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Credit Card -Based Electronic Payment Systems

Credit Card -Based Electronic Payment Systems


The complexity associated with digital cash and electronic checks ,consumer and vendors are also looking at credit card payment on the internet as one possible time -tested alternative.There is nothing new in the basic process.If consumers want to purchase a product or service ,they simply send their credit card detail to their services  provider involved and the credit card organization will handle this payment like any other.

we can break credit card payment on on-line networks into three basic categories:----

1.Payments using plain credit card detail. The easiest method of payment is the exchange of unencrypted credit card over a public network such as telephone lines or the internet .The low level of security inherent in the degin of the internet makes this method problematic.

2.Payments using encrypted credit card detail.It would make sense to encrypt your credit card detail before sending them out,but even then there are certain factors to consider.One would be the cost of a credit card transaction itself.

3.Payments using third party verification .One solution to security and verification problems is the introduction of a third party :a company that collects approves payments from one client to another.