Study on electronic money


Trade repeats activities related to the purchase or sale of goods or services. As we enter the next century, the Internet promises to make unpredictable changes in society. Throughout the globe, crossing all boundaries, the web has redefined communication methods, studies, education, interaction, entertainment, healthcare, trade and commerce. There are commercial activities such as marketing, sales, payment, delivery, customer service, etc.

E-commerce is the use of communication and information sharing technologies between trading partners for business purposes. E-commerce is linked to the purchase and sale of information, products and services through computer networks.

E-commerce is a new way of managing and implementing business transactions using computer and telecommunications networks. E-commerce reiterates the paperless exchange of business information through EDI (Electronic Data Interchange), electronic mail, EFT (electronic money transfer) and other technologies based on network. Electronic commerce applications began in the early 1970s with innovations such as EFT.

The purpose of the study is:

The purpose of the study is to diagnose the state of efficiency alone and monitor the factors responsible for lower or greater efficiency in the dissemination of various operations and analysis activities in electronic money security.

first An overview of the rational and motives behind the long-standing lending agencies in the current complex mechanism of electronic money.

2nd Analysis of institutional and organizational barriers to the efficiency, effectiveness and efficiency of electronic money.

3rd Assessing their quality performance by structural analysis.

4th Investigate the impact of new business policies and liberalize this electronic money.

5th Studying and analyzing electronic money transaction security.

6th We recommend that these institutions remedy their current tendencies.

7th We recommend the techniques of lending to increase electronic money security.

Advantages of Electronic Money:

Digital cash allows instant cash transfer from individual personal account to business account without actual money transfer. It offers great comfort to many people and businesses alike.

Banks can offer a range of services where customers can purchase funds, stocks, and many other services without having to handle physical cash or checks. Customers do not have to wait for lines and this will provide a lower problem environment.

Disadvantages of Electronic Money:

Although there are many benefits to digital cash, there are a number of significant disadvantages. These include fraud, technological failure, potential tracking of individuals, and loss of human interaction. It is very common for disadvantages of almost every system. However, it is a question of whether the advantages of using the system overcome the disadvantages.

Digital cash fraud has been a pressing issue in recent years. Inclusion in bank accounts and illegal retirement of bank accounts have largely distracted privacy and promoted identity theft.

There is an urgent question about digital cash technology. Power cuts, loss of records, unreliable software often hinder the technology.

Digital cash fraud during the past year was an urgent question. Inclusion in bank accounts and illegal retirement of bank accounts have largely deprived private life and promoted identity theft.

Power cuts, loss of records, and unreliable software often hinder the promotion of technology.

E-commerce framework work:

Many people, e-commerce are just one web site, but e-commerce means far more. It consists of dozens of applications of e-commerce such as home banking, online shopping, inventory purchases, job search, auctions, and electronic research and research and development projects.

Supporting information and organizational infrastructure and systems are required to implement these applications.

Electronic commerce applications are supported by infrastructures and include four main areas of implementation: for example

1. people

2.public policies

3.technical standards

4.protocols and organizations [19659002] peoples – buyers, sellers, brokers, services, etc.

Public Order – Taxes, Legal and Privacy Issues, Domain Names.

Technical Standards – For Documents, Securities, and Network Protocols.

Organizations – Partners, Competitors, Associations, Govt. services.

Other areas of electronic commerce infrastructure include

1.Common Business Service Infrastructure – Security Smart Cards / Authentication, Electronic Payment, Libraries / Catalogs.

2. Scam and information infrastructure – EDI, electronic mail, HTTP.

3.Multimedia Content and Network Publishing Infrastructure – HTML, Java, WWW, VRML.

4. Network infrastructure – telecommunications, cable, TV, wireless, internet, WAN, MAN, LAN, intranet, extranet.

5.Interfacing infrastructure – databases, clients, and applications.

The Electronic Money Model Model:

The electronic money system is a mechanism that promotes payment of payments – usually of limited value – in which electronic money can be considered as electronic substitutes for coins and banknotes. The e-money system is described on the basis of a model of a series of subsystems that transmit electronic value (EV) under the responsibility of a system administrator to monitor EV security, EV vaccination, and EV traffic within the system.

The three main elements of the e-money system model are EV traffic, subsystems, and surveillance. Combined, these elements measure the essence of the e-money system model. Transactions, Compensation, EV Life Cycle and the concepts of players complement this model.

The EV is a monetary value that is required by an EV Issuer, which is:

– stored on an electronic device;

– the amount issued after the receipt of the monetary amount is not less than the amount of money issued;

– other companies than the issuer have accepted as payment instruments.

The EV-circulation begins in the first phase of the EV, and is a final phase, the EV vaccination.

This model does not limit the number of subsystems that make up the e-money system.

