Online Payment And Security Of E Commerce Information Technology Essay

Online Payment And warrantor Of E Commerce Information applied science EssayWith the era of reading technological advancement, electronic work is gradu wholey leading the distribution of the business aras. Online electronic recompenses argon an grand part of e-commerce, and as well as the basis for electronic commerce which suitable to successfull develop. Without the corresponding real- age coordination of electronic give birthment, e-commerce is just only practical signifi tidy sumce of the virtual business, it tar imbibe non achieve a true electronic network proceedings.The reason that I remove this title as my seminar title is beca usage it related to my final year endure. As my final year project is regarding to online retribution method, so I would like to share about online payment method and the risk of online payment, what are the risk john be taken, what are the note to pr nonethelesst data lost, the security strategic to prevent near(prenominal) privac y or orphic expressation fraud, and what are the pros and cons about the online payment method.Online payment is the essence of e-commerce developing, is an of import step to complete the traffic on earnings, and in addition the bottleneck of the domestic network application development. Every firms or companies which run the business on mesh must volunteer the online payment method to importanttain their comp any(prenominal) flow.Introduction1.1 What is online payment?Online payment, overly known as electronic payment, it refers to the money which transfer electronicall(a)y. Broadly speaking, online payment refers to the movement convertd the funds on internet, typically involves data processor network, internet and digital entrepotd abide by dust. It makes e-payment whitethorn at any time, via the internet nowadays to the transfer, settlement, and forms of e-commerce environment.1.2 How online payment basic offshoot?Online payment may seem to be very easy and fast, but it consist of the confidential and security for the plug-in info. In order to make authorized that the process is work correctly, the merchant must connect to the network with the Issuing situate, processor, and others financial institution, so that the information that provided by the customer elicit be routed reliable and guarantee. As highly sensitive payment information, trust and confidence is an essential element of any payment deeds. This way that payment processing services should be provided by a wealth of experience in payment processing and security.1.3 What is electronic commerce?electronic commerce refers to the goods and services which exchange over the internet, communally known as e-commerce. All major retail organization also imbibe an online presence, however, e-commerce also utilize mingled with business to business (B2B) transactions. It can open to all interested parties, or even limited participants. For example like Amazon.com, the sell ing and buying transaction is terminate electronically and interactively in real-time. in like manner that, e-commerce administration also associated with the service industry, such as online banking, transfer funds, or even pay the conviction flier bill.1.4 Security of e-commerceAlong with the e-commerce continue to broaden, hold dearion of individual treatment over the internet, and make your customers recompensel secure is the primary factors and necessary. In order to perform a secure and good service, internet security plays an important role to be enhancing in this situation. The objective is to establish rules and measure to use against attacks over the Internet. Internet information exchange on behalf of the invasion led to unsafe or high risk of fraud.For any expert in internet security will tell, e-commerce is actually such(prenominal) more secure than real world commerce. For example like when you leaved your credit humour receipt in the shop, or accidentally g ive your credit card number to someone else, you are actually accepting the risk that the order which not order from you will appear on the next months credit card bill. However, when you enter a credit card number of e-commerce site, you are sent by dint of a secure connection to a server rile only to authorized personnel and protected against even the more or less determined intruders.Although some of the people believe that transactions over the internet are in fact safer than offline transactions, in that respect are dormant a number of people believe that offline transactions are always break than online payment. For example like protect the credit card detail, company desire to prevent the card info from customer or the privacy of the customer found by a thirdly party. Typically, this involves the company network security and how the company provide a strong and secure remains on the internet.2 Common Online Payment SystemsOnline payment system is to help the consume r more convenience and it is the key issue to insure that the consumer are fast and secure. There are several types of common online payment systems2.1 E-cash internet payment systemE-cash, also known as electronic cash or electronic money, it is a form of data which exchanged electronically through the network computer or internet, these is electronic cash currency. It can be converted to cash value of the family of cryptographic sequences, and then use these sequences to show the value of all sizes. There are few characteristic are as follows an adjudgement between the enterprises and banks and authorization, can be transfer, can be kept, used to exchanged value within another system.As e-cash is what we can imagine as cash Chinas purchase of menial general merchandise payment habits features, it is likely to fix an important means of online payment in China, but China has not officially started. There are many foreign companies to provide electronic cash market. If flatly an onymous electronic money digital cash net cash market can provide an anonymous e-money market.2.2 E-purse Internet Payment SystemE-purse, also known as electronic purse, it is a type of smart card which embedded with the microchip. To use e-purse shopping, the first is the substance ab exploiter must transfer certain