1、河北工业大学河北工业大学 经济管理学院经济管理学院 耿立校耿立校F-1耿立校 Email:河北工业大学河北工业大学 经济管理学院经济管理学院 耿立校耿立校F-2Learning Objectives The basic functions of online payment systems How payment cards are used in electronic commerce About the history and future of electronic cash How digital wallets work What stored-value cards are and
2、 how they are used in E-Commerce How the banking industry uses Internet technologies河北工业大学河北工业大学 经济管理学院经济管理学院 耿立校耿立校F-3Key Items Acquirer fees Acquiring bank Anonymous electronic cash Automated Clearing House(ACH)Back-end processor Card code verification(CCV)Card not present transaction Card securit
3、y code(CSC)Card verification code(CVC)Card verification data(CVD)Card verification number(CVN)Card verification value(CVV or CV2)Card verification value code(CVVC)河北工业大学河北工业大学 经济管理学院经济管理学院 耿立校耿立校F-4Key Items Casher Charge card Chargeback Check 21 Client-side digital wallet Closed loop system Collect
4、or Credit card Credit card association Customer issuing bank(issuing bank)Debit card Digital wallet(electronic wallet,e-wallet)Double spending 河北工业大学河北工业大学 经济管理学院经济管理学院 耿立校耿立校F-5Key Items Due diligence Electronic cash Electronic funds transfer at point of sale(EFTPOS)cards Electronic wallet(e-wallet
5、)Front-end processor Gift cards Identity theft Interchange fees Interchange network Interoperable software Issuing bank Merchant account Micropayments Money laundering Near field communication(NFC)河北工业大学河北工业大学 经济管理学院经济管理学院 耿立校耿立校F-6Key Items Open loop system Organized crime Payment card Payment gate
6、way Payment processing service provider Payment processor Pharming attack Prepaid cards Racketeering Server-side digital wallet Single-use card Small payments Smart card河北工业大学河北工业大学 经济管理学院经济管理学院 耿立校耿立校F-7Key Items Spear phishing Store charge card(store-branded card)Stored-value card Verification cod
7、e(V-Code or V Code)Zombie farm河北工业大学河北工业大学 经济管理学院经济管理学院 耿立校耿立校F-87.1 Online Payment Basics7.2 Payment Cards7.3 Electronic Cash7.4 Digital Wallets7.5 Stored-Value Cards7.6 Internet Technologies and the Banking Industry河北工业大学河北工业大学 经济管理学院经济管理学院 耿立校耿立校F-97.1.1 Micropayments and Small Payments7.1.2 Onli
8、ne Payment Methods河北工业大学河北工业大学 经济管理学院经济管理学院 耿立校耿立校F-10 Online payments Important electronic commerce site function Several online payment options available Vary in size and processing method河北工业大学河北工业大学 经济管理学院经济管理学院 耿立校耿立校F-11 Micropayments Internet payments for items costing few cents to a dollar S
9、mall payments All payments of less than$10河北工业大学河北工业大学 经济管理学院经济管理学院 耿立校耿立校F-12 Four ways to purchase items(traditional and electronic)Cash,checks,credit cards,debit cards 90%of all United States consumer payments Electronic transfer:small but growing segment Popular example:automated payments Credit
10、 and debit cards Worldwide:85%of online payments Remainder of payments primarily PayPal河北工业大学河北工业大学 经济管理学院经济管理学院 耿立校耿立校F-13 Online payment systems Still evolving Cheaper than mailing paper checks Convenient for customers Save companies money Costs per bill Billing by mail:between$1.00 and$1.50 Inter
11、net billing and payment costs:50 cents经济意义：每张账单节约5分钱，如果有500万客户，则每年6000万账单，就是300万元。环保意义：6000万账单重量约是85万公斤，需要2200棵树，还不算造纸过程中消耗的能源及产生的污染。河北工业大学河北工业大学 经济管理学院经济管理学院 耿立校耿立校F-14 Online business payment requirements Safe,convenient,widely accepted The key Which choices work the best for the company and its c
12、ustomers Four different payment technologies introduced in this chapter Payment cards,electronic cash,electronic wallets,and smart cards河北工业大学河北工业大学 经济管理学院经济管理学院 耿立校耿立校F-157.1 Online Payment Basics7.2 Payment Cards7.3 Electronic Cash7.4 Digital Wallets7.5 Stored-Value Cards7.6 Internet Technologies
13、and the Banking Industry河北工业大学河北工业大学 经济管理学院经济管理学院 耿立校耿立校F-167.2.1 Advantages and Disadvantages of Payment Cards7.2.2 Payment Acceptance and Processing河北工业大学河北工业大学 经济管理学院经济管理学院 耿立校耿立校F-17 Payment card 结算卡 Describes all types of plastic cards used to make purchases Categories:credit cards,debit cards,
