for ca student

1. ABHISHEK KUMAR VERMA
IPCC REG. NO. CRO - 0487353
BATCH COMMENCEMENT DATE: 24-November-2014
PROJECT TOPIC :ONLINE PAYMENTS ,CONCEPT OF E-CASH
& SAFEGUARDS
SUBMITTED BY:
ITT CENTRE NAME: BIKANER BRANCH OF CIRC OF ICAI
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3. This Is To Certify That Mr. ABHISHEK
KUMAR VERMA Has Under Taken A Project On
“ONLINE PAYMENTS,E-CASH & SAFEGUARDS”
After Going Through The Report, We Wish To
Record Our Satisfaction & Commend To MR.
ABHISHEK KUMAR VERMA For The Effort Put
In By Their In This Exercise.
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4. SUBMITTED BY ABHISHEK KUMAR VERMA UNDER THE
GUIDANCE OF MISS SONALI JAIN (I.T.T. FACULTY)
Submitted In Partial Fulfillment For The I.T. Training
Conducted By
Bikaner Branch Of I.C.A.I For The Course Of I.P.C.C.
BATCH NO. BIKANER-11/14/IT-05
REG. NO. BKN2014-15075
ONLINE PAYMENTS ,E-CASH & SAFEGUARDS
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5. While coming on acknowledgement, it seems to me closing of
long chapter of reminiscences which bloomed and gloomed at BRANCH
CHAIRMEN , BIKANER BRANCH OF CIRC OF
ICAI, BIKANER.
This is my proud privilege to express my sincere and deep
sense of gratitude my faculty member Ms. SONALI JAIN for inspiration
guidance, persistent involvement, scholarly suggestion and constructive critical
supervision throughout the pursuit of present study.
And finally many thanks to all those friends who kept
company and who directly or indirectly helped me in the completing of this
project work.
ABHISHEK KUMAR VERMA
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INDEX
Contents
1. Introduction
2. Requirements of Online payments
3. Types/Modes of E-Payments
4. Advantages and Limitations
5. Security
6. conclusion
Sr. no.
7-8
9-11
12-25
26-28
29-30
31-32
Submitted By :- ABHISHEK KUMAR VERMA
ITT REG NO. :- BKN2014-15075

7. • To transfer money over the Internet
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ITT REG NO. :- BKN2014-15075

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• Methods of traditional payment
Cheques, letter of credit and cash
• Methods of electronic payment
• Electronic cash
• software wallets
• smart cards and
• credit/debit cards
Submitted By :- ABHISHEK KUMAR VERMA
ITT REG NO. :- BKN2014-15075

9. • Atomicity
– Money is not lost or created during a transfer
• Good atomicity
– Money and good are exchanged atomically
• Non-repudiation
– No party can deny its role in the transaction
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Submitted By :- ABHISHEK KUMAR VERMA
ITT REG NO. :- BKN2014-15075

10. • For making online payments, we
need :
• A merchant account.
• An account with the service
provider.
• A button such as Buy, Join on the
webpage so as to initiate the
transaction
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Submitted By :- ABHISHEK KUMAR VERMA
ITT REG NO. :- BKN2014-15075

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Submitted By :- ABHISHEK KUMAR VERMA
ITT REG NO. :- BKN2014-15075

12. • E-cash
• Electronic wallets
• Smart card
• Credit card
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ITT REG NO. :- BKN2014-15075

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Submitted By :- ABHISHEK KUMAR VERMA
ITT REG NO. :- BKN2014-15075

14. •Electronic money is paperless cash. This money is either
stored on a card itself or in an account associated with the card
•The most common examples are transit cards, meal plans, and PayPal.
E-Cash can also mean any kind of electronic payment.
•Electronic payment systems come in many forms including virtual
cheques, ATM cards, credit cards, and stored value cards. The usual
security features for such systems are privacy, authenticity , and no
repudiation. Submitted By :- ABHISHEK KUMAR VERMA
ITT REG NO. :- BKN2014-15075 14

15. Past and Present E-cash Systems
• Cyber Cash
• Cyber Coins
• DigiCash
• Coin.Net
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Submitted By :- ABHISHEK KUMAR VERMA
ITT REG NO. :- BKN2014-15075

16. This is a simple model of E-cash payment system. This gives us
the idea of how e-cash payment system works.
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Submitted By :- ABHISHEK KUMAR VERMA
ITT REG NO. :- BKN2014-15075

17. Conceptual Framework
There are four major components in an electronic cash system:
• Issuers
• Customers
• Merchants or traders
• Regulators.
• Issuers can be banks, or non-bank institutions
• Customers are referred to users who spend E-Cash
• Merchants and traders are vendors who receive E-Cash
• Regulators are defined as related authorities or state tax agencies.
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Submitted By :- ABHISHEK KUMAR VERMA
ITT REG NO. :- BKN2014-15075

18. Desirable Properties of Digital Money
• Universally accepted
• Transferable electronically
• Divisible
• Private (no one except parties know the amount)
• Anonymous (no one can identify the payer)
No known system satisfies all.
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Submitted By :- ABHISHEK KUMAR VERMA
ITT REG NO. :- BKN2014-15075