measuring rod of personal bank study, then in the corresponding of website to exhaustload electronic wallet service system free software and install an electronic wallet, to apply online and access the cardholder electronic safety certificate. When users want to purchase something through the internet, just need to click on the electronic wallet icon, and follow the corresponding information that the user need to provided, such as password and user name to complete the transaction on the internet.E-purse would be more convenient and flexible compared with checks or debit card for a smaller transaction, it always used in conjunction with the bank card to help the use r complete all the small transaction process. E-purse is independent of the function of bank work outs, so it will be able to record the user as required payments are made in a checkbook greater privacy and freedom. In addition, e-purse even can provide budgeting because the user only can spend what the total amount that the card had.2.3 Electronic check (E_check) Internet Payment SystemElectronic check, also known as e-check, is a form of payment which transfers through the internet. It perform the kindred function as the newspaper check of using digital transmission to transfer money from one account to one account. Besides that, e-check provide better security features than the paper check because it is an electronic format and may proceeded in fewer steps to complete the transaction. Most common features provided byelectronic checks allow authentication, public key cryptography, digital signatures or personal identification numbers instead of signature and so on. Theres a si mple electronic check process shown below1. Send CheckPayeePayer2. Inspect Check5. Bill3. Notice4. Approve funds and transferPayee BankAccounting ServerElectronic Check-Cashing ProcessE-check is an exclusive network system, the international financial institutions, with their equipment, software and hardware, an accurate and complete set if user identification, the standard messaging, data validation and other convertible data transmission agreement to make sure that the transaction are safety and security.2.4 Digital Wallet Payment SystemA digital wallet, also known as e-wallet, it is a software system that store inside the users computer to hold the digital cash, and a digital certificate with a digital signature. E-wallet allows users to make payment or transaction over the internet fast and safety. The function of the e-wallet is some(prenominal) more like a physiological wallet, used to store the digital cash. After the e-cash service released, the e-wallet has evolved into a service to provide online shopping information and holds credit card data and passwords for logging into the website with a convenient way.An e-wallet mother both software and information component. The software provides the safety and security with the encryption for the actual transaction. Typically, e-wallet is store on customer side, so it is easier to self-maintenance and full compatible with most of the online payment system. In addition, the system will automatically key in the user information in the online form, it is easier for the user and reduce the time to enter all the information again and again. While for the server side, it is refers to an organization and your side to create and maintain on it server. Because of the security and the efficiency and effectiveness of the utility that provided by the server-side to the users, it move around more and more popular and famous for the user with the entire process.2.5 PayPal System ListenRead phoneticallyPayPal is an e -commerce business by allowing the user to make transaction or money transfers through the Internet. PayPal also known as electronic alternative, such as checks and money are orders with the traditional paper method. It doesnt charge any fees to make any transaction or join the PayPal service, but they will be a fees change for those who want to receive the money from other people.PayPal account from a bank account can be funded by electronic debit or credit card. To receive the transaction from other people, the recipient from PayPal can either request from the PayPal service, established their own PayPal account, or request from their bank account. PayPal service is such(prenominal) like a intermediaries or a third party who involve between the clients and the recipient that facilitates in e-commerce.PayPal involve in several payments processing such as, online auction, online vendors, and others commercial users. It will costs some fees from the recipient for receiving money, fe e included the percentage of the amount plus another additional amount. The fees is charged depend on the currency used, the option that choose by the user, the country of the vector and recipient (how far between both sender and recipient), the total amount sent by the sender and the type of account that the recipient receive it. In addition, shopping on eBay and then made the transaction by a credit card through PayPal may incur a foreign transaction fee if the seller is located in another country, as credit card issuers are automatically informed of the sellers country of origin.2.6 Critical Evaluation correspond to Singh Sumanjeet1 (2009, p.24), Electronic run down system has many advantages (1) they do not require consumers to reveal account information to other individuals when setting an auction (2) they do not require consumers to continually send sensitive financial information over the web (3) they are less expensive than credit cards and (4) they are much faster than pa per based traditional cheque. But, this system of payment also has several disadvantages. The disadvantage of electronic cheque system includes their relatively high rooted(p) costs, their limited use only in virtual world and the fact that they can protect the users anonymity. Therefore, it is not very suitable for the retail transactions by consumers, although usable for the government and B2B operations because the latter transactions do not require anonymity, and the amount of transactions is generally large enough to cover frozen processing cost.In my opinion, i strongly agree with the statement that the author mentioned about. Electronic