e commerce
This also uses digital certificates, which also come from Certificate Authorities, but here another organization known as a proxy merchant is also involved. The idea is that buyers send their, suitably encrypted, credit card details to the proxy merchant which performs the same identity check as for SSL. Assuming everything is in order this proxy merchant then sends an authorization to the seller, but withholds the credit card details. From the point of view of the seller they have the go ahead to complete the transaction, they will get paid, while the actual details of the credit card are, to them, irrelevant. All they need to know is that the card is genuine. It is therefore only the proxy merchant which can match credit card details to name and addresses.
Electronic transactions have been around for quite some time in the form of Electronic Data Interchange or EDI. EDI requires each supplier and customer to set up a dedicated data link (between them), where e-commerce provides a cost-effective method for companies to set up multiple, ad-hoc links.
Funds are transferred electronically from the customers bank account to yours. (This is a highly simplified explanation, and is accurate in the most general sort of way. However, the bottom line is that the customer buys, and at some point the funds are removed from his or her account and ultimately deposited into yours.)
Electronic Wallets store your credit card numbers on your hard drive in an encrypted form. You then make purchases at Web sites that support that particular type of electronic wallet . By clicking on a Pay Button, customers initiate a credit card payment via a secure transaction enabled by the electronic wallet company’s server.
These terms are also used interchangeably, and they refer to any of the various methods that allow a person to purchase goods or services by transmitting a number from one computer to another.
An electronic payment system is needed for compensation for information, goods and services provided through the Internet - such as access to copyrighted materials, database searches or consumption of system resources - or as a convenient form of payment for external goods and services - such as merchandise and services provided outside the Internet. it helps to automate sales activities, extends the potential number of customers and may reduce the amount of paperwork.
Payment processing in the online world is similar to payment processing in the offline or “Brick and Mortar” world, with one significant exception. In the online world, the card is “not present” at the transaction. This means that the merchant must take additional steps to verify that the card information is being submitted by the actual owner of the card, Payment processing can be divided into two major phases or steps: authorization and settlement.
Online payment processing requires coordinating the flow of transactions amonga complex network of financial institutions and processors. Fortunately, technology has simplified this process so that, with the right solution, payment processing is easy, secure, and seamless for both you and your customers.
EDI standards are very broad and general because they have to meet the need of all businesses.
1. The buyer enters order information into the production database, which generates a purchase order on the computer. The order information is then channeled through a number of interface programs.
EDI architechture specifies 4 layers:-
A trading partners:- a trading partner is an organization who uses EDI. They are assigned a trading partner ID number which is their generic “customer number”. If you decided to use EDI, you will register your company with your service provider (VAN) who will provide with a trading partner.
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