Chapter 11 -E-PAYMENT

11-E-PAYMENT

INTRODUCTION

 

Introduction is the opening or initial section of any written or verbal communication that provides the audience with an overview of what the communication is about. It sets the tone for the entire communication and provides the audience with a clear understanding of the topic at hand.

In the context of a written document, such as an essay, report, or research paper, the introduction typically includes several components. These may include:

 

Background information: The introduction may begin with some general information about the topic, providing the reader with some context and setting the stage for what is to come.

 

Thesis statement: The introduction should clearly state the main argument or point that the author is trying to make.

 

Scope and limitations: It is important to be clear about what the paper will cover and what it will not cover.

 

Methodology: If the paper involves research or analysis, the introduction may provide a brief overview of the methodology used.

 

Significance: The introduction may conclude with a statement about why the topic is important and what the reader can expect to learn from the paper.

 

Overall, the purpose of the introduction is to grab the reader's attention and provide them with enough information to understand the topic and the purpose of the communication. A well-written introduction can help to engage the reader and set the stage for a successful communication.

 

MEANING & DEFINITION

 

E-commerce, short for electronic commerce, refers to the buying and selling of goods and services through electronic means such as the internet, mobile apps, and other computer networks. It allows businesses and individuals to conduct transactions without the need for physical contact and enables buyers and sellers to interact and transact with each other electronically.

E-commerce has gained widespread popularity over the past few decades, and its definition has evolved as new technologies have emerged. Today, e-commerce is a broad term that encompasses a variety of electronic transactions, including online shopping, electronic payments, online banking, and more. It involves the exchange of information, goods, and services between buyers and sellers through various digital channels, including websites, social media platforms, mobile apps, and emails.

The growth of e-commerce has been driven by the increasing use of the internet and other digital technologies, as well as the convenience and accessibility that it offers to both consumers and businesses. It has transformed the way people shop and has opened up new opportunities for entrepreneurs to start and grow their businesses online.

Overall, e-commerce is a rapidly evolving field that continues to shape and disrupt traditional business models. As technology advances and new innovations emerge, it is likely that e-commerce will continue to play a significant role in the global economy.

 

TRANSACTION THROUGH INTERNET

 

Transactions through the internet, also known as online transactions, refer to the process of buying and selling goods and services through the internet. In recent years, the internet has become an increasingly popular medium for conducting transactions due to its convenience and accessibility.

The process of conducting transactions through the internet involves several steps. First, the buyer selects the product or service they wish to purchase and adds it to their virtual shopping cart. Next, the buyer provides their personal and financial information, such as their name, address, and credit card details, through a secure payment gateway. The payment gateway encrypts the information to ensure it remains secure during transmission. Finally, the seller receives the payment and ships the product or provides the service to the buyer.

One of the significant advantages of conducting transactions through the internet is its convenience. Online transactions can be conducted from anywhere with an internet connection, eliminating the need for physical visits to stores or businesses. Moreover, online transactions are available 24/7, allowing buyers to make purchases at any time, making it suitable for busy individuals.

However, there are also some risks involved in conducting transactions through the internet, such as fraud and identity theft. Therefore, it is essential to take necessary precautions, such as using secure websites and payment gateways, to protect personal and financial information during online transactions.

In conclusion, transactions through the internet have become an integral part of modern commerce, allowing buyers and sellers to conduct business efficiently and conveniently. However, it is essential to remain vigilant and take necessary precautions to mitigate the risks associated with online transactions.

 

CHARATERISTICS/REQUIREMENTS AND BENEFITS OF E-PAYMENT SYSTEM

E-payment or electronic payment is a mode of financial transaction that takes place through electronic channels such as the internet, mobile devices, or other electronic devices. It is a convenient and secure way to make payments for goods or services purchased online, as well as for utility bills, taxes, and other financial transactions.

 

Characteristics/Requirements of E-payment System:

 

Security: The most important characteristic of an e-payment system is security. E-payment systems must ensure the safety and privacy of customer information and transactions. To achieve this, encryption technologies such as SSL (Secure Socket Layer) and digital signatures are used.

Availability: E-payment systems should be available 24/7 to ensure convenience and accessibility to customers.

Speed: E-payment systems must be fast and efficient to provide quick transactions.

Scalability: E-payment systems must be scalable to handle large volumes of transactions during peak periods.

User-friendliness: The system should be user-friendly and easy to understand, even for non-technical users.

Benefits of E-payment System:

 

Convenience: E-payment systems provide convenience and ease of use to customers, as transactions can be made from anywhere at any time.

Time-Saving: E-payment systems save time for customers by eliminating the need to physically visit banks or make cash transactions.

Cost-Effective: E-payment systems are cost-effective for both merchants and customers, as they eliminate the need for cash handling and processing.

Improved Cash Flow: E-payment systems provide real-time transaction processing, which helps to improve cash flow for businesses.

Reduced Fraud: E-payment systems offer better security features and help to reduce the risk of fraud compared to traditional payment methods.

In conclusion, e-payment systems are an important aspect of e-commerce and offer many benefits to businesses and customers. As technology advances, e-payment systems will continue to evolve, providing more security and convenience to users.

 

E-PAYMENT SYSTEMS

 

E-payment systems refer to the means and processes used to make electronic transactions between a buyer and a seller. It allows individuals and businesses to conduct online transactions without the use of physical cash or checks. E-payment systems are an integral part of e-commerce and have revolutionized the way people transact business online.

E-payment systems can be divided into two categories: card-based systems and electronic funds transfer (EFT) systems. Card-based systems involve the use of debit or credit cards for online transactions. The buyer provides their card details, which are then verified by the issuing bank, and the transaction is completed. On the other hand, EFT systems enable direct bank-to-bank transfers without the use of cards.

 

Characteristics/Requirements of E-Payment Systems:

 

Security: E-payment systems must be secure to protect the buyer's personal and financial information. Security features like encryption, authentication, and authorization must be in place to prevent fraud and identity theft.

 

Accessibility: E-payment systems must be accessible to everyone, regardless of location or technological sophistication. It should be easy to use and available on various platforms, including mobile devices.

 

Speed: E-payment systems must be fast to provide convenience to buyers and sellers. Transactions must be completed in real-time, and the buyer should receive confirmation of the transaction as soon as it is completed.

 

Reliability: E-payment systems must be reliable to prevent errors and ensure that transactions are completed successfully. The system should be able to handle a large volume of transactions without any downtime or system failure.

 

Benefits of E-Payment Systems:

 

Convenience: E-payment systems are convenient since they allow people to transact business from anywhere at any time. Buyers can make purchases online from the comfort of their homes, and sellers can receive payments without having to handle cash.

 

Lower transaction costs: E-payment systems have lower transaction costs compared to traditional payment methods like checks and money orders. This makes it more affordable for both buyers and sellers.

 

Faster transaction processing: E-payment systems allow for real-time transaction processing, which saves time for both buyers and sellers. This also leads to faster shipping and delivery times.

 

Increased sales: E-payment systems have been shown to increase sales for businesses that use them. This is because they provide convenience to buyers, which makes it easier for them to make purchases.

 

In conclusion, e-payment systems have become an essential part of e-commerce, providing convenience, speed, and security to buyers and sellers. They have revolutionized the way people conduct online transactions and have made it possible for businesses to expand their reach and increase their sales.

 

1. Post-Paid Payment System

 

Post-paid payment system, also known as credit-based payment system, is a type of electronic payment system that allows customers to purchase goods or services and pay for them at a later date. Unlike pre-paid payment systems, where payment is made in advance, in a post-paid payment system, the payment is made after the purchase has been made.

 

The post-paid payment system is commonly used in industries such as telecommunications, utilities, and e-commerce, where customers regularly use a service and are billed monthly for the services they have consumed. For instance, a mobile phone user will use a post-paid payment system to pay for their phone bill, which includes charges for voice calls, texts, and data usage.

 

The post-paid payment system involves a billing cycle, where the customer is billed at the end of each cycle for the services they have consumed during that period. The billing cycle usually lasts for a month, but it can vary depending on the service provider. The customer is then given a due date by which they must pay their bill, failure to which they will be charged a late payment fee.

 

One of the main benefits of the post-paid payment system is convenience. Customers do not need to constantly top up their account to use the services, as is the case with pre-paid payment systems. Instead, they can use the services and pay for them at a later date, making it easier for them to manage their finances.

 

Another benefit of the post-paid payment system is that it allows for a higher degree of trust between the customer and the service provider. Since the service provider is extending credit to the customer, they can build a relationship based on trust and loyalty, which can lead to repeat business and customer retention.

 

In conclusion, the post-paid payment system is a convenient and trusted way of making electronic payments. It is commonly used in industries such as telecommunications and utilities, and it allows customers to pay for services at a later date, based on their consumption.

 

PROCEDURE OF USING CREDIT CARD

 

Using a credit card for payment is a common method of making online transactions. The procedure for using a credit card is as follows:

 

Choose Credit Card as Payment Option: When making a purchase online, select the credit card payment option during the checkout process.

 

Enter Credit Card Details: You will then need to enter your credit card details, including the card number, expiration date, and security code (CVV).

 

Billing Address: You may also need to enter the billing address associated with the credit card.

 

Verify Details: Before submitting the payment, verify that all the entered details are correct.

 

Payment Authorization: After submitting the payment, the payment gateway will authorize the payment with the credit card issuer.

 

Payment Confirmation: Once the payment is authorized, the payment gateway will send a confirmation to the merchant and the customer.

 

Credit Card Statement: The payment made with the credit card will reflect on the next credit card statement.

 

It is important to ensure that the website where you are entering your credit card details is secure and trustworthy. Look for a padlock symbol in the address bar and check that the website address starts with "https" to ensure that the website is secure. It is also advisable to use a credit card with fraud protection and to regularly monitor credit card statements for any unauthorized transactions.

THE STEPS OF E-CHEQUE

 

An e-cheque is a digital version of a traditional paper cheque. It allows individuals and businesses to make payments online, without the need for physical paper cheques. Here are the steps involved in using an e-cheque:

 

Create an e-cheque: To create an e-cheque, you will need to use an online banking platform or a mobile banking app. You will need to enter the payee’s name, the amount of money you want to send, and the date on which you want the payment to be processed.

 

Authorization: Once you have entered the required details, you will need to authorize the payment. This may involve entering a password, using biometric authentication, or using two-factor authentication.

 

Payment processing: After you have authorized the payment, the payment processing begins. The funds will be deducted from your account and transferred to the payee’s account.

 

Confirmation: Once the payment has been processed, you will receive a confirmation message or email. This will contain the details of the payment, including the amount, the payee’s name, and the date on which the payment was processed.

 

Clearing and settlement: After the payment has been confirmed, the e-cheque will go through the clearing and settlement process. This involves the bank verifying the details of the payment and ensuring that the funds are transferred to the correct account.

 

Receipt: Finally, the payee will receive the payment in their account, and you will receive a receipt of the transaction. This receipt will contain details such as the payment amount, the payee’s name, and the date on which the payment was processed.

 

Issuance of e-cheque

 

Issuance of e-cheque involves the following steps:

 

1. The issuer needs to have an account with a bank that offers e-cheque facility.

2. The issuer logs in to the internet banking portal of the bank and selects the option for issuing an e-cheque.

3. The issuer fills in the required details such as the payee’s name, amount, and the date on which the e-cheque needs to be cleared.

4. The issuer also needs to authenticate the transaction using a password, OTP, or any other means of authentication as per the bank’s policy.

5. The bank generates the e-cheque and sends it to the payee’s bank for processing.

6. The payee’s bank verifies the e-cheque and credits the payee’s account with the amount specified in the e-cheque.

7. The payee can then encash the e-cheque by depositing it in his/her account.

8. The process of issuance of e-cheque is similar to that of paper cheques. However, e-cheques offer several advantages such as faster processing, reduced transaction costs, and enhanced security.

Before deposit of e-cheque

 

Before depositing an e-cheque, the payee needs to verify the authenticity and validity of the e-cheque. This involves verifying the following:

 

Signature: The payee needs to check whether the e-cheque bears the digital signature of the drawer, which is used for verifying the authenticity of the e-cheque.

 

Funds Availability: The payee needs to ensure that the drawer has sufficient funds in their account to honor the e-cheque. This can be done by checking the account balance of the drawer.

 

Date: The payee needs to ensure that the date mentioned on the e-cheque is valid and falls within the validity period of the e-cheque.

 

Once the payee has verified the above details and is satisfied with the authenticity of the e-cheque, they can proceed with the deposit of the e-cheque. The deposit process typically involves uploading the e-cheque to the payee's bank account using a secure payment gateway provided by the bank.

 

Deposit of e-cheque through your bank

 

To deposit an e-cheque through your bank, you need to follow the below steps:

 

1. Log in to your internet banking account or mobile banking app.

2. Go to the "Deposits" section and select "e-cheque deposit".

3. Fill in the required details, including the cheque number, amount, date, and account to which the funds should be deposited.

4. Attach a scanned image of the e-cheque.

5. Review and confirm the information provided, and submit the request.

6. Wait for confirmation from the bank that the e-cheque has been accepted and processed.

Once the e-cheque is processed, the funds will be deposited into your account. It is important to ensure that the e-cheque is valid and not fraudulent before depositing it to avoid any potential issues.

 

BENEFITS/FEAUTERS OF E-CHEQUES

 

E-cheques offer several benefits and features that make them an attractive payment option for both individuals and businesses. Some of these benefits and features include:

 

Convenience: E-cheques can be issued and deposited electronically, eliminating the need for paper cheques and reducing the time and effort required to process payments.

 

Speed: E-cheques can be processed quickly and efficiently, allowing funds to be transferred almost instantly.

 

Security: E-cheques are secured through encryption technology, making them less vulnerable to fraud and tampering.

 

Cost-effective: E-cheques can be issued and deposited electronically, reducing the cost associated with printing, mailing, and processing paper cheques.

 

Accessible: E-cheques can be used by anyone with access to the internet, making them a convenient payment option for people who may not have access to traditional banking services.

 

Traceability: E-cheques can be easily tracked and monitored, allowing both the payer and the payee to have a record of the transaction.

 

Environmentally friendly: E-cheques eliminate the need for paper, reducing the environmental impact associated with paper-based payment systems.

 

Overall, e-cheques offer a fast, secure, and cost-effective payment option that is convenient and accessible for both individuals and businesses.

 

2. Instant Paid Payment Systems

 

Instant Paid Payment Systems (IPPS) are a type of electronic payment system that allows for instant transfer of funds between bank accounts. This system is also known as real-time payment, immediate payment, or instant payment system. The IPPS is designed to offer immediate and seamless transactional services to individuals, businesses, and government agencies.

One of the main features of IPPS is that it allows for instant transfer of funds between accounts. This is made possible by linking the user's bank account to their mobile phone number, email address, or any other unique identifier. This way, users can transfer money instantly to anyone who is also registered with the IPPS.

Another feature of IPPS is its availability 24/7, 365 days a year. This allows users to make transactions at any time, even on weekends and holidays. IPPS can also be accessed from anywhere, as long as the user has an internet connection and a registered account.

One of the biggest advantages of IPPS is its speed and convenience. Traditional payment systems, such as checks or wire transfers, can take days or even weeks to process. In contrast, IPPS transactions are completed in a matter of seconds or minutes. This makes it ideal for urgent or emergency payments.

IPPS also offers increased security compared to traditional payment systems. Transactions are encrypted and require authentication before they can be processed, which reduces the risk of fraud or unauthorized access. Additionally, IPPS provides a digital record of every transaction, which can be useful for auditing and accounting purposes.

Overall, IPPS offers a faster, more secure, and convenient alternative to traditional payment systems. As more businesses and individuals adopt IPPS, it is expected to revolutionize the way we conduct financial transactions.

 

DEBIT CARD PROCESSING

 

Debit card processing is the method by which transactions are authorized and settled when a customer uses a debit card to make a purchase. When a customer swipes their debit card to pay for a purchase, the transaction details are sent to the merchant's payment processor. The processor then contacts the customer's bank to check the availability of funds in the customer's account. If the funds are available, the transaction is approved, and the customer's account is debited by the purchase amount.

