Online Monetary Transaction

1
Online Monetary Transaction
2
What is Money?

• Money is a unit of account.
• Storage of value.
• Medium of exchange.
• We accept money as a medium of exchange because
  we expect others to accept it too

3
History of money

• Early history Blood-money, bride-money
• Stone Age Silver and other precious metals
• 3rd millennium BC Earliest banking (Babylon
  first)
• 2200 BC Standardized silver ignot

4
History of money cont.

• 118 BC Fiat money (China)
• 800 AD Printed bank note ( China)
• 17th Century Modern bank notes
• ( Amsterdam)

5
Payment Options

• Barter System
• Credit Card
• SmartCard
• E-Cash
• DigitalCash
• Net Checks
• Online Bill Payment

6
Barter System

• Basically the exchange of goods and services with
  goods and services.
• The oldest form of payment that is still in use
  today.

7
Credit Card

• Visa Card ( the most widely used card in the
  wolrd) With a well expanded network of ATMs
• MasterCard
• American Express
• Discover

8
History of CasterCard

• 1981 - MasterCard introduced the first gold
  bankcard program
• 1992 - Maestro completed the first-ever
  coast-to-coast national online debit transaction
  in the United State
• 2000 - MasterCard became the first in the
  industry to establish a U.S. rule of no liability
  for the consumer from the unauthorized use of
  payment cards http//www.mastercardintl.com/about/
  corp/

9
Advantages of Credit Card

• Money securely in the bank
• No need to open a new account

10
Disadvantages of Credit Card

• Lack of privacy

11
Comparison of cash, Credit Card and Digital Cash

• http//www.cs.monash.edu.au/jirib/ecash-cc.html

12
Smart card

• Types Contact and Contactless
• Embedded computer Chip
• Higher Information line
• Require password

13
E-cash

• Introduced by David Chaum and his Company
  DigiCash
• Aimed at providing anonymous
• on-line digital money scheme that was easy to
  implement and to use

14
E-cash Buyer Desire..

• Authentication
• Integrity
• Confirmation
• Recourse
• Anonymity

15
E-cash Merchant Desire..

• Authentication
• Certification
• Confirmation
• Nonrepudiation
• Payment
• Anonymity ?

16
Animated demo on how ecash works

• http//www.ecash.net/demo/

17
How E-Cash works

• RSA (public key) cryptography is the basis of the
  ecash security
• Software on user PC
• Pair of Keys
• Random serial numbers

18
PayPAl

• PayPal enables everybody who has an email account
  to send money.
• Secure
• Convenient
• (Free)

19
Data Security Encryption

• Encrypt user information using Secure Sockets
  Layer Protocol SSL
• Information stored in a well guarded server
• Customers are verified
• Protection against unauthorized withdrawal up to
  100,000
• Gives Assurance that your money is safe

20
Types of Encryption

• Cryptographic Keys
• Digital Signatures
• Digital Certificates
• People Who Issue Them

21
Digital Cash

• Founded by David Chaum
• Uses Blind signature system
• If finally successful digital Cash should be

22
Key elements of Digital Cash

• Privacy
• Limited Liability
• Efficient
• Preserved anonymity
• Divisibility
• Infinite Duration

23
Key elements of Digital Cash

• Wide acceptability( preferred brand)
• User friendly
• Off-line capabilities
• Portable

24
Disavantages

• Not Insured.
• Apart from Digicashs ecash.

25
USE of EFT

• Transfer money between Accounts
• Pay Bills
• Send money to friends
• Online Shopping

26
NetBilll

• The merchant computes a checksum
• Sends Encrypted Goods with time Stamp
• Consumer's software computes a checksum
• Merchant sends description code

27
Example of EFTNETbill
28
NetBill Security

• Use of Id
• RSA associated with the user ID
• Authentication
• Nonrepudiable signatures
• Use symmetric cryptography
• Uses a key repository

29
Online Bill payments

• They use EBPP
• USP Services Demo
• Checkfree
• Derivion
• Encirq
• Yahoo
• Paytrust ( palm organizer)

30
Advantages of Electronic Funds Transfer

• Paying Bills in time
• No mails
• Can be pre authorized.

31
Net checks

• Checkfree
• NetCheque
• NetChex

32
Advantages of net Checks

• Processing
• Making Change
• Security

33
Disadvantage

• Security issues.

34
Payment standards

• SET( Secure Electronic Transaction)
• SLL ( secure socket layer)