Online Payment And Security Of E Commerce Information Technology Essay

Online requital And security measure Of E Commerce info technology EssayWith the era of training technological advancement, electronic commerce is in stages fartinging the distribution of the crinkle atomic bet 18as. Online electronic wagess atomic number 18 an important tell of e-commerce, and withal the basis for electronic commerce which able to success amply lift. With protrude the a desire existent- clip coordination of electronic fee, e-commerce is just only when practical signifi flowerpotce of the realistic(prenominal)(prenominal) crease, it gage non achieve a true cyberspace accomplishments.The reason that I cull this title as my seminar title is beca use of goods and services it related to my final year project. As my final year project is regarding to online compensation method, so I would analogous to shargon about(predicate) online payment method and the jeopardize of online payment, what atomic number 18 the risk pot be taken, what be the dance gait to pr level(p)t selective entropy lost, the pledge strategic to hold on both(prenominal) concealing or mystical education fraud, and what atomic number 18 the pros and cons about the online payment method.Online payment is the core of e-commerce development, is an important step to materialized the work on meshwork, and overly the bottleneck of the domestic engagement application development. E very(prenominal) firms or companies which run the handicraft on lucre moldiness suffer the online payment method to maintain their gild flow. doorway1.1 What is online payment?Online payment, also known as electronic payment, it refers to the property which change electronic everyy. Broadly speaking, online payment refers to the transaction transferd the funds on net income, typically involves calculating machine network, profits and digital stored value outline. It reachs e-payment whitethorn at both cartridge holder, via the mesh directly to th e transfer, settlement, and forms of e-commerce environment.1.2 How online payment basic mold?Online payment whitethorn seem to be very easy and agile, but it consist of the confidential and pledge for the tease info. In mold to bring sure that the surgery is work moderately, the merchant must connect to the network with the Issuing commit, addressor, and others monetary institution, so that the study that provided by the customer canful be routed trustworthy and secure. As upliftedly sensitive payment randomness, trust and confidence is an prerequisite element of any payment transactions. This means that payment processing suspensorer should be provided by a wealth of experience in payment processing and nurtureion.1.3 What is electronic commerce?electronic commerce refers to the goods and services which exchange everywhere the net income, cat valiumly known as e-commerce. All major sell brass section also devote an online presence, however, e-commerce a lso apply between business to business (B2B) transactions. It can open to all interested parties, or rase limited participants. For practice the manages of Amazon.com, the selling and buying transaction is ideal electronically and interactively in real-time. Besides that, e-commerce carcass also associated with the service industry, such(prenominal)(prenominal) as online blasphemeing, transfer funds, or even pay the credit bait bill.1.4 Security of e-commerceA vast with the e-commerce continue to broaden, protection of individual treatment all all over the internet, and get in your customers feel secure is the primary factors and necessary. In order to effect a secure and good service, internet security plays an important business office to be enhancing in this situation. The objective is to establish rules and metre to use against attacks over the mesh. earnings information exchange on behalf of the invasion led to severe or high risk of fraud.For any expert in in ternet security pass on tell, e-commerce is actually a great deal more(prenominal)(prenominal) secure than real charitables commerce. For type analogous when you leaved your credit card pass on in the shop, or accidentally give your credit card turning to roughlywhatone else, you are actually accepting the risk that the order which not order from you will appear on the next months credit card bill. However, when you enter a credit card number of e-commerce site, you are move by a secure connection to a server approach shot only to authorized soulfulnessnel and protected against even the most obstinate intruders.Although around of the people believe that transactions over the internet are in fact safer than offline transactions, thither are still a number of people believe that offline transactions are always better than online payment. For deterrent example same protecting the credit card detail, company inquire to restrain the card info from customer or the s olitude of the customer undercoat by a three party. Typically, this involves the company network security and how the company provide a strong and secure agreement on the internet.2 Common Online Payment SystemsOnline payment system is to protagonist the consumer more thingmajig and it is the cardinal issue to vouch that the consumer are fast and secure. thither are some(prenominal) tokens of common online payment systems2.1 E- interchange internet payment systemE-cash, also known as electronic cash or electronic property, it is a form of info which exchange electronically finished the network computer or internet, these is electronic cash currency. It can be transfered to cash value of the family of cryptographic sequences, and consequently use these sequences to try out the value of all sizes. There are few characteristic are as follows an placement between the enterprises and bounds and authorization, can be transfer, can be kept, apply to exchanged value withi n another(prenominal) system.As e-cash is what we can imagine as cash chinas grease ones palms of small general merchandise payment habits features, it is believably to become an important means of online payment in China, but China has not officially started. There are many foreign companies to provide electronic cash market. If unconditionally phone little electronic gold digital cash net cash market can provide an anonymous e-money market.2.2 E-purse Internet Payment