 

Debit card processing requires the use of a secure network to protect the sensitive financial information involved in the transaction. The network ensures that the transaction details are encrypted and transmitted securely between the merchant's payment processor, the customer's bank, and the card issuer. This protects against fraud and unauthorized access to sensitive financial information.

 

Debit card processing provides several benefits to both customers and merchants. For customers, it offers the convenience of not having to carry cash and the ability to make purchases quickly and easily. For merchants, it provides a fast and secure way to receive payments and reduces the risk of accepting fraudulent payments. Additionally, debit card processing is typically less expensive than credit card processing, making it an attractive option for small businesses with tight budgets.

 

SECURITY ISSUES IN DEBIT CARD

 

Debit card transactions involve sensitive financial information such as card details, account information, and personal identification numbers (PINs). As a result, security is a major concern in debit card processing. Here are some of the security issues associated with debit card transactions:

 

Card skimming: Criminals may use skimming devices to steal card information at ATMs or point-of-sale (POS) terminals. Skimming involves capturing the magnetic stripe information from the card and creating a duplicate card. This can lead to unauthorized transactions and identity theft.

 

Phishing: Phishing is a common tactic used by cybercriminals to steal sensitive information such as debit card details. They may send fraudulent emails or messages that appear to be from legitimate financial institutions, requesting users to enter their card details on a fake website.

 

Malware: Malware or malicious software can infect computers or mobile devices and steal debit card information. Malware can also intercept online transactions and redirect funds to unauthorized accounts.

 

Card-not-present fraud: This occurs when a debit card is used for online transactions where the physical card is not present. Criminals may use stolen card details to make unauthorized purchases.

 

To address these security issues, debit card processing systems implement various security measures such as encryption, two-factor authentication, and fraud detection algorithms. It is also essential for users to be vigilant and follow best practices such as checking for skimming devices, using strong passwords, and avoiding suspicious emails or messages.

 

THE POSITIVES OF DEBIT CARD:

 

Debit cards offer several positives, including:

 

Convenient and easy to use: Debit cards are very convenient and easy to use, as they allow users to access their funds directly from their bank account without having to carry cash.

 

Widely accepted: Debit cards are widely accepted at most merchants and retailers, including online stores, making them a versatile payment option.

 

No interest charges: Unlike credit cards, debit cards do not charge any interest on purchases. This means that users can spend within their means and avoid incurring debt.

 

Budgeting tool: Debit cards can also serve as a useful budgeting tool, as users can track their spending and avoid overspending by checking their account balance regularly.

 

Increased security: Debit cards are generally more secure than cash, as they can be easily cancelled or replaced if lost or stolen. Many banks also offer fraud protection and monitoring services to help detect and prevent unauthorized transactions.

 

Difference between Debit card and credit card

 

Debit cards and credit cards are two types of payment cards that are widely used in transactions. However, they differ in several ways:

 

Ownership of funds: Debit cards are linked to the user's bank account and allow the user to access the funds they have in that account. Credit cards, on the other hand, allow users to borrow money from the issuer of the card.

 

Borrowing: As mentioned above, credit cards allow users to borrow money from the issuer, whereas debit cards do not. This means that credit card users need to pay back the borrowed amount along with interest, while debit card users only spend the funds they have in their account.

 

Credit score: Using a credit card and paying back the borrowed amount on time can improve the user's credit score. This can help them get loans or credit in the future. Debit cards, however, do not affect the user's credit score.

 

Fees: Credit cards often have annual fees, interest rates, and other fees associated with them. Debit cards usually do not have these fees, although some banks may charge transaction fees for using the card in certain circumstances.

 

Rewards and benefits: Credit cards often come with rewards programs and benefits, such as cash back or airline miles. Debit cards may also offer some rewards, but they are generally less generous than credit card rewards.

 

Overall, while both debit and credit cards offer convenience and security in transactions, they differ in terms of how they are used, ownership of funds, borrowing, credit score impact, fees, and rewards.

 

Prepaid payment systems

 

(1) E-CASH:  E-cash, also known as electronic cash, is a form of digital currency that allows individuals to make transactions over the internet or other computer networks. It is a digital representation of physical cash that can be used for purchasing goods and services online without the need for a physical exchange of money.

E-cash works by securely storing digital money on a computer or smart card that can be used to make purchases online. The electronic cash system requires the use of digital signatures and encryption to ensure that the transactions are secure and cannot be duplicated or counterfeited.

One of the advantages of e-cash is that it provides anonymity to the user. The user can make transactions without revealing their identity, making it a popular method for conducting online transactions.

However, e-cash also has some disadvantages, such as the risk of theft or loss of the digital money, the need for specialized software and hardware to use it, and the potential for fraud or scams. Despite these challenges, e-cash remains a popular form of digital currency and is used in various industries, including online gaming, e-commerce, and digital advertising.

 

WORKING OF E-CASH

 

E-cash, also known as electronic cash or digital cash, is a form of digital currency that allows users to conduct online transactions without using physical currency. It is a type of electronic payment system that can be used for online purchases, bill payments, and other financial transactions.

 

The working of e-cash involves the following steps:

 

Registration: To use e-cash, users need to register themselves with an e-cash service provider. During registration, users are required to provide personal information, such as their name, address, and contact details.

 

Creation of e-cash account: Once registered, the user's e-cash account is created. The user is required to provide their bank account or credit card details, which are linked to the e-cash account.

 

Loading e-cash: Users can load their e-cash account by transferring funds from their bank account or credit card. The e-cash service provider will then credit the e-cash account with the transferred funds.

 

Transactions: Users can use their e-cash account to conduct online transactions, such as purchasing goods or services, paying bills, or transferring funds to other e-cash accounts. To complete a transaction, the user is required to provide their e-cash account details, such as their account number and password.

 

Verification and authorization: Once the user provides their account details, the e-cash service provider verifies the transaction and authorizes the payment. The transaction is then completed, and the user's e-cash account is debited for the amount of the transaction.

 

Confirmation: After the transaction is completed, the user receives a confirmation message or email, which includes the details of the transaction, such as the amount, date, and time.

 

In summary, e-cash allows users to make online payments without the need for physical currency or credit/debit cards. It offers convenience, security, and privacy for users, and is becoming an increasingly popular payment option for online transactions.

 

BENEFITS OF E-CASH

 

E-cash or digital cash has several benefits, some of which are:

 

Convenience: E-cash eliminates the need to carry physical cash, making it a convenient way to make payments. Users can make payments from their mobile devices or computers at any time and from anywhere, without the need for physical currency.

 

Security: E-cash transactions are encrypted and secure, ensuring that the funds remain safe during the transaction process. This is especially important for online transactions, where the risk of fraud is higher.

 

Reduced Transaction Costs: E-cash transactions eliminate the need for physical cash handling and associated costs such as transportation, storage, and security. This makes e-cash transactions more cost-effective than traditional payment methods.

 

Faster Transactions: E-cash transactions can be completed in seconds, compared to traditional payment methods that can take days to clear. This allows for faster settlement times and better cash flow management.

 

International Transactions: E-cash can be used for international transactions, eliminating the need for foreign currency exchange and associated fees. This makes e-cash an attractive option for businesses and individuals who need to make international payments.

 

(2) DIGICASH: Digicash is a type of digital payment system that enables users to make payments online using electronic cash. It was developed in the early 1990s by David Chaum, a cryptographer, and is considered to be one of the earliest forms of digital currency.

 

The Digicash system works by creating unique digital tokens that represent a certain amount of cash. These tokens are stored on the user's device, and can be transferred to another user's device through a secure electronic transaction. The tokens are encrypted to prevent unauthorized access, and can only be spent once.

 

One of the main benefits of Digi cash is that it provides a high level of security and anonymity. Transactions are encrypted and anonymous, which makes it difficult for hackers or other third parties to intercept or steal funds. Additionally, because transactions are peer-to-peer, there is no need for a central authority to oversee the system, which means that there are no fees or charges associated with using the system.

 

However, Digi cash never gained widespread adoption due to several factors, including the lack of infrastructure to support it, concerns about its legality, and the emergence of newer digital payment systems that were easier to use and more widely accepted.

 

WORKING OF DIGITAL CASH

 

Digital cash, also known as e-cash, is an electronic payment system that enables users to make secure and anonymous payments over the internet. The working of digital cash involves the following steps:

 

Creation of Digital Cash: Digital cash is created by a trusted third-party, such as a bank, which issues electronic tokens that represent real cash. The digital cash is stored on the user's device, such as a computer or a smart card.

 

Purchase Transaction: When a user wants to buy something online using digital cash, he/she must first purchase digital cash from the bank. The user sends the bank real cash, and in return, the bank sends the user electronic tokens of equivalent value. These tokens are stored on the user's device and can be used to make online purchases.

 

Online Transaction: When the user wants to make a purchase online, he/she sends the digital cash tokens to the merchant's website. The tokens are encrypted and sent over a secure connection to prevent interception and fraud. Once the tokens are received, the merchant's system verifies them and processes the payment.

 

Redemption: Once the payment is complete, the digital cash tokens are redeemed by the bank, and the equivalent amount of real cash is transferred to the merchant's account.

 

Overall, the working of digital cash involves the creation of electronic tokens that represent real cash, which can be used for online transactions without revealing the user's identity or financial information. It provides a secure and anonymous way to make online payments.

PROCEDURE OF NETCASH PAYMENT

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              

Net Cash payment is a type of e-payment system that allows customers to make online payments using their bank accounts. The following are the steps involved in making a Net Cash payment:

 

Register: The first step is to register with the Net Cash payment system. You need to provide your personal information, bank details and other necessary information to complete the registration process.

 

Payment request: Once you are registered, you can initiate a payment request by selecting the Net Cash payment option on the merchant’s website. You will be redirected to the Net Cash payment gateway where you need to enter the payment amount and other necessary details.

 

Authorization: After you have entered the payment details, the payment gateway will send a payment authorization request to your bank. You need to authorize the payment by providing your bank account details and verifying the payment amount.

 

Payment confirmation: Once the payment is authorized, the payment gateway will confirm the payment and transfer the funds to the merchant’s account. You will receive a payment confirmation message on your registered email address and mobile number.

 

Transaction details: You can view the transaction details and payment history by logging in to your Net Cash account.

 

Refund: In case of any dispute or cancellation, the merchant can initiate a refund request, and the payment gateway will process the refund to your bank account.

 

Overall, the Net Cash payment system is a secure and convenient way to make online payments without the need for credit or debit cards.

 

ADVANTAGES OF NETCASH

 

Some of the advantages of using Net Cash as a payment method are:

 

Convenience: Net Cash is a convenient payment method for online transactions as it eliminates the need to enter credit card or bank account details for each transaction. Users can simply log in to their Net Cash account and make payments with ease.

 

Security: Net Cash transactions are secured using advanced encryption technologies, which ensures the safety of user data and reduces the risk of fraud.

 

Privacy: Net Cash offers a high degree of privacy as users do not need to disclose their financial information for each transaction. This makes it an ideal payment method for users who are concerned about their online privacy.

 

Instantaneous transactions: Net Cash transactions are usually processed instantly, which makes it an ideal payment method for time-sensitive transactions.

 

Low transaction fees: Net Cash transactions usually involve lower transaction fees as compared to traditional payment methods such as credit cards or bank transfers. This makes it a cost-effective payment option for both merchants and customers.

 

UTILITY OF SMART CARD

 

A smart card is a plastic card containing a microprocessor chip that can store data and perform certain functions. It is a type of chip card that provides greater security and flexibility than traditional magnetic stripe cards. The smart card technology is widely used in various applications such as banking, healthcare, transportation, government, and other industries.

 

The utility of smart cards lies in its ability to securely store and process information. Here are some of the most common uses of smart cards:

 

Payment Systems: Smart cards are widely used in payment systems, particularly for making small purchases like public transportation fare, vending machines, and parking meters. They offer a more secure and convenient payment method than cash.

 

Identity and Access Control: Smart cards are used for identity verification and access control in various industries, including government, healthcare, and finance. For example, smart cards can be used to access secure buildings, computer systems, and networks.

 

Healthcare: Smart cards can be used to store and access medical records, prescriptions, and insurance information. They can help prevent medical errors and improve patient outcomes by providing doctors and other healthcare providers with immediate access to critical patient information.

 

Loyalty Programs: Smart cards are used in loyalty programs to track customer purchases and reward them with discounts, points, or other incentives.

 

Transport: Smart cards are commonly used in transportation systems, particularly for contactless payment methods in buses, trains, and subway systems.

 

Overall, smart cards provide a secure and flexible means of storing and processing information. Their utility extends to a wide range of applications and industries, making them an essential part of modern technology.

 

Demerits of Smart card

 

Some of the demerits of smart cards are:

 

Cost: Smart cards are expensive to produce and implement, especially when compared to traditional magnetic stripe cards or paper-based systems. This can limit their adoption in certain sectors or by certain organizations.

 

Infrastructure: The use of smart cards often requires the installation of specialized hardware and software infrastructure, such as card readers and associated software. This can be a significant investment for organizations that do not already have such infrastructure in place.

 

Security: While smart cards are generally considered more secure than other types of cards or payment systems, they are not fool proof. Hackers and other cybercriminals may still be able to find vulnerabilities in the system and exploit them.

 

User acceptance: Some users may be hesitant to use smart cards due to concerns about privacy, security, or simply a lack of familiarity with the technology. This can make it more difficult for organizations to successfully implement smart card systems.

 

Smart card vs. Debit and Credit Card

 

Smart cards, debit cards, and credit cards are all different types of payment cards. However, there are some key differences between them:

 

Technology: Smart cards have an embedded microchip that can store more information than a magnetic stripe on a debit or credit card. This makes smart cards more secure and less susceptible to fraud.

 

Authentication: Smart cards often require a PIN or other type of authentication to be entered by the cardholder in order to complete a transaction. Debit and credit cards typically require a signature or PIN, but some transactions may not require any additional authentication.

 

Usage: Smart cards can be used for a variety of purposes beyond payments, such as storing personal identification, medical records, or transportation passes. Debit and credit cards are typically used only for making purchases.

 

Availability: Smart cards are not as widely available as debit and credit cards, particularly in developing countries.

 

Overall, smart cards offer increased security and functionality compared to traditional payment cards, but their availability and cost may be a barrier to adoption for some users.

 

E-WALLETS

 

E-wallets, also known as digital wallets or mobile wallets, are electronic devices or software applications that store payment information for online transactions. They are similar to physical wallets but instead of carrying cash and cards, they store and manage digital information such as credit and debit card information, bank account details, and loyalty card details. E-wallets offer a convenient and secure way to make online purchases without the need to enter payment information every time.

 

To use an e-wallet, a user needs to download the corresponding application on their device, create an account, and add their payment information. Once the wallet is set up, the user can use it to make payments for online purchases, bill payments, and money transfers. E-wallets also offer features such as transaction history, balance check, and loyalty programs.

 

Popular examples of e-wallets include PayPal, Google Pay, Apple Pay, Samsung Pay, and Paytm in India.

 

E-wallets provide several benefits to users. They offer a faster and more convenient way to make payments compared to traditional methods such as cash and cards. E-wallets also offer enhanced security features such as two-factor authentication, encryption, and biometric authentication, which reduces the risk of fraud and identity theft. Additionally, e-wallets eliminate the need for users to carry multiple cards and remember their login credentials, making transactions simpler and more efficient.

 

However, e-wallets also have some drawbacks. Some e-wallets charge fees for certain transactions or services, and users need to be careful to keep their e-wallet information secure to avoid the risk of fraud or hacking. Additionally, not all merchants accept e-wallet payments, so users may still need to carry cash or cards for certain transactions.

 

PROCEDURE OF USING AN E-WALLET

 

The procedure of using an e-wallet typically involves the following steps:

 

Creating an account: The first step is to create an account with the e-wallet provider. This usually involves providing personal information such as name, address, and email ID.

