Shruti Speak's

Now its time to know more about E-Payments. Basics Before jumping to e-com related jargons, let’s spend a while on basics on banking /payment systems. Banking originated in ancient era, where royal palaces, temples were used as secure place for safekeeping of grain and other commodities. Receipts for stored commodities were used for transfers not only to the original depositors but also to third parties, including tax gatherers and traders. Bank notes were introduced during 1694 by Bank of England as central banking system On following steps during 1775 continental congress issued paper money to finance revolutionary war. Thereafter in 1800s and early 1900 saw issuance of state bank notes, gold certificates. And finally in 1913 Federal Reserve act was created to further structure roadmap. Cheque : Its written order on a bank or other financial institution to pay money belonging to the owner of cheque to cheque presenter. Personal cheque is drawn on individual bank accou...

1. Explain in brief, what is SET? 2. SET is a protocol, true/false? 3. What is dual signature?

How SET works? As we all know people today pay for online purchases by usually sending their credit card details to the merchant. There is protocol such as SSL or TLS available that keeps the sender’s credit card details safe from eavesdroppers however are not able to protect merchants from dishonest customers or vice-versa. SET has been developed keeping in mind the limitations of existing protocols. SET requires both cardholders as well as merchants to register before they engage themselves in any transactions. Any card holder can register by contacting a certificate authority. He needs to supply security details and the public half of his proposed signature key to the certificate authority. During the registration authorities verify the applicant. After verification and granting approval authority provides the applicant with a certificate that provides a confirmation that his signature key is valid. All orders and confirmations have a digital signature. This is used to provide...

When it comes to e-commerce, first thing with pings someone mind is security!! Industry gurus have been putting heart n soul, in order to address this concern. SET was one of endeavor on same lines. Secure Electronic Transaction (SET) is a standard protocol that is used for securing credit card transactions over insecure networks. With the increase in security concerns over Internet SET has emerged as popular protocol for addressing transactions over Internet. Please note clearly, SET itself is not a payment system. It is a a set of security protocols and formats that enables users to employ the existing credit card payment infrastructure on an open network in a secure fashion! SET, developed by VISA and MasterCard (Credit card leaders) is based on X.509 certificates having several extensions. [Just FYI: X.509 is an ITU-T standard for a public key infrastructure (PKI. It specifies standard formats many things such as public key certificates, attribute certificates etc…] SET fe...

Let’s first give quick glimpse to how EDI is setup, There are several ways to set up EDI. A dedicated PC link to the EDI network. A group of computers via modems linking to the EDI network A dedicated server link to the EDI network Communication link could be: Dial-up phone line (such as ISDN line or switched digital services) A dedicated link to the network’s local hub point. Required software: Application software Message translator - Routing manager - Communication handler Migration to Open EDI: The Internet and the transition to open EDI will change the economics of EDI by reducing setup and rollout costs. Migration groups: A nonuser becoming a private network/VAN user. A current EDI user who wishes to make a transition to Open EDI. A non-EDI user who can make a direct transition to Open EDI. EDI transactions across the Internet in two ways: Email an...

EDI Advantages and Disadvantages Advantages Disadvantages Automating existing business procedures in inventory management, transport and distribution, also in administration, and cash management. Managerial problems in the support, maintenance and implementation of EDI transactions. Cost saving in - document preparation, postage, and handling of mainstream transactions- reduced errors and exceptions handling. Each entity may have a different method of delivery, ranging from dial-up BBS systems mailing hard media such as a CD-ROM or tape backup. Faster handling of transactions results in increased cash flow. Lack of strict standards across implementations, transactions and methods. Improve customer services and Enhance the business process and operations One single computer application cannot handle all health care entities. Though this may not be necessary, it can lead to an obvious management headache as a company attempts to register itself with various ED...

EDI - the inter-organization exchange of well-defined business transactions in standardized electronic form directly between computer applications. Focused on Business-To-Business community. Also, EDI can be stated as collection of standard message formats to exchange data between organizations computers via any electronic service. Domains EDI covers: traditional business facets: inquires, planning, purchasing, acknowledgments, pricing, order status, scheduling, test results, shipping and receiving, invoices, payments, and financial and business reporting. Additional standards: interchange of data relating to security, administrative data, trading partner information, specifications, contracts, distribution.. EDI History Electronic transmission started during 1960s. Initially main focus was for road and rail transport industries. In 1968, the United States Transportation Data Coordinating Committee (TDCC) was formed. This committee coordinated the development of transla...