cheque system provides several advantages than a paper based cheque such as faster speed transaction, provide a certain level of security like encryption or decryption, and so on. But there are still limits of disadvantages for electronic cheque system, like high fixed costs or development start-up costs. Besides that, electronic cheque sys tem can be used in virtual world instead of the real world payment method. And the most important point is the security issue, because the less of portray to face communication, we cant even know the actual user as well. The possibilities that someone is try to pretend as the actual user to make transaction with us and caused identity threat3. Strength and Weakness3.1 Advantages of Online PaymentOnline payment, what we called as online payment, is an indispensable business. This is extremely important to accept electronic payment of telecommunications service industry, because it started to use this fastly growing economy is fully utilized.Use of credit cards by phone or Internet is a familiar and convenient for consumers in the form of payment. It provides for immediate purchase to reduce the pain of payment delay coupling. Customers often feel more comfortable with a credit card, because they know they have the proof to the product or service if they not satisfy on it.There are several advantages of online payment (e-payment)3.1.1 Convenient and 24 hours real time transactionThrough the use of online payment system, consumer can access the web to make any transaction such as online banking, online billing or even car loan at any time (24 hours) or anywhere, as long as access to the internet. For example like consumer can check the bank details through their mobile phone no matter at where and anytime along with the network connection. In addition, consumer able to check or view the invoice of the previous transaction that they made or get the accurate real time information through online payment system. It may save up a lot of the paperwork as well.3.1.2 Reduce cost and save timeWith the help of online payment system, we only need to stay at home with just a click in front of the computer which connected to the network, and transaction will be done easily. Instead of go to the physical bank to make the transaction by writing the form and waiting in front of the antipathetic. It may save up a lot of cost like transportation fees, paper workflow fees and so on.Besides that, through online payment, the processing speed is definitely fast and rapid by following the simple instructions and entering the parameters that the system required. And user may not need to transport from one location to another, it may save up a lot of time. Compared with the real world physical offline banking system, it may spend a lot of time especially on peak season or peak hour.3.1.3 Flexible of using e-paymentAlong with the unvarying improvement of e-commerce, many organizations or firms not only focusing their business on offline operation, but managing their business workflow on internet. Nevertheless, e-payment, as what we called as online payment, had become an indispensable item for the entire progress of e-business. Nowadays, there are more and more online payment service provided which linked with the organization. It is more flexible to the consum er, they can choose which type of service that they want, for example like PayPal, e-cash or which bank they prefer such as maybank2u and so on.Besides that, majority of the online payment service are operation 24 hours, consumer can make the transaction anytime they like. In addition, they can reduce they pain of transport from one location to another and waiting in-front of the counter in the bank. Online payment service allow consumer to make any transaction on anytime or everywhere by accessing to the network. It is the flexibility of e-payment.3.1.4 Benefit between consumer and organizationWith the help of online payment, consumer and organization are benefiting in other ways like the consumer and organization are able to negotiate arrangements for the true value, and strengthen the relationship of their business.Besides that, consumer can skip many steps or documentation for the transaction. It may easier for them to control over the timing of payment steps, and minimize the o peration of the idle account balance. Consumer can eliminate the delay for the processing of transaction. For organization, they can reduce the cost of processing the paper cheque. Yet when the organizations process the paper cheque that paid from consumers, they need to spend some cost to process the paper cheque.With the help of online payment, the organization may have the advantages as well by encouraging the consumer to pay electronically instead of pay by a paper cheque. In addition, they can receive the payment immediately without any delay, because the receipt is available immediately by and by consumer had made the payment.3.1.5 Others common benefitsBelow are some of the common benefits for online payment method.Personal securityWe do not need to hold so much money along with us on our premises, or even on the outside, and lead to more safety and securityUsed internationallyOnline payment is a common method that can be used internationally, it is important for the tourist - orbit businesses or those organization who running their business or selling their goods overseas.Reaching a wider customer baseSome of the organizations accept the online payment method like phone delivery or mail ordering for online customers it is easier for those customers who are lack of transportation or not able to reach your premises.Increase the sale opportunitiesFor some customer willing to buy the goods from the offline business shop, the may having the problem that insufficient fund, they have to leaves to get cash, it may cause them not return to the shop again.With the help of online payment from ecommerce sector, customer can buy the goods from internet as long as the computer or devices are connected to the internet. This may lead to sale increasing.3.2 Disadvantages of Online PaymentThe transaction over the internet or the transfer of fund on internet through the electronic media is known as electronic payment, as what we called as online