 

Linking a funding source: Once the account is created, the user needs to link a funding source to the e-wallet. This can be a bank account, credit card, or debit card.

 

Adding funds: Once the funding source is linked, the user can add funds to the e-wallet using the linked bank account, credit card, or debit card.

 

Making payments: Once the e-wallet is funded, the user can use it to make payments at online and offline merchants that accept the e-wallet as a payment method. To make a payment, the user needs to select the e-wallet as the payment method, enter the payment amount, and confirm the transaction.

 

Withdrawing funds: If the user has funds in the e-wallet that they want to withdraw, they can transfer the funds back to the linked bank account or credit/debit card.

 

Security: E-wallets typically offer various security features to protect user accounts and transactions. This may include two-factor authentication, biometric authentication, and encryption of sensitive information.

 

Overall, the procedure of using an e-wallet is designed to be simple and convenient for users, allowing them to make payments quickly and securely without having to enter their payment information each time they make a transaction.

 

BENEFITS OF E-WALLET

E-wallets offer several benefits, including:

 

Convenience: E-wallets make transactions faster and more convenient. Users don't need to carry physical cash or credit cards with them, and they can make payments from anywhere, anytime.

 

Security: E-wallets provide enhanced security features like two-factor authentication, encryption, and biometric authentication to safeguard users' financial information.

 

Loyalty rewards: Many e-wallets offer loyalty programs that reward users with cash back, discounts, or other perks for using the wallet.

 

Budget tracking: E-wallets often include features that allow users to track their spending and manage their budgets more effectively.

 

Accessibility: E-wallets can be used by anyone with a smartphone, regardless of whether they have a bank account or credit card.

 

International payments: Some e-wallets allow users to make international payments at lower fees than traditional methods, making it easier to send money abroad.

 

RISKS IN USING E-WALLET

 

While e-wallets offer convenience and ease of use, there are some risks associated with their use. Some of the risks are:

 

Security risks: E-wallets are susceptible to hacking and phishing attacks, and unauthorized access can result in theft of funds or personal information.

 

Transaction failures: There may be times when transactions through e-wallets fail due to technical issues or network problems, resulting in loss of funds or delayed payments.

 

Limited acceptance: Not all merchants accept e-wallets as a mode of payment, and this may limit the usability of e-wallets for certain transactions.

 

Transaction limits: Some e-wallets may have transaction limits that may hinder large transactions or purchases.

 

Malfunctioning or lost devices: E-wallets are often linked to a user's device, and if the device malfunctions or is lost or stolen, it can result in loss of access to the e-wallet and funds.

 

Fraudulent activities: E-wallets may be used for fraudulent activities such as money laundering, terrorist financing, or other illegal activities.

 

It is essential to take necessary precautions such as enabling two-factor authentication, using strong passwords, and regularly updating the app to minimize these risks while using e-wallets.

 

1. PAYTM:

 

Paytm is a digital wallet and e-commerce platform in India that allows users to make payments, transfer money, pay bills, book flights, and shop online. It was launched in 2010 and has since become one of the most widely used e-wallets in India. Paytm is a subsidiary of One97 Communications, and its services are available through its website and mobile application.

One of the key features of Paytm is its ease of use, with a simple and intuitive user interface that allows users to quickly and easily make payments and transfers. Paytm also offers a range of discounts and cashback offers to users, which has helped to drive its popularity in India.

In addition to its digital wallet services, Paytm also operates an e-commerce marketplace that allows users to purchase a wide range of products and services, including electronics, fashion, and groceries.

Paytm has faced some controversy in the past, particularly around issues related to security and data privacy. However, the company has taken steps to address these concerns and has implemented a range of security measures to protect user data and prevent fraud.

 

Overall, Paytm has become a major player in the Indian e-commerce and digital payments space, with a large and growing user base and a range of features and services designed to meet the needs of consumers in India.

 

Procedure of using paytm app

 

Here are the general steps to use Paytm app:

 

1. Download the Paytm app from the app store on your mobile device.

2. Create a new account by providing your mobile number and email address.

3. Add money to your Paytm wallet using various options like debit card, credit card, UPI, net banking or other wallet-to-wallet transfers.

4. Once you have money in your Paytm wallet, you can use it to make payments for various services such as mobile recharge, electricity bill, water bill, DTH recharge, gas bill, and more.

5. To make a payment, select the service or bill that you want to pay for and enter the required details.

6. Enter the amount you want to pay and choose Paytm Wallet as the payment option.

7. Enter your Paytm password or PIN to complete the transaction.

8. You will receive a confirmation message once the transaction is successful.

 

Note: The exact steps may vary slightly depending on the specific service or bill payment you want to make.

 

Adding Money in Paytm wallet

 

To add money to your Paytm wallet, follow these steps:

 

1. Open the Paytm app and log in to your account.

2. Tap on the "Add Money" option on the home screen.

3. Enter the amount you want to add to your wallet and tap on the "Add Money" button.

4. Choose your payment method from the available options such as debit/credit card, net banking, UPI, etc.

5. Enter the required details and complete the payment process.

6. Once the payment is successful, the added money will reflect in your Paytm wallet.

You can use the money in your Paytm wallet to make various payments, such as bill payments, mobile recharges, online shopping, etc.

 

Benefits of paytm mobile wallet

 

Some benefits of Paytm mobile wallet include:

 

Convenience: Paytm mobile wallet is a convenient and easy-to-use way to make transactions without carrying cash. Users can add money to their wallets from their bank accounts and use it for various services like recharging mobiles, paying bills, and shopping.

 

Cash back and Discounts: Paytm provides various cash back offers and discounts to its users, which can be used for future transactions or can be transferred back to a bank account.

 

Security: Paytm provides a secure platform for online transactions. The app is secured with multi-level security features like 128-bit SSL encryption, two-factor authentication, and a passcode.

 

Wide Acceptance: Paytm wallet is widely accepted by various merchants, including online stores and offline retailers, making it easier for users to make transactions without cash.

 

Instant Transfers: Paytm wallet allows instant transfers to other Paytm wallet users, making it convenient for users to send and receive money.

 

  RISKS IN USING PAYTM WALLET

 

While Paytm wallet is a convenient payment option, there are also certain risks involved that users should be aware of:

 

Fraudulent activities: There have been instances of fraudulent activities where users have lost money from their Paytm wallet. Hackers and scammers may trick users into revealing their login credentials or OTP (One Time Password) and then use the same to transfer money from the wallet to their own account.

 

Technical glitches: Technical glitches in the Paytm app or website may cause payment failures or errors, leading to loss of money or inconvenience to the user.

 

Service disruptions: Paytm is dependent on telecom networks and internet connectivity, and service disruptions may occur from time to time. This may cause inconvenience to users who are trying to make a payment or transfer money.

 

Unauthorized access: If a user's Paytm account is compromised, unauthorized transactions may take place from the wallet. Therefore, it is important for users to secure their login credentials and enable two-factor authentication to prevent unauthorized access.

 

Regulatory changes: The Indian government has introduced several regulations around digital payments, and changes in these regulations may affect the functioning of Paytm and other mobile wallets. Users should stay updated on these changes to avoid any inconvenience or loss.

 

It is important for users to take precautions while using Paytm and other mobile wallets to ensure the safety of their money and personal information.

 

OXIGEN WALLET

 

Oxigen Wallet is a digital wallet service in India that allows users to make mobile/DTH recharges, bill payments, money transfers, and online purchases. It is a prepaid wallet, which means that users can load money into the wallet and use it to make transactions online.

 

To use the Oxigen Wallet, users need to create an account and add money to their wallet. They can add money through a debit card, credit card, or net banking. Once the money is added, users can use the wallet to make transactions on the Oxigen Wallet app or on partner merchant websites.

 

Oxigen Wallet offers several benefits to users. It allows users to make quick and easy transactions without the need to carry cash or cards. Users can also earn rewards and cash back on transactions made through the wallet. The wallet also offers a feature called Oxigen Treats, which allows users to send gifts and vouchers to their friends and family.

 

However, there are also some risks associated with using Oxigen Wallet. There is always the risk of unauthorized access to the wallet or fraudulent transactions. Users need to ensure that their login credentials are secure and not shared with anyone else. They should also keep track of their transactions and report any suspicious activity immediately.

 

Overall, Oxigen Wallet is a convenient and secure way to make digital transactions in India, provided that users take necessary precautions to ensure the safety of their wallet and transactions.

 

MOBIKWIK WALLET

 

MobiKwik is an Indian digital wallet and payment gateway platform that allows users to store their money and make payments seamlessly. It was founded in 2009 by Bipin Preet Singh and Upasana Taku and is headquartered in Gurugram, India. The MobiKwik wallet has gained popularity over the years, particularly among the Indian youth, due to its ease of use, security, and cashback offers.

 

MobiKwik allows users to add money to their digital wallet using various payment options such as credit card, debit card, net banking, UPI, and cash deposit. Once the money is added, users can use the MobiKwik wallet to make payments at various online and offline merchants, including shopping websites, utility bill payments, restaurants, petrol pumps, and more.

 

One of the key features of MobiKwik is its security. The platform is PCI-DSS compliant, which means that it adheres to the highest level of security standards set by the Payment Card Industry Security Standards Council. Additionally, MobiKwik uses 256-bit SSL encryption to protect users' personal and financial information from unauthorized access and misuse.

 

MobiKwik also offers a range of cash back and discount offers to its users, which has helped to increase its popularity among Indian consumers. Users can earn cashback on their transactions, and the amount can be used to make further transactions or transferred to their bank accounts. MobiKwik also offers various discount coupons and promo codes that can be used to avail discounts on various products and services.

 

MobiKwik has also ventured into the lending space, with the launch of its digital lending platform called MobiKwik Blue. The platform offers personal loans to users based on their creditworthiness and repayment history. Users can apply for a loan through the MobiKwik app and receive the amount directly in their MobiKwik wallet.

 

In addition to the digital wallet and lending platform, MobiKwik also offers a payment gateway service that allows businesses to accept payments online. The MobiKwik Payment Gateway can be integrated into various e-commerce websites, mobile apps, and other platforms, allowing businesses to accept payments from their customers seamlessly.

 

Overall, MobiKwik has emerged as a popular digital wallet and payment gateway platform in India, thanks to its ease of use, security, and range of features and services. With the increasing popularity of digital payments in India, MobiKwik is expected to continue to grow and evolve to meet the changing needs of its users.

 

PAY UMONEY

 

Pay Umoney is an Indian online payment gateway that provides a secure and convenient way to make digital payments. It was launched in 2011 by the parent company PayU India, which is a subsidiary of the Dutch fintech company PayU. The platform enables merchants and businesses to accept online payments through various payment modes, including credit/debit cards, net banking, UPI, and digital wallets.

 

Pay Umoney offers a user-friendly interface that allows customers to make payments quickly and easily. Users can create an account on the platform and link their bank account or credit/debit card to make payments. The platform also offers a digital wallet, which can be loaded with money to make payments without the need to enter card or bank details every time.

 

One of the key features of PayUmoney is its robust security system. The platform is PCI-DSS certified, which means that it meets the highest security standards for online payments. It uses advanced encryption technology to protect user data and transactions from fraud and cyber threats.

 

Pay Umoney also offers a range of tools and services for businesses to manage their payments and transactions. Merchants can use the platform to generate invoices, track payments, and manage refunds and chargebacks. The platform also provides detailed analytics and reports to help businesses understand their payment data and customer behavior.

 

Pay Umoney has a wide network of merchants and businesses that accept payments through its platform. It is used by thousands of small and medium-sized businesses across India, including e-commerce websites, online marketplaces, educational institutes, and utility service providers. The platform also offers integration with popular e-commerce platforms like Magento, Shopify, and Woo Commerce, making it easy for businesses to start accepting digital payments.

 

In conclusion, Pay Umoney is a reliable and secure online payment gateway that provides a convenient and hassle-free way to make digital payments in India. With its user-friendly interface, robust security system, and range of features for businesses, it has become a popular choice for online transactions in the country.

 

VODAFONE’S M-PESA

 

Vodafone's M-Pesa is a mobile wallet and money transfer service that was launched in India in 2013. It is a joint venture between Vodafone, a British multinational telecommunications company, and the Aditya Birla Group, an Indian multinational conglomerate.

 

M-Pesa is an innovative mobile money transfer service that allows customers to deposit, withdraw, and transfer money using their mobile phones. It is designed to provide financial services to people who do not have access to traditional banking services or who find it difficult to visit a bank branch.

 

With M-Pesa, customers can easily send money to any mobile number or bank account in India, pay bills, recharge their mobile phones, and purchase goods and services. The service is available 24/7 and is accessible from any mobile phone.

 

M-Pesa works by creating a virtual wallet for each customer, which is linked to their mobile phone number. Customers can deposit money into their M-Pesa account at any authorized M-Pesa agent or through their bank account. Once the money is deposited, it can be used to pay for goods and services, or to send money to other M-Pesa users.

 

One of the key advantages of M-Pesa is that it is secure and easy to use. Customers do not need to have a bank account or a credit card to use the service. All transactions are PIN-protected and encrypted, ensuring that customer information is kept safe.

 

Another advantage of M-Pesa is that it is convenient and accessible. It can be used from anywhere, at any time, and customers can easily deposit or withdraw money from any authorized M-Pesa agent. This makes it particularly useful for people who live in remote areas or who have limited access to banking services.

 

In addition to providing financial services to individuals, M-Pesa also offers services to small businesses and merchants. Business owners can use M-Pesa to receive payments from customers, pay bills, and purchase inventory. This can help small businesses to grow and expand their operations.

 

Overall, Vodafone's M-Pesa is a unique mobile money transfer service that has revolutionized the way people access financial services in India. Its ease of use, accessibility, and security have made it a popular choice for millions of users across the country.

 

AIRTEL’S AIRTEL MONEY:

 

Airtel Money is a mobile wallet and digital payment service offered by Bharti Airtel Limited, one of the leading telecommunications providers in India. It was launched in 2012, and it allows Airtel subscribers to perform various financial transactions using their mobile phones.

 

With Airtel Money, users can pay for various services, including utility bills, DTH recharges, postpaid mobile bills, and insurance premiums. They can also transfer money to other Airtel Money users, bank accounts, and even non-Airtel subscribers. In addition, Airtel Money users can use the service to shop online, pay for movie tickets, and book travel tickets.

 

One of the key features of Airtel Money is its availability in both physical and virtual forms. Airtel Money users can access the service through the Airtel Money app, which is available for both Android and iOS platforms. Additionally, Airtel Money customers can also visit any of the Airtel retail outlets to deposit or withdraw cash.

 

Airtel Money also offers various incentives and rewards to its users. For instance, Airtel Money customers can earn cashback and discounts on various transactions. Additionally, Airtel has partnered with various merchants to offer exclusive deals and discounts to Airtel Money users.

 

The security of Airtel Money transactions is ensured through various measures. Airtel Money uses the highest standards of encryption to protect user information and transactions. Additionally, users can set up a PIN for their Airtel Money accounts to prevent unauthorized access.

 

Overall, Airtel Money has played a significant role in the growth of digital payments in India. It has made it convenient for users to perform financial transactions using their mobile phones, even in remote areas where traditional banking services are not easily accessible.

 

LTS CASH:

 

LTS Cash is a digital wallet service offered by the Indian company LTS Investment Fund Ltd. It is a mobile application that allows users to make transactions such as money transfers, bill payments, and mobile recharges. The service is available for both Android and iOS platforms.

 

To use LTS Cash, users need to download the app from the Google Play Store or Apple App Store and create an account. Users can then link their bank account or credit/debit card to their LTS Cash account to add money to the wallet. Once the wallet is funded, users can use it to make transactions.

 

LTS Cash offers several features to its users, including the ability to send money to other LTS Cash users, bank accounts, or mobile numbers. Users can also pay bills, including electricity, water, gas, and phone bills, directly through the app. Mobile recharges for all major telecom operators can also be done using LTS Cash.