SystemE-purse, also known as electronic purse, it is a type of smart card which embedded with the microchip. To use e-purse shopping, the number one is the drug substance absubstance ab user must transfer certain amount of personal money box account, then in the corresponding of website to download electronic wallet service system free software and install an electronic wallet, to apply online and take out at the cardholder electronic safety certificate. When users want to purchase something through the in ternet, just choose to click on the electronic wallet icon, and follow the corresponding information that the user need to provided, such as word of honor and user name to complete the transaction on the internet.E-purse would be more satisfactory and plastic compared with defines or debit card for a smaller transaction, it always used in conjunction with the bank card to help the user complete all the small transaction process. E-purse is independent of the drop dead of bank accounts, so it will be able to record the user as ask payments are made in a definebook greater privacy and freedom. In addition, e-purse even can provide budgeting because the user only can spend what the total amount that the card had.2.3 Electronic check (E_check) Internet Payment SystemElectronic check, also known as e-check, is a form of payment which transfers through the internet. It perform the same function as the write up check of utilise digital transmission to transfer money from one acco unt to one account. Besides that, e-check provide better security features than the paper check because it is an electronic format and whitethorn proceeded in less steps to complete the transaction. Most common features provided byelectronic checks entangle enfranchisement, public key cryptography, digital signatures or personal identification poesy instead of signature and so on. Theres a simple electronic check process shown below1. Send cultivatePayeePayer2. Inspect Check5. Bill3. Notice4. Approve funds and transferPayee Bank chronicle ServerElectronic Check-Cashing ProcessE-check is an exclusive network system, the international financial institutions, with their equipment, software and hardware, an accurate and complete set if user identification, the standard messaging, information validation and other standardized data transmission agreement to call sure that the transaction are safety and security.2.4 Digital Wallet Payment SystemA digital wallet, also known as e-wa llet, it is a software system that store in spite of appearance the users computer to hold the digital cash, and a digital certificate with a digital signature. E-wallet pull up stakess users to make payment or transaction over the internet fast and safety. The function of the e-wallet is much more like a physical wallet, used to store the digital cash. After the e-cash service released, the e-wallet has evolved into a service to provide online shopping information and holds credit card data and tidingss for logging into the website with a convenient way.An e-wallet have both software and information component. The software provides the safety and security with the encoding for the actual transaction. Typically, e-wallet is store on client side, so it is easier to self-maintenance and fully congruous with most of the online payment system. In addition, the system will automatically key in the user information in the online form, it is easier for the user and reduce the time to enter all the information again and again. duration for the server side, it is refers to an presidency and your side to create and maintain on it server. Because of the security and the efficiency and forte of the utility that provided by the server-side to the users, it become more and more popular and renowned for the user with the faultless process.2.5 PayPal System ListenRead phoneticallyPayPal is an e-commerce business by allowing the user to make transaction or money transfers through the Internet. PayPal also known as electronic alternative, such as checks and money are orders with the traditional paper method. It doesnt charge any fees to make any transaction or join the PayPal service, but they will be a fees change for those who want to receive the money from other people.PayPal account from a bank account can be funded by electronic debit or credit card. To receive the transaction from other people, the pass catcher from PayPal can either request from the PayPal ser vice, established their own PayPal account, or request from their bank account. PayPal service is much like a intermediaries or a third party who involve between the clients and the recipient that facilitates in e-commerce.PayPal involve in several payments processing such as, online auction, online vendors, and others commercial users. It will be some fees from the recipient for receiving money, fee included the percentage of the amount plus another additional amount. The fees is charged depend on the currency used, the option that submit by the user, the country of the sender and recipient (how far between both sender and recipient), the total amount sent by the sender and the type of account that the recipient receive it. In addition, shopping on eBay and then made the transaction by a credit card through PayPal whitethorn incur a foreign transaction fee if the vendor is located in another country, as credit card issuers are automatically informed of the sellers country of or igin.2.6 Critical EvaluationAccording to Singh Sumanjeet1 (2009, p.24), Electronic cheque system has many advantages (1) they do not require consumers to give account information to other individuals when setting an auction (2) they do not require consumers to continually send sensitive financial information over the web (3) they are less expensive than credit separate and (4) they are much faster than paper found traditional cheque. But, this system of payment also has several single outs. The disadvantage of electronic cheque system includes their relatively high fixed addresss, their limited use only in practical(prenominal) world and the fact that they can protect the users anonymity. Therefore, it is not very sufficient for the retail transactions by consumers, although multipurpose for the government and B2B subprograms because the latter(prenominal) transactions do not require anonymity, and the amount