IL assignment

Name

Mohd Azwan bin Juperi (081344)


Question

Chapter 6, Problem Solving Activities Q#3

Answer

Types of Electronic Payments
i. Electronic checks
• Mostly used in B2B (Business to business) transaction.
• Carry a verified signature in digital form thus enhancing the security level.
• The process could take some time as there are some proper procedure should be taken for safety measurements.
• High cost


ii. Electronic credit cards
• Credit card information & amount purchased are encrypted in browser. Thus, keeping them safe while on the net.
• The information will only be decrypted at clearinghouse.
• Mostly used for B2C (Business to customer) transaction.
• High cost but affordable


iii. Purchasing card
• A B2B version of credit card
• Payment is settled within a week which is very fast.
• Companies normally give limits for amount per purchase.
• Safety level is pretty much the same with a regular electronic credit card.
• High cost



iv. Electronic cash (Appears in 4 major forms)
• Stored-value money
- Vey convenient to use as it allows users to store fix amount of prepaid money.
- Normally used in cell-phones
- Very safe as the prepaid money stored are not exposed widely.
- Very fast transaction as the prepaid money is already stored in the device(card)
- Affordable


• Smart card
- Can be use as credit card, debit card, or a stored-value money card.
- Very convenient to use as it is multipurpose in terms of usage.
- Ideal for micropayments
- Low cost & affordable

• Person-to-person payments
- Allow users to transfer funds between accounts.
- Registration can be done online which is very easy to be done.
- Low security-level
- Affordable


• Digital wallets
- A software mechanism
- Store information of the buyer
- Very convenient to use as all the information are stored automatically after a purchase.
- Do not have to re-enter the sensitive information for another purchase.
- High security-level
- Affordable