Payment Methods
E-commerce sites use electronic payment, where electronic payment refers to paperless monetary transactions. Examples,
Credit Card
Payment using credit card is one of most common mode of electronic payment. Credit card is small plastic card with a unique number attached with an account. It has also a magnetic strip embedded in it which is used to read credit card via card readers.
When a customer purchases a product via credit card, credit card issuer bank pays on behalf of the customer and customer has a certain time period after which he/she can pay the credit card bill
Following are the actors in the credit card system.
Credit Card
Debit card, like credit card, is a small plastic card with a unique number mapped with the bank account number. It is required to have a bank account before getting a debit card from the bank. The major difference between a debit card and a credit card is that in case of payment through debit card, the amount gets deducted from the card's bank account immediately
Debit Card
Smart Card
A smart card is a physical card that has an embedded integrated chip that acts as a security token. Smart cards are typically the same size as a debit or credit card and can be made out of metal or plastic. They connect to a reader either by direct physical contact (contact smart card) or through a short-range wireless connectivity(contactless smart card) standard such as radio-frequency identification or near-field communication.
Contact smart Card
Contactless smart Card
Digital or E-wallets are online payment tools, usually in the form of an app. The wallet securely stores virtual versions of debit and credit cards, so you don’t need to enter your card details or carry a physical card at all to make payments. A digital wallet uses app software to link your payment details from your connected bank account to the vendor that the transaction is being made with.
E-Wallet
E-Wallet Examples
Apple Pay - Payments with Apple Pay are verified using Touch or Face ID, so you can have maximum security with minimal effort.
Samsung Pay - Samsung users can also set up Samsung Pay, another widely accepted electronic payment system equipped with MST and NFC technology
Google Pay - Google Pay uses NFC technology so you can pay with a fingerprint or a password, and your card information is always encrypted.
PayPal - Add your virtual N26 Mastercard to PayPal so you can check out with a single tap anywhere PayPal is accepted.
Activity 01
E-Commerce Security
Threat to E-Commerce
E-commerce threat is occurring by using the internet for unfair means with the intention of stealing, fraud and security breach. There are various types of e-commerce threats. The most common security threats are an electronic payments system, e-cash, data misuse, credit/debit card frauds, etc.
Types of threat in E-Commerce
E-Commerce Security
Types of threat in E-Commerce
Credit and debit card fraud
credit and debit card fraud occurs when users steal the credit card or debit card details of unsuspecting victims and then use it to make a purchase on your e-commerce store. Not knowing that the details used to purchase from you is stolen, you go ahead and release the product or service to them.
Types of threat in E-Commerce
Phishing
Phishing attacks are the practice of sending fraudulent communications that appear to come from a reputable source. It is usually performed through email(spam). The goal is to steal sensitive data like credit card and login information or to install malware on the victim's machine
Types of threat in E-Commerce
Distributed denial of service (DDoS) attacks
A distributed denial of service attack, or DDoS attack, is an attack in which an attacker uses multiple computers to hit your (By sending special application called bots which causes to create a network of bots called botnet) server with fake traffic in order to make your website inaccessible, or unable to function properly, for legitimate users. DDoS attackers do the following,
Types of threat in E-Commerce
Malware
A malicious software specially designed to disrupt the system/network is called a Malware. It can easily access the confidential information of both businesses and personal systems. Accordingly, malware can also delete the valuable information of organizations and thus its impacts are high on businesses. Example,
Ransomware: It is a new kind of malware that increasingly sounding in various business verticals. Ransomware heavily distrusted banking, e-commerce and banking sectors in 2017. It primarily focusses on hacking the server or hosts machines and demands a fee for releasing hacked information or data.
Activity 02
Evaluating Information on the web
Five Criteria
Accuracy: The reliability, truthfulness, and correctness of the content.
Authority: The source of the information
Relevance: The importance of the information for your needs
Currency: The timeliness of the information
Purpose: The reason the information exists.
Security is an essential part of any transaction that takes place over the internet. Customers will lose his/her faith in e-business if its security is compromised. Following are the essential requirements for safe e-payments/transactions. These essential requirements are known as six dimension of security.
Protecting Threats
Confidentiality − Information should not be accessible to an unauthorized person. It should not be intercepted during the transmission.
Integrity − Information should not be altered during its transmission over the network.
Availability − Information should be available wherever and whenever required within a time limit specified.
Authenticity − There should be a mechanism to authenticate a user before giving him/her an access to the required information
Six Dimension in Security
Protecting Threats
Non-repudiation - Non-repudiation confirms whether the information sent between the two parties was received or not. It ensures that the purchase cannot be denied by the person who completed the transaction. In other words, it’s an assurance that anyone cannot deny the validity of transaction.
Privacy - privacy is used to control the usage of information by the customers that they have given to the merchant.
Security Method
Security Method
Choose a secure ecommerce platform
Consider the following factors when choosing a E-commerce web sites
Pass Paper Discussion
Protecting Threats
Use of Secure Protocol