payment. Nowadays, online payment is a daily activity for most of the business organization. It is very common and convenient for the online transaction for those organizations focus their business over web to interact with their consumers or business partners.In fact, there are still weaknesses of the online payment that we cannot snub it. One of the ways is to be aware the raised awareness of privacy and security issues from the electronic online payment system. Consumers have to bear the risk such as fraud or identity threat that involved in the online transaction.There are several disadvantages of online payment (e-payment)3.2.1 Privacy security concerns.In the e-commerce world, most of the online banking systems, also known as online transaction site, require the user to register as their own member with some simple input or instruction to begin with giving the authorization for them to make the transaction. While the registration process, user need to provide the username and password, all these inf ormation implies the need of privacy protection and security. In addition, user need to maintain their account, it may be a trouble for the user.For those organizations site that hosting the user account, they should follow the strict of security and privacy policies. It is very important for those organizations to protect the privacy of the user details and prevent the information macrocosm hacked by the hacker. If the username or password is susceptible to being hacked, it maybe will cause the user a serious financial loss problem from the end. All these are a potential rick of the privacy or the personal detail being hacked while using the online payment system.3.2.2 Identity theftAnother disadvantage of using online payment is identity theft. Using the right security measure can prevent your important information being exposed by the third party. Besides that, using virus protection or firewall may very useful to protect your computer. It might a risk that you make any transact ion through internet from your computer.Another example like if you losing your smart card, unfortunately the card is fall in unsafe of persons hand. There is a very serious or dangerous expenditure of your entire account balance. Though you will inform the authorities on cards loss, when the time between you losing your card and informing to the authorities, the third party (unsafe person) may transfer all your money out through your card details via internet.3.2.3 Dependency of online payment systemAlong with the information technology, many organizations or firms are running their business over the internet and provide several utilities as long as online transaction. In fact, this method is indirectly effect consumers become more and more dependent on online transaction, because it speed and rapid transaction, availability 24 hours as long as connected to the internet at home or even a mobile devices.However, there still can be disadvantages for over dependent of online transacti on. For example like if the email does not send to the right destination or not working well, the sender may not know the sending error or does the email has reach the destination or not. Or like for those consumers may want to pay the bill or loan over the internet instead of the traditional ways. There might be a possibility that the online payment system down or not function well from the server side, and worst there was a way for the consumer to meet the dead line.3.2.4 Loss clement touchIn the physical bank, some of the customer may like to talk and relegate with the bank tellers, interacting with the bank manager or even the bank clients. But in the online virtual world, online banking system had taken off of these human interactions, all these are done by a system program, impersonal hand-off process.Due to the lack of the human interaction for online payment system, some of the customer my not know about the fellowship of online payment system. These required a basic comp uter skill and the knowledge about internet before using the online payment system. In addition, for some of the small online banking system, they may not provide any instruction or any guideline to lead the user in the correct way. It will caused the users entering the wrong information or incorrect bank details through the online payment system.3.2.5 High cost development for internet payment gatewayThe major disadvantage for online payment method is the high cost for internet payment gateway. For those organizations or firms are running their business over the internet, the have to create an internet payment gateway or a system in-house is definitely high development cost. For those non IT companies, it is hard and difficult for them to create a system for their own. Because it wasnt their core business, and they had to use the resource from inside the company with a little or even slide fastener of IT knowledge to build it up. Therefore, the company have to outsource from outsi de to help them develop a new online payment gateway for them.3.2.6 Others LimitationOthers common terminus ad quem of the online payment methodMay be difficult to inspect from a remote locationLimited of countries cultural and legal obstaclesThe rapid changing of technologies steadfastly to retaining the employeeGovernment regulatorsDifficult to integrate the software of transaction process and the current existing database.3.3 Critical EvaluationBased on Olga Lutik (2009, p.15-16) The main benefit from the bank customers point of view is significant saving of time by the automation of banking services processing and introduction of an easy maintenance tools for managing customers money. reclusive customers seek slightly different kind of benefits from e-banking. In the study on online banking drivers Aladwani (2001) has found, that providing faster, easier and more reliable services to customers were amongst the top drivers of e-banking development.In my opinion, I definitely ag ree with the above statement that stated by author (Olga Lutik). Online payment may help to reduce costs and convenience user may stay at home to performed transaction at any time as long as connected with the network. It is fast and provides funds management, which allow user to download the history of