Book Bunker has a wide variety of choices to make in respect to the most effective and efficient e-payment system. It is important to realize that e-payment is a subsection of the e-commerce mode of transactions that allow purchase of goods and services using electronic means. Accordingly, the internet has become a platform upon which numerous transactions take place with an increased level of trade activity being apparent. Therefore, this paper will try to examine three different types of e-payment systems in respect to their advantages and disadvantages. Additionally, the research paper tries to evaluate the favorable form of security that could be used by Book Bunker in order to protect its database.
Type of E-Payment System
Diversification: it is stated that electronic cards can allow exposure to different sets of equities, market niches or market styles. The most significant feature of e-cards is that they allow for lesser transaction fees (Finch, 2011).
Lower Fees as Opposed to Managed Forms of Funds: electronic cards have lower management fees in comparison to other managed form of funds. This is due to the absence of such fees as loading and point-of sale fees.
Convenient and Reliable to Use: since the fact that it reflects client’s account without the need to visit bank physically. The process involved with using the card is convenient in the sense that transactions are conducted by swapping cards.
The Payment Method is Faster: since customers are required to swap their credit cards in a matter of seconds in order to affect a payment.
Instant Delivery of Funds: whenever payments are made. The recipient enjoys instant cash loaded (Finch, 2011).
Security: of the e-card is somehow challenging for the user. This is due to the fact that online-shopping is a subject to malicious spyware and key-logging exposures. This means that the information stored by the e-card can be copied and used for malicious shopping (Finch, 2011).
Routine Check of Balances: is required for e-card users given that elements of over-charge and information loss are rampant. Thus, the users are encouraged to be constantly checking the balances; in case, balances are withdrawn maliciously (Finch, 2011).
(This mode of payment-system is comprised of PayPal, Money Bookers and Liberty Reserves)
Security: level of this mode of payment is high and efficient. Individuals and corporate businesses are allowed to own private accounts where balances are transferred and kept. The account also allows the user to either purchase or sell goods or services in a secure manner. This is due to the fact that in case of delivery failure, there is a guarantee for refunds for a period stretching to 60 days (Financial Web, n.d).
24-Hour Access is Guaranteed: since users are allowed to transact businesses in the course of either day or night. Unlike bank accounts, online accounts are efficient for people who are tied-up in work in the course of the day.
Accessibility of these Virtual Accounts is Expansive in Nature: users are allowed to access their respective accounts irrespective of their locations. This means that online accounts allow easy international transfers hence can increase the trading activities of the company as a whole.
Online Payments are Faster: there are lines to attend to before one can access their respective monies. This ensures that money is transferred and received within affordable time. The transactions are also made faster since shipping of bought goods or services depend upon receipt of payments.
Possibility of Losses in case of Collapses is evident whenever the online account provider ceases its activities due to insufficient funds. A good example of an online account provider that collapsed due to insufficient balances is Alert Pay. This means that one can incur immense levels of losses since money are held as virtual funds.
High Possibility of Personal Information Loss: is evident whenever hackers are able to figure out passwords and thus, made able to access the accounts where they can either choose to steal one’s identity or illegally transfer the funds. In case of hacked account, there is no possibility of recovering the funds or the stolen identity. The process of recovery can turn out to be very expensive in nature.
Possibility of Inefficient Customer Service: is considered to be higher in comparison to traditional models of conducting banking services. In case of online traffic that might cause delays, one is unable to conduct transactions until the traffic eases. This can also be brought about by constant site break-downs.
Micro-Payment Systems ( includes IBM and Qpass services)
Efficient for Small-Payments over the Internet: the payment is beneficial for small vendors whose goods cost less than the standard fees required in transacting using e-cards.
Thus, by using micro-payment model, the customer is allowed to pay for single item hence increasing the affordability level (Russell, 2009).
Universality of Funds: the method allows vendors and their customers to transact without the limitation of location. Transactions are made possible with connection of internet.
Guaranteed Comprehensive levels of Security: this is achieved because the micro-payment companies ensure that the vendors’ information is kept confidential. Transactions are also made secure given that the payments are done under the supervision of the vendor.
It is also important to realize that customers who buy goods and services using such micro-payment systems as Q-pass are entitled to monthly bills that expounds on the details for subscriptions made during the period (Russell, 2009).
Possibility of Losing Personal Information; since vendors need to submit private information before they can commence with their transactions.
Expensive Mode of Purchasing Information Bits: this is evident whenever customers purchase sections of books or journal articles. The expensiveness of the system is made evident when the financial calculations are made sophisticated to understand (Russell, 2009).
Suitable Website and E-Payment System Security Tools: Bunker Books
For secure of e-payment systems and company websites, there are numerous methodologies that have been made available for e-commerce purposes. The following are some of the security suggestions that are made available for business:
First, there is the authentication process. This security functionality allows for immediate verification of the authenticity of the user conducting e-transactions. It is should be understood that there are numerous ways of ascertaining the authenticity of the user. For example, the use of passwords and ID numbers are the ways through which users are allowed to log-into certain sites (Electronic Payment Systems, n.d.).
Second, there is the use of a public key cryptography that uses two distinct keys to encrypt and decrypt data. These keys are either private or public in nature. It is important to realize that PKC is a process used to protect the accuracy of information by converting it into an unreadable format. The unreadable information is made available to people who possess the private key that can decrypt it to a readable format (Electronic Payment Systems, n.d.).
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Third, there is the use of digital signatures. They are used instead of written signatures to authenticate the sender of a message. The e-check is the technology behind the establishment of digital signatures. It is mostly used for authenticating business contracts and other legal items that are transferred over the website (Electronic Payment Systems, n.d.).Digital signatures play key roles in the course of transferring information. For instance, it allows for sealing functionality thus providing immediate checks against any uncertified alterations made on documents. The integrity functionality is used to protect legal documents being transferred over the website.
Fourth, there is the use of secure sockets layer (SSL). This security tool allows for transmission of private documents over the internet. The feature uses a cryptographic system that uses public and private keys used in encrypting and decrypting data. It is important to realize that the tool also allows for transmission of data between the transport and the immediate application layers within a particular network stacks (Electronic Payment Systems, n.d.). SSL provides secure platforms upon which encryption of data being transmitted over the public network is supervised. Accordingly, it conducts an electronic form of wrapping around all of the transactions being channeled over the internet. It consists of open and nonproprietary features that help to secure sensitive types of data (Electronic Payment Systems, n.d.).