1. Payments Compare different payment systems

2. Payment systems In the early days of e-commerce, on line transactions were not possible. Customers could pay by a cheque sent in the post, but this could mean a long delay waiting for the cheque to be delivered and then to be cleared by the banks before the goods would be dispatched. The other method was credit card, but this would involve either telephoning or emailing the credit card details. Customers were worried about sending their financial details by email, especially as security was not as good then as it is now. Credit card details would be split over several emails, but if one email was not received or arrived in the wrong order, the payment would not go through.

3. Nowadays, there are several instantaneous payment systems available. Improved technology, such as SSL and HTIPS (see page 245), has also allowed websites to provide better security to reassure customers. Electronic cheques work in a similar way to paper cheques, although they are instigated digitally. The customer asks their bank to make a payment to a creditor or vendor and the bank can either pay this immediately, if they can accept electronic payment, or produce a paper cheque for the company if they cannot. When taking payment from a credit card, businesses are protected because the bank will provide the money and invoice the customer. So, the business will always be paid with this type of transaction, whether or not the customer can pay their credit card bill. However, as e-commerce becomes more popular and there are more potential customers, businesses have to accept more payment methods, such as debit cards, as not everyone has a credit card. lt must be remembered that this is an area where some customers are worried about the safety of their personal financial details and the possibility of someone else being able to access their account and steal their money.

4. Activity 1 Look at several e-commerce sites. What payment methods does each take? Present your findings in a table. 2 Is there a correlation between the size or type of a website and the amount of payment methods it takes? Present your findings graphically.

5. There has recently been an upsurge in digital methods of payment. PayPal is currently the most popular. A user 'uploads' money into the PayPal account from a bank account using a digital transfer. That money can then be used to make a safe, instant payment. A number of customers feel happier using this method, as they are not inputting their bank card details into a variety of websites, just the PayPal site. Another similar method available in the UK is NoChex. However, unlike PayPal, NoChex only accepts bank accounts with debit cards.

6. When making payments on line, several details from a card are necessary, including the CV2 security number from the back, which was originally introduced just for e-commerce transactions. Splash Plastic was devised by PrePay Technologies Ltd, a UK company. This card can be 'loaded' with money at shops such as the Co-op, Post Offices or straight from a bank account. lt can then be used instead of a credit or debit card to make online purchases. As this payment method became more popular, in March 2006, a new card was introduced called 360money Splash Plastic. This new card has the Maestro® symbol, which means it is accepted in more places. Lt is available for people aged ten and older (parental consent is needed for under-fourteens) and it can be loaded with a maximum of £1000.

7. Activity For task 2 of your assignment you are producing a leaflet from the customers point of view for e-commerce. Ensure that you have addressed the following points within your flyer: 1 a Describe the benefits of shopping on line, from the customer's perspective. 1 b Describe the drawbacks of shopping online, from the customer's perspective. 1 c Explain the issues of the social div1de in relation to e-commerce. 2 Select several different payment systems and compare them objectively, their good and not so good points, from the customer's perspective.