Payment systems

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Payment Systems

Ways paying online

1. Credit Cards - Allow the customer to borrow the money. The customer pays the money back at a later date.

2. Debit cards - Allow the customer to take money directly out of their account.

3. Online bank transfer - Customer can make direct payment from their account to others account as long as they know the bank account details of the organisation they are paying.

4. Third party payments - Third party payment processes are trusted organisations who stand between the customer and the retailer so payments are not directly made. An advantage for a business is that sellers do not need to offer a secure site which can often be expensive and the buyer is not exposed to fraud.

5. Online coupons and vouchers/ e vouchers - Many online shops offer online gift voucher e Vouchers or "money off" coupons. These can be sent to people electronically, by email or printed out and sent by post. To redeem the gift e Voucher or coupon the recipient creates an online account and enters the unique reference number given on the e Voucher or coupon.

When paying online you enter the:

Card number

Cardholder's name

Expiry date on the card

Credit card Verification Code - Number on the back of the card which is not included on the magnetic stripe or chip. Entering the ccv means the person must have seen the credit card, entering the code.

Website secure look out for:

The URL changing from http to https.

A change in address bar's colour (often green).

"Norton Secured" which adds a further layer of authentication.

A padlock symbol

Near Field Communication (NFC)

- Contactless payment service allows devices to communicate when close together. NFC cards can be used to make payments. NFC technology is now being integrated into mobile phones too.

Advantages include:

Good security due to short transmission range

Losing an NFC card only loses the credit in an account.

Convenience of not having to repeatably enter your payment details.

Disadvantages include:

Can pay for only small amounts

Need to protect against accidental payments

If the NFC card is lost anyone can access the credit on it.