 

In addition, LTS Cash offers various discounts and cash back offers to its users. Users can earn cash back by using the app to pay for their bills or recharge their mobiles. The cash back can then be used to make future transactions on the app.

 

LTS Cash also ensures the security of its users' transactions through its advanced security features. The app uses 256-bit encryption to protect the user's information, and all transactions are verified using a one-time password (OTP) sent to the user's registered mobile number.

 

Overall, LTS Cash is a convenient and secure way for users to make digital transactions, and its various features and offers make it an attractive option for users looking for a reliable digital wallet service.

 

OLA MONEY:

 

Ola Money is a digital wallet and payment solution launched by Ola, one of India's leading ride-hailing companies. Ola Money can be used to make payments for a wide range of services, including Ola rides, mobile recharges, bill payments, and online shopping. It offers a secure and convenient way to make transactions without the need for cash.

 

Users can add money to their Ola Money wallet using a debit card, credit card, or net banking. Once the wallet is loaded, they can use it to make payments for various services. The Ola Money wallet can also be used to transfer money to other Ola Money users.

 

Ola Money offers various discounts and cashback offers to its users, making it a popular payment option in India. In addition, Ola Money has tie-ups with several merchants, which allows users to make payments at partner stores and websites.

 

To ensure the security of its users, Ola Money uses advanced encryption and security features. It also offers 24/7 customer support to help users with any issues they may face while using the platform.

 

Overall, Ola Money has become a popular payment option in India due to its ease of use, convenience, and attractive offers. It has helped Ola diversify its business beyond ride-hailing and has contributed to the growth of digital payments in the country.

 

FREE CHARGE

 

Free Charge is an Indian digital payments platform that allows users to make prepaid, postpaid, DTH and utility bill payments for various service providers, recharge mobile phones, and buy gift cards, among other services. Free Charge was launched in 2010 and acquired by the online marketplace Snapdeal in 2015. However, in 2018, the company was sold to Axis Bank, one of India's largest private sector banks.

 

Free Charge offers a secure and user-friendly platform for online payments. Users can add money to their Free Charge wallet using debit cards, credit cards, or net banking. Once the wallet is loaded, users can make payments for various services and products online, without having to enter their card or bank details each time.

 

The platform also offers a feature called "Chat and Pay" which allows users to transfer money to other Free Charge users by simply chatting with them through the app. This feature is based on the Unified Payments Interface (UPI), a real-time payment system developed by the National Payments Corporation of India (NPCI).

 

Free Charge has also partnered with various merchants to offer exclusive discounts and cash back offers to its users. Users can avail of these offers by using the Free Charge wallet to make payments on the merchant's website or app.

 

Overall, Free Charge has become a popular digital payments platform in India due to its ease of use, security, and attractive cash back offers.

 

CHILLR

 

Chillr is a mobile payment app that allows users to send and receive money instantly using their smartphones. It was launched in 2015 and is available for both Android and iOS users in India. Chillr enables users to link their bank accounts with the app and make transactions without any additional charges.

 

To use Chillr, users need to download the app and complete the registration process by verifying their mobile number and linking their bank account. Once the registration is complete, they can transfer money to any contact in their phonebook who is also a Chillr user, or to any bank account in India.

 

One of the unique features of Chillr is that it allows users to split bills and request money from friends, making it easy to manage group expenses. It also enables users to pay utility bills, recharge mobile phones, and make online purchases using the app.

 

Chillr uses a multi-layered security system to ensure the safety of user transactions. The app is protected by a 4-digit MPIN, and all transactions are authorized using an OTP (one-time password) sent to the user's registered mobile number. In addition, Chillr uses 128-bit SSL encryption to protect user data.

 

Chillr has partnerships with various banks in India, including HDFC Bank, ICICI Bank, Axis Bank, and Bank of Baroda, allowing users to link their accounts with these banks to the app. The app also offers cash back and discounts to users on various transactions, making it a popular choice among users in India.

 

Overall, Chillr has made mobile payments convenient and easy for users in India, and its unique features and partnerships with banks have helped it gain popularity in the market.

 

PROCESSING OF INFORMATION IN E-BUSINESS

 

Information processing is an essential part of e-business as it involves the management, processing, and dissemination of data in electronic form. The processing of information in e-business involves a series of steps, including data collection, storage, analysis, and dissemination. The following are the steps involved in the processing of information in e-business:

 

Data collection: In e-business, data collection is the first and most critical step. It involves the gathering of information from various sources, including customers, suppliers, and partners. The data can be collected through various channels, such as websites, social media, email, and mobile applications.

 

Data storage: Once the data is collected, it needs to be stored in a secure and organized manner. E-businesses use various tools and technologies to store data, such as databases, cloud storage, and data warehouses. The data is stored in a way that makes it easy to access, retrieve, and analyze.

 

Data analysis: Data analysis is the process of examining the collected data to identify patterns, trends, and insights. E-businesses use various tools and technologies to analyze data, such as data mining, business intelligence, and predictive analytics. The analysis of data helps e-businesses to make informed decisions and improve their operations.

 

Dissemination of information: Once the data is analyzed, it needs to be disseminated to the relevant stakeholders. E-businesses use various channels to disseminate information, such as email, SMS, social media, and mobile applications. The dissemination of information helps e-businesses to communicate with their customers, suppliers, and partners.

 

Feedback and monitoring: E-businesses need to monitor and receive feedback on the information they disseminate. They use various tools and technologies to track and monitor customer feedback, such as online surveys and social media monitoring. The feedback helps e-businesses to improve their operations and make informed decisions.

 

In conclusion, the processing of information in e-business involves the management, processing, and dissemination of data in electronic form. E-businesses need to collect, store, analyze, disseminate, and monitor data to make informed decisions and improve their operations. E-businesses use various tools and technologies to process information, such as databases, cloud storage, data mining, business intelligence, and predictive analytics.

 

BATCH PROCESSING

 

Batch processing is a technique of processing a large volume of data in a batch or group, instead of processing individual transactions one by one. In this method, data is collected over a period of time and then processed together in a single batch. Batch processing is commonly used in industries where large volumes of data are processed, such as banking, finance, and manufacturing.

 

The process of batch processing involves the following steps:

 

Data Collection: The first step in batch processing is data collection. Data is collected from various sources, such as transactions, sensors, and other devices, and stored in a file or database.

 

Data Preparation: The collected data is then prepared for processing. This step includes cleaning the data, removing any errors or inconsistencies, and formatting the data according to the processing system.

 

Batch Processing: The prepared data is then processed in batches. The processing system reads the data from the input file or database, performs the required operations on it, and generates output files or reports.

 

Output Generation: After the processing is complete, the output files or reports are generated. These files can be stored in a database, sent to another system or device, or printed for further analysis.

 

Batch processing has several advantages over real-time processing. It allows for the processing of large volumes of data in an efficient and cost-effective manner. It also reduces the risk of errors and improves data accuracy, as the same set of instructions is applied to each batch of data. Batch processing is also easier to manage and monitor, as the entire process can be automated and scheduled to run at specific times.

 

However, batch processing also has some limitations. The processing time can be longer, as all the data is processed together, which can result in delays in generating reports or output. It is also not suitable for applications that require real-time processing, such as online transactions, where immediate feedback is required.

 

In summary, batch processing is an important technique in e-business that helps process large volumes of data efficiently and accurately. It has its advantages and disadvantages, and its suitability depends on the specific requirements of the application.

 

REAL-TIME PROCESSING

 

Real-time processing, also known as online processing, is a computing methodology that allows data to be processed immediately after it is entered into a system, without any delay. This type of processing is ideal for applications that require immediate feedback and quick response times, such as financial transactions, reservation systems, and inventory management.

 

In real-time processing, data is captured and processed as it is generated, without any time delay. This data is then transmitted through a network to a processing center, where it is analyzed and used to generate reports or take action. Real-time processing can be done using various technologies such as message queues, event-driven architecture, and service-oriented architecture.

 

Real-time processing has a number of benefits, including:

 

Instant feedback: Real-time processing provides immediate feedback to users, allowing them to quickly correct errors or make adjustments as needed.

 

Faster decision-making: Real-time processing enables organizations to make faster, data-driven decisions.

 

Improved accuracy: Real-time processing ensures that data is accurate and up-to-date, reducing the risk of errors and inconsistencies.

 

Better customer service: Real-time processing allows organizations to respond quickly to customer needs, improving overall customer satisfaction.

 

Enhanced efficiency: Real-time processing can automate many tasks, reducing the need for manual intervention and increasing efficiency.

 

However, real-time processing also has some drawbacks. For example, it can be more complex and expensive to implement than batch processing, and it requires more powerful computing infrastructure to handle the high volume of data generated in real-time.

 

Overall, real-time processing is an important technology for e-businesses that require immediate feedback and quick response times. By using real-time processing, organizations can improve accuracy, speed up decision-making, and provide better customer service, ultimately leading to improved business performance.

 

Answer the following questions in 1-15 words. Each question carries one mark.

 

Q.1. What is digi cash?

Ans. Digi Cash was an early electronic payment system that allowed users to make secure payments over the internet. It was created in the 1990s by computer scientist David Chaum and used digital signatures to ensure privacy and security. It was one of the first attempts to create a digital currency and paved the way for modern cryptocurrencies like Bitcoin. However, DigiCash ultimately failed to gain widespread adoption due to its centralized design and limited support from financial institutions.

 

Q.2. When digi cash was started?

Ans. Digi Cash was started in 1989.

 

Q.3. What is the function of client software in e-cash system?

Ans. The client software in an e-cash system is responsible for generating and managing digital cash transactions. It allows users to create digital tokens, deposit them into their account, and transfer them to other users. The client software also provides security features such as encryption, digital signatures, and authentication to ensure the integrity and confidentiality of the digital cash transactions.

 

Q.4. What is e-cash?

Ans. E-cash, also known as electronic cash, is a digital form of payment that enables secure and anonymous transactions over the internet. It is a type of electronic payment system that allows users to make purchases online without the need for physical cash or credit cards. E-cash transactions typically involve the use of digital tokens or certificates that are designed to represent the value of real currency. These tokens or certificates can be used to pay for goods and services online, or they can be exchanged for real money through a designated bank account or other financial institution. E-cash systems provide a secure and convenient way to conduct transactions online, while also protecting the privacy and anonymity of users.

 

 

Q.5. Can e-cash transactions be traced?

Ans. In some e-cash systems, transactions can be traced to prevent fraud and illegal activities such as money laundering. However, in certain e-cash systems that provide anonymity, it may be difficult or even impossible to trace transactions. Additionally, the level of traceability may depend on the specific e-cash system and the regulations and laws that apply to it.

 

Q.6. What does ATM stands for?

Ans. ATM stands for Automated Teller Machine.

 

Q.7. How long electronics payment systems are in operation?

Ans. Electronic payment systems have been in operation for several decades, with the earliest forms of electronic payments dating back to the 1960s. However, the widespread adoption of electronic payment systems and the emergence of modern digital payment technologies have taken place over the past two to three decades.

 

Q.8. How many bit encryptions is used in digi cash?

Ans. Digi Cash used 56-bit encryption for its e-cash system.

 

Q.9. Which bank can issue digital cash in the world?

Ans. In theory, any bank can issue digital cash. However, in practice, digital cash is not widely used and very few banks have implemented their own digital cash systems. Instead, most digital cash systems are developed and operated by independent companies and payment providers

Q.10. What is net cash?

Ans. I'm not familiar with the term "net cash" in the context of finance or technology. Could you please provide more context or clarify your question?

Q.11. Are all the net cash transactions anonymous?

Ans. It depends on the specific implementation of the net cash system. Some net cash systems may allow for anonymous transactions, while others may require some level of identification or authentication for users. It is important to check the privacy and security policies of the specific net cash system being used to understand the level of anonymity it provides.

Q.12. What is contained in a smart card?

Ans. A smart card is a physical card that contains a microprocessor chip and can store and process data. The data stored on the card can include personal information, authentication credentials, financial information, and other types of data. Smart cards are often used for secure transactions and access control, as they can store encrypted information and require authentication for access. They can also be used for electronic payment systems and for storing and transferring data securely. Some smart cards also have the capability to interact with the external world, such as through contactless communication.

Q.13. Up to what limit smart card can be used?

Ans. The limit of the smart card varies depending on the type of smart card and the issuer's policies. Some smart cards have a limit on the amount of money that can be stored in them, while others may have a transaction limit or a daily limit. The limit may also vary depending on the purpose of the smart card, such as transportation fare, retail shopping, or banking. It is important to check with the issuer of the smart card to understand the usage limits and other terms and conditions associated with it.

Q.14. What is credit card?

Ans. A credit card is a payment card that allows a cardholder to borrow funds from a financial institution or credit card issuer to pay for goods and services. The cardholder agrees to pay back the borrowed amount with interest, over a period of time. Credit cards can be used to make purchases in-store or online, as well as to withdraw cash from ATMs. Credit cards may also offer rewards, such as cashback or points, for eligible purchases.

Q.15. What is pin?

Ans. PIN stands for Personal Identification Number. It is a numeric password or code used to authenticate the identity of a user in various applications, including banking, electronic transactions, and access control systems. A PIN is typically a four to a six-digit number that the user sets and keeps confidential to prevent unauthorized access to their account or information. The user is required to enter the PIN to access the account or complete a transaction, making it an essential security measure for electronic transactions.

Q.16. What is debit card?

Ans. A debit card is a payment card that enables the cardholder to access their bank account to withdraw cash or make purchases. It is linked to the cardholder's checking or savings account, and the funds for purchases or cash withdrawals are deducted from the available balance in the account. Unlike credit cards, which allow cardholders to borrow money from a lender, debit cards allow cardholders to spend money that they already have. Cardholders typically need to enter a personal identification number (PIN) to authorize transactions made with a debit card.

 Q.17. What is e-wallet?

Ans. An e-wallet, short for electronic wallet, is a digital financial tool that allows individuals to store and manage their payment information and transactions in a secure and convenient manner. E-wallets can be accessed through a mobile app or a website, and typically allow users to link their bank accounts, credit/debit cards, and other payment methods to make payments or send money to other users. E-wallets also offer features such as transaction history, loyalty programs, and promotional offers. Popular e-wallets include PayPal, Paytm, Google Wallet, and Apple Pay.

Q.18. How does E-wallet work?

Ans. E-wallet is a digital wallet that allows users to store and manage electronic money. E-wallet works by linking a user's bank account, credit card, or debit card to the digital wallet. Once the accounts are linked, the user can load money onto the wallet and use it to make transactions such as online purchases or money transfers.

 

When making a transaction with an e-wallet, the user selects the wallet as the payment method and enters the required information. The transaction is then processed and the wallet balance is adjusted accordingly. E-wallets typically have security measures in place to protect the user's personal and financial information.

Q.19. What is procedure of using E-wallet?

Ans. The exact procedure for using an e-wallet may vary depending on the specific wallet and the service or product being purchased, but here are some general steps:

 

Download and install the e-wallet app on your device.

Create an account with the e-wallet service and link it to your bank account or credit/debit card.

Add funds to your e-wallet either through bank transfer or by linking it to your card.

When making a purchase online or in-store, choose the e-wallet as your payment option and enter the required details such as the amount to be paid and the recipient’s information.

Confirm the transaction and wait for it to be processed. Some e-wallets may require you to enter a PIN or biometric authentication for security purposes.

Once the transaction is complete, you will receive a confirmation message, and the funds will be deducted from your e-wallet balance.

Overall, using an e-wallet can be a convenient and secure way to make digital transactions.

Q.20. What are the benefits of using e-wallet?

Ans. Using an e-wallet has several benefits, including:

Convenience: E-wallets offer a convenient way to pay for goods and services without having to carry cash or credit/debit cards. Users can easily make transactions using their smartphones or other digital devices.

Security: E-wallets use encryption technology to protect users' personal and financial information, which makes them a secure way to make transactions.

Speed: E-wallet transactions are typically processed quickly, which means that users can make payments and receive money almost instantly.

