E-Payment Systems Online Payment – Payments Cards – Electronic Cash – Electronic Cheques - Electronic Wallets – Debit Cards- Credit Cards – Smart Cards – – Stored Value Cards – Banking : Net Banking, Mobile Banking - Internet Technologies

1. UNIT=V
E-Payment Systems Online Payment – Payments Cards –
Electronic Cash – Electronic Cheques - Electronic Wallets –
Debit Cards- Credit Cards – Smart Cards – – Stored Value Cards
– Banking : Net Banking, Mobile Banking - Internet
Technologies
E-commerce sites use electronic payment, where electronic
payment refers to paperless monetary transactions. Electronic
payment has revolutionized the business processing by reducing
the paperwork, transaction costs, and labor cost. Being user
friendly and less time-consuming than manual processing, it helps
business organization to expand its market reach/expansion. Listed
below are some of the modes of electronic payments −
Credit Card
Debit Card
Smart Card
E-Money
Electronic Fund Transfer (EFT)
Credit Card
Payment using credit card is one of most common mode of
electronic payment. Credit card is small plastic card with a unique
number attached with an account. It has also a magnetic strip
embedded in it which is used to read credit card via card readers.
When a customer purchases a product via credit card, credit card
issuer bank pays on behalf of the customer and customer has a
certain time period after which he/she can pay the credit card bill.
It is usually credit card monthly payment cycle. Following are the
actors in the credit card system.
The card holder – Customer

2. EMV is short for Europay, MasterCard, and Visa, the 1994 founders. It commonly
refers to a credit cardwith a smart chip. The EMV standard is a secure technology
that is used worldwide for all payments done with credit, debit, and prepaid EMV
smart cards.
The merchant − seller of product who can accept credit card
payments.
The card issuer bank − card holder's bank
The acquirer bank − the merchant's bank
The card brand − for example , visa or Mastercard.
Credit Card Payment Proces
Step Description
Step 1
Bank issues and activates a credit card to the
customer on his/her request.

3. Step 2
The customer presents the credit card information to
the merchant site or to the merchant from whom
he/she wants to purchase a product/service.
Step 3
Merchant validates the customer's identity by asking
for approval from the card brand company.
Step 4
Card brand company authenticates the credit card
and pays the transaction by credit. Merchant keeps
the sales slip.
Step 5
Merchant submits the sales slip to acquirer banks
and gets the service charges paid to him/her.
Step 6
Acquirer bank requests the card brand company to
clear the credit amount and gets the payment.
Step 7
Now the card brand company asks to clear the
amount from the issuer bank and the amount gets
transferred to the card brand company.
Debit Card
Debit card, like credit card, is a small plastic card with a unique
number mapped with the bank account number. It is required to
have a bank account before getting a debit card from the bank. The
major difference between a debit card and a credit card is that in
case of payment through debit card, the amount gets deducted from
the card's bank account immediately and there should be sufficient
balance in the bank account for the transaction to get completed;
whereas in case of a credit card transaction, there is no such
compulsion.
Debit cards free the customer to carry cash and cheques. Even
merchants accept a debit card readily. Having a restriction on the
amount that can be withdrawn in a day using a debit card helps the
customer to keep a check on his/her spending.

4. Smart Card
Smart card is again similar to a credit card or a debit card in
appearance, but it has a small microprocessor chip embedded in it.
It has the capacity to store a customer’s work-related and/or
personal information. Smart cards are also used to store money and
the amount gets deducted after every transaction.
Smart cards can only be accessed using a PIN that every customer
is assigned with. Smart cards are secure, as they store information
in encrypted format and are less expensive/provides faster
processing. Mondex and Visa Cash cards are examples of smart
cards.

5. E-Money
E-Money transactions refer to situation where payment is done over
the network and the amount gets transferred from one financial
body to another financial body without any involvement of a
middleman. E-money transactions are faster, convenient, and saves
a lot of time.
Online payments done via credit cards, debit cards, or smart cards
are examples of emoney transactions. Another popular example is
e-cash. In case of e-cash, both customer and merchant have to sign
up with the bank or company issuing e-cash.
Electronic Fund Transfer
It is a very popular electronic payment method to transfer money
from one bank account to another bank account. Accounts can be
in the same bank or different banks. Fund transfer can be done
using ATM (Automated Teller Machine) or using a computer.
Nowadays, internet-based EFT is getting popular. In this case, a
customer uses the website provided by the bank, logs in to the
bank's website and registers another bank account. He/she then
places a request to transfer certain amount to that account.
Customer's bank transfers the amount to other account if it is in
the same bank, otherwise the transfer request is forwarded to an
ACH (Automated Clearing House) to transfer the amount to other
account and the amount is deducted from the customer's account.
Once the amount is transferred to other account, the customer is
notified of the fund transfer by the bank.

6. Netbanking This is another popular way of making e-commerce
payments. It is a simple way of paying for online purchases directly
from the customer’s bank. It uses a similar method to the debit
card of paying money that is already there in the customer’s bank.
Net banking does not require the user to have a card for payment
purposes but the user needs to register with his/her bank for the
net banking facility. While completing the purchase the customer
just needs to put in their net banking id and pin.
he advent of technology has enabled the speedy and accurate
functioning of services throughout all sectors. Banks keep on
incorporating technology to improve their service delivery and
provide better services to their customers. One such example is
mobile internet banking which has enabled account holders to
carry out banking activities anytime and anywhere through a
registered mobile connection.