14、charge cards,prepaid card,and gift cards河北工业大学河北工业大学 经济管理学院经济管理学院 耿立校耿立校F-18 Credit card信用卡 Spending limit based on users credit history Pay off entire credit card balance May pay minimum amount Card issuers charge unpaid balance interest Widely accepted河北工业大学河北工业大学 经济管理学院经济管理学院 耿立校耿立校F-192011年中国信用卡
15、使用情况如何？在亚太地区中最高的是韩国信用卡使用率，目前保持在68%。接近排名第一的英国（70%）。也超过美国（65%），中国香港（58%）、新加坡（44%）和中国台湾（36%）。河北工业大学河北工业大学 经济管理学院经济管理学院 耿立校耿立校F-202012年中国信用卡使用情况如何？信用卡累计发放量3.3亿。市场份额：工商银行21%，招商银行：12%，建设银行11%，农业银行10%，中国银行10%收费和服务：年费工商银行50，其他银行80-100。除工商银行外，其他银行都是全额罚息。信用卡消费：最常用的招行的卡，其次建行、交行、工行 招行服务最好，其次民生、中信、中兴，南京银行最差河北工业大
16、学河北工业大学 经济管理学院经济管理学院 耿立校耿立校F-212012年中国信用卡使用情况如何？河北工业大学河北工业大学 经济管理学院经济管理学院 耿立校耿立校F-22 Debit card 借记卡 Removes sales amount from cardholders bank account Transfers sales amount to sellers bank account Charge card 签帐卡 No spending limit Entire amount due at end of billing period No line of credit or inte
17、rest charges Retailers may offer their own charge cards（特约用户）河北工业大学河北工业大学 经济管理学院经济管理学院 耿立校耿立校F-23 Prepaid cards Cards that can be redeemed by anyone for future purchase Gift cards:prepaid cards sold to be given as gift Single-use cards Cards with disposable numbers Addresses concern of giving online
18、 vendors payment card numbers Valid for one transaction only Designed to prevent unscrupulous vendor fraud Withdrawn from market due to lack of consumer use河北工业大学河北工业大学 经济管理学院经济管理学院 耿立校耿立校F-24 Advantage for merchants Fraud protection Can authenticate and authorize purchases using a payment card proc
19、essing network Advantage for U.S.consumers Liability of fraudulent card use:$50 Frequently waived if card stolen Greatest advantage Worldwide acceptance Currency conversion handled by card issuer河北工业大学河北工业大学 经济管理学院经济管理学院 耿立校耿立校F-25 Disadvantage for merchants Per-transaction fees,monthly processing f
20、ees Viewed as cost of doing business Goods and services prices:slightly higher Compared to environment free of payment cards Disadvantage for consumers Annual fee河北工业大学河北工业大学 经济管理学院经济管理学院 耿立校耿立校F-26 Processing payment card transaction online Payment acceptance Establish card validity Verify cards li
21、mit not exceeded by transaction Clearing the transaction All steps to move funds from card holders bank account into merchants bank account河北工业大学河北工业大学 经济管理学院经济管理学院 耿立校耿立校F-27 Open and closed loop systems Closed loop systems Card issuer pays merchant directly Does not use intermediaryFIGURE 11-2 Clo
22、sed loop payment card system河北工业大学河北工业大学 经济管理学院经济管理学院 耿立校耿立校F-28 Open and closed loop systems Open loop systems(three or more parties)Third party(intermediary bank)processes transaction Customer issuing banks:banks issuing cardsFIGURE 11-3 Open loop payment card system河北工业大学河北工业大学 经济管理学院经济管理学院 耿立校耿立
23、校F-29 Merchant accounts Merchant bank(acquiring bank)商业银行 Does business with Internet and non-Internet sellers Bank wanting to accept payment cards Merchant account 商业账户required to process Internet transactions payment cards Obtaining account Merchant provides business information Bank assesses busi
24、ness type risk Bank assesses percentage of sales likely to be contested河北工业大学河北工业大学 经济管理学院经济管理学院 耿立校耿立校F-30 Processing payment card transactions Most online merchants have internal systems:Handling closed loop and open loop system cards Some accept direct deductions from customers checking account A
25、utomated Clearing House(ACH):network of banks involved in direct deduction transactions Business size considerations Large:entire department to build/maintain systems Mid-size:purchased software with skilled staff to manage system Small:rely on service provider河北工业大学河北工业大学 经济管理学院经济管理学院 耿立校耿立校F-31 Pr