 

Cost-effective: E-wallets can save users money in the long run by reducing the need for cash withdrawals and lowering transaction fees associated with credit/debit cards.

Loyalty programs: Many e-wallets offer loyalty programs that reward users for using their service, which can lead to discounts and other benefits.

International transactions: E-wallets can be used to make international transactions, which can be more convenient and cost-effective than traditional methods like wire transfers or foreign currency exchange.

Environmentally friendly: By reducing the need for paper receipts and cash, e-wallets can help reduce environmental waste.

Q.21. What are risks of using e-wallet?

Ans. The risks of using e-wallets include data theft, fraud, loss of funds due to technical glitches, and the possibility of unauthorized access to personal information.

Q.22. What is oxygen wallet?

Ans. Oxygen Wallet is a digital wallet service provided by Oxygen Services India Pvt. Ltd. that allows users to make online payments, transfer money, pay bills, and purchase goods and services.

The answer to these questions should be given in 5-10 lines.

Q.1. What is EPS?

Ans. EPS stands for Electronic Payment System. It is a payment gateway service provided by the Korean government to allow electronic transactions securely and conveniently. EPS enables consumers to use debit and credit cards to make online purchases from local and international merchants in South Korea. The system is regulated by the Financial Supervisory Service (FSS) of Korea and offers features such as real-time payment confirmation, multi-language support, and protection against fraud.

Q.2. What is Credit card?

Ans. A credit card is a payment card that allows cardholders to borrow funds from a financial institution, usually a bank, to make purchases. The cardholder can use the credit card to make purchases up to a predetermined credit limit, and they are required to repay the borrowed amount plus interest charges to the issuer by a set due date. Credit cards offer a convenient way to make purchases, build credit history, and may come with various rewards and benefits such as cash back or airline miles.

Q.3. What is Debit card?

Ans. A debit card is a payment card that is linked to a bank account and is used to make purchases or withdraw cash. When a purchase is made using a debit card, the funds are immediately deducted from the linked bank account. This is different from a credit card where the bank extends a line of credit to the cardholder, and the cardholder incurs debt when using the card. Debit cards can be used at ATMs, in stores, or online, and are a convenient and secure way to access and spend the money in one's bank account.

Q.4. Explain cyber cash?

Ans. Cyber cash, also known as digital cash or e-cash, is a digital equivalent of physical cash that is designed to facilitate secure and private electronic transactions over the internet. Unlike traditional payment methods, cyber cash enables instant and direct payments between two parties without the need for intermediaries such as banks or credit card companies.

Cyber cash transactions are typically encrypted and require digital signatures to ensure security and prevent fraud. The digital currency can be stored in electronic wallets or smart cards, which can be used for online or offline transactions. Cyber cash can be transferred to others through the internet, email, or other electronic channels.

Cyber cash has several advantages, including convenience, speed, and security. However, it also presents some challenges, such as the need for a secure infrastructure to protect against hacking and the risk of money laundering and other illegal activities. Overall, cyber cash has the potential to transform the way we conduct transactions, but it requires careful consideration and regulation to ensure its safe and widespread use.

Q.4. Explain Cyber cash?

Ans. Cyber Cash was an early electronic payment system that was developed in the 1990s to enable secure transactions over the internet. It was a form of digital currency that allowed users to conduct transactions online without the need for physical currency or paper checks. Cyber Cash was designed to be a secure and convenient way for consumers to make purchases online, and for merchants to receive payments without the need for a physical storefront or credit card processing terminal

Cyber Cash worked by using encryption technology to secure online transactions, ensuring that personal and financial information remained private and protected. Users would set up accounts with Cyber Cash, which would store their payment information and enable them to make purchases online. Merchants would also set up accounts with Cyber Cash, which would allow them to accept payments and process transactions in real-time.

One of the key features of Cyber Cash was its use of digital signatures, which allowed users to authenticate and verify their transactions securely. This helped to prevent fraud and ensure that transactions were legitimate, which was critical for building trust in the early days of e-commerce.

While Cyber Cash was ultimately not successful and was acquired by VeriSign in 1999, it played an important role in the early development of electronic payment systems and helped to pave the way for the widespread adoption of online shopping and e-commerce that we see today.

Q.5. Name any 3 post –paid and 3 pre-paid payment systems?

Ans. Post-paid payment systems:

Credit cards

Mobile post paid bills

Utility bill payments using post paid services

3 Pre-paid payment systems:

Prepaid debit cards

Mobile prepaid recharges

Gift cards/vouchers

Q.6. What do you understand by e-cheque?

Ans. An e-cheque, also known as an electronic cheque or digital cheque, is an electronic version of the traditional paper cheque. It is a type of digital payment system that allows users to transfer funds between bank accounts online. The e-cheque system works by replacing the paper cheque with an electronic representation of the same information. The sender of the e-cheque enters the recipient's account details and the amount of money to be transferred, and the e-cheque is then processed electronically. The funds are then transferred from the sender's account to the recipient's account. E-cheques offer a faster and more secure way to transfer funds compared to traditional paper cheques, as they eliminate the need for physical processing and reduce the risk of fraud or errors.

Q.7. Explain Digi cash?

Ans. Digi cash, also known as digital cash or e-cash, is an electronic payment system that enables the transfer of funds between parties through digital or electronic means. It is a form of digital currency that is backed by a secure protocol and uses cryptographic techniques to ensure the privacy and security of transactions.

Digi cash was first introduced by David Chaum in the 1980s and was one of the earliest attempts at creating a digital currency. It was designed to provide a secure and anonymous way to make transactions online, without the need for intermediaries like banks or credit card companies.

Digi cash works by creating a unique digital signature for each transaction, which is then verified by the network of computers that make up the system. This digital signature ensures that the transaction is secure and that the funds being transferred are valid.

One of the key features of digi cash is its anonymity. Unlike traditional payment systems, digi cash does not require users to disclose their personal information, which helps to protect their privacy and prevent fraud.

Overall, digi cash represents an important milestone in the development of digital currencies and paved the way for newer systems like Bitcoin and other cryptocurrencies.

Q.8. What do you mean by smart card?

Ans. A smart card is a type of card that contains an embedded microprocessor chip that can store and process data. It looks like a standard plastic credit or debit card and is commonly used for electronic transactions. Smart cards can be used to store various types of information such as personal identification details, medical information, financial information, and more.

The microprocessor chip inside the smart card can be programmed with various applications and can process and store information securely. The cardholder can use a smart card to authenticate their identity, access secure facilities or systems, and conduct financial transactions. The use of smart cards has increased in recent years due to their increased security features and versatility.

Q.9. Explain Net cash?

Ans. Net cash refers to a form of electronic payment system that allows for the transfer of funds between different parties without the need for physical cash. It is a prepaid payment method that is available online and can be used for a variety of purposes, including making purchases on e-commerce websites, paying bills, and transferring money between individuals.

The net cash system operates by allowing users to add funds to their account using a variety of payment methods such as credit cards, debit cards, or bank transfers. Once the account is funded, the user can make transactions using the net cash balance. These transactions can be made securely, as the system uses encryption to protect user data and financial information.

One of the key advantages of using net cash is that it eliminates the need for physical cash, making it more convenient and faster to complete transactions. It also offers users a greater level of security, as funds are held in a secure account and can only be accessed with the user's login credentials. Additionally, net cash can often be used for transactions that would otherwise require a bank account or credit card, making it a more accessible option for some individuals.

Q.10. What are the problems with traditional system of payment?

Ans. The traditional system of payment involves the use of physical cash, cheques or money orders. This system has several problems, including:

 

Security risks: Carrying cash around can be risky as it can be lost or stolen. Similarly, cheques and money orders can be lost or forged, leading to financial losses for the payer.

Inconvenience: Physical payment methods require people to carry cash or cheques with them, which can be inconvenient, especially when making large payments.

Lack of traceability: Physical payment methods do not offer a way to trace payments, making it difficult to track payments for record-keeping and auditing purposes.

Processing time: Processing physical payments can take time, especially when dealing with large amounts of money. This can result in delays in transactions and inconvenience for both parties involved.

Limited accessibility: Physical payment methods require people to physically visit a bank or payment center to make payments, which can be difficult for people with limited mobility or those living in remote areas.

Q.11. What are the advantages of post paid electronic payment system?

Ans. Postpaid electronic payment systems offer several advantages over other payment systems:

Convenience: Post paid payment systems allow users to pay for services and goods without the need for cash or card at the time of purchase. This is particularly helpful when dealing with large transactions, as users can pay later.

Flexibility: Post paid payment systems offer flexible payment options, such as the ability to pay in installments or to defer payment until a later date. This can be particularly useful for individuals or businesses that have fluctuating cash flows.

Security: Post paid payment systems are often more secure than other payment methods because they require authentication and authorization before a transaction can be completed. This helps prevent fraud and unauthorized access to accounts.

Better Record-Keeping: Post paid payment systems provide better record-keeping, allowing users to easily track their transactions and expenses. This can be particularly helpful for businesses, as it can simplify accounting and tax preparation.

Loyalty programs: Post paid payment systems can also offer loyalty programs, which can incentivize users to use their services more frequently. This can lead to discounts, rewards, and other benefits for users.

Q.12. Explain Smart card?

Ans. A smart card is a type of plastic card with an embedded microprocessor chip that can store, process, and transmit data. The microprocessor chip in the smart card can be programmed with different types of data such as personal identification numbers (PINs), biometric data, digital certificates, and other information.

Smart cards can be used in a variety of applications such as banking, healthcare, transportation, and government identification programs. They offer enhanced security and privacy over traditional magnetic stripe cards because they can store and process data securely within the chip.

Smart cards can be used for various types of transactions such as making payments, accessing secure buildings or networks, and storing personal health information. They are also capable of storing and processing data offline, which means that they can still function even if there is no connection to a network or database.

Overall, smart cards offer a convenient and secure way to store and access sensitive information, and their use is becoming increasingly popular in various industries.

Q.13. Name four systems of e-payment?

Ans. Four systems of e-payment are:

Credit cards: A credit card is a payment card that allows cardholders to make purchases on credit. The credit card issuer pays the merchant on behalf of the cardholder, and the cardholder is required to repay the issuer at a later date with interest.

Debit cards: A debit card is a payment card that deducts money directly from a cardholder's checking account to pay for purchases. Debit cards are typically issued by banks or credit unions.

Electronic funds transfer (EFT): Electronic funds transfer is the transfer of funds from one bank account to another electronically. EFT can be done through various methods such as online banking, mobile banking, ATMs, and wire transfers.

Mobile payments: Mobile payments allow customers to make payments using their mobile devices. This can be done through various methods such as mobile wallets, mobile banking, and mobile payments apps.

Q.14. What is Batch processing?

Ans. Batch processing is a method of processing large amounts of data in batches or groups. It involves collecting, storing, and processing data in batches at a scheduled time, rather than processing it in real-time. In batch processing, data is first collected and stored, and then processed later as a batch. The processing of batches can be done on a daily, weekly, or monthly basis, depending on the requirements of the business. Batch processing is commonly used in industries such as banking, finance, and accounting, where large amounts of data need to be processed at specific intervals.

Q.15. What is Real time processing?

Ans. Real-time processing is a data processing method in which information is immediately processed as soon as it is received, without any delay or interruption. It involves the continuous processing of data as it is being generated, and the results are available immediately, typically within a few seconds. This is in contrast to batch processing, where data is collected over a period of time and then processed at a later time. Real-time processing is commonly used in various applications, such as online banking, stock trading, and sensor monitoring systems. It allows for quick decision-making, faster response times, and can help to prevent errors and fraud.

Q.16. What is the difference between debit card and credit card?

Ans. Debit cards and credit cards are both payment cards used to make purchases, but there are some key differences between them:

Payment method: A debit card is linked to your checking or savings account, and when you use it to make a purchase, the funds are immediately deducted from your account. A credit card, on the other hand, allows you to borrow money from a lender to make purchases, and you must pay back the borrowed amount plus interest over time.

Credit limit: Debit cards typically have a spending limit that is equal to the balance in your bank account. Credit cards have a credit limit, which is the maximum amount you can borrow from the lender.

Fees: Debit cards typically have lower fees than credit cards. With a debit card, you may only incur fees for overdrafts or out-of-network ATM transactions. Credit cards may charge annual fees, interest charges on unpaid balances, late payment fees, and other charges.

Credit history: Using a credit card can help you build a credit history if you make on-time payments and keep your balances low. Debit card usage does not impact your credit score.

Rewards: Credit cards often offer rewards programs that allow you to earn points, cash back, or miles for making purchases. Debit cards may also offer rewards, but they are typically less generous than credit card rewards.

Q.17. What is the difference between smart card and debit/credit card?

Ans. The main difference between smart cards and debit/credit cards is their functionality and technology. Debit/credit cards are magnetic stripe or chip-based cards that are linked to a bank account or credit line and allow users to make payments without the need for cash. On the other hand, smart cards are plastic cards with embedded microchips that store and process data securely.

Smart cards have the ability to store and process more data, including personal identification information, biometric data, and account balances. They also offer enhanced security features, such as the ability to generate one-time passwords and use advanced encryption algorithms to protect user data. Debit/credit cards, in contrast, rely on PINs or signatures for verification, which can be less secure.

 

Furthermore, smart cards can be used for a wider range of applications beyond payment systems, such as physical access control, identification, and loyalty programs. Debit/credit cards are typically limited to payment transactions only.

The answer to these questions should be given in 15-20 lines.

Q.1. What do you understand by EPS? What are its requirements?

Ans. EPS stands for Electronic Payment System. It is a payment system that enables online transactions between a buyer and a seller through electronic media.

The basic requirements for EPS include:

A computer or a mobile device: EPS transactions are typically carried out through a computer or a mobile device with an active internet connection.

A payment gateway: A payment gateway is a software application that facilitates the transfer of funds between the buyer and the seller. The payment gateway ensures the security of the transaction and verifies the authenticity of the parties involved.

A bank account or a credit card: The buyer needs to have a bank account or a credit card to make the payment. The seller also needs to have a bank account to receive the payment.

A secure connection: The connection between the buyer and the payment gateway needs to be secure to prevent unauthorized access and data theft.

Security protocols: EPS requires the use of security protocols such as encryption to protect the confidentiality and integrity of the transaction.

EPS is a secure and efficient method of payment that eliminates the need for physical cash transactions. It provides convenience to buyers and sellers by enabling transactions from the comfort of their homes or offices.

Q.2. What is Credit card? What is its procedure?

Ans. A credit card is a payment card that allows cardholders to borrow funds to make purchases, which they will have to pay back over time with interest. The credit card issuer sets a credit limit based on the cardholder's creditworthiness and income, which determines how much they can borrow.

When using a credit card, the cardholder presents the card to the merchant, who swipes or inserts it into a card reader. The card reader then contacts the card issuer to verify the card's validity and the cardholder's credit limit. If approved, the transaction is completed, and the cardholder signs a receipt to confirm the purchase.

The cardholder receives a monthly statement that lists all transactions made during the billing cycle, the amount owed, and the minimum payment due. The cardholder can choose to pay the balance in full or make a partial payment, but interest will be charged on the unpaid balance. The cardholder can continue to use the credit card as long as they stay within their credit limit and make timely payments.

Q.3. What is Debit card? What are its types?

Ans. A debit card is a plastic payment card that provides an electronic and immediate access to the cardholder's bank account to make purchases or withdraw cash from ATMs. The cardholder can use a debit card to pay for goods and services by swiping the card or inserting it into a card reader at a merchant's point-of-sale (POS) terminal or online store, entering a personal identification number (PIN), and authorizing the transaction.

There are two main types of debit cards:

Online debit cards - Also known as a PIN-based debit card, an online debit card requires the cardholder to enter their PIN to authorize the transaction. The funds are immediately deducted from the cardholder's account and transferred to the merchant's account.

Offline debit cards - Also known as a signature-based debit card, an offline debit card allows the cardholder to sign for the transaction instead of entering a PIN. The transaction is authorized, and the funds are deducted from the cardholder's account and transferred to the merchant's account within a few days.