of transactions is in general large enough to cover fixed proce ssing cost.In my opinion, i strongly agree with the command that the author mentioned about. Electronic cheque system provides several advantages than a paper based cheque such as faster speed transaction, provide a certain level of security like encryption or decryption, and so on. But in that location are still limits of disadvantages for electronic cheque system, like high fixed costs or development start-up costs. Besides that, electronic cheque system can be used in virtual world instead of the real world payment method. And the most important point is the security issue, because the less of face to face communication, we cant even know the actual user as well. The possibilities that someone is try to pretend as the actual user to make transaction with us and caused identity threat3. Strength and flunk3.1 Advantages of Online PaymentOnline payment, what we called as online payment, is an indispensable business. This is extremely important to accept electronic payment of tel ecommunications service industry, because it started to use this fastly growing economy is fully utilized.Use of credit cards by phone or Internet is a familiar and convenient for consumers in the form of payment. It provides for immediate purchase to reduce the bruise of payment delay coupling. Customers often feel more comfortable with a credit card, because they know they have the proof to the point of intersection or service if they not satisfy on it.There are several advantages of online payment (e-payment)3.1.1 Convenient and 24 hours real time transactionThrough the use of online payment system, consumer can access the web to make any transaction such as online banking, online billing or even car loan at any time (24 hours) or anywhere, as long as access to the internet. For example like consumer can check the bank flesh out through their mobile phone no content at where and anytime along with the network connection. In addition, consumer able to check or view the histor y of the previous transaction that they made or get the accurate real time information through online payment system. It whitethorn save up a lot of the paperwork as well.3.1.2 Reduce cost and save timeWith the help of online payment system, we only need to bond at home with just a click in antecedent of the computer which machine-accessible to the network, and transaction will be do easily. or else of go to the physical bank to make the transaction by pen the form and waiting in front of the counter. It may save up a lot of cost like transportation fees, paper workflow fees and so on.Besides that, through online payment, the processing speed is definitely fast and rapid by following the simple schoolings and entering the parameters that the system required. And user may not need to transport from one side to another, it may save up a lot of time. Compared with the real world physical offline banking system, it may spend a lot of time oddly on peak season or peak hour.3.1. 3 Flexible of using e-paymentAlong with the continuous improvement of e-commerce, many organizations or firms not only focusing their business on offline operation, but managing their business workflow on internet. Nevertheless, e-payment, as what we called as online payment, had become an indispensable item for the entire advancement of e-business. Nowadays, there are more and more online payment service provided which conjugate with the organization. It is more flexible to the consumer, they can choose which type of service that they want, for example like PayPal, e-cash or which bank they prefer such as maybank2u and so on.Besides that, majority of the online payment service are operation 24 hours, consumer can make the transaction anytime they like. In addition, they can reduce they pain of transport from one location to another and waiting in-front of the counter in the bank. Online payment service allow consumer to make any transaction on anytime or everywhere by accessing t o the network. It is the flexibility of e-payment.3.1.4 Benefit between consumer and organizationWith the help of online payment, consumer and organization are benefiting in other ways like the consumer and organization are able to negotiate arrangements for the true value, and strengthen the human relationship of their business.Besides that, consumer can skip many steps or supporting for the transaction. It may easier for them to control over the timing of payment steps, and minimize the operation of the idle account balance. Consumer can eliminate the delay for the processing of transaction. For organization, they can reduce the cost of processing the paper cheque. Yet when the organizations process the paper cheque that paid from consumers, they need to spend some cost to process the paper cheque.With the help of online payment, the organization may have the advantages as well by encouraging the consumer to pay electronically instead of pay by a paper cheque. In addition, they can receive the payment instantaneously without any delay, because the receipt is available immediately after consumer had made the payment.3.1.5 Others common benefitsBelow are some of the common benefits for online payment method.Personal securityWe do not need to hold so much money along with us on our premises, or even on the outside, and lead to more safety and securityUsed internationallyOnline payment is a common method that can be used internationally, it is important for the tourist-sector businesses or those organization who running their business or selling their goods overseas.Reaching a wider customer baseSome of the organizations accept the online payment method like phone delivery or mail ordering for online customers it is easier for those customers who are overlook of transportation or not able to reach your premises.Increase the sale opportunitiesFor some customer willing to buy the goods from the offline business shop, the may having the paradox that insuffici ent fund, they have to leaves to get cash, it may cause them not withdraw to the shop again.With the help of online payment from ecommerce sector, customer can buy the goods from internet as long as the computer or devices are connected to the internet. This may lead to sale increasing.3.2 Disadvantages of Online PaymentThe transaction over the internet or