E-PAYMENTS issued by the bank allowing the holder


E-PAYMENTS        &                ISSUES REGARDING SECURITYE-PAYMENTS & ISSUES REGARDING SECURITYBY Andrew William D’lima DCC-A & Chaithanya Goud Donthi DCC-A     Introduction:Electronic Payment is a financial transaction which takes place between buyers and sellers electronically online without the use of actual cash or paper currency. Electronic payments are far cheaper than the traditional which makes it easier and more reliable and more adaptable to the people.Objectives of study:To understand the working of the e-payment based application.To understand the security aspects of the e-payment services.To know the overall impact of e-payments on the economy.To understand the adaptiveness of people from traditional paper currency. History of money:Barter System: It’s is the oldest system where real goods are exchanged for goods.Commodity Money: In this system, goods which have monetary value.  E.g., Salt. Mostly it’s gold & silver coins.Commodity Standard: It uses the unique note with deposits of gold and silver held by the note issuer.Electronic Money: In this system, traditional currency give way to electronic moneyAdvantages of E-Payments:E-payments reduces the overall cost for businesses.Transacting via e-payments is very easy and convenient.Reduction of overall use of precious paper.There’s an instant transfer of money, enables faster work completion.E-transactions can be done at any point in time.E-payments are accepted globally.Disadvantages of E-Payments:Transaction fee per transaction and monthly fees are more.They are prone to hacking and other another online threat.Not all websites support a particular payment method.E-payment system:EFT is defined as “any transfer of funds initiated through an electronic terminal, telephonic instrument, or computer to order, instruct, or authorize a financial institution to debit or credit the account.”EFT utilizes computer and telecommunication components both to supply and to transfer money.Classification of EFT:EFT can be segmented into three broad categoriesBanking and financial paymentsLarge-scale paymentsSmall-scale paymentsHome paymentsRetailing paymentsCredit cardCharge cardOn-line electronic commerce payments.Token-based payment systems.Credit card-based payments systems.E-Payment modes:Credit payment system:Credit card: It’s one of the e-payment method cards which is issued by the bank allowing the holder to purchase goods & services on credit basis with some other agreed charges. It involves a promise to pay the credit in future.  It requires from capturing card information, approval from the issuer, payment of money, and monthly statement to the customer.E-Wallet: E-wallet is an electronic device allows to make electronic transactions. It can be through the computer (Website) or the smartphone (Application). It stores the debit or credit card information of the user to facilitate a quick transaction. E.g., paytm, Tez app.  Smart card: Smart cards are the plastic card with microprocessors that can be loaded with funds to make a transaction. People usually used in places like Metro traveling, health cards, etc.Cash Payment System:Debit card: The holder of debit card instructs his bank to make a debt of an amount of transaction from his account for the payment of goods and services. The debit card only works if the holder has money in his mind to cover the transaction amount.E-Check: E-check is a form of online payment where the money electronically transferred from payers account to the payees account upon the authorization. It takes 3-6 business days to complete. The merchant can withdraw payment for goods and services from the customer upon the approval by the customer.E-Cash: E-cash simply is electronic cash or e-money that provides a way to pay for goods and services without the use of paper currency. It involves authorization, payment confirmation.Security issues:Security is the central issue of the present-day scenario in making an electronic payment. Most of the security issues majorly found attacks of viruses, and Trojans. The viruses are spread through e-mails or any downloading unwanted content. Recently viruses are also spread through the apps like WhatsApp, Viber, etc. there many malicious programmes and viruses which can attach the online banking easily by stealing passwords on the browser. Major Threat:Worms: Worms are the first viruses that are spread through direct internet connection where there is a direct connection and spread from one computer to another computer that usually steals the user’s information.Trojans: Using the Trojans the hackers can bypass the authentication in e-payments. Trojans steal the confidential data or the sensitive data of the users. Denial of services attack (DOS) or Distributed Denial of services (DDOS): It is another common method that disturbs the electronic payment system where hackers place the software on different third-party systems that sends request to the target systems (DOS) attacks generally target the sights on the web’s servers that might be a bank server.Phishing: It is a method that is used to obtain the personal information by acting as a trustworthy organization. Hackers send an e-mail from a good organization or a bank or a financial institution and try to get the information about the account details of the users. Once the user gives the required information unknowingly, then the hacker will gain access to the user’s account.Pharming: it is a fraud that divers the internet connection of the user to a website which is exactly same. So, when the user enters the site that site will be a forged site.Drive-by Downloads: Drive-by download may happen when visiting a website or clicking on a particular link or an ad or popup. These are the clicked mistakenly by the users. The attackers create malicious content and can explore vulnerabilities. Drive-by download contains malware which is a significant thread to e-payments.Solution:Authentications: An efficient authentication should be implemented for a better transaction through e-payment. Instead of single authentication,  of authentication, should be performed for better security.Multiple layers of authentication may be of a PIN, CRYPTOGRAPHIC KEY, DIGITAL SIGNATURE, etc.,Biometrics: Biometrics are the security devices where the devisers check the person voice or finger pattern or eye retina for authentication which makes e-payments more secure and safe the biometric security devices or more likely to be in future.Encryption: Encryption means the process of encoding and decoding a message. Encryption consists of encryption and decryption keys that allow the users to make secure payment encryption is used for a secured and safe online transactions by the end to end encryption.Firewalls: Firewalls are the security system which usually controls the incoming and outgoing traffic and blocks access for unwanted or untrusted files the file which has permission or given access to the system information by using the firewalls the e-payment security can be increased.Findings:Majority of the people had preferred cashless for a cash transaction, i.e., 60.60% voted, and 39.40% voted against the cashless transaction.From out of cash, M-wallets, & card payments. People preferred net banking at 40.9%. Our research had revealed that out of 100% of respondents 60% of the people had no security issues and also mentioned that they’re confident about the security. And rest 40% had some problems in the past.People agreed that demonetization mainly pushed them towards cashless transactions.Paytm is the app which is widely used by actively transacted by the people in the country, against its competitors Bhim, Phone Pe, Tez with more than half of the votes, i.e., 65.70%.When it comes to comfortability concerning user interface, ease of transactions, majority people voted it positively around 62%, and rest felt more complicated.Around 74.3% of the people are confident that e-payments have an impact on the Indian economy. And believe that it boosts the country’s  GDP.Our survey also revealed that people had shifted from traditional bank money transfers to e-payment based monetary transactions, i.e., 51.40%. And rest believe that bank transfers to be safer.There’s a drastic change in people’s behavior and impact of e-payments its ease of doing it had enabled them to use e-payments for their daily payments like bills payment etc. The ease of doing, security, reliability, etc. made people adapt to e-payments more quickly has majority voted positively. Conclusion:E-payments based applications are driving India toward digitalization. Our study had found that e-payment applications are used by a large section of the people.The fear of security threat online is one of the factors which became a hindrance for the people to convert to cashless future.The impact of e-payments on Indian economy is high, Which enables transparency regarding transactions taking place in the country, And directly contributes to the growth of the country.The ease of doing transactions, it’s reliability, timesaving factors are encouraging people towards e-payments.

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