Electronic Payment System Essay -- Technology Essays

electronic Payment System I. IntroductionWith the continuing fast growth of E-commerce, transactions on the Internet have been increasing exponentially. And much(prenominal) transactions require some reliable and right wages establishments. In fact, one of the key factors in the success of E-commerce is the development of convenient, reliable and underwrite electronic defrayal carcass. To understand the issues and current activities regarding the development of electronic earnings trunk, I discuss the following in this story. Existing root-based payment corpse Major issues in designing an electronic payment system electronic payment system II. Existing paper-based payment systemThe existing paper-based payment system can be largely classified as paper checks and credit card systems. In a paper checks processing system, the personify of normal operations is frequently outweighed by the gr eets associated with exception discourse. If a typical transaction costs US 5 cents to process, and the manual ride associated with treatment errors and exceptions comes to an average of $25, even with an error rate of only both per thousand, exception costs will equal normal processing costs. As electronic processing drives down the cost of normal transactions, exception handling becomes relatively more significant. Payment systems must therefore be use to the highest standards of reliability, with automated procedures for recovering from errors whenever possible. On the other hand, the credit card system was designed to provide immediate gratification of the wants of consumers by allowing them to purchase goods or services on credit... ...tions of functions, price, and performance. The paper world, after all, has many different instruments, which be different tradeoffs among risk, cost, complexity, responsiveness, and the time until the transaction is final. The same variet y should be expect in electronic credit and debit systems. Yet new technologies expose new ways to distribute risk, liability, and cost among the parties to a transaction. They will determine somewhat longer to develop, however, as they require changes in regulatory assumptions, teddy law, and participant behavior, all of which evolve much more slowly than engineering does. Reference 1. Credits and Debits on the Internet, Marvin A. Sirbu, Carnegie Mellon University, 19972. http//www.cybercash.com3. http//www.setco.org Electronic Payment System see -- Technology EssaysElectronic Payment System I. IntroductionWith the continuing fast growth of E-commerce, transactions on the Internet have been increasing exponentially. And much(prenominal) transactions require some reliable and secure payment systems. In fact, one of the key factors in t he success of E-commerce is the development of convenient, reliable and secure electronic payment system. To understand the issues and current activities regarding the development of electronic payment system, I discuss the following in this paper. Existing paper-based payment system Major issues in designing an electronic payment system Electronic payment system II. Existing paper-based payment systemThe existing paper-based payment system can be largely classified as paper checks and credit card systems. In a paper checks processing system, the cost of normal operations is frequently outweighed by the costs associated with exception handling. If a typical transaction costs US 5 cents to process, and the manual persistence associated with handling errors and exceptions comes to an average of $25, even with an error rate of only cardinal per thousand, exception costs will equal normal processing costs. As electronic processing drives down the cost o f normal transactions, exception handling becomes relatively more significant. Payment systems must therefore be implemented to the highest standards of reliability, with automated procedures for recovering from errors whenever possible. On the other hand, the credit card system was designed to provide immediate gratification of the wants of consumers by allowing them to purchase goods or services on credit... ...tions of functions, price, and performance. The paper world, after all, has many different instruments, which corroborate different tradeoffs among risk, cost, complexity, responsiveness, and the time until the transaction is final. The same variety should be evaluate in electronic credit and debit systems. Yet new technologies display new ways to distribute risk, liability, and cost among the parties to a transaction. They will latch on somewhat longer to develop, however, as they require changes in regulatory assumptions, baptistry law, and participant behavior, a ll of which evolve much more slowly than engineering science does. Reference 1. Credits and Debits on the Internet, Marvin A. Sirbu, Carnegie Mellon University, 19972. http//www.cybercash.com3. http//www.setco.org