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 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

What are Different Types of Computer

Computers can be divided into the following 3 types on the basis of their working mechanism: 1) Analog Computers 2) Digital Computers 3) Hybrid Computers 1. Analog Computers Analog computer is used to measure continuous values. It measures a physical property like voltage, pressure, speed, time and temperature. An analog computer takes input in analog form and gives output in analog form. Its output is usually displayed on a meter or scale. Analog computer has low memory and fewer functions. Analog computer is mainly used in the field of engineering and medicine. Examples include: Examples of Analog Computers include:  1. Thermometer 2. Speedometer 3. Analog clock 2. Digital Computers A digital computer works with digital data. Digital computer uses binary number system. Binary number system consists of only two digits 0 and 1. A digital computer represents data in digital signals. A 0 represents OFF and a 1 represents ON. Digital computer performs a...
3 comments
Read more

What are Dual Devices or Both Input/ Output Devices

The devices that can be used to perform both functions -input and output- are called Dual Devices. These devices are also called Dual Purpose Devices or Both Input/Output Devices. With the help of a dual purpose device, we can enter data into computer as well as we can output data from the computer to outside world.  For example, Dual devices include:  Touch Screen Monitor, Modem, Network Interface Card, Sound card, Hard disk drive, Floppy disk Drive, Magnetic Tape Drive CD-Writer and DVD-Writer etc. These are also called Input/output devices, because they perform both functions. Touch Screen Monitor Dual Devices or Both Input / Output Devices - Touch screens Touch Screen Monitor is an input/output device. It uses a special touch sensitive screen. The User can enter data by touching icons or menus on the screen. As soon as the user selects a command from menu, output is displayed on screen. Commonly touch screen monitors use sensors to detect touch of finger. ...
1 comment
Read more