Transactions on the Internet:

Transactions executed on the internet are made through the client's personal computer and the web server of the vendor. Customers use a web browser to order with the merchant and determine the payment method. In an online transaction, the client has the option to pay by credit card or smart card, which customers can pay by electronic cash or digital checks. The software on the vendor server must check the order and the transaction must be settled by bank, credit, and money transfer to the acquirer. It is possible that clients, merchants, and banks are not the same applications. The interaction in the step is achieved through a gateway, which is the connection between applications.

The gateway allows protocol conversion and communicates with the bank through the private banking network or the Internet. The gateway, more specifically, the common gateway interface (CGI) is a specification for data communication between data, such as server and other applications. CGI is used where the web server must send or receive data from another application, such as a database. The CGI script is a program that negotiates the movement of data between the web server and an external application. Generally, it passes the data that the user uploads in the HTML from the web server to the database.

Payment System:

In any business transaction, the customer and the merchant enter into an agreement. According to the agreement, the trader provides the goods and services he requests while the customer sends funds to the trader for the goods received for pledge. Thus, payment is the most important part of the sales cycle.

General Payment System Requirements:

(1) Confidentiality – the user expects a secure payment system.

(2) Authentication – Verifying the buyer's identity before granting the payment.

(3) Integrity – This ensures that information is not accidentally or maliciously altered or destroyed during transmission.

(4) Authorization – Allows the trader to determine whether the buyer actually has the money to pay for the purchase. The trader checks whether the client's bank account is in balance enough to honor the check amount.

(5) Privacy – There are times when both the customer and the merchant want the secrecy of the sale. For example, the research company does not necessarily take into account the details of purchases.

Types of electronic payments:

Different methods for implementing Internet payments are electronic versions of traditional payment systems. We pay cash, credit cards or checks during our daily lives. All these systems are digitally integrated into the web like e-cash, electronic checks and credit cards.

(1) Credit Card

Credit cards are the most common form of payment for virtual customers today.

(a) Card Holder – Customer or corporate customer who uses a credit card to pay merchants.

(b) A trader – a credit card accepting unit which offers goods or services for payment.

(c) Card issuer – A financial institution that issues invoices to card holders and issues credit cards.

(d) Buyer – A financial institution which issues invoices to dealers and obtains vouchers for authorized sales vouchers.

(2) Electronic Wallet or Digital Wallet:

The Secure Electronic Transaction (SET) protocol was originally designed by the Visa and Master Card in 1997. The SET protocol meets four EC security requirements such as SSL authentication, encryption, integrity, and denial. In addition, the SET defines the message format, the certificate format, and the message switching procedure. The role of payment gateway is the internet and bank ownership network. Each participating organization needs its own certificates. The consumer's certificate is retained on its own personal computer or on its IC card, electronic money or digital wallet software.

(3) Deposit Card:

It is also known as a check card, a card that entitles EFT. EFT, which aims to transfer a certain amount of money from one account to another. Customer terminal equipment can be an ATM (cash register), computer or telephone connector. When a debit card is used, the amount is immediately deducted from our check or savings accounts. The debit card allows us to only complete our bank account.

Advantages of using a debit card:

1. Using a debit card is much easier than obtaining a credit card.

2.The use of a debit card instead of checking prevents you from displaying a personal ID.

3rd The use of a deposit card is free, cash, travel checks or checks are carried out.

4th The payers accept that the debit cards read more about the checks.

(4) Smart Cards:

We currently have many plastic cards such as credit cards, debit cards, prizes, diving licenses, health insurance cards, employee or student cards,

For a moment, if we think that each card is replaced by a single plastic card that contains all the data on a dozen or fifty cards. Not only the dosage will ease our burden, but facilitate identification and purchase for us. Credit, debit and credit cards currently contain limited information about us in a magnetic stripe. And unlike the smart card, the credit card charge does not include any money – it only contains invoices that can be charged.

The smart card can store information for hundreds of times like a magnetic stripe plastic card. It includes intelligent private user information such as financial facts, private encryption keys, account information, credit card numbers, health insurance information, etc. The current generation of smart cards contains IC chips that have programmable functions.

(5) Closed Vs Open Electronic Cash System:

The electronic cash system may be closed or open.

A closed system means that the IC card's cash value can only be downloaded from a bank account and the money that is collected in the IC card readers memory will be transferred to the buyer's bank account. Direct transfer between IC cards is forbidden.

The open system allows direct transfer of money between IC cards. Because Govt. are afraid of the risk of money laundering lost traceability.


Nowadays, traditional accounts and coins give way to electronic money. With the widespread use of the Internet, this transformation is inevitable. It is obvious that digital cash is the future of the exchange mechanism. It will surely overwhelm the prevailing inconveniences, such as large amounts of cash, and solve the security problems that have been faced up to today. Electronic money is not only faster and cheaper, but more robust and easier to authenticate. People would not be cautious about using them because they respect their privacy and allow small traders to do business around the globe. Digital cash will also reduce the cost of transferring money internationally, which is currently very expensive. Electronic money will not completely replace the traditional form of transaction, but it will certainly make it easier.

Source by Felix Deepak Minj

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