A Review Of Online Payment Systems

A Review Of Online honorarium SystemsCHAPTER 1INTRODUCTIONIn this Oligocene world, electronic ecommerce has grown explosively. According to Hof (2003), on 1994 with 6 million to 2003 which take aim approximately 40 million households in the United States alone murder at least one consumer purchase from the internet, the advancements in calculator technology and deregulation of monetary foodstuffs especially in the compensation trunk which for head notes. Traditional defrayal organisations are flexible instruments such as drafts, checks, reference point card, debit cards, and documentary reference. Some compensation frames had substantially a contrastive appearance of stipend that includes the credit entry mechanisms. directly most of the users usually make the payment through electronic payment system. As we know electronic Payment is a division of an e-commerce transaction offered through the internet for buying and selling goods or emoluments and non-credi t-card online payment systems.The appearance of e-commerce has created youthful financial films that in many cases. Some of them using a substance to fraud such as credit card fraud and subjected to more(prenominal) digital attacks. The awareness and knowledge ab unwrap the electronic payment system are needed to prevent fraud to develop. An electronic payment system is needed for expiation for roughly training, goods and services, this discipline provided through the internet as a convenient form of payment for external goods and services on consumption of system resources, access to copyrighted materials and selective informationbase searches (Clifford neuman,1999).Broadly electronic payment systems can be classified into two categories such as Online Payment Cards System and electronic Banking Payment System. Each payment system has its advantages and disadvantages for the customers and merchants. These payment systems have numbers of requirements, utilisation security, a cceptability, convenience, cost, anonymity, control, and traceability (Sumanjeet, S., 2009).electronic payment systems whitethorn be more expedient for international online demarcation collect to quit in credit card customer protection laws in disparate countries. The picture of e-banking in the United States is one of a wide soma of services used by a disparate number of consumers. nearly 91 percent of United States households have a bank answer for and, of these, 93 percent have one or more Electronic Funds delegate (EFT) features associated with their accounts. In 2003, the number of Automated Teller Machines (ATM) transactions stood at 902 million per month, up slightly from 2002 (EFT info Book, 2003). In addition, by 2003, the number of point-of-sale debit transactions stood at 495 million per month, up 21 percent from 2002, and the volume of electronic payments in the United States in 2003 exceeded that of checks for the first time (Jane M. Kolodinsky, 2004). While c onsumers may be willing to aggrandize e-banking technologies, they overly want assurance that problems will be resolved and that some transactions will remain own(prenominal) (Goldfarb, 2001 Financial Technology Bulletin, 2000).Nowadays the e-banking system also very common on internet, it works by their retail, credit union, and virtual bank by secure the website to train out the financial transaction by customers. Some e-banking goods and services are pacify infancy and going innovations build through the internet growing chop-chop as a market get in for the exchange of both tangible and information goods and services. Besides online marketing and internet usage are growing to be more advanced. Paying is not definitely paper currency on the transaction, because the transaction going substituent with the electronic payment system or the card. innumerable payment mechanisms suitable for use in this marketplace are in several stages of development. This interrogation shake o ffs chain is limited to electronic payment systems which centre on the needs of consumers.As in usually the case with payment innovations, the success of the smart card will depend on market circumstances and cooperation among the banks. The proper timing of the introduction may depend on consumer readiness to use the new system, which will itself be largely due to prior experience and innovativeness (Andreasen, 1991). The Numerous Payment Systems have been pervasion on the marketplace, the new system prepared to accept by better consumers. To the aim that consumers have experience with previous systems, the responsiveness and information of a new payment system will be facilitated.Lastly , this query project is a key of understanding of consumer behaviour and their payment choices, and also the factors that capture the consumer choose to use e-payment. Moreover, this research project oration the usage of the electronic payment system provided a brief literature review on elect ronic payment and purpose to explain the determinants which affect the usage of users towards electronic payment system.1.2 History of Electronic Payment SystemIn slow 1970s technology such as Electronic Data thumb (EDI) and Electronic Funds Transfer (EFT) to promote e-commerce transactions, authorized to operate in order to promote, such as purchase orders or invoices for electronic business documents. In 1979, Michael Aldrich contrived a technique as e-commerce the technique was about online wanderping to allow consumers and business through online transaction processing to shop from home and to trade with other business. In 1980s the enlargement and recognise of credit cards, automated teller machines (ATM) and telephone.The first ATMs machines use of magnetically prearranged plastic, the money could not automatically withdraw from users accounts were off-line machines. So the customer would peradventure be apprehensively to let a machine handle their money. exclusively th e cards used an encoded magnetic strip, making them safe and reusable. Consequently, just the sole(prenominal) customers with good credit history were able to use ATMs. Therefore right away the ATM industry Association states that there will 1 zillion of users using this transaction in ATMs. Almost 80 percent live on to the nonpublic sectors (Commercial Union ATM, 2000).The process of conventional payment system and liquidation involves a buyer-to-seller transfer of cash or payment information such as cheque and credit card. The actual settlement of payment takes place in the financial processing network. A cash payment requires a buyers withdrawals form his or her bank account, a transfer of cash to the