EPS (Electronic payment system) is an online
business process used for fund transfer using
electronic means, i.e
 Personal computers
 services
 Mobile phones and
 hand held devices(PDA)
They are widely used in bank whenever
transactions are made in terms of payment
and other means.
“Any transfer of funds initiated through an
electronic terminal , telephonic
instrument or computer or magnetic
tape so as to order, instruct or authorize
a financial institution to debit or credit an
account.”
Consumer point of view:An EPS is a convenient way of making a purchase
or paying for a service without holding cash or
having to got through in process of completing
a cheque producing some form of acceptable
identification.
 supplier point of view:E- payment represents an efficient means
changing funds and cash flows, offering
improved security.
In order for the supplier, to provide goods and
services to there modern EPS systems have be
designed.

The consumer & the associated browser to
interact with the consumer.
 An online shopping mall that may help
direct consumers to the merchant servers.
 The merchant system residing on an online
web-server with a connection of webbrowsers on the internet.
 The background backing network to
support online payments from consumers
the merchant.

BANKING SYSTEM IN ONLINE COMMERCE
BANKING SYSTEM
5.) obtain payment
authorization
3.) present home page
BROWSER
CONSUMER
4.) select foods make
payment
WEB-SITES
6.)CONFIRM
PAYMENT
WEB-SITES
1.) SELECT A
STORE
2.) LINK TO
MERCHANT
Digital token based EPS
E-tokens are equivalent to cash that is
backed by a bank.
E-token are of three typesI. Cash to real time
II. Debit or prepaid
III. Postpaid or credit

The potential for fraud is reduced
because in proper verification is done in
case of e-business.
 Merchant would prefer an e-cash
scheme , since it prevents denial by the
customer or lack of funds in a customer’s
account.
 It can protect the customer’s anonymity
so that merchant is assured of the
payment.

ELECTRONIC MINT
2.)TRANSFER
MONEY
CONSUMER
’S BANK
7.) CREDIT
MERCHANT BANK
3.)SEND ECASH
6.)RETURN ECASH
MERCHANT
BANK
1.) REQUEST TO
OBTAIN CASH
4.)SEND E-CASH
CONSUMER
MERCHANT
5.) DELIVERS GOODS
E-chequing pertains to the use of networking
services to issue and process payments that
emulate real world chequing.
BENEFITS OF E-CHEQUES
 E-checks works in the same way as the
traditional cheques, the simplifying
customer education.
 E-checks serve such corporate markets.
They can use it to complete payment over
the payments in a more cost effective than
present alternatives.
For the online transactions, the credit cards
are the easiest method of others
because people are already
accustomed by using them remotely.
The credit card transaction simply
requires that the consumer have a valid
credit card number & expiration date
when placing an order. This information
has been provided through standard
internet options, like-email/sms.
CONSUMER’S
BANK
7.) FORWARD
CHEQUE
8.) ACCOUNT
UPDATE
6.) FORWARD
CHEQUE
MERCHANT’ BANK
5.) FORWARD
TO BANK
CLEARING
HOUSE
3.)VALIDAT
E CHEQUES
1.) ACCESS & BROWSER
CONSUMER
BROWSER
2.)SELECT GOODS PAY ECHEQUE
4.) CLOSE TRANSACTION
MERCHANT
SYSTEM
Smart cards looks very much like a traditional credit
card with one major transaction. Smart card
combines with the characteristics of the credit or
debit cards.
They are being offered to consumer for
small purchases less than $10 or more/less for. smart
cards are also called stored value cards uses
magnetic strip technology or intrgrated circuits(ICs)
chip to store the consumer specific information
including e-money.
BENEFITS:
Smart cards offer clear benefits to both merchant &
consumer. They reduce cash hand expenses and
losses caused by frauds.
E-purse or d- purse is wallet size smart card embraced
with programmable micro chip that store monitory
value in form of money to be used with point of
sale(POS) terminal.
BENEFITS:
• After we get e-purse from the bank , we can use it for
different purpose depending upon the type of POS.
• The corresponding POS scans the E-purse to
authenticate the e-purse & perform the operation
accordingly.
• When the balance on the e-purse is shown the same
machine, can be used to recharge the same card.
E- bill is similar with general bill used to pay
offline exchange with merchant. It consists
of digital document(document file), which
is signed by the consumer by using private
key.
the merchant use the paper public key
to decode the digital document if the result
return the receiver identification that match
with the sender’s identity, it means the
digital documents are valid
Consumer AND the browser
 Shopping mall
 Merchant system
 Banking network
