Differences in Consumer Purchase Behavior by Credit Card Payment System

1979 ◽  
Vol 6 (1) ◽  
pp. 58 ◽  
Author(s):  
Elizabeth C. Hirschman
Keyword(s):  
Credit Card ◽  
Payment System ◽  
Purchase Behavior ◽  
Card Payment

A Simple and Secure Credit Card-Based Payment System

2010 ◽  
pp. 834-842
Author(s):  
Chi Po Cheong
Keyword(s):  
Private Information ◽  
Credit Card ◽  
Financial Institution ◽  
Payment System ◽  
The Internet ◽  
Sensitive Information ◽  
Payment Systems ◽  
Credit Card Number ◽  
Card Number ◽  
Card Payment

Credit card is the most popular payment method used in Internet shopping. The idea of credit card payment is to buy first and pay later. The cardholder can pay at the end of the statement cycle or they can pay interest on the outstanding balance. Therefore, there are many credit card-based electronic payment systems (EPSs) that have been developed to facilitate the purchase of goods and services over the Internet such as CyberCash (VeriSign), iKP (Bellare, Garary, Hauser, et al, 1995), SET (Visa and MasterCard, 1997), CCT (Li & Zhange, 2004), and so forth. Usually a credit card-based EPS involves five parties: cardholder, merchant, acquirer bank, issuer bank, and financial institution. Internet is an open system and the communication path between each other is insecure. All communications are potentially open for an eavesdropper to read and modify as they pass between the communicating endpoints. Therefore, the payment information transmitted between the cardholder and the merchant through Internet is dangerous without a secure path. SSL (Zeus Technology, 2000) is a good example to secure the communication channel. Besides the issue of insecure communication, there are a number of factors that each participant must consider. For example, merchant concerns about whether the credit card or the cardholder is genuine. There is no way to know the consumer is a genuine cardholder. As a result, the merchant is incurring the increase in losses due to cardholder disputes and frauds. On the other hand, cardholders are worried about the theft of the privacy or sensitive information such as the credit card number. They don’t want any unauthorized usage of their credit cards and any modification to the transaction amount by a third party. These security issues have deterred many potential consumers from purchasing online. Existing credit card-based EPSs solve the problems in many different ways. Some of them use cryptography mechanisms to protect private information. However, they are very complicated, expensive, and tedious (Xianhau, Yuen, Ling, & Lim, 2001). Some EPSs use the Certificate Authority (CA) model to fulfill the authentication, integrity, and nonrepudiation security schemes. However, each participant requires a digital certificate during the payment cycle. These certificates are issued by independent CAs but the implementation and maintenance cost of this model is very high. In addition, the validation steps of Certificate-based systems are very time-consuming processes. It requires access to an online certificate server during the payment process. Moreover, the certificate revocation list is a major disadvantage of the PKI-based certification model (The Internet Engineering Task Force). The cardholder’s certificate also includes some private information such as the cardholder’s name. The requirement of a cardholder’s certificate means software such as e-Wallet is required to be installed on the cardholder’s computer. It is the barrier for the cardholder to use Certificatebased payment systems. To solve this problem, Visa Company has developed a new payment system called Verified by Visa (VbV) (http:www/visa-asia.com/ ap/sea/merchants/productstech/vbv_implementvbv. shtml). However, sensitive information such as credit card number is still passed to the merchant. Therefore, the cardholder is not protected by the system.

Overview of Electronic Payment System

2015 ◽  
pp. 391-418
Author(s):  
Sanghita Roy
Keyword(s):  
Credit Card ◽  
Banking Sector ◽  
Payment System ◽  
Electronic Payment ◽  
Payment Systems ◽  
Advantages And Disadvantages ◽  
Business Transactions ◽  
The Difference ◽  
Card Payment ◽  
Electronic Payment System

The emergence of e-commerce has created new financial needs that in many cases cannot be effectively fulfilled by the traditional payment systems. The advent of the Electronic commerce has prompted the invention of several payment tools to facilitate the completion of business transactions over the Internet. There are different methods to pay electronically. Recognizing this, virtually all interested parties are exploring various types of electronic payment system and issues surrounding electronic payment system and digital currency. Broadly electronic payment systems can be classified into four categories: Online Credit Card Payment System, Online Electronic Cash System, Electronic Cheque System and Smart Cards based Electronic Payment System. Each payment system has its advantages and disadvantages for the customers and merchants. These payment systems have numbers of requirements: e.g. security, acceptability, convenience, cost, anonymity, control, and traceability. Therefore, instead of focusing on the technological specifications of various electronic payment systems, the researcher has distinguished electronic payment systems based on what is being transmitted over the network; and analyzed the difference of each electronic payment system by evaluating their requirements, characteristics and assessed the applicability of each system. To sustain in the competition more banks are following e-commerce and especially using e-payment mechanism. Though Indian economy is basically cash driven, still India is not far behind in adopting E-payment services in retail and banking sector.

scholarly journals Trend and dynamics of card payment system in India

2021 ◽  
Vol 8 (4) ◽  
pp. 193-197
Author(s):  
N Karunakaran ◽  
P. Shibu ◽  
M. D. Devasia
Keyword(s):  
Private Sector ◽  
Commercial Banks ◽  
Credit Card ◽  
Recent Trend ◽  
Credit Cards ◽  
Payment System ◽  
Electronic Payments ◽  
Payment Mechanism ◽  
Card Payment ◽  
Retail Payments

Payment system in India has undergone a dramatic change in recent years. The payment through cards, using both debit and credit cards, is one of the early innovations in the modern payment system in the country. Several intermediaries are involved in the effective functioning of card payment mechanism. As a result, the card payment infrastructure has grown remarkably well across India. The volume of payments made through these devices as well as the value of card payments increased rapidly in the last two decades. Among the commercial banks, the State Bank of India dominates in the maintenance of ATM infrastructure, the issue of cards and in the volume and value of card transaction. The private sector banks dominate in the installation of POS terminals and HDFC bank tops in the POS credit card transaction. However, the recent trend shows that the transaction through cards as a percentage of total retail electronic payments has been declining in India, as other retail payments platforms have become popular.

A Simple and Secure Credit Card-Based Payment System

2009 ◽  
pp. 1299-1306
Author(s):  
Chi Po Cheong
Keyword(s):  
Private Information ◽  
Credit Card ◽  
Financial Institution ◽  
Payment System ◽  
The Internet ◽  
Sensitive Information ◽  
Payment Systems ◽  
Credit Card Number ◽  
Card Number ◽  
Card Payment

Credit card is the most popular payment method used in Internet shopping. The idea of credit card payment is to buy first and pay later. The cardholder can pay at the end of the statement cycle or they can pay interest on the outstanding balance. Therefore, there are many credit card-based electronic payment systems (EPSs) that have been developed to facilitate the purchase of goods and services over the Internet such as CyberCash (VeriSign), iKP (Bellare, Garary, Hauser, et al, 1995), SET (Visa and MasterCard, 1997), CCT (Li & Zhange, 2004), and so forth. Usually a credit card-based EPS involves five parties: cardholder, merchant, acquirer bank, issuer