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Online Payment Processing System.

Online payment processing system can be classified into two types. They are

a) Token Based Payment System.
b) Credit-Card Based Payment System.

a) Token Based Payment System.
  • E-cash: Its a form of digital cash which provides a high level of security.  It also reduces the overhead of paper cash.
  • E-Check: E-check/E-Cheque is another form of electronic payment system(EPS).  These check are preferred when a customer is willing to make a payment without using paper currency. 
    • Example of E-check are Net Cheque and Net Bill.
  • Smart Cards: Smart cards are similar to Debit/Credit card but with enhanced features such as micro processor that have the ability to store massive amount of information which is 80 times thatn conventional, magnetic strip cards.
    • Examples of smart cards are Mondex Electronic Currency card.

b) Credit-Card Based Payment System.
The different types of credit card based payment systems are.
  • Plain Credit Card Payment System: The credit card transaction is provided without using any encryption techniques.  It is one of the simplest form of payment system.
  • Encrypted Credit Card Payment System: As the name says, the credit card is encrypted before performing any transaction using various encryption schemes like 
    • Privacy Enhanced Mail(PEM).
    • Pretty Good Proivacy(PGP).
  • On-line Third Party Credit Card Payment System: Security  and verification can be provided using third party, which is a company that gathers and verifies the payment of funds that flow from one party to a another. eg., Paypal.


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