1. Encryption And E-Payments
Modes
Chapter-9

2. What is encryption?

A process that converts original information, also
called plain text into a difficult-to-interpret form
called ciphertext.

Done by using an encryption algorithm, a formula
used to turn plain text into ciphertext.

Two types: Asymmetric and Symmetric

3. Asymmetric Encryption

4. Symmetric Encryption

5. Which one is better?

Although, symmetric encryption is fast, it is not as
safe as asymmetric encryption because someone
could “steal” the key and decode the messages.
But because of its speed, it's commonly used for ecommerce transactions.

Asymmetric encryption is more complex--and more
secure. Asymmetric encryption's added safety
comes at a price: More computation is required, so
the process takes longer.

6. Who’s using encryption?

If you use a computer and the internet, you’re
using encryption!

Enables all organizations regardless of their size, to
be both user-and-IT friendly.

7. Why use encryption?

Authentication
 Protects

personal data such as passwords.
Privacy
 Provides

for confidentiality of private information.
Integrity
 Ensures

that a document or file has not been altered.
Accountability
 Prevents
denial or plagiarism.

8. How do you manage
encryption?

Make sure the encryption system has a complete
key management application.
 This
will help manage and protect the data and keys,
and help you safely match encrypted data with the
right key.

9. Examples of Encryption

Web browser encryption

Email encryption

Hard drive encryption

Operating system protection

10. A few vendors and their product
coverage

Blackberry
 System,

software, hardware, and service.
Global Technologies Group, Inc. (GTGI)
 Software

Hewlett-Packard Company
 System,

and hardware.
software, hardware, and service.
Intellect Security Ltd.
 Software

11. Electronic Payments Modes

12. Electronic Payment

Electronic payment is a payment that is
transmitted electronically including telephone
lines and Internet

13. Electronic Payment Options


Credit Cards: 90% of the transactions are made by
credit cards.
E-checks: encrypted version of paper checks. Echeck Electronic funds transfer or EFT refers to the
computer-based systems used to perform financial
transactions electronically.

14. Electronic Payment Options




E-Cash/Electronic money
It is money that is exchanged electronically.
This involves the use of computer networks,
the internet and digital stored value systems.
Bank deposits, electronic funds transfer (EFT), direct
deposit, payment processors and digital currencies
such as bit-coin are all examples of electronic money.

15. Electronic Payment Issues
Electronic payment methods should lower
cost
 Stealing of credit card number can be an
issue
 Consumer privacy could be a problem


16. A credit card payment
transaction

17. An electronic cash payment transaction

18. Smart card(chip)

A smart card can be programmed as
required. It can store electronic money, or
be used as credit card or an electronic
check.

19. Benefits of Electronic Payment
- Very convenient for the consumer. In most cases, you only need to enter
your account information -Electronic payment lowers costs for businesses. The more payments they
can process electronically, the less they spend on paper and postage.
- 24/7 online bill payment. Most of these services are free to bank
customers and coordinate easily with personal software programs such
as Quicken or MS Money

20. Concerns About Electronic Payment
The privacy and the possibility of identity theft.
 Solutions
 - Using virus protection software and a firewall on your computer.
-You should also make sure that you send your credit card information
over a secure server. Your Internet browser will notify you when a server
is secure by showing a lock or key icon. In addition, the URL on a
secure site is usually designated by the prefix "https" instead of "http."
Retailers do their part by using data encryption, which codes your
information in such a way that only the key holder can decode it.

21. Authentication









Authentication, is used to verify that the information
comes from a trusted source
There are several ways to authenticate a person or
information on a computer;
-password
-pass card
-digital signature
-Fingerprint scan
-Retina scan
-face scan
-Voice identification

22. Set Up E-Payment for A Business


In-house handling
All-in-one solution, services like PayPal and ProPay
make it easy for you to accept credit cards and other
forms of electronic payment from your site. When a
customer enters his or her information on your site, your
payment service authorizes the transaction and transfers
funds to your account.

23. In-House Handling Requires



Shopping Cart. Coolcart.com.
Secure Server. Secure Socket Layer (SSL) technology
is used to encrypt the data.
A system to process credit card payments and an
Internet merchant account with a bank. Credit card
payment processing services are available through online
companies.