the transaction that that had made.4 Ecommerce Security ElementsIn the use of ecommerce, there are several factors that need to involved are the confidentiality and privacy of the transaction need to be care between the sender and the recipient. The transaction or trading from ecommerce is directly represents to the individual, organization, or business competitor secrets. Therefore, to prevent any confidential data lost from ecommerce application, we have to make sure that the users are legitimate to access the system, and the authentication to filter which date should be show or which should not be show to the finical user.4.1 The Integrity of the informationDue to the accident or fraud of data entry, the information of the data may result in different way. In addition, the wrong of data or information will result the duplication of transmission in different sector of the process. Therefore, the trade sector will affect the integrity of the information from the parties that involved in the transaction and the entire of the business workflow.4.2 The validity of the informationIn e-commerce world, the validity of information to individuals, organizations or even the countries are directly affected to the economic interests and reputation. Besides that, the validity of the number of time and the transaction price are very important. It is to make sure that the recipient received the data from the primary side. While for the primary side also have to make sure that the data are sent to that particular person.4.3 The Non-repudiation of the informationNon-repudiation is refers to something like document or contract that cannot simply denied by the origin party. Ty pically, non-repudiation is to ensure that the contract or one party cannot deny that they communicate to sign the document or the authenticity of a message. For example like legal documents usually need a witness person to sign it, it is to ensure that the person cannot deny the document.4.4 The Authenticity of the transaction statusOnline transaction are geographical distant, we couldnt know each other or even an organization. Organization, businessmen, client or even consumer on internet may need to consider whether the transactions between both parties are sure. To make the transaction success, mutual understanding and trusted with each other is very important.However, there are too many hacker or scammer in the virtual world, is hard to 100% fully trusted on the online transaction or even the in the virtual organizations.4.5 The reliability of the systemIn e-environment, the most important point for the reliability of the system is to protect the confidentiality with a powerfu l security system. In addition, it is to prevent hacker hack into the system and steal the sensitive information from the system. Computer errors such as system failure, software down, virus detected, network connection down or natural disasters may result from potential threat.Therefore, prevention of the system in a good way is to ensure that the systems are security and reliability. It will affect the business workflow in the future if the reliability of the system is not fully secure.4.6 Critical EvaluationAccording to Yang Jing (2009, p.48), Using the network for the transaction, the sender and recipient need to ensure the confidentiality of information exchanged. E-commerce as a means of trading, its message directly represents individuals, corporations or commercial secrets and the e-commerce system is based on a more open network environment promote the application of ecommerce to maintain commercial confidentiality is an important guarantee. Therefore, in order to prevent a large number of transmissions was illegal to steal information to ensure that only legitimate users will be able to see the data. Information can prevent stolen.In my opinion, I absolutely agree with the statement that the author status above. To prevent the information lost, we have to protect it before happen. The integrity of information, the validity of information, the non-repudiation of information, The Authenticity of the Transaction Status, and The Reliability of the System, all these are the important elements which listed by the Author (Yang Jing) to prevent information lost. In fact, I believe that there are still a number of elements for information prevention which I never mentioned on top.5 Strategic of E-commerce SecurityAs e-commerce security cause by many factors such as fraud, identity theft, or confidential data being steal by the hacker, all these are the problem that we might face it when in the online virtual world. So, a strategic planning for ecommerce is ve ry important, all the strategic that came out should be line with the general of the ecommerce business management. It must provide a very powerful protection for all the ecommerce confidential data and allow them to recover as fast as possible if any incident happen. To prevent the security problem happen, a set of variety measurement must be included5.1 Security schemeIn order to ensure secure communications between both parties on internet, we must take the necessary measures to prevent them. For communication link purpose, we can use firewall or Virtual Private Network (VPN) to make the communication more safety and secure. And consumer must be very careful on some of the untrusted Proxy server. It is act like an intermediary for seeking the information, resource, or link that requested by the client. If the consumer are using the untrusted proxy server, all the data that the client provided may not be encrypted and sent to the proxy server, and proxy server may record down ev erything sent from the client, including the login and password.For identification and authentication purpose, encrypted or chop function may be very useful in this situation. In ecommerce, login is a very common and the first step for the consumer before they move on the transaction step. To login to the system, the system needs to identify the user name and password before provide the authentication to the user. With the help of encryption, user password have more secure which showing the password in * symbol. Besides the encryption, hash function is a way to convert your password into others form and store in the s