Q.4. What are different kinds of e-payment systems? Give features of any two e-payment systems?

Ans. There are various types of e-payment systems, some of which include:

Digital Wallets or E-wallets: These are electronic wallets used to store payment information, such as debit or credit card details, for convenient and secure online transactions.

Features:

Can be used for online and offline transactions

Supports multiple payment methods

Often come with rewards or cash back incentives

Mobile Payment Systems: These are payment systems that use mobile devices, such as smartphones or tablets, as a medium of exchange.

Features:

Can be used for person-to-person (P2P) transfers, online and offline purchases

Transactions are often quick and convenient

May use various technologies, such as NFC or QR codes

One popular mobile payment system is PayPal. It allows users to link their bank accounts or credit cards to their PayPal account and use it for online transactions. Another popular e-wallet is Apple Pay, which allows users to make contactless payments using their iPhones or Apple Watches.

Q.5. What are the various pre-paid EPS? Discuss any two?

Ans. Pre-paid electronic payment systems (EPS) are payment systems that require users to pre-load funds into an account, which can then be used to make payments. These systems are typically used for low-value transactions, such as mobile top-ups, online purchases, and small retail transactions. Some examples of pre-paid EPS include e-wallets, prepaid debit cards, and gift cards.

Two popular pre-paid EPS are:

PayPal: PayPal is an online payment system that allows users to transfer money to other PayPal users, pay for goods and services online, and withdraw funds to their bank account. Users can fund their PayPal account using a credit card, debit card, or bank transfer. PayPal also offers buyer protection and seller protection programs, which provide added security for online transactions.

Paytm: Paytm is an Indian mobile payment and financial services company that offers a range of pre-paid EPS, including an e-wallet, a prepaid debit card, and a mobile banking app. Paytm users can load funds into their account using a bank transfer or a debit/credit card, and can then use the funds to pay bills, shop online, or send money to other Paytm users. Paytm also offers cash back incentives and discounts for using its services, making it a popular choice among Indian consumers.

Q.6. What are various pre-paid EPS? Discuss any two?

Ans. Pre-paid EPS (Electronic Payment Systems) are payment systems in which users pay in advance before making any transactions. Some examples of pre-paid EPS are:

E-wallets: E-wallets are digital wallets where users can store money and use it to make payments. Users can load funds into the e-wallet using various payment methods such as credit/debit cards, net banking, and UPI. The funds in the e-wallet can then be used to make online and offline payments, bill payments, and mobile recharges. Examples of e-wallets include Paytm, PhonePe, and Google Pay.

Prepaid cards: Prepaid cards are physical or digital cards that are pre-loaded with a certain amount of money. These cards can be used to make payments at merchants that accept the particular brand of card. Prepaid cards can be used for online transactions, bill payments, and mobile recharges. Examples of prepaid cards include gift cards, travel cards, and reloadable debit cards.

Two popular pre-paid EPS are:

Amazon Pay: Amazon Pay is a digital wallet offered by Amazon. Users can add funds to their Amazon Pay wallet using credit/debit cards, net banking, and UPI. The funds in the wallet can be used to make payments on Amazon as well as at other merchants that accept Amazon Pay. Amazon Pay also offers cashback and discounts on certain transactions.

Ola Money: Ola Money is a digital wallet offered by Ola, a ride-hailing company. Users can load funds into their Ola Money wallet using credit/debit cards, net banking, and UPI. The funds in the wallet can be used to pay for Ola rides, as well as for bill payments, mobile recharges, and other transactions at merchants that accept Ola Money. Ola Money also offers cash back and discounts on certain transactions.

Q.7. What is Net Cash? What are its advantages?

Ans. Net Cash is an electronic payment system that allows individuals and businesses to make payments and transfer funds over the internet. In this system, users create an online account with a payment service provider, link their bank accounts or credit/debit cards, and then use the account to make online payments.

Advantages of Net Cash include:

Convenience: Net Cash offers a fast and convenient way to make payments without the need for cash or checks. Users can easily make payments from their computers or mobile devices.

Security: Net Cash transactions are generally more secure than traditional payment methods as they are encrypted and protected by secure firewalls. Users can also set up additional security measures such as two-factor authentication to further enhance the security of their transactions.

Cost-effective: Net Cash transactions can be less expensive than other payment methods, such as wire transfers, which can have high fees.

Instant payment confirmation: Net Cash provides instant payment confirmation, allowing users to receive payment confirmation and complete transactions more quickly.

However, some of the disadvantages of Net Cash include the possibility of security breaches and fraud, the potential for technical glitches and downtime, and the need for internet access and a device with an internet connection to use the system.

Q.8. What is the use of cyber cash and net cash?

Ans. Cyber cash and net cash are both terms that refer to digital payment methods that allow for electronic transactions over the internet. Here's a brief explanation of each:

Cyber cash: This term refers to electronic cash or digital currency that can be used to make online purchases or payments. Cyber cash is a form of electronic money that is stored on a user's device or in the cloud, and can be used to pay for goods or services online. Examples of cyber cash include Bitcoin, Ethereum, and other cryptocurrencies.

Net cash: This term refers to the cash balance that a company has after deducting its liabilities from its assets. In other words, net cash is the amount of cash that a company has available to use for operations, investments, and other expenses. It's an important financial metric that is used to evaluate a company's financial health and liquidity.

Both cyber cash and net cash have different uses and applications:

Cyber cash is primarily used as a form of digital payment that allows for secure and anonymous online transactions. It can be used to buy goods and services, transfer funds, and invest in digital assets.

Net cash, on the other hand, is a financial metric that is used to assess a company's financial strength and liquidity. It's an important measure of a company's ability to meet its financial obligations and invest in growth opportunities.

Overall, cyber cash and net cash are two different concepts that serve different purposes, but both are important in the digital economy and financial markets.

Q.9. What you do know abut ATM?

Ans. ATM stands for "Automated Teller Machine." It is an electronic banking device that allows customers to perform a range of basic financial transactions without the need for a human teller. ATMs are typically located in public areas such as banks, convenience stores, and shopping centers, and they are available 24 hours a day.

Some common transactions that can be performed at an ATM include:

Cash withdrawals: Customers can withdraw cash from their bank accounts using their ATM card and personal identification number (PIN).

Deposits: Many ATMs allow customers to deposit cash and checks directly into their bank accounts.

Balance inquiries: Customers can check their account balance and recent transactions.

Transfers: Some ATMs allow customers to transfer money between accounts or send money to other individuals.

ATMs have become an important part of the modern banking system, as they offer convenient access to financial services for customers and help banks reduce their staffing costs. However, ATM fraud and security concerns are also a potential risk that banks and customers need to be aware of.

Q.10. What is meant by e-cash?

Ans. E-cash, also known as electronic cash, is a digital form of currency that allows users to make electronic transactions without the need for physical cash or traditional payment methods like credit cards or checks. E-cash is stored and transferred electronically, typically through a computer network, and can be used to make purchases or payments online.

E-cash can be classified into two types: anonymous and identified e-cash. Anonymous e-cash allows users to make transactions without revealing their identities, while identified e-cash requires users to provide identifying information, such as a name or address, in order to complete a transaction.

The advantages of e-cash include convenience, speed, and security, as well as the ability to make transactions across borders and without the need for physical currency. However, e-cash also carries some risks, including the potential for fraud and security breaches, as well as the possibility of untraceable transactions that can be used for illegal activities such as money laundering.

Q.11. What is cyber cash? How it words?

Ans. Cyber cash, also known as digital cash, is a form of electronic currency that is used to make secure and anonymous transactions over the internet. Cyber cash works by using digital signatures and encryption to ensure the authenticity and security of transactions, allowing users to make purchases or payments online without the need for physical cash or traditional payment methods like credit cards.

The process of using cyber cash typically involves several steps. First, a user obtains cyber cash by purchasing it from a third-party provider or by earning it through various online activities such as completing surveys or performing other tasks. The user then stores the cyber cash in a digital wallet or other secure storage location.

When the user wants to make a purchase or payment online, they can transfer the required amount of cyber cash to the recipient's digital wallet using encryption and digital signatures to ensure the authenticity and security of the transaction. The recipient can then use the cyber cash to make further purchases or withdraw it for physical currency if desired.

One of the key advantages of cyber cash is its ability to provide secure and anonymous transactions without the need for traditional financial intermediaries such as banks or credit card companies. However, cyber cash also carries some risks, including the potential for fraud and security breaches, as well as the possibility of untraceable transactions that can be used for illegal activities such as money laundering.

ESSAY TYPE QUESTIONS

Q.1. What is EPS? What are its major benefits?

Ans. EPS stands for Electronic Payment System. It is a type of electronic funds transfer system that allows individuals and businesses to make financial transactions electronically, typically over the internet.

Some major benefits of EPS include:

Convenience: EPS allows users to make financial transactions from the comfort of their own homes or offices, without the need to physically visit a bank or other financial institution. This can save time and effort, particularly for individuals who live in rural or remote areas.

Speed: EPS transactions can be completed much more quickly than traditional paper-based methods such as checks or money orders. This can be particularly important for time-sensitive transactions such as bill payments or urgent transfers.

Cost savings: EPS transactions are typically less expensive than traditional paper-based methods, as they require fewer intermediaries and less physical infrastructure. This can help individuals and businesses save money on transaction fees and other expenses.

Security: EPS systems use advanced encryption and other security measures to protect users' financial information and prevent fraud or other forms of cybercrime. This can help users feel more secure and confident when making financial transactions online.

Global reach: EPS systems can be used to make transactions across borders and in different currencies, making it easier for individuals and businesses to engage in international commerce.

Overall, EPS has become an important part of the modern financial system, offering numerous benefits to users and helping to facilitate the growth of e-commerce and other forms of electronic commerce.

Q.2. Explain EPS in detail. Also explain its characteristics ?

Ans. Electronic Payment System (EPS) refers to a range of digital payment methods that enable individuals and businesses to make secure and convenient transactions electronically. EPS can be used for a wide variety of financial transactions, including online purchases, bill payments, and fund transfers.

Some of the main characteristics of EPS include:

Electronic funds transfer: EPS relies on electronic funds transfer (EFT) technology to move money between accounts. This allows transactions to be completed quickly and efficiently, without the need for physical checks or other paper-based payment methods.

Integration with other systems: EPS can be integrated with other financial systems and technologies, such as mobile payments and online banking, to create a seamless and interconnected financial ecosystem.

Secure transactions: EPS systems use advanced security features such as encryption, digital signatures, and multi-factor authentication to protect users' financial information and prevent fraud or other forms of cybercrime.

User-friendly interfaces: EPS systems are designed to be user-friendly and intuitive, with clear and simple interfaces that make it easy for users to complete transactions quickly and easily.

Cost savings: EPS transactions are typically less expensive than traditional paper-based methods, as they require fewer intermediaries and less physical infrastructure.

Global reach: EPS systems can be used to make transactions across borders and in different currencies, making it easier for individuals and businesses to engage in international commerce.

Overall, EPS has become an essential part of the modern financial system, offering numerous benefits to users and helping to drive the growth of e-commerce and other forms of electronic commerce. As EPS continues to evolve and become more sophisticated, it is likely to become even more integral to the global economy in the years to come.

Q.3. What is meant by debit card? What are its type? Explain its processing?

Ans.  A debit card is a payment card that allows an individual to access funds from their bank account to make purchases or withdraw cash. Debit cards are issued by banks and other financial institutions and are linked to a checking or savings account. When a transaction is made using a debit card, the funds are immediately deducted from the account balance.

There are several types of debit cards, including:

PIN-based debit cards: These cards require the user to enter a personal identification number (PIN) at the point of sale or ATM in order to authorize the transaction.

Signature-based debit cards: These cards require the user to sign a receipt at the point of sale in order to authorize the transaction. They may also be used as credit cards, allowing users to make purchases without entering a PIN.

Prepaid debit cards: These cards are loaded with a predetermined amount of funds and can be used like a regular debit card until the balance runs out.

The processing of a debit card transaction typically involves several steps:

Authorization: The merchant sends a request to the cardholder's bank to authorize the transaction.

Verification: The cardholder's bank verifies the availability of funds and confirms that the transaction is authorized.

Settlement: Once the transaction is authorized, the funds are transferred from the cardholder's account to the merchant's account.

Clearing: The transaction details are sent to the card network, which processes the transaction and settles the funds between the issuing bank and the acquiring bank.

Debit cards offer several advantages over other payment methods, including convenience, security, and the ability to track spending. However, they also carry some risks, such as the potential for fraud or unauthorized transactions. It is important for cardholders to monitor their account balances and report any suspicious activity to their bank as soon as possible.

Q.4. What is e-cheque/What are its features?

Ans. An e-cheque (electronic cheque) is a digital version of a traditional paper cheque that can be used to transfer funds electronically between two parties. It is essentially an electronic payment order that instructs the payer's bank to transfer funds to the payee's bank.

Some of the key features of e-cheques include:

Digital format: E-cheques are created and transmitted in digital format, eliminating the need for physical paper checks.

Security: E-cheques use advanced security features such as digital signatures, encryption, and authentication protocols to ensure the integrity and confidentiality of the transaction data.

Convenience: E-cheques offer a convenient and fast way to transfer funds between parties, without the need for physical transportation of the cheque.

Cost savings: E-cheques are typically less expensive than paper cheques, as they eliminate the costs associated with printing, mailing, and processing physical cheques.

Reduced risk of fraud: E-cheques are less susceptible to fraud and forgery than paper cheques, as they use advanced security measures to protect against unauthorized access and alteration.

Integration with other systems: E-cheques can be integrated with other electronic payment systems and technologies, such as mobile payments and online banking, to create a seamless and interconnected financial ecosystem.

Overall, e-cheques are an innovative and efficient payment solution that offer numerous benefits to both payers and payees. As the use of digital payments continues to grow, e-cheques are likely to become an increasingly important part of the modern financial system.

Q.5. What are the various types of cash systems? Explain three pre-paid cash systems.

Ans. There are various types of cash systems, including:

Physical cash: It is the most common form of cash that we use in our daily lives. It includes coins and banknotes.

Digital cash: It is a form of electronic money that allows users to make online transactions without the need for a physical currency. It includes e-wallets, credit/debit cards, and mobile payments.

Pre-paid cash systems: It is a type of digital cash where the money is loaded onto a card or an account in advance, and the user can spend it as required. It includes pre-paid debit cards, gift cards, and travel cards.

Some of the pre-paid cash systems are:

Pre-paid debit cards: These cards work like regular debit cards, but they are not linked to a bank account. Users can load the card with a specific amount of money and use it for purchases until the funds run out. Some pre-paid debit cards come with additional features like rewards points and cash-back offers.

Gift cards: These are pre-paid cards that are issued by retailers, and they can be used to purchase products or services from that particular store. Gift cards are usually purchased for a specific amount and can be used until the funds run out.

Travel cards: These are pre-paid cards that are used for traveling purposes. They can be loaded with foreign currency, and users can use them to make purchases and withdraw cash while traveling abroad. Travel cards usually come with added benefits like travel insurance and emergency assistance.

The advantages of pre-paid cash systems are:

Control over spending: Pre-paid cash systems provide users with better control over their spending since they can only spend the amount loaded onto the card or account.

Convenience: Pre-paid cash systems are convenient to use since users can make purchases and withdraw cash without the need for a bank account or credit history.

Security: Pre-paid cash systems provide an added layer of security since the user's personal and financial information is not linked to the card or account. In case of theft or loss, users can report the card and have the remaining balance transferred to a new card.

Q.6. Explain the meaning of smart card. Explain the advantages and disadvantages of smart card.

Ans. A smart card is a small plastic card that contains an embedded microchip that can store and process data. It is typically used for secure access to a variety of electronic systems and services.

Advantages of Smart Card:

Security: Smart cards are considered more secure than traditional magnetic stripe cards because they have a unique identifier and encrypted data, making them more difficult to counterfeit or tamper with.

Versatility: Smart cards can be used for a wide range of applications, from banking and payment systems to identification and access control.

