E-PAYMENT AND THE DIFFERENT METHODS OF ONLINE TRANSACTION

E-Payment and the Different Methods Of Online Transaction

E-Payment different methods of online transaction

INTRODUCTION

Payment systems that use electronic distribution networks constitute a frequent practice in the banking and business sector since 1960s4, especially for the transfer of big amounts of money. In the four decades that have passed since their appearance, important technological developments5 have taken place, which on the one hand have expanded the possibilities of electronic payment systems and on the other hand they have created new business and social practice, which make the use of these systems necessary. These changes, naturally, have affected the definition of electronic payments6, which is evolving depending on the needs of each period. In its, most general form, the term electronic payment includes any payment to businesses, bank or public services from citizens or businesses, (Third of UK adults now buying online, 2004) which are executed through a telecommunications or electronic networks using modern technology. It is obvious that based on this definition, the electronic payments that will be the objects of present result, are the payment that are executed by the payer himself, whether the latter is a consumer or a business, without the intervention of the another natural person. Furthermore, the payment is made from distance, without the physical presence of the payer and naturally it does not include cash. By providing such definition for the electronic payment system, researcher include the transfer of information concerning the accounts of the parties involved in the e-commerce transactions, as well as the technological means of distribution channels through which the transactions is executed.

E-PAYMENT

E payment is a subset of an e-commerce transaction to include electronic payment for buying and selling goods or services offered through the Internet. Generally we think of electronic payments as referring to online transactions on the internet, there are actually many forms of electronic payments. As technology developing, the range of devices and processes to transact electronically continues to increase while the percentage of cash and check transactions continues to decrease. In the US, for example, checks have declined from 85% of non-cash payments in 1979 to 59% in 2002, (Anon, 2004)and electronic payments have grown to 41%.

A transaction authorization system comprises an authorization engine (18) configured to perform an analysis in relation to a received request for authorization of a current electronic payment transaction and generate an authorization output based on the analysis, and a database (22) storing a plurality of transaction records for past electronic payment transactions. The authorization engine is configured to: access the database to determine one or more distribution functions based on at least some of the stored transaction records, determine one or more intermediate values in relation to the received authorization request based on the one or more distribution functions, determine a conditional probability in relation to the one or more intermediate values based on at least some of the stored transaction records, the conditional probability indicative of a probability of a predetermined transaction result ...