26、ocessing payment cards onlineFIGURE 7-3 Processing a payment card transaction河北工业大学河北工业大学 经济管理学院经济管理学院 耿立校耿立校F-327.1 Online Payment Basics7.2 Payment Cards7.3 Electronic Cash7.4 Digital Wallets7.5 Stored-Value Cards7.6 Internet Technologies and the Banking Industry河北工业大学河北工业大学 经济管理学院经济管理学院 耿立校耿立校F-3
27、37.3.1 Privacy and Security of Electronic Cash7.3.2 Holding Electronic Cash:Online and Offline Cash7.3.3 Advantages and Disadvantages of Electronic Cash河北工业大学河北工业大学 经济管理学院经济管理学院 耿立校耿立校F-34 Electronic cash(e-cash,digital cash)Describes any value storage and exchange system created by private(nongover
28、nmental)entity Does not use paper documents or coins Can serve as substitute for government-issued physical currency Potential market Purchases below$10 Majority of worlds population who do not have credit cards河北工业大学河北工业大学 经济管理学院经济管理学院 耿立校耿立校F-35 Electronic payment method concerns Privacy and secur
29、ity,independence,portability,convenience Vulnerable transactions Electronic currency:copied,reused,forged Important characteristics of electronic cash Ability to spend only once Anonymous use Convenience河北工业大学河北工业大学 经济管理学院经济管理学院 耿立校耿立校F-36 Online cash storage Consumer has no personal possession of e
30、lectronic cash Trusted third party(online bank)involved in all transfers,holds consumers cash accounts Online system payment Merchants contact consumers bank Helps prevent fraud(confirm valid cash)Resembles process of checking with consumers bank to ensure valid credit card and matching name河北工业大学河北
31、工业大学 经济管理学院经济管理学院 耿立校耿立校F-37 Offline cash storage Virtual equivalent of money kept in a wallet Customer holds it No third party involved in transaction Protection against fraud concern Hardware or software safeguards needed Double-spending Spending electronic cash twice Submit same electronic curren
32、cy to two different vendors Not enough time to prevent fraudulent act河北工业大学河北工业大学 经济管理学院经济管理学院 耿立校耿立校F-38 Traditional brick-and-mortar billing methods Costly and inefficient Advantages of electronic cash transactions More efficient(less costly)Efficiency fosters more business(lower prices)Occurs on
33、existing infrastructure(Internet)Does not require one party to obtain authorization河北工业大学河北工业大学 经济管理学院经济管理学院 耿立校耿立校F-39 Disadvantages of electronic cash transactions No audit trail Money laundering Technique criminals use to convert money illegally obtained into spendable cash Purchase goods,service
34、s with ill-gotten electronic cash Goods sold for physical cash on open market河北工业大学河北工业大学 经济管理学院经济管理学院 耿立校耿立校F-407.1 Online Payment Basics7.2 Payment Cards7.3 Electronic Cash7.4 Digital Wallets7.5 Stored-Value Cards7.6 Internet Technologies and the Banking Industry河北工业大学河北工业大学 经济管理学院经济管理学院 耿立校耿立校F-4
35、17.4.1 Software-Only Digital Wallets7.4.2 Hardware-Based Digital Wallets河北工业大学河北工业大学 经济管理学院经济管理学院 耿立校耿立校F-42 Digital wallet(Electronic wallet or e-wallet)电子钱包 Holds credit card numbers,electronic cash,owner identification,owner contact information Provides information at electronic commerce site che
36、ckout counter Benefit:consumer enters information once More efficient shopping Digital wallet technology elements System:infrastructure for identification Application:software for user interaction Device:applicable if a specific device is used河北工业大学河北工业大学 经济管理学院经济管理学院 耿立校耿立校F-43河北工业大学河北工业大学 经济管理学院经济
37、管理学院 耿立校耿立校F-44 Server-side digital wallet Stores customers information on remote server of merchant or wallet publisher No download time or installation on users computer Main weakness Security breach can reveal thousands of users personal information to unauthorized parties 河北工业大学河北工业大学 经济管理学院经济管理
38、学院 耿立校耿立校F-45 Client-side digital wallet Stores information on consumers computer Disadvantages Not portable:must download wallet software onto every computer Advantage Sensitive information stored on users computer河北工业大学河北工业大学 经济管理学院经济管理学院 耿立校耿立校F-46 Server-side digital wallet examples:Microsoft Wi