Convenience: Smart cards can store a large amount of information and can be easily carried in a wallet or purse.

Speed: Transactions with smart cards are usually faster than traditional payment methods, as they can be completed in seconds.

Disadvantages of Smart Card:

Cost: Smart cards are more expensive to produce than traditional magnetic stripe cards, which can make them a less attractive option for some businesses.

Compatibility: Not all card readers are compatible with smart cards, which can limit their use in certain settings.

Loss or Damage: If a smart card is lost or damaged, it can be difficult to replace the data stored on it, which can be a security risk.

Examples of pre-paid cash systems:

Contactless payment cards: These are pre-paid cards that can be used to make small payments quickly and easily, without the need to enter a PIN or sign a receipt. They use RFID technology to communicate with a payment terminal.

Virtual wallet: A virtual wallet is an online account that allows users to store money and make payments using their mobile devices. Users can add funds to their wallet from a bank account or credit card, and then use it to make purchases online or in-store.

Gift cards: Gift cards are pre-paid cards that can be used to purchase goods or services at a specific store or chain of stores. They are often purchased as gifts, but can also be used by individuals as a form of pre-paid cash.

Q.7. Define plastic cards. What are the types of card being used as the channel of e-payment? Explain the advantages of e-payment? Explain the advantages of using e-payment modes.

Ans. Plastic cards are a type of payment card that is made of plastic material and includes electronic information that allows users to make purchases or access funds. There are various types of cards being used as the channel of e-payment, including credit cards, debit cards, smart cards, and prepaid cards.

The advantages of e-payment include convenience, speed, and security. E-payment allows users to make transactions without the need for physical cash or checks, which can be time-consuming and inconvenient. Transactions can be completed quickly and easily with e-payment, which can save users time and effort. Additionally, e-payment can be more secure than traditional payment methods, as it can include features such as encryption and authentication to prevent fraud.

The advantages of using e-payment modes include increased efficiency, reduced costs, and improved customer experience. E-payment modes can help businesses reduce costs associated with cash handling and paper-based transactions, as well as improve accuracy and speed of transactions. E-payment modes also offer customers a more convenient and streamlined experience, which can lead to increased loyalty and satisfaction.

Q.8. What are popular e- wallet options available in India?

Ans: There are several popular e-wallet options available in India. Some of the most popular ones include:

Paytm: Paytm is one of the most widely used e-wallets in India, offering users the ability to make payments, recharge their mobile phones, pay utility bills, book movie tickets, and more.

PhonePe: PhonePe is another popular e-wallet that enables users to send and receive money, recharge mobile phones, pay utility bills, and book travel tickets, among other things.

Google Pay: Google Pay is a widely used e-wallet that enables users to make payments, transfer money, recharge mobile phones, pay utility bills, and more.

Amazon Pay: Amazon Pay is a digital wallet offered by Amazon that enables users to make payments, recharge mobile phones, and pay utility bills.

MobiKwik: MobiKwik is a popular e-wallet that enables users to make payments, recharge mobile phones, pay utility bills, book travel tickets, and more.

These e-wallet options provide users with a convenient way to make cashless transactions and can be easily linked to bank accounts, credit cards, or debit cards for seamless transactions.

Q.9. What do you understand by paytm mobile wallet? what are the benefits and risk of using paytm mobile wallet?

Ans. Paytm is a mobile wallet and e-commerce payment system based in India. It allows users to store money in a digital wallet, which can be used to pay for goods and services purchased online or in-person. Users can add money to their Paytm wallet using a credit or debit card, net banking, or UPI (Unified Payments Interface) and use it to pay for various transactions.

Some of the benefits of using Paytm mobile wallet include:

Convenience: Users can easily make transactions from their mobile phones without the need to carry cash.

Security: Paytm uses advanced encryption technology to ensure that user data and transactions are secure.

Rewards and cashbacks: Paytm offers various rewards, cashback offers, and discounts to users for using their platform for transactions.

However, there are also some risks associated with using Paytm mobile wallet or any e-wallet:

Fraud and Scams: Users need to be careful of fraudsters who try to trick them into sharing their login credentials or other personal information.

Technical glitches: Sometimes, technical glitches can cause delays or errors in transactions, which can be frustrating for users.

Regulatory risks: The regulations around mobile wallets are constantly evolving, and changes in the regulatory environment can affect the operations of e-wallets.

Overall, Paytm mobile wallet offers a convenient and secure way to make digital transactions, but users need to be cautious and aware of the risks involved.

 

Multiple Choice Questions:

1. E-Payment refers to the transfer of funds via internet using electronic means such as :

(a) Mobile Phone (b) PDA

(c) Desktop computer (d) All the above

E-Payment refers to the transfer of funds via internet using electronic means such as credit/debit cards, e-checks, digital wallets, and other forms of electronic transactions.

 

2. Methods of E-Payments are :

(a) Post Paid (b) Pre-Paid

(c) Both of these (d) None of these

Both online and offline methods of E-Payments are used. Online methods include electronic funds transfer (EFT), credit card payment, and digital wallets, while offline methods include smart cards, debit cards, and prepaid cards.

 

3. With E-Payment systems, we can :

(a) Pay bills instantly (b) Make purchases

(c) Both of the above (d) None of these

With E-Payment systems, we can make online transactions and payments as well as transfer funds electronically. With E-Payment systems, we can make online transactions and payments as well as transfer funds electronically.

 

4. E-Payment does not involve :

(a) Cash (b) Cheques

(c) Both of these (d) None of these

E-Payment does not involve cash transactions or physical checks.

 

5. A credit card holder is capable of making purchases :

(a) On Internet/online (b) Shopping Malls/shops

(c) Both of these (d) None of these

A credit card holder is capable of making purchases online and offline using the credit card.

 

6. Smart card can be used for :

(a) Purchases (b) To pay fares

(c) Personal identification (d) All the above

Smart cards can be used for a variety of different applications, including payment systems, identification and authentication, and data storage. Some common examples include using a smart card as a debit or credit card, storing medical information on a smart card for use in hospitals, or using a smart card to access secure buildings or networks.

 

7. Credit card is issued to those persons who are :

(a) Government employees

(b) Businessmen

(c) Persons with high credit ranking

(d) None of these

or good credit history.

 

8. In E-Payment systems/cyber cash, credit card number is sent :

(a) in real form-as it is (b) in Encrypted form

(c) Both of these (d) None of these

In e-payment systems, sensitive information like credit card numbers are typically sent in an encrypted form to protect them from being intercepted and used by unauthorized parties.

 

9. Internet cheques use :

(a) Digital Signatures (b) Ordinary Signatures

(c) Both of these (d) None of these

Internet cheques use digital signatures to ensure the authenticity and integrity of the transaction. This helps to prevent fraud and unauthorized access to the funds being transferred.

 

10. Digi cash has the properties of :

(a) Transferability (b) Anonymity

(c) Both of these (d) None of these

Digi cash has the properties of both anonymity and traceability. It allows for anonymous transactions, but still allows for the possibility of tracking or tracing the flow of digital cash.

 

11. In e-cash system bank transfers money to :

(a) Cashier (b) E-mint

(c) ATM (d) None of the above

In an e-cash system, the bank does not transfer money directly to an ATM. Instead, the bank maintains a database of electronic cash balances for each customer and uses digital signatures to authenticate transactions between customers and merchants. Customers can use their e-cash at ATMs or online to make purchases or transfer funds to other customers.

 

12. ATM stands for :

(a) Automatic Totaller Machine (b) Automated Teller Machine

(c) Automatic Token Money (d) All of these

ATM stands for Automated Teller Machine. It is an electronic device that enables customers to perform banking transactions, such as cash withdrawals and account balance inquiries, without the need to visit a bank branch.

 

13. Smart cards use :

(a) Magnetic stripe technology (b) Integrated circuit

(c) Both of these (d) None of these

Smart cards use both hardware and software for security. Hardware includes the chip that stores the data and software includes the encryption and decryption algorithms used to secure the data.

 

14. We can smart card up to :

(a) No limit (b) Specific limit

Smart cards use both a microprocessor and memory to store and process information.

(c) Rs. 50,000/- (d) None of these

 

Q. 1. What is the purpose of the introduction in a written document?

a. To provide the audience with an overview of what the communication is about.

b. To provide the background information about the author.

c. To provide a summary of the methodology used.

d. To provide a conclusion about the topic.

 

Q.2. What does e-commerce refer to?

a. The buying and selling of goods and services through electronic means.

b. The buying and selling of goods and services through physical stores only.

c. The use of cash and cheques for financial transactions.

d. The use of mobile devices for communication.

 

Q.3. What are the advantages of conducting transactions through the internet?

a. Convenience and accessibility.

b. Higher prices for goods and services.

c. Lower security risks.

d. No need for personal and financial information.

 

Q.4. What are the benefits of e-payment systems?

A. Increased fraud

B. Higher transaction costs

C. Improved cash flow

D. Inaccessibility to everyone

 

Q.5. Which of the following is the first step for using a credit card for online payment?

a. Enter credit card details

b. Choose credit card as payment option

c. Verify details

d. Payment confirmation

 

Q.6. Which of the following is the first step for creating an e-cheque?

a. Authorization

b. Payment processing

c. Create an e-cheque

d. Confirmation

 

Q.7.What is the process involved in issuance of e-cheque?

a. Verification, Authorization, Payment Processing, Clearance and Settlement

b. Authorization, Payment Processing, Confirmation, Clearance and Settlement

c. Authentication, Verification, Clearance and Settlement, Payment Processing

d. Authentication, Payment Processing, Confirmation, Clearance and Settlement

 

Q.8. What is the advantage of using Net Cash as a payment method?

a. It is a widely available payment option

b. It involves lower transaction fees compared to traditional payment methods

c. It offers a high degree of privacy for users

d. It requires users to enter credit card or bank account details for each transaction

 

Q.9. What is the primary utility of smart cards?

a. To offer a more secure and convenient payment method than cash

b. To store and process information in a secure and flexible manner

c. To prevent medical errors and improve patient outcomes in healthcare

d. To track customer purchases and reward them with discounts in loyalty programs

 

Q.10. What is a demerit of smart cards?

a. They are less secure than other types of cards or payment systems

b. They are less widely available than debit and credit cards

c. They can be expensive to produce and implement

d. They do not require any additional authentication for transactions

 

Q.11 What are e-wallets?

A. Physical wallets for carrying cash and cards

B. Electronic devices or software applications for storing payment information

C. Loyalty programs for online purchases

D. None of the above

 

Q.12. Which of the following is NOT a benefit of e-wallets?

A. Faster and more convenient transactions

B. Enhanced security features

C. Higher fees for transactions

D. Loyalty rewards

 

Q.13.What is the procedure for using an e-wallet?

A. Adding funds to a savings account

B. Linking a funding source, creating an account, adding funds, making payments, and withdrawing funds

C. Buying a physical wallet and carrying cash and cards

D. None of the above

 

Q.14. What is Paytm?

A) A digital wallet and e-commerce platform in India

B) A social media platform

C) A music streaming platform

D) A video sharing platform

 

Q.15. When was Paytm launched?

A) 2005

B) 2008

C) 2010

D) 2013

 

 

Q.16. What is One of the key features of Paytm?

A) Complicated and confusing user interface

B) Expensive transaction fees

C) Ease of use with a simple and intuitive user interface

D) Lack of discounts and cashback offers

 

Q.17. What services are available on Paytm's e-commerce marketplace?

A) Only electronics

B) Only fashion items

C) Only groceries

D) A wide range of products and services including electronics, fashion, and groceries

 

Q.18. What are the steps to add money to your Paytm wallet?

A) Download the Paytm app, select the "Add Money" option, and enter your credit card information

B) Log in to your Paytm account, choose your payment method, and enter the amount you want to add

C) Create a new account, enter your debit card information, and choose the "Add Money" option

D) Log in to your Paytm account, select the service or bill you want to pay for, and enter the required details

 

Q.19. What are some benefits of using Paytm mobile wallet?

A) Inconvenience and difficult to use

B) High transaction fees

C) Cash back and discounts, wide acceptance, convenience, instant transfers, and security

D) Only accepted for online shopping

 

Q.20. What are some risks involved in using Paytm mobile wallet?

A) No risks involved

B) Fraudulent activities, technical glitches, service disruptions, unauthorized access, and regulatory changes

C) Only technical glitches and service disruptions

D) Only fraudulent activities and unauthorized access

 

Q.21. What is one precaution users can take to ensure the safety of their money and personal information while using Paytm?

A) Share their login credentials with friends and family

B) Enable two-factor authentication

C) Reveal their OTP to strangers

D) Use public Wi-Fi to make transactions

 

Q.22 What type of encryption does Paytm use to secure the app?

A) 256-bit SSL encryption

B) 128-bit SSL encryption

C) 64-bit SSL encryption

D) No encryption

 

Q.23. What may cause inconvenience to users while using Paytm?

A) Lack of discounts and cashback offers

B) Technical glitches in the app or website, service disruptions, and changes in regulatory policies

C) Complicated user interface and high transaction fees

D) Limited acceptance by merchants

 

Q.24. Which of the following services are offered by Oxigen Wallet?

a) Money transfers

b) Online purchases

c) Both A and B

d) None of the above

 

Q.25. What is a prepaid wallet?

a) A wallet that requires users to pay after making a transaction.

b) A wallet that requires users to pay before making a transaction.

c) A wallet that doesn't require users to pay at all.

d) A wallet that can only be used for offline transactions.

 

Q.26. What are Oxigen Treats?

a) Rewards and cashback earned by users.

b) A feature that allows users to send gifts and vouchers to their friends and family.

c) A feature that allows users to pay for their bills and mobile recharges.

d) None of the above.

 

Q.27. What is MobiKwik Blue?

a) A feature that allows users to earn cashback on their transactions.

b) A personal lending platform.

c) A discount coupon that can be used to avail discounts on various products and services.

d) A payment gateway service that allows businesses to accept payments online.

 

Q.28. What is the key feature of PayUmoney?

a) Its wide network of merchants and businesses that accept payments through its platform.

b) Its PCI-DSS certification and advanced encryption technology that protects user data and transactions from fraud and cyber threats.

c) Its user-friendly interface that allows customers to make payments quickly and easily.

d) Its range of tools and services for businesses to manage their payments and transactions.

 

Q.29. Who owns M-Pesa?

a) Bharti Airtel

b) Vodafone and Aditya Birla Group

c) LTS Investment Fund Ltd

d) None of the above

 

Q.30 What are the advantages of M-Pesa?

a) It is secure and easy to use

b) It can only be used from bank branches

c) It can only be used during certain hours

d) It requires a bank account or credit card to use

 

Q.31. What types of services can be paid for using Airtel Money?

a) Utility bills, DTH recharges, postpaid mobile bills, and insurance premiums

b) Only postpaid mobile bills

c) Only insurance premiums

d) Only movie tickets

 

Q.32. What types of transactions can be done using LTS Cash?

a) Money transfers, bill payments, and mobile recharges

b) Only money transfers

c) Only mobile recharges

d) Only bill payments

 

Q.34. Which of the following is not a step involved in the processing of information in e-business?

a. Data analysis

b. Data dissemination

c. Data entry

d. Data collection

 

Q.35. Batch processing is commonly used in which industries?

a. Retail, healthcare, and education

b. Manufacturing, banking, and finance

c. Agriculture, hospitality, and entertainment

d. Transportation, real estate, and construction

 

Q.36. Which of the following is not a benefit of real-time processing?

a. Faster decision-making

b. Improved accuracy

c. Reduced need for manual intervention

d. Lower cost than batch processing

 

 

True or False

1. E-payment system is not required in shopping Malls.  False

E-payment systems, such as credit and debit card machines, are commonly used in shopping malls and other retail locations to make it convenient for customers to make purchases.

 

2. EPS is not beneficial to suppliers.  False

Electronic Payment Systems (EPS) can be beneficial to suppliers as they can provide a more efficient and secure way to receive payments, and can also increase the number of customers who are able to make purchases. Additionally, EPS can help suppliers to streamline their accounting and inventory management processes, and reduce the costs associated with handling cash and paper-based transactions.

