DESIGNING ELECTRONIC PAYMENT SYSTEM
1. BASIC REQUIREMENTS
2. COMPONENTS THAT MAKE E-PAYMENT SYSTEM
1. DATABASE INTEGRATION 1. BASIC REQUIREMENTS
2. COMPONENTS THAT MAKE E-PAYMENT SYSTEM
1. BASIC REQUIREMENTS
Designing an electronic payment system should have the requirements assessed:
Technological Requirements Economic Requirements
- Authentication The cost of Transaction
- Integrity Atomic exchange
- Confidentiality User Range (System accessibility)
- Non Repudiation Value Mobility (value is used anywhere)
Financial Risk
Return On Investment (ROI)
Social Requirements Legal Requirements
- Privacy Digital Signature
- Accessibility Digital Transfer
- Mobility Legality of Payment
E-commerce Contracts
Technical Standards
Rental Taxes
International Transactions
Intellectual Property Protection
1. Technological Requirements
- When designing an electronic payment system, the system’s ability of the effectiveness and the security of each transaction and the degree of compatibility with the online shop must be taken into consideration.
- A payment system requires the greatest level of security in electronic commerce transactions .
- It must have confidentiality, authenticity, integrity and non-repudiation of transactions.
2. Economic Requirements
- These deal with the cost of transaction which refers to the amount paid by the client.
- Economic assessments include also atomic exchange which means that the consumer will pay money or something equivalent in value.
- An electronic payment system must also be accessible in all countries of the world, to all ages (user range) or currency in equal value and must not be restricted to the company that created the value.
- Economic needs also deal with financial risks ,because consumers and merchants are very concerned about the degree of security involved in online transactions.
- Return On Investment(ROI) is a economic parameter and a performance measure used to evaluate the efficiency of an investment.
3. Social Requirements
- Payment system must prevent companies or financial institutions from tracing user information and must be simple and user-friendly.As social needs, electronic payment methods should also be accessible anywhere.
- Electronic payment system must abide by governmental regulations and the law and guaranty all necessary proofs (digital signature, contracts,...)to protect users performing domestic/international transactions.
COMPONENTS THAT MAKE E-PAYMENT SYSTEM
- An integration database is a database which acts as the data store for multiple applications, and thus integrates data across these applications (in contrast to an ApplicationDatabase). An integration database needs a schema that takes all its client applications into account.
- Each record should be kept in separate database.
- Each database must be linked together to access from anywhere.
2. BROKERS
- The role of electronic brokers facilitate financial transactions electronically.
- The information superhighway directly connects millions of people, each both a consumer of information and a potential provider. If their exchanges are to be efficient, yet protected on matters of privacy, sophisticated mediators are required. Electronic brokers play this important role by organizing markets that promote the efficient production and consumption of information.
- Electronic brokers will be required to permit even reasonably efficient levels and patterns of exchanges.
- Their ability to handle complex, albeit mechanical, transactions, to process millions of bits of information per second, and to act in a demonstrably even-handed fashion will be critical as this information market develops.
- Electronic brokers can also run pricing systems, charging and crediting slight amounts to individual accounts as bits careen along the superhighway.
3. STANDARDS
- The e-payment standards enable payment users to link with various networks and other payment systems.
- Standards for interoperability which enable users to buy and receive information regardless of which bank is managing their money.
- Payment card networks, such as Visa, require merchants' banks to pay substantial "interchange" fees to cardholders' banks, on a per transaction basis.
- Consumers make two distinct decisions (membership and usage) whereas merchants make only one (membership).
5. PRIVACY
- Protecting the privacy of evaluators and their information is another important policy concern of e-payment system.
- Contemporary standards of fairness require that many documents, ranging from letters to the editor to personnel evaluations, be signed, and that one's accuser be identified in court.
- Signed evaluations are less likely to be unfair and, over time, people can identify trustworthy evaluators.
In a model of electronic payment gateway-there are five interfaces.
1. Customer Interface
2. Server (e-payment Gateway) Interface
3. Client Bank Interface
4. Merchant Bank Interface
5. Merchant Interface
Online Customer will connect to e-payment gateway through Internet. Gateway will connect
to the Bank and check whether its bank accounts is enough to buy the required product. Online customer can also visit Merchant’s website through Gateway.
Protocol Design and Verification
Success of electronic payment system is based on the design
principals and its correctness.
Rules, formats, and procedures that have been agreed upon
between participating parties are collectively called a protocol. The protocol,
then, can contain agreements on the methods used for:
·
Initiation and termination of data exchanges.
·
Synchronization of senders and receivers.
·
Detection and correction of transmission errors.
·
Formatting and encoding of data.
A protocol specification consists of five distinct parts. To
be complete, each specification should include explicitly:
1. The service to be provided by the protocol.
2. The assumptions about the environment in which the
protocol is executed.
3. The vocabulary of messages used to implement the protocol.
4. The encoding (format) of each message in the vocabulary.
5. The procedure rules guarding the consistency of message
exchanges.
