.Order and Encrypt- ed E-cash 6.Encrypted E-cash 8.Confirm -> Processing

电子商务概论（双语）教研组 II. Electronic Cash -> Characteristics a. Virtuality b. Safety c. Storability d. Repeatability

电子商务概论（双语）教研组 II. Electronic Cash -> Advantage a. Anonymous b. Do not follow c. Save transaction costs d. Save transfer fee e. Holding low risk f. Prevent forgery

电子商务概论（双语）教研组 II. Electronic Cash -> Disadvantage a. Depends on bank's private-key security b. Suitable for small transactions

电子商务概论（双语）教研组 Contents Electronic Check Electronic Cash Credit card Online Payment Basics

电子商务概论（双语）教研组 Contents Electronic Check Electronic Cash Credit card Online Payment Basics

电子商务概论（双语）教研组 III. Electronic Check -> Definition  An electronic version of the traditional paper check. It includes all the components of a paper check and can be used as a method of payment on the Internet.

电子商务概论（双语）教研组 III. Electronic Check Bank 2.E-check 3.Order and check 4.Varify 5.Confirm 7.Deposits the check in the vendor’s bank Figure 5: Check payment processing Vendor Buyer 1.Registration 6.Confirm -> Processing