Credit Internet-systems are electronic analogues of conventional systems that work with credit cards. However, since all transactions are carried out via the Internet, it requires additional security and authentication. Such means are credit cards and ATMs.
Credit card-a Bank payment card, which indicates that its owner has a Bank loan.
ATM – electronic-mechanical device that allows the owner of a Bank payment card when entering a personal identification number (RIN-code) to receive cash.
1. The buyer selects the necessary goods in the e-shop and chooses a credit card as a means of payment.
2. The parameters of the credit card (number, name of the owner, expiration date) are transmitted to the electronic payment system, and the information is encrypted using special protocols. This can be done in two ways,:
a) card parameters are entered on the website of the store and transferred to the electronic payment system;
b) the card parameters are entered on its own server of the payment system (electronic payment system), which reduces the risk of interception of information by unauthorized persons and minimize attempts to fraud sellers.
3. The electronic payment system transmits the authorization request to the traditional payment system.
4. If the issuing Bank maintains an on-line payment database, the processing center sends it a request for authorization of the card and receives the result. If not, the processing center itself stores information about the status of the cardholder’s account and performs authorization requests. Issuing banks regularly update such information.
5. The result of authorization is transmitted to the electronic payment system.
6. The store receives the authorization result.
7. The buyer receives the result of authorization through the store or directly from the electronic payment system.
8. For a positive result, the store provides a service or ships the goods, or the processing center transmits to the settlement Bank information about the transaction and the money from the buyer’s account is transferred through the settlement Bank to the account of the store in the Bank – equayeri.
For a one-time purchase, a plastic credit card is valid in the same way as during a regular purchase. At the same time, the buyer, buying the goods, passes the card number to the seller for payment.
In case of multiple use, the subscription principle is applied, that is, the buyer only reports the card details for the first time. In the future, he indicates only his name, and the seller writes off the funds from his card. Using this method, companies such as America Online, NewsPage, CyberCash, CompuServe, ESPNET and others work.
The most famous residents of credit cards are American Express, Diners Club, Visa Travel Money, VISA CASH and others. One of the payment interfaces of the CyberPlat system works with credit cards on the domestic market. Now there are various credit card systems on the Internet, which are characterized by a high level of transaction security and software that is used by both the seller and the buyer. Such systems include CyberCash, OpenMarket, FirstVirtual and the like.
Depending on the options for servicing buyers and sellers, the following types of electronic payment systems are distinguished:
o payment gateways that provide authorization for several types of plastic cards that can be issued by different banks;
o closed systems – provide authorization of several types of plastic cards issued by one Bank, and both the buyer and the seller should be served by this Bank;
o intermediaries – systems that authorize several types of credit cards and perform the functions of accepting payments.
The advantages of credit systems are the habit for customers and legal certainty, a high level of information protection.
The disadvantages include the need for additional costs to verify the solvency of the client and the authorization of the card, which makes such systems unsuitable for micropayments, the lack of complete anonymity, a limited number of stores that accept credit cards and a small number of credit card users in domestic practice.