payment systems

four ways to pay online:

- credit/debit cards

- online bank transfer

- third party payment processors

- online coupons and online gift vouchers/evouchers

DEBIT CARDS- let the customer pay by taking money directly out of their account

CREDIT CARDS- allow the customer to borrow the money, it gets paid off at a later date usually with interest/

when paying online you give the following details

- card number

-cardholders name

- expiry date of the card

- credit card verification (CCV code) (last three numbers on the signature ***** of the card)

customers can make online accounts directly from account to account as long as they know the bank account details of the organisation they are paying/

online banks keep customers safe from online fraud by:

- checking bank accounts to ensure there is no unusual activity

- providing secure encrypted web services

- using login protection schemes such as PINsentry

many online shops now ofer 'online' gift Evouchers or 'money off' coupons. these can be sent to people electronically by email or printed out and sent via post

THIRD PARTY PAYMENT PROCESSORS

1- the buyers creates a third party payment processor accounts which includes details of their credit/debit card, information is NEVER shared with retailers

2- the buyers pays the third party who holds the money until payment is authorised

3- once payment is authorised the third party transfers it to the seller

ADVANTAGES OF THIRD PARTY PAYMENT PROCESSORS

- sellers do not need to offer a secure site

-buyers are not exposed to fraud

many online shops now ofer 'online' gift Evouchers or 'money off' coupons. these can be sent to people electronically by email or printed out and sent via post

THIRD PARTY PAYMENT PROCESSORS

1- the buyers creates a third party payment processor accounts which includes details of their credit/debit card, information is NEVER shared with retailers

2- the buyers pays the third party who holds the money until payment is authorised

3- once payment is authorised the third party transfers it to the seller

ADVANTAGES OF THIRD PARTY PAYMENT PROCESSORS

- sellers do not need to offer a secure site

-buyers are not exposed to fraud

near field communication (NFC)=  a contactless payment service. it allows devices to communicate when close together. they can be used to make payments NFC technology is now being intergrated into mobile phones too.

ADVANTAGES:

- good security because of short transmission range

- losing an NFC card only loses the credit in the account

- convenience of not having to enter payment details repeatedly

DISADVATAGES:

- can only pay for small amounts

- need to protect against accidental payments

- if the NFC card is lost anyone can use the credit on it