the transfer of fund on internet through the electronic media is known as electronic payment, as what we called as online payment. Nowadays, online payment is a daily activity for most of the business organization. It is very common and convenient for the online transaction for those organizations focus their business over web to interact with their consumers or business partners.In fact, there are still weaknesses of the online payment that we cannot abridge it. One of the ways is to be aware the raised awareness of privacy and security issues from the electronic online payment system. Consumers have to bear the risk such as fr aud or identity threat that involved in the online transaction.There are several disadvantages of online payment (e-payment)3.2.1 Privacy security concerns.In the e-commerce world, most of the online banking systems, also known as online transaction site, require the user to register as their own member with some simple introduce or instruction forwards giving the authorization for them to make the transaction. While the registration process, user need to provide the username and password, all these information implies the need of privacy protection and security. In addition, user need to maintain their account, it may be a trouble for the user.For those organizations site that hosting the user account, they should follow the stiff of security and privacy policies. It is very important for those organizations to protect the privacy of the user details and prevent the information being cabrioleted by the hacker. If the username or password is susceptible to being hacked, it mayb e will cause the user a serious financial loss problem from the end. All these are a potential rick of the privacy or the personal detail being hacked while using the online payment system.3.2.2 Identity theftAnother disadvantage of using online payment is identity theft. Using the right security measure can prevent your important information being exposed by the third party. Besides that, using virus protection or firewall may very useful to protect your computer. It might a risk that you make any transaction through internet from your computer.Another example like if you losing your smart card, unfortunately the card is fall in unsafe of persons hand. There is a very serious or dangerous expenditure of your entire account balance. Though you will inform the authorities on cards loss, when the time between you losing your card and informing to the authorities, the third party (unsafe person) may transfer all your money out through your card details via internet.3.2.3 Dependency of online payment systemAlong with the information technology, many organizations or firms are running their business over the internet and provide several utilities as long as online transaction. In fact, this method is indirectly effect consumers become more and more dependent on online transaction, because it speed and rapid transaction, availability 24 hours as long as connected to the internet at home or even a mobile devices.However, there still can be disadvantages for over dependent of online transaction. For example like if the email does not send to the right destination or not working well, the sender may not know the sending actus reus or does the email has reach the destination or not. Or like for those consumers may want to pay the bill or loan over the internet instead of the traditional ways. There might be a possibility that the online payment system down or not function well from the server side, and worst there was a way for the consumer to cumulate the dead line.3 .2.4 Loss human touchIn the physical bank, some of the customer may like to talk and communicate with the bank tellers, interacting with the bank manager or even the bank clients. But in the online virtual world, online banking system had taken off of these human interactions, all these are done by a system program, impersonal hand-off process.Due to the lack of the human interaction for online payment system, some of the customer my not know about the fellowship of online payment system. These required a basic computer dexterity and the knowledge about internet before using the online payment system. In addition, for some of the small online banking system, they may not provide any instruction or any guideline to lead the user in the correct way. It will caused the users entering the wrong information or incorrect bank details through the online payment system.3.2.5 High cost development for internet payment gatewayThe major disadvantage for online payment method is the high cost for internet payment gateway. For those organizations or firms are running their business over the internet, the have to create an internet payment gateway or a system in-house is definitely high development cost. For those non IT companies, it is hard and uncontrollable for them to create a system for their own. Because it wasnt their core business, and they had to use the resource from inside the company with a little or even zero of IT knowledge to build it up. Therefore, the company have to outsource from outside to help them develop a new online payment gateway for them.3.2.6 Others LimitationOthers common confinement of the online payment methodMay be difficult to inspect from a remote locationLimited of countries cultural and legal obstaclesThe rapid ever-changing of technologiesHard to retaining the employeeGovernment regulatorsDifficult to integrate the software of transaction process and the current existing database.3.3 Critical EvaluationBased on Olga Lutik (2009, p.15 -16) The main benefit from the bank customers point of view is satisfying saving of time by the automation of banking services processing and macrocosm of an easy maintenance tools for managing customers money. Private customers seek slightly different miscellany of benefits from e-banking. In the study on online banking drivers Aladwani (2001) has found, that providing faster, easier and more reliable services to customers were amongst the superlative degree drivers of e-banking development.In my opinion, I definitely agree with the above statement that state by author (Olga Lutik). Online payment may help to reduce costs and convenience user may stay at home to performed transaction at any time as long as connected with the network. It is fast and provides