Analysis of Electronic Payment Systems

1. CheckPoint: Analysis of Electronic Payment Systems

* Many of us have become accustomed to electronic payment systems. These systems will continue to increase as businesses and banks present more opportunities to use them.

Resources: Ch. 9 of Essentials of Management Information Systems.

Answer the following questions in 200 to 300 words:

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* Name and describe various categories of e-commerce.

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* Compare and contrast electronic payment systems. Which type do you use most often? Which type is most applicable for organizations you interact with regularly?

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* Explain how Internet technology supports business-to-business e-commerce.

There are three major e-commerce categories:

1. B2C – Business-to-consumer – Businesses selling products or services directly to an individual shopper. Examples of B2B are Barnesandnoble.com and Amazon.com

2. B2B – Busines-to-business – The sale of products between businesses. This would be where a manufacturer selling goods to a distributor such as in a department store like Wal-Mart or Target.

3. C2C – Consumer-to-consumer – Consumers sell their services or products directly to another consumer. Ebay and other auction sites are prime examples of a C2C.

Electronic payment systems:

1. Digital wallets – Information, such as credit card number and customer name, is digitally stored and makes paying for purchases over the internet easier since there is no need to enter the same data in on multiple occasions. This information is automatically loaded when a customer completes a purchase using this payment method.

2. Micropayment systems – Developed for purchases that have a grand total less then $10.00 which are considered too small for using a credit card This type of system is usually used for items such as downloads of articles, music and small software applications such as games.

3. Accumulated balance digital payment – The user can make...