 

3. There is no need to disclose the credit card number in the case of cybercash.  True

In the case of cybercash, the customer must still provide their credit card number in order to make a payment. However, the number is not revealed to the merchant and is instead sent to the cybercash server for processing. This added layer of security is intended to protect the customer's credit card information from being intercepted or stolen by malicious actors.

 

4. A debit card is a way to make instant payment.  True

a debit card is often used as a form of instant payment, allowing customers to spend money from their bank account in real-time.

 

5. E-cash created by one bank is not easily accepted by other bank.  False

While different banks may have their own systems and protocols in place, e-cash created by one bank can often be accepted by other banks through interbank networks or clearing systems. Additionally, there are also digital wallet and e-payment platforms that allow for the seamless transfer of funds across different banks.

 

6. Encryption is for locking and decryption is for unlocking the information.  True

encryption is the process of converting plaintext into ciphertext (a scrambled version of the original message) in order to protect its contents from unauthorized access, while decryption is the process of converting ciphertext back into plaintext in order to read the original message

 

1. The purpose of the introduction is to provide the audience with a clear understanding of the topic at hand. (True/False)

 

2. E-commerce is a term that encompasses a variety of electronic transactions. (True/False)

 

3. E-payment is not a secure way to make financial transactions. (True/False)

 

4. E-payment systems must be fast and efficient to provide quick transactions.

(True/False)

 

5. The payee needs to check the digital signature of the drawer for verifying the authenticity of the e-cheque. (True/False)

 

6. Using a credit card with fraud protection is not advisable. (True/False)

 

7. E-cheques offer several advantages such as faster processing, reduced transaction costs, and enhanced security. (True/False)

 

8. Smart cards are more secure and less susceptible to fraud than debit and credit cards. (True or false)

 

9. Smart cards can be used for a variety of purposes beyond payments. (True or false)

 

10. Net Cash transactions usually involve higher transaction fees compared to traditional payment methods. (True or false)

 

11. E-wallets offer a convenient and secure way to make online purchases without entering payment information every time. (True/False)

 

12. E-wallets do not offer any security features to protect user accounts and transactions. (True/False)

 

13. E-wallets eliminate the need for users to carry multiple cards and remember their login credentials. (True/False)

 

14. Some e-wallets charge fees for certain transactions or services. (True/False)

15. Not all merchants accept e-wallet payments. (True/False)

 

 

16. Paytm is a digital wallet and e-commerce platform in India. (True)

 

17. Paytm was launched in 2015. (False)

 

 

18. One of the key features of Paytm is its complicated user interface. (False)

 

19. Paytm only offers electronics on its e-commerce marketplace. (False)

 

20. To add money to your Paytm wallet, you need to download the app and enter your credit card information. (False)

 

21. Paytm mobile wallet offers convenience, cash back and discounts, wide acceptance, instant transfers, and security. (True)

 

22. There are no risks involved in using Paytm mobile wallet. (False)

 

23. Users should enable two-factor authentication to ensure the safety of their money and personal information. (True)

 

24. Oxigen Wallet is a digital wallet service in India that allows users to make mobile/DTH recharges, bill payments, money transfers, and online purchases. (True/False)

 

25. Oxigen Wallet is a postpaid wallet. (True/False)

 

26. MobiKwik uses 256-bit SSL encryption to protect users' personal and financial information from unauthorized access and misuse. (True/False)

 

27. Pay Umoney offers a range of tools and services for businesses to manage their payments and transactions. (True/False)

 

28. MobiKwik Blue is a discount coupon that can be used to avail discounts on various products and services. (True/False)

 

29. M-Pesa is a mobile wallet and money transfer service that was launched in India in 2013. (True)

 

30. Airtel Money is a digital payment service offered by Reliance Jio. (False)

 

31. LTS Cash is a mobile application that allows users to make transactions such as money transfers, bill payments, and mobile recharges. (True)

 

32. Airtel Money users can only access the service through the Airtel Money app. (False)

 

33. Data analysis helps e-businesses to make informed decisions and improve their operations. - True/False

 

34. Batch processing allows for the processing of large volumes of data in an efficient and cost-effective manner. - True/False

 

35. Real-time processing is ideal for applications that require immediate feedback and quick response times. - True/False

 

A.       One Word or one line questions

 

Q. 1. What do you mean by E-Payment?

Ans. E-payment may be defined as the transfer of funds using electronic media like

personal computers, servers and mobile phones.

E-Payment refers to the process of making financial transactions online, such as transferring money, paying bills, or making purchases, through electronic means such as credit/debit cards, online banking, mobile payment systems, or digital wallets. It eliminates the need for cash or physical checks, making transactions faster, more convenient, and more secure.

 

Q. 2. What is EFT?

Ans. EFT means Electronic Fund Transfer.

EFT stands for Electronic Funds Transfer, which is the electronic transfer of money from one bank account to another, typically through a network such as the Automated Clearing House (ACH) or Fedwire. EFTs can be used for a variety of transactions including direct deposit of pay checks, online bill payments, and automatic debits for recurring payments like monthly subscriptions or loan payments.

 

Q. 3. Which methods come under the umbrella of Post-Paid-System ?

Ans. The categories of payment like credit cards, cyber cash and internet cheques come

under the umbrella of Post Paid Methods. Under the umbrella of Post-Paid-System, the following methods come

Credit Card

Debit Card

Net Banking

Direct Debit

Bill Presentment and Payment (BPP)

Post-Dated Cheques (PDC)

Electronic Clearing Service (ECS)

National Automated Clearing House (NACH)

Real Time Gross Settlement (RTGS)

National Electronic Funds Transfer (NEFT)

 

Q. 4. What is Pin ?

Ans. Pin is Personal Identification Number.

A PIN (personal identification number) is a code or password used to authenticate a user or device and grant access to a system or network. It is typically used as an additional security measure, in addition to a username or other form of identification, to ensure that only authorized users are able to access the system or network. PINs are commonly used for banking, credit cards, and other financial transactions, as well as for accessing restricted areas or systems.

Q. 5. What are E-Cheques ?

Ans. E-cheques are like ordinary cheques, but these are initiated electronically. These use

digital signatures for signing and endorsing.

E-Cheques, also known as electronic cheques or virtual cheques, are a type of electronic payment method that allows individuals or businesses to make payments directly from their bank account to another party's account using the internet. E-Cheques are similar to traditional paper cheques but are processed electronically, eliminating the need for physical cheques to be printed, signed, and mailed. They offer the convenience and security of online payments, and can be used for a variety of transactions, including online purchases, bill payments, and money transfers.

Q. 6. What is digital cash ?

Ans. Digital cash works almost like paper cash, it has the properties of transferability and

anonymity. It serves as a medium of exchange and store of value.

Digital cash refers to a form of electronic money that allows for the secure and anonymous transfer of funds over the internet or other digital networks. It can take various forms, such as digital tokens, digital certificates, or digital wallets. The most common forms of digital cash are cryptocurrencies like Bitcoin, which use encryption and decentralized ledger technology (blockchain) to ensure the integrity and security of transactions.

Q. 7. When Digi Cash was started ?

Ans. Digi cash was started in October 1994.

DigiCash was a company that developed and marketed systems for secure digital transactions. It was founded in 1989 by David Chaum and was active until the late 1990s. However, the company filed for bankruptcy in 1998.

Q. 8. Which system of E-payment is good for the bearer of the document ?

Ans. Credit cards and E-cash are good for the bearer.

The e-payment system that is good for the bearer of the document is the digital cash system. This system allows for the transfer of digital cash, which can be easily transferred and used for transactions without the need for physical cash or checks. It is a digital form of currency that can be easily transferred between parties via the internet.

Q. 9. What is the function of client software in e-cash system ?

Ans. To handle receipt or payment of funds e-cash system client software is used.

The function of client software in an e-cash system is to provide the user with the ability to access and use the e-cash system. This includes the ability to transfer digital cash to and from the user's account, to make payments, and to manage the user's account. The software also includes security features to protect the user's digital cash from unauthorized access or fraud. Additionally, the client software may include features for tracking transactions and managing the user's account, such as viewing account balances and transaction history.

Q. 10. What does ATM stands for ?

Ans. Automatic Teller Machine.

ATM stands for Automated Teller Machine.

B. Fill in the blanks

1. Electronic Payment system may be . Debit payment system or Credit payment system.

Electronic payment systems can include debit payment systems, where funds are transferred directly from the customer's bank account, and credit payment systems, where the customer makes a purchase using a credit card or other form of credit. Both types of systems have their own advantages and disadvantages, and the choice of system will depend on the needs of the business and the customers.

2. Post-paid, Instant Paid and Pre-paid system are types of E-Payment system.

Post-paid system refers to a payment method where the user is billed after the service has been used. Instant paid system is a method where payment is made at the time of purchase or service use. Pre-paid system is a method where payment is made in advance before the service is used.

3. In case of loss of credit card  FIR  must be lodged.

in case of loss of credit card, it is important to lodge an FIR (First Information Report) with the local police as soon as possible to prevent any unauthorized transactions. It is also important to inform the credit card issuer immediately to have the card canceled and a new one issued.

4. Cyber cash is a system where by customers pay by credit card without disclosing the                      credit card number.

Cybercash is not the same as e-cash or digital cash. Cybercash is a company that used to provide electronic payment services, where customers could make payments using credit cards without disclosing their credit card number. The company was later acquired and its services are no longer available.

5. The authentication aspects are supported through digital signatures using public-key

   cryptography.

digital signatures using public-key cryptography are often used in e-commerce to authenticate the identity of the parties involved in a transaction and to ensure the integrity of the transaction. Public-key cryptography uses a pair of keys, one for encryption and one for decryption, to provide secure communication. The encryption key is public and can be shared, while the decryption key is private and must be kept secret. Digital signatures use the private key to encrypt a message or document, and the recipient uses the public key to decrypt and verify the signature. This ensures that the message or document has not been tampered with and that it was sent by the claimed sender.

1.        E-cash is based on cryptographic system known as digital signatures

E-cash, also known as digital cash or digital currency, is a form of electronic payment that allows for the transfer of funds over the internet or other digital networks. It is based on cryptographic systems, such as digital signatures, that provide security and anonymity to the user. E-cash can be used in various ways, such as online shopping, money transfers, and other financial transactions. However, e-cash is not widely used and it's not a standard form of payment, but more like an alternative form of payment.

2.        Digi cash was started in October 1994.

This information is incorrect, DigiCash was founded in 1989 by David Chaum and was based in the Netherlands. It was one of the first companies to develop and implement electronic cash technology.

3.        Net Cash system is based on distributed currency servers.

NetCash was a digital cash and electronic commerce service that was developed and operated by the First Virtual Holdings company in the late 1990s, but it is no longer in operation. It used a centralized system for processing electronic transactions, rather than a distributed system of currency servers.

4.        Smart cards are also called stored value cards.

smart cards are also known as stored value cards because they have the ability to store a specific amount of money or value on the card for future use. This can include things like prepaid phone cards, transit cards, and other forms of electronic cash.

5.         Debit Card is also known as ATM Card.

 A debit card, also known as a bank card or check card, is a payment card that allows the cardholder to directly access their bank account to pay for goods and services or withdraw cash. An ATM card, on the other hand, is a specific type of debit card that is used to withdraw cash from an ATM machine. While some debit cards may also be used as ATM cards, not all ATM cards are debit cards.

Q. 1. What do you mean by E-Payment?

Ans. E-payment may be defined as the transfer of funds using electronic media like

personal computers, servers and mobile phones.

 

Q. 2. What is EFT?

Ans. EFT means Electronic Fund Transfer.

 

Q. 3. Which methods come under the umbrella of Post-Paid-System ?

Ans. The categories of payment like credit cards, cyber cash and internet cheques come

under the umbrella of Post Paid Methods.

 

Q. 4. What is Pin ?

Ans. Pin is Personal Identification Number.

 

Q. 5. What are E-Cheques ?

Ans. E-cheques are like ordinary cheques, but these are initiated electronically. These use

digital signatures for signing and endorsing.

 

Q. 6. What is digital cash ?

Ans. Digital cash works almost like paper cash, it has the properties of transferability and

anonymity. It serves as a medium of exchange and store of value.

 

Q. 7. When Digi Cash was started ?

Ans. Digi cash was started in October 1994.

 

Q. 8. Which system of E-payment is good for the bearer of the document ?

Ans. Credit cards and E-cash are good for the bearer.

 

Q. 9. What is the function of client software in e-cash system ?

Ans. To handle receipt or payment of funds e-cash system client software is used.

 

Q. 10. What does ATM stands for ?

Ans. Automatic Teller Machine.

 

B. Fill in the blanks

1. Electronic Payment system may be . Debit payment system or Credit payment system.

2. Post-paid, Instant Paid and Pre-paid system are types of E-Payment system.

3. In case of loss of credit card  FIR  must be lodged.

4. Cyber cash is a system where by customers pay by credit card without disclosing the credit

card number.

5. The authentication aspects are supported through digital signatures using public-key

cryptography.

6. E-cash is based on cryptographic system known as digital signatures

7. Digi cash was started in October 1994.

8. Net Cash system is based on distributed currency servers.

9. Smart cards are also called stored value cards.

10. Debit Card is also known as ATM Card.

Ans. 1. Debit, Credit 2. Post-paid, Instant Paid, Pre-paid system, 3. FIR, 4. Cyber cash, 5.

public-key, 6. digital signatures, 7. Digi, 8. Net Cash, 9. Smart cards, 10. ATM Card.

 

C. True or False

1. E-payment system is not required in shopping Malls.  False

2. EPS is not beneficial to suppliers.  False

3. There is no need to disclose the credit card number in the case of cybercash.  True

4. A debit card is a way to make instant payment.  True

5. E-cash created by one bank is not easily accepted by other bank.  False

6. Encryption is for locking and decryption is for unlocking the information.  True

Ans. 1. False, 2. False, 3. True, 4. True, 5. False, 6. True,

 

D. MCQ

1. E-Payment refers to the transfer of funds via internet using electronic means such as :

(a) Mobile Phone (b) PDA

(c) Desktop computer (d) All the above

2. Methods of E-Payments are :

(a) Post Paid (b) Pre-Paid

(c) Both of these (d) None of these

3. With E-Payment systems, we can :

(a) Pay bills instantly (b) Make purchases

(c) Both of the above (d) None of these

4. E-Payment does not involve :

(a) Cash (b) Cheques

(c) Both of these (d) None of these

5. A credit card holder is capable of making purchases :

(a) On Internet/online (b) Shopping Malls/shops

(c) Both of these (d) None of these

6. Smart card can be used for :

(a) Purchases (b) To pay fares

(c) Personal identification (d) All the above

7. Credit card is issued to those persons who are :

(a) Government employees

(b) Businessmen

(c) Persons with high credit ranking

(d) None of these

8. In E-Payment systems/cyber cash, credit card number is sent :

(a) in real form-as it is (b) in Encrypted form

(c) Both of these (d) None of these

9. Internet cheques use :

(a) Digital Signatures (b) Ordinary Signatures

(c) Both of these (d) None of these

10. Digi cash has the properties of :

(a) Transferability (b) Anonymity

(c) Both of these (d) None of these

11. In e-cash system bank transfers money to :

(a) Cashier (b) E-mint

(c) ATM (d) None of the above

12. ATM stands for :

(a) Automatic Totaller Machine (b) Automated Teller Machine

(c) Automatic Token Money (d) All of these

13. Smart cards use :

(a) Magnetic stripe technology (b) Integrated circuit

(c) Both of these (d) None of these

14. We can smart card up to :

(a) No limit (b) Specific limit

(c) Rs. 50,000/- (d) None of these

Ans. 1. (d) 2. (c) 3. (c) 4. (c) 5. (c) 6. (d) 7. (c) 8. (b) 9. (a) 10. (c) 11. (c) 12. (b) 13. (c) 14. (b)