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.
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.
