Skip to main content

Explain Credit Card Payment System

Electronic Credit Card System on Internet

Credit cards are the most popular E-Payment method. The Credit Card is plastic credit card with a magnetic strip issued by a bank or financial institution. Holders of a valid credit card have the authorization to purchase goods and services up to a predetermined amount, called a credit limit. There are the following 5 entities involved in Credit Card System as follows:



Entities Involved in Credit Card Payment System

1. Card Holders.
2. Merchants
3. Card Issuer (Bank / financial institution for Card Holder)
4. Acquirer (Bank / financial institution for Merchant)
5. Card Brand (Company - Master, Visa card)



Process of using Credit Card


1. Issue a Credit card to potential card holder.
2. A person requests to an issuing bank for Credit Card. The bank approves or denies the application. If approved a plastic card is delivered to the customer by mail. The card holder calls the bank to activate the card.
3. Card holder shows card to merchant or enter information at website to buy something.
4. Merchant asks approval from Card Company. Transaction is paid by credit and Merchant keeps sales slip
5. Merchant sends sales slip to acquirer bank and pays fees for the service. This is called “capturing process”
6. Acquiring bank requests the card company to clear credit amount and gets paid
7. Then Card Company asks for clearance to issuing bank.
8. The amount is transferred from issuer to brand company. The same amount is deducted from card holder’s account in issuing bank.


Basics of eCommerce

  1. Definition and History of ECommerce
  2. Role of E-Commerce in Daily Life
  3. Classification of e-Commerce Applications
  4. Difference Between Electronic Market and IOS
  5. Types Of e-Commerce


Ecommerce Payment Systems/ ePayment

  1. Types of Popular e-Payment Systems
  2. Explain Credit Card Payment System
  3. Advantages Disadvantages of Credit Cards
  4. Difference Between Debit Card and Credit Card
  5. Types of E-payment Security Schemes
  6. Types of e-Payment Security Protocols

Labels:

Comments

Post a Comment

Popular posts from this blog

Explain Main Difference Between System Software and Application Software

Topic: Explain Main Difference Between System Software and Application Software            Differentiate between system software and application software Before , explaining the main differences between application software and system software, let us know the definitions of Application software and System software with examples. What is System Software: System software is a set of programs to control all components of computer and to manage overall operations of computer system. Differences between System software and application software System software is used as a base to install and run all application software. Examples of system software include: Operating Systems, like Microsoft Windows, DOS, Unix and Linux Device Drivers like Device driver software of a Printer (found on CD normally provided with the printer) Utility Programs like AVAST anti virus, Disk Scanners and File Viewers etc. What is Applicat...
10 comments
Read more

Definition and History of ECommerce

What do you mean by E-Commerce? Electronic Commerce (e-Commerce) is a general concept covering any form of business transaction or information exchange executed using information and communication technologies (ICTs). e-Commerce takes place between companies, between companies and their customers, or between companies and public administrations. Electronic Commerce includes electronic trading of goods, services and electronic material. BRIEF HISTORY OF E-COMMERCE + E-commerce started in early 1970’s with invention of electronic fund transfer(EFT). + Only used by large organizations, financial institutions and a few small business at that time. + After invention of EDI (Electronic Data Interchange) from financial institutions to manufacturers retailers, services and so on. + Many other e-commerce applications started from stock trading to travel reservation system. + With commercialization of internet in early 1990’s. The term electronic commerce was used. Interne...
Post a Comment
Read more

Services Of Internet

SERVICES PROVIDED BY INTERNET Important services provided by internet are as the following: 1. THE WORLD WIDE WEB This is also called web or www or 3w. The collection of all web pages in all web sites on Internet is called www. These web pages provide us information in the form of text, pictures, audio and video formats etc. 2. E-MAIL E-mail stands for electronic mail. It is the most popular, cheap, easy and fastest mailing service. We can send and receive messages on internet with in seconds or minutes. 3. EMAIL DISCUSSION GROUPS These are used to discuss different topics with other people by email. 4. NEWSGROUPS Newsgroups are discussion groups on internet. They are used for free exchange of information. A user sends a message to the news group site. Other users read this message from this site and reply. Newsgroups are provided by special computers called news servers. 5. ECOMMERCE It stands for Electronic Commerce. E-commerce means to carry out business dealings by internet...
Post a Comment
Read more