STATE LEVEL TRAINING

COMMERCE DRPS AND

ADRPS
DATED :12/01/2024
 TOPIC: E-Payments
Class : 12th Commerce
Subject: Fundamentals of E-Business
Duration: 30 minutes
 Topic : E-payment
LEARNING OBJECTIVES:
To develop the understanding of E-Payment.
To discuss with trainees about various methods of E-Payment.
PRE-ASSESSMENT:
Pre-assessment will be done by asking some questions about
modes of E-payment being used by trainees for their online
transactions
CONTENT PRESENTATION:
Content will be presented by various slides prepared on the various
modes of E-payment. Al ppts will contain pictures of modes E-
payment
ACTIVITIES OF E-PAYMENTS
Activity will be done showing some examples of E-payment like use
of Credit card , Google pay, internet banking using trainees mobile .
 INTRODUCTION OF E-PAYMENT
Today world is become global village.Everything
is going to be fast and easy. Banking sector
also influenced by internet. The use of online
payment systems began in the 1960's and was
used mainly among financial and banking institutions.
This was the time when ATM's and credit cards were first used. Online
payment system give rise to business to business(B to B), Business to
consumer(B to C), Consumer to consumer(C to C)We will study
electronic
payment systems began with Electronic Fund Transfer (EFT) via
secured
private networks between banks and major corporation.
 E-PAYMENT PROTOCOL
E-Payment in these three participants
areinvolved that are:
(1) User (Payer)
(2) Merchant (Payee)
(3)Bank
 TYPES OF E-PAYMENT SYSTEM