39、ndows Live ID Yahoo!Wallet Software-based digital wallet Automatically fills online forms Accepted by large number of merchants河北工业大学河北工业大学 经济管理学院经济管理学院 耿立校耿立校F-47 Implemented using smart phones Store owners identity credentials(drivers license,medical insurance card,store loyalty cards,etc.)Transmi
40、t portions of identify information using:Bluetooth or wireless transmission to nearby terminal Near field communication(NFC)technology:contactless wireless transmission of data over short distances Google Wallet河北工业大学河北工业大学 经济管理学院经济管理学院 耿立校耿立校F-487.1 Online Payment Basics7.2 Payment Cards7.3 Electro
41、nic Cash7.4 Digital Wallets7.5 Stored-Value Cards7.6 Internet Technologies and the Banking Industry河北工业大学河北工业大学 经济管理学院经济管理学院 耿立校耿立校F-497.5.1 Magnetic Strip Cards7.5.2 Smart Cards河北工业大学河北工业大学 经济管理学院经济管理学院 耿立校耿立校F-50 Smart card 智能卡or magnetic strip plastic card 磁卡 Records currency balance Example：图书证、
42、身份证、饭卡、电话卡和公交卡 Smart card versus magnetic strip Smart card stores more information Tiny microchip computer processor Performs calculations and storage operations on card Different microchip card reader needed“Stored-value card”and“smart card”used interchangeably河北工业大学河北工业大学 经济管理学院经济管理学院 耿立校耿立校F-51 H
43、olds rechargeable value Passive magnetic strip cards cannot:Send or receive information Increment or decrement cash value stored Processing done on device into which card inserted河北工业大学河北工业大学 经济管理学院经济管理学院 耿立校耿立校F-52 Smart card(Stored-value card)储值卡 Plastic card with embedded microchip Information st
44、orage About 100 times more than magnetic strip plastic card Holds private user data Financial facts,encryption keys,account information,credit card numbers,health insurance information,medical records Safer than conventional credit cards Information encrypted on smart card河北工业大学河北工业大学 经济管理学院经济管理学院 耿
45、立校耿立校F-537.1 Online Payment Basics7.2 Payment Cards7.3 Electronic Cash7.4 Digital Wallets7.5 Stored-Value Cards7.6 Internet Technologies and the Banking Industry河北工业大学河北工业大学 经济管理学院经济管理学院 耿立校耿立校F-547.6.1 Check Processing7.6.2 Mobile Banking7.6.3 Criminal Activity and Payment Systems河北工业大学河北工业大学 经济管理学
46、院经济管理学院 耿立校耿立校F-55 Paper checks Largest dollar volume of payments Processed through worlds banking system Other major payment forms Involve banks one way or another Banking industry Internet technologies Providing new tools Creating new threats河北工业大学河北工业大学 经济管理学院经济管理学院 耿立校耿立校F-56 Old method of physi
47、cal check processing Person wrote check;retailer deposited check in bank account Retailers bank sent paper check to clearinghouse Clearinghouse managed fund transfer(consumers bank to retailers account)Paper check transported to consumers bank Cancelled check sent to consumer Banks now provide PDF i
48、mages of processed checks 河北工业大学河北工业大学 经济管理学院经济管理学院 耿立校耿立校F-57 Disadvantage of paper checks Cost of transporting tons of paper checks Float Delay between the time person writes check and the time check clears persons bank Banks customer obtains free use of funds for few days Bank loses use of funds
49、for same time period Can become significantly longer than a few days河北工业大学河北工业大学 经济管理学院经济管理学院 耿立校耿立校F-58 Banks exploring mobile commerce potential 2009:banks launched sites allowing customers using smart phones to:Obtain bank balance,view account statement,and find a nearby ATM Future plans Offering
50、 smart phone apps Use to transact all types of banking business Credit card reader attachment available for some smart phones yielding a portable payment processing terminal河北工业大学河北工业大学 经济管理学院经济管理学院 耿立校耿立校F-59 Online payment systems Offer criminals and criminal enterprises an attractive arena in whi
