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

Explain different types of storage devices

Topic: Explain different types of storage devices in Computer systems Storage Devices Storage devices are used to store data and instructions permanently. Storage devices are also called secondary storage devices / backing storage devices / external storage devices or auxiliary storage devices. Examples of storage devices include Hard Disk, CD and DVD etc. Why Secondary Storage Devices are Used? Secondary storage devices are used because: Primary memory(RAM) is volatile and temporary. When computer is switched off, all data in ram is erased. Storage devices can store large amounts of data and instructions permanently whereas Primary memory has less capacity of storing data. Types Of Storage Devices There are three main types of storage devices:  Magnetic Tape   Magnetic Disk   Optical Disk   Flash Memory storage devices 1. Magnetic Tape Magnetic tape is the oldest storage device. It is made of plastic coated with m...
3 comments
Read more

Different Functions Of Operating Systems

Topic: Different Functions Of Operating Systems What is an Operating System? Operating systems are an important type of system software. They provide a lot of facilities to the users. An operating system can be defined as software that acts as an interface between the end user and the hardware. Computer users can use computer systems that have an OS or operating system installed. For example, Microsoft Windows is a popular PC operating system. What is the Importance of Operating System in Computer? Each computer must have at least one operating system to run other programs. for example, if there is no operating system in your computer, you will not be able to use the computer. When you install an OS like Microsoft Windows on your computer, it displays its GUI that is Windows desktop on startup. Now you can use your computer with the help of graphical user interface elements like icons, menus, shortcuts on your computer screen. Similarly if you wish to install application ...
2 comments
Read more