seller, and the sellers charge of payment to his or her account. Non-cash payment mechanisms are settled by alteration such as crediting and debiting the appropriate accounts between banks based on the payment information conveyed via cheque or credit cards. Non-cash payment requires three associate elements. The buyer must have an agreed means of payment consent and restructuring its bank to affect a transfer of funds. The sellers bank and buyers bank need an agreed method of exchange payment instructions. This is referred to as payment illumination (Singh Sumanjeet, 2009).The process of electronic payment systems have been in operations since sixties and have been expanding rapidly as well as growing in complexity. After the development of conventional payment system, Electronic Fund Transfer (EFT) based payment system came into existence. It was first electronic based payment system, which does not depend on a central processing intermediary. An electronic fund transfer is a financial application of Electronic Data Interchange (EDI), which sends credit card numbers or electronic cheques via secured private networks between banks and major corporations. To use EFT to clear payments and settle accounts, an online payment service will need to add c apabilities to process orders, accounts and receipts. But a watershed came in this direction with the development of digital currency. The nature of digital currency or electronic money mirrors that of paper money as a means of payment. As such, digital currency payment systems have the comparable advantages as paper currency payment, namely anonymity and convenience.1.3 Problem of line of reasoningDespite the rapid development of electronic payment systems, innovative services, but still faces some challenges. Business e-markets as herald fundamental changes in the source and the computer-assisted alternative to existing market arrangements for trading in arrange (Malone et al., 1989). Areas of impact include online catalogues, multimedia mail, electronic payment, brokering services and collaborative engineering. sign implementations of electronic commerce have focused on the provision of telecommunications-based nucleotide in support of Internet-oriented services and electr onic payment systems (Kohala Coast, HI 2009).Electronic payment systems should offer at least as much confidentiality as traditional payment systems electric currently do. The goal of this requirement is that payment data should not be exploitable in order to discover more specific or more comprehensive information about involved entities example payer profiles. Thus, confidentiality properties of electronic payment systems can be distinguished regarding which information they reveal to which parties. Confidentiality of payment information against other parties can be fall upond by encrypting communication which is no specific property of payment systems. Note that confidentiality in electronic payment systems cannot prevent information flows which may happen orthogonal an electronic payment system among involved parties for example by observing communication networks, or revealing data in further mercantile interactions (Fiat, Naor 1990).Security are keys for the successful implementation of the payment system, electronic payment security has missed out on a lot of skilful innovation improvements seen in other industries. But as levels of fraud hold back to increase, so too will the cost to the consumer. If this problem is not addressed, credit cards and electronic payments may become an unviable option for consumers (Benjamin Graham, 2003).(Please add research questions before research objectives)1.4 Research ObjectivesBasically, there are several objectives for this study. This research project carries the objectives are as the followingTo determine the awareness level of electronic payment systemsTo identify the factor that influences the usage of e-payment systems.To determine the current usage level among usage and the application of the electronic payment system.1.5 import of the oeuvreThe substance of the study is to study about the awareness of electronic payment system for university private savant which is Multimedia University in Melak a. In this research will study on various independent variables touching the awareness of electronic payment system for student which are personal factors, demographic factors and type of benefit whether can affect Melaka private university student on their awareness of usage of electronic payment system. Many wad do not aware of the importance of electronic payment system to more easy complete on their financial transaction. Nowadays the computer enables us to access all the money in the world, even we carry a credit card we could around the world. Using the electronic payment system could let us enjoy much better life. Lastly, the significance of this study would definitely be in accordance with the objectives mentioned earlier.1.6 Scope of the StudyThis research will focus on the awareness and usage of electronic payment system among Multimedia University students in Melaka campus. The assumption that can be made by survey conducted using random sample to obtain the primary data . Survey instrument is in questionnaires form. In order to achieve the objective of the study, the questionnaires question will be set based on research objective and hypotheses statement. It is to ensure that the data that had been collect are useable and can be analyzed.1.7 Organisation of Research ProjectThis study is divides into flipper chapters as followChapter 1, Introduction, introduces general information of electronic payment system. It also covers the history of electronic payment system, problem statement, research objective, significance of the study, scope of the study and limitations of study.Chapter 2, Literature Review, presents the state of electronic payment instruments and type of credit card, debit card, electronic purse card and electronic banking. This chapter reviews how the previous researchers summarized the alliance between usage of electronic payment system with behavior and wisdom of users towards the electronic payment system.Chapter 3, Methodology is telling the method of investigation. This chapter describes the conceptual simulation that as the basis for designing a questionnaire to conduct an empirical study.Chapter 4, moderate and Discussion, after the survey is done, a discussion is conducted to verify the result obtained.Chapter 5, finding and Recommendation, summarizes the main result and provides the contributions of the study. Recommendations and limitation are being provided.