Created by:-

Deepak (014)
Prakul(013)
Concept of e-money
E-money is basically a electronic medium for making
payments and is the trend today. It includes credit cards,
debit cards, smart cards, electronic funds transfer and
automated clearinghouse etc.
Electronic money is the money which exists only in
computer systems and is not held in any physical form.
The need for physical currency is declining day by day
because more and more citizens use electronic
alternatives to physical currency.

In general there are two distinct types of e-money
Identified e-money = Contains the information that
makes it possible to identify the person who
withdrew the money from the bank.
Anonymous e-money = works like paper money
and leaves no trail.
-but there are two varieties of e-money:-
Online e-money- needs to interact with bank to do
transaction with third party.
Offline e-money- means you can do transaction
without having to directly involve a bank




Properties which should be considered in
money transfer

The ACID test
Atomicity:- Transaction should be completely occur or not at all.
Consistency:-All the parties to the transaction must be agree to
the exchange
Isolation:- Each transaction must be independent of any other
transaction and be treated as stand-alone transaction.
Durability:- This means reversing charges in the event that
customer change their mind.
ELECTRONIC PAYMENT SYSTEM

The payment system is an operational network - governed by
laws, rules and standards that links bank accounts and
provides the functionality for monetary exchange using bank
deposits.

Electronic payment system facilitates the acceptance of electronic
payment for online transaction. Electronic payment system has
become increasingly popular due to the widespread use of the
internet-based shopping and banking.

Electronic payment are financial transaction made without the use
of paper documents such as cash or checks.
Electronic payment may include:-paying for online shopping,
having your paycheck deposited directly in your savings a/c,
telephone bill payment electronically.






5-5
Properties important to an electronic payment
system

Acceptablity must we widely accepted by merchants,
merchants have technical ability and to processes to expedite
a sale without delay
Ease of integration website interface must be well
integrated and should independent of any other payment
system
Customer base- enough users must be present to justify
investment in the EPS.
Ease of use and Access

Credit Card: A small plastic card issued by bank,
allowing customer to purchase goods/services on
credit.
Debit card: A card allowing customer to transfer money
electronically from their bank when making a purchase.
Smart Card: A plastic card with a built-in
microprocessor, used typically to perform financial
transaction
Internet
Mobile phone payments
TV set-top boxes and satellite receiver
Biometric payments: uses fingerprints, retina scan and
voice recognition as the identification/access tool.


15 -
7
A credit card is a payment card issued to users as a
system of payment . It allows the cardholder to pay for
goods and services based on the holder's promise to
pay for them. The issuer of the card creates a revolving
account and grants a line of credit to the consumer (or
the user) from which the user can borrow money for
payment to a merchant or as a cash advance to the
user.

Possible advantages of using
credit card
Convenience-Time saving or no need of keeping cash
Keeping records- credit card statements can help you
track your expenses, hepls out at tax time.
Low-cost loans-- You can use revolving credit to save
today, when available cash is a week away.
Purchase protection--Most credit card companies will
handle disputes for you. If a merchant won't take back a
defective product, check with your credit card company
Perks discounts on automobiles. Many credit card
companies offer incentive programs based on the amount
of purchases you make






Possible disadvantages of using
credit card
Overuse-- Revolving credit makes it easy to spend beyond
your means.
Paperwork-- You'll need to save your receipts and check them
against your statement each month. This is a good way to
ensure that you haven't been overcharged
Unexpected fees-- Typically, you'll pay between 2 and 4
percent just to get the cash advance; also cash advances
usually carry high interest rates.
Deepening your debt-- Consumers are using credit more than
ever before.
Homework-- It's up to you to make sure you receive proper
credit for incorrect or fraudulent charges.








A debit card (also known as a bank card or check card) is a
plastic payment card that provides the cardholder
electronic access to his or her bank account (s) at a
financial institution. The card, where accepted, can be
used instead of cash when making purchases.

Unlike credit and charge cards, payments using a debit card
are immediately transferred from the cardholder's
designated bank account, instead of them paying the
money back at a later date.



Debit
Card
Benefits of using Debit card
You dont need to find a bank to withdraw funds

You can use your debit card almost anywhere

No monthly interest charges on your spending

They allow you to have ATM access.








Disadvantages of using Debit card
Must keep accurate records. You must record each
transaction so you will know what your account balance is
at all times.

If your child needs lunch money you can't just hand them
the debit card. You have to drive to the nearest ATM
machine to access some cash.

Some ATM machines charge a fee for their use and then
your bank adds another foreign ATM charge (if the machine
is not from your bank)