7. What is Mobile Internet Banking?
A service provided to clients by a bank or any financial institution
to carry out financial transactions remotely using a smartphone or
a tablet can be termed as mobile internet banking. The bank
provides software that is usually called an app to its customers for
mobile banking. This service is available on a 24-hour basis to its
clients. Mobile banking requires internet to be connected to the
device so as to perform all the transactions. The mobile banking
apps features include obtaining account balances, the latest
transaction list, payment of electronic bills and fund transfer, to
name a few, from a client’s account to another account.

8. Mobile Internet Banking Services
· Account balance enquiry · Mini-statements and
checking of account history
Alerts on account activity · Monitoring of term deposit
Access to loan statements · Access to card statements
Mutual funds/equity statements · Insurance policy
management
Fund transfer between linked
accounts
· Bill payments & thirds party
fund transfers
Check remote deposit · Portfolio management
services
Real-time stock · Status of request for credit,
including mortgage approval &
insurance coverage
· Chequebook and card requests · ATM location
Advantages of Mobile Internet Banking
The bank is available to its customers all the time.
Customers can transfer funds, invest or exchange currency without
any interruptions.
Customers receive statements directly in their email addresses
which cause less wastage of paper.
Customers can receive super-fast services. The camera in the
smartphone helps the customer to click pictures and initiate
requests.

9. The bank provides location-based services that ensure its
customers security against frauds for transactions from unfamiliar
locations.
The banks sometimes reward their customers for transacting
through the mobile banking application in the form of points or
discount coupons.
The mobile banking application is safe as it configure multi-level
security feature like sending OTP to the registered mobile number of
the customer for transactions to happen.
Limitations of Mobile Internet Banking
The banks might charge the customers an amount for using the
service of mobile banking.
The mobile banking service can be used by only those customers
who have a smartphone.
The account information is stored on the device.
The customers may receive fake messages to disclose their financial
details as hackers present themselves as financial advisors or lead
banks.

10. How to use Mobile Internet Banking?
The customer has to send an SMS to the bank’s mobile number so
as to receive the User ID, Default MPIN and the link to download
the application.
Download the application from the link provided by the bank.
The default MPIN has to be changed through application, WAP or by
sending an SMS based on the preferred mode of operation.
Then the registration process has to be completed through any of
the following processes:

11. Customers have to Login to the internet banking service and then,
select the e-service option and complete the indicated steps.
The customers can register using the ATM cum Debit card at any
ATM of the particular bank. The customer has to follow the steps:
Mobile Registration > Mobile Banking Registration > Registration
and then enter their registered mobile number.
The customer can also register for mobile banking by submitting
the registration form at their home branch for immediate activation.
Difference between Mobile Internet Banking and Online
Banking
Mobile banking and online banking are closely related to each
other, but some definite points distinguish between the two. Many
of the activities performed through mobile banking are similar to
online banking. Mobile banking is done using a smartphone or a
tablet, whereas online banking uses a desktop or a laptop. One
requires downloading the particular application of a bank in order
to use the mobile banking facilities whereas, for online banking the
customer requires to open the particular website of the bank. It is
also worth noting that a person can use online banking on the
smartphone as well.
Mobile banking provides the following services to its customers:
Making mobile check deposits
Transferring money
Paying bills
Locating ATMs
While online banking provides the following services to its
customers:
Viewing account balances at any time of the day

12. Viewing or printing statements
Viewing images of checks
Applying for loans or credit cards
Different Mobile Internet Banking Applications
State Bank Anywhere: This is the mobile banking app that can be
used anywhere by the State Bank of India account holders. It can
be downloaded from Play Store for free. To start using this app, the
customer has to enter the account number after downloading the
app. This app supports intra-bank, inter-bank and secured fund
transfers. The customers can use the voice-assisted transactions to
know the account balance, to obtain mini statement or recharge
mobile. This app can also be used to pay bills.
Punjab National Bank: The account holders of Punjab National
Bank can use the PNB mobile banking app for their convenience.
The customers can check the validity of their ATM. The customers
can also analyze their transaction history and even check their
account balance. The process is secured and also funds can be
transferred to other accounts.
IDBI Go Mobile: The IDBI mobile banking application ensures
quick and swift banking operations. The app can perform various
tasks apart from transferring funds and tracking account history.
The app checks account transactions. The app can also be used for
online shopping and credit card bill payments. The app can be
downloaded from Play Store for free.
Vijaya Bank: Vijaya Bank has the Vijaya Bank mobile banking
application for its customers which can be downloaded for free from
the Play Store by android users. The app allows its users to carry
various banking operations like NEFT and IMPS, payment of bills
and even ticket booking. The customers can transfer funds online,
receive as much as 9 mini-transaction statements and balance
inquiry.

13. Bank of India: The Bank of India mobile banking application can
be downloaded for free from the Play Store by the account holders
using android phones. It helps the customers to perform various
operations anywhere. The application makes transactions easier for
the customers.
Allahabad Bank App: The Allahabad bank mobile banking app is a
useful application for its customers. The app has attractive UI and
simple functionality which helps in easy transactions. A customer
can view as much as 7 mini-statements. Also, the users can make
payments, recharge their mobile numbers with the help of this
mobile banking app.
v Mobile Internet Banking