19. E-cash Concept
Merchant
Consumer
Bank
1
2
3
4
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1. Consumer buys e-cash from Bank
2. Bank sends e-cash bits to consumer (after
charging that amount plus fee)
3. Consumer sends e-cash to merchant
4. Merchant checks with Bank that e-cash
is valid (check for forgery or fraud)
5. Bank verifies that e-cash is valid
6. Parties complete transaction: e.g., merchant
present e-cash to issuing back for deposit
once goods or services are delivered
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Submitted By :- ABHISHEK KUMAR VERMA
ITT REG NO. :- BKN2014-15075

20. • Stores credit card, electronic cash, owner
identification and address
– Makes shopping easier and more efficient
• Eliminates need to repeatedly enter identifying
information into forms to purchase
• Works in many different stores to speed checkout
– Amazon.com one of the first online merchants to
eliminate repeat form-filling for purchases
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Submitted By :- ABHISHEK KUMAR VERMA
ITT REG NO. :- BKN2014-15075

21. • Plastic card containing an embedded
microchip
• Available for over 10 years
• So far not successful in U.S., but popular in
Europe, Australia, and Japan
• Smart cards gradually reappearing in U.S.
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Submitted By :- ABHISHEK KUMAR VERMA
ITT REG NO. :- BKN2014-15075

22. • Credit card
• Used for the majority of Internet purchases
• Has a preset spending limit
• Currently most convenient method
• Most expensive e-payment mechanism
• MasterCard: $0.29 + 2% of transaction value
• Disadvantages
• Does not work for small amount (too expensive)
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Submitted By :- ABHISHEK KUMAR VERMA
ITT REG NO. :- BKN2014-15075

23. • A debit card is a plastic card which provides
an alternative payment method to cash
when making purchases. Physically the card
is an ISO 7810 card like a credit card;
• Depending on the store or merchant, the
customer may swipe or insert their card
into the terminal, or they may hand it to
the merchant who will do so.
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Submitted By :- ABHISHEK KUMAR VERMA
ITT REG NO. :- BKN2014-15075

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Submitted By :- ABHISHEK KUMAR VERMA
ITT REG NO. :- BKN2014-15075

25. Credit card Debit card
• You can obtain credit
in credit card but not
in debit card.
• Credit card charges
interest for using the
bank's money. (debit
card is free from this
problem)
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Submitted By :- ABHISHEK KUMAR VERMA
ITT REG NO. :- BKN2014-15075

26. • We can transfer funds, purchase stocks, and offer a variety of other services without
having to handle physical cash or cheques
• Electronic cash protects its user against theft With electronic cash, the customer does not
need to provide financial information
• E-cash supports small payments . Other online payment system charge a fee for every
transaction no matter how much high or low it is but e-cash has a specific limit for additional
charges that’s why very low payments are not charged a fee.
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Submitted By :- ABHISHEK KUMAR VERMA
ITT REG NO. :- BKN2014-15075

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Submitted By :- ABHISHEK KUMAR VERMA
ITT REG NO. :- BKN2014-15075
• More efficient, eventually meaning lower prices
• Lower transaction costs
• Anybody can use it, unlike credit cards, and does not require special
authorization

28. • Maybe how much secure the e-cash payment system is but still no one is safe against
the online frauds. In this case the trader is referred as fraudulent. The trader may take the
amount but may not provide the services
• While making the payment, its very important that the internet connection and power
supply should be active. If the payment is in process and internet supply fails in between it
can lead to loss of information i.e. amount will be charged but it wont reach to trader and the
refund takes very long time in general the refund time is atleast 30-45 days.
• E-Cash is not for everyone. Low income segments without computer and internet access
are unable to enjoy the usage of E-Cash.
• Susceptible to forgery
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Submitted By :- ABHISHEK KUMAR VERMA
ITT REG NO. :- BKN2014-15075

29. • Security is of extreme importance while handling the online
transactions. Faith in the security of the medium of exchange, whether
paper or digital, is essential for the economy to function.
• E-cash is much secure than other online payment modes because in this case no
credential such as card-passwords or anything such is involved. Its like simply the
online fund transfer from customer’s account to trader’s account.
• However while accessing the customer’s account, the customer must keep in
mind the internet security sweep or theft. The online hacking and cracking can be
avoided by using SSL and TSL website security systems and keeping the website link
with safe “Https:// “ protocols and proper internet security softwares to keep aside
the threats of malware, evasdrooping and other security threats.
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Submitted By :- ABHISHEK KUMAR VERMA
ITT REG NO. :- BKN2014-15075

30. • Security must be provided for customer
transaction.
• Secure Sockets Layer (SSL) technology
provides encrypted transmission of data
between customer and a secure server.
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Submitted By :- ABHISHEK KUMAR VERMA
ITT REG NO. :- BKN2014-15075

31. • The rise of E-Cash is inevitable, but further
improvements are needed.
• Tackling security, anonymity, low income group
readiness and technology reliability issues will make
E-Cash more perfect.
• In countries such as India where people were
hesitant to use such methods has shown a
tremendous use of online payments and E-cash
payment system.
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ITT REG NO. :- BKN2014-15075

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Bibliography
Miss sonali jain
WWW.Slideshare.com
WWW.Powershow.com
Self efforts
Submitted By :- ABHISHEK KUMAR VERMA
ITT REG NO. :- BKN2014-15075

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Submitted By :- ABHISHEK KUMAR VERMA
ITT REG NO. :- BKN2014-15075