funds management, which allow user to download the history of the transaction that that had made.4 Ecommerce Security ElementsIn the use of ecommerce, there are several factors that need to involved are the confidentiality and privacy of the transaction need to be care between the sender and the recipient. The transaction or trading from ecommerce is directly represents to the individual, organization, or business competitor secrets. Therefore, to prevent any confidential data lost from ecommerce application, we have to make sure that the users are legitimate to access the system, and the authentication to filter which date should be show or which should not be show to the peculiar(prenominal) user.4.1 The Integrity of the informationDue to the accident or fraud of data entry, the information of the data may result in different way. In addition, the wrong of data or information will result the duplication of transmission in different sector of the process. Therefore, the trade sector will affect the truth of the information from the parties that involved in the transaction and the entire of the business workflow.4.2 The hardihood of the informationIn e-commerce world, the validity of information to individuals, organizations or even the countries are directly affected to the economic interests and reputation. Besides that, the validity of the number of time and the transaction price are very important. It is to make sure that the recipient received the data from the primary side. While for the primary side also have to make sure that the data are sent to that particular person.4.3 The Non-repudiation of the informationNon-repudiation is refers to something like document or contract that cannot simply denied by the origin party. Typically, non-repudiation is to ensure that the contract or one party cannot turn away that they communicate to sign the document or the authenticity of a message. For example like legal documents usually need a witness person to sign it, it is to ensure that the person cannot deny the document.4.4 The Authenticity of the transaction termOnline transaction are geographical distant, we couldnt know each other or even an organization. Organization, bu sinessmen, client or even consumer on internet may need to consider whether the transactions between both parties are trusted. To make the transaction success, mutual understanding and trusted with each other is very important.However, there are too many hacker or swindler in the virtual world, is hard to 100% fully trusted on the online transaction or even the in the virtual organizations.4.5 The reliability of the systemIn e-environment, the most important point for the reliability of the system is to protect the confidentiality with a powerful security system. In addition, it is to prevent hacker hack into the system and steal the sensitive information from the system. Computer errors such as system failure, software down, virus detected, network connection down or natural disasters may result from potential threat.Therefore, prevention of the system in a good way is to ensure that the systems are security and reliability. It will affect the business workflow in the future if the reliability of the system is not fully secure.4.6 Critical EvaluationAccording to Yang Jing (2009, p.48), Using the network for the transaction, the sender and recipient need to ensure the confidentiality of information exchanged. E-commerce as a means of trading, its message directly represents individuals, corporations or commercial secrets and the e-commerce system is based on a more open network environment enhance the application of ecommerce to maintain commercial confidentiality is an important guarantee. Therefore, in order to prevent a large number of transmissions was illegal to steal information to ensure that only legitimate users will be able to see the data. Information can prevent stolen.In my opinion, I absolutely agree with the statement that the author status above. To prevent the information lost, we have to protect it before happen. The integrity of information, the validity of information, the non-repudiation of information, The Authenticity of the Transaction Status, and The Reliability of the System, all these are the important elements which listed by the Author (Yang Jing) to prevent information lost. In fact, I believe that there are still a number of elements for information prevention which I never mentioned on top.5 Strategic of E-commerce SecurityAs e-commerce security cause by many factors such as fraud, identity theft, or confidential data being steal by the hacker, all these are the problem that we might face it when in the online virtual world. So, a strategic planning for ecommerce is very important, all the strategic that came out should be line with the overall of the ecommerce business management. It must provide a very powerful protection for all the ecommerce confidential data and allow them to recover as fast as possible if any concomitant happen. To prevent the security problem happen, a set of variety metre must be included5.1 Security StrategyIn order to ensure secure communications between both parties on intern et, we must take the necessary measures to prevent them. For communication tie-up purpose, we can use firewall or Virtual Private Network (VPN) to make the communication more safety and secure. And consumer must be very careful on some of the untrusted Proxy server. It is act like an intermediary for seeking the information, resource, or link that requested by the client. If the consumer are using the untrusted placeholder server, all the data that the client provided may not be encrypted and sent to the proxy server, and proxy server may record down everything sent from the client, including the login and password.For identification and authentication purpose, encrypted or hash function may be very useful in this situation. In ecommerce, login is a very common and the first step for the consumer before they move on the transaction step. To login to the system, the system needs to invest the user name and password before provide the authentication to the user. With the help of en cryption, user password have more secure which showing the password in * symbol. Besides the encryption, hash function is a way to convert your password into others form and store in the s