(A) Postpaid system

(B) Instant paid system
(C) Prepaid system
 A. POST-PAID SYSTEM
1. Credit Cards:
This is plastic card which is issued by bank. On-line
payments are made through credit cards. These are
most popular payment method for cyber cash shopping
by the consumers thesedays. Customer can Purchase
goods, pay later. The major players in using the credit
cards are the cardholder, the merchant, the card issuer.
The customers do not have to carry cash. Moreover, they can also cancel
the transaction. The bills are presented by the shopping stores to the
authorised paying branch. Bank branch informs the customer about the
debit. The card holder has to take care of the card. In case of loss of
credit card, Card holder can lodge FIR and the concerned bank must be
informed immediately, so that any transaction against that card may
blocked.
 2.Cyber cash
Unlike cyber cash is not direct involved in handling fund,
Purchasing done through credit cash without disclosing
the credit card number. Credit card number is sent to the
merchant in encrypted form and the entire working is not known
to the customer. Users download a software called cyber cash
wallet, which is like a database and the users are
asked to put information about their credit cards.
They are further asked to add phone number and
shipping address also. Then, these are registered.
After registration, when customers are to use this cash for purchases, customers give
their preferences regarding which card to use and the corresponding software
transfers the information automatically. Before transfer ,the data is encrypted for
safety reasons. Information is kept safe and secure. Existing Visa, Master card,
American express OR Discover is used as cards. No special card are necessary, The
cyber cash wallet software (generally distributed free of cost), the secure Merchant
Payment system to communicate with the software and customer and finally the
Gateway servers for banks, which link the seller's server to the existing financial
network of the bank are its elements of cyber cash
 3 . Internet Cheques
A paper cheque is signed order to bank to pay money to
bearer or cheque older. Internet cheque is same idea in
form of electronic document. Internet cheques are modelled
like paper cheques but they are initiated electronically. These
use digital signatures for signing and endorsing. Digital
certificates are required to authenticate the payer, the
payer's account and the payer's bank. The authentication
is supported through digital signatures using public-key
Cryptography. Internet cheques are delivered either by direct
transmission using telephone lines or by using public networks such as Internet.
Internet cheques are gathered/ collected by banks and cleared through automated
clearing houses networks. This makes strong relation between industry, banking sector
and consumers.
 1. Debit Cards
Debit Card is(B) INSTANT
a small PAID
plastic card that SYSTEM
you can keep in wallet.
In case debit card, Payment is made instantly. There is no
need to wait for days or months. A large number of
Electronic transactions today use debit cards. A credit card
is a promise to pay later, but a debit card is to pay on the spot. Banks
are
increasingly replacing their ATM cards as with debit cards. In Debit
cards, the
amount is immediately deducted from your savings account. It allows
the user to
spend only what is in your bank accounts. These are accepted in
supermarkets ,
gas stations, retail stores etc. With debit card, you can withdraw
money that is in
your account.
 (C) PRE-PAID PAYMENT
1. Electronic cash (E-cash):
E-cash allows the customer to make payments through
a number one computer (PC) to another computer (PC).
Electronic cash or e-cash provides the means of
transferring money between parties on a internet.So,
e-cash is an on-line system of payment. Electronic
cash is a relatively new term which combines the computerised
convenience with
security and privacy and improves upon paper cash. A host of new
markets as well as
applications are being opened up due to the versatility of electronic cash.
Customer must
have account with bank and get certificate of digital cash. In process of e-
cash,
Customer should have specific software on his or her PC in order to
2. Digital cash or Digicash:
Digi cash is also known as
e-currency, e-money ,electronic cash ,
electronic currency ,digital money,
cyber currency for his or her
purchasing of goods or service. Digi
Cash was started in October 1994.
Digital cash is just as paper currency or
coins. Digital cash almost works like paper cash, it has the properties of
transferability and anonymity. It serves as a medium of exchange and
store of value-the same functions which money/cash does. Digital
currency and coins are backed by trusted third party, govt. and the
banking industry, which is willing to convert digital cash to money.
 3. Net Cash:
Net cash is also electronic currency like a net banking. this system introduced to
support net banking on lowest cost .Net cash system is based on distributed currency
servers where e-cheques can be exchanged e-cash. The constituents of net cash are
buyers, sellers/ merchants and currency servers. The currency server makes electronic
coins and keeps track of all the serial numbers of allcoins so that the coins may not be
double spent. Thus, Net-cash is "an electronic currency service which supports real-
time
e-payments with the provision of anonymity across multiple domains." Net cash keeps
a
Balance between unconditional anonymous electronic currency and signed
documents /
instruments and thus provides a framework in which various e -currency protocols can
be integrated. When net cash is used in combination of net cheque, service provider
and their user are able to select payment process, as anonymity,desired,ranging from
non-anonymous and weekly anonymous instruments that are scalable, to
unconditionally anonymous instruments that are required more resources of currency
server.
 4. Smart card
Smart cards are made plastic and uses of Smart Cards also called
stored value cards ;these cards started in 1970s. These are the
plastic cards have a magnetic stripe technology or integrated
circuit(IC) to store specific information about the customer. The
cards were also used to store a value of money which decreased
with time and use. The current generation of these cards use ICs or
microprocessor chips and a single card can be used for multiple
purposes. Thus, a smart card or IC card can be defined as a pocket-
sized card which has embedded circuits SMART CARD inbuilt. There
are two broad types/categories as: Memory cards and
microprocessor cards. They may also be specified as Contact smart
cards or contactless smart cards. Contact smart cards can be placed
in corresponding card readers which are connected to your
computer and connectivity can be made. But in case of contactless
smart cards, data is transferred over radio waves.
 5. E –WALLET and UPI:
IN NOVEMBER 2016 when we face demonetization ,
then uses of e-wallet increasing day by day, with this
customer can make payments of small amounts. It is on
line prepaid account, in this account add money
and that money used to purchase railway ticket,
cinema ticket, online purchasing of good or service.
You can keep money IN WALLET minimum Rs. 10
to maximum as you can (no limit). For this wallet customer will download
specific software.Customer should also have been a account with bank. From
that account he /she can transfer money to e-wallet.
And UPI which means UNIFIED PAYMENTS INTERFACE enable user to
transfer
money directly from bank account to others bank account.
Today PAYTM and G -PAY are examples of e-wallet and UPI platform
apps.
Assessment and Feedback:
•What do you mean by E-payment?
•Make a list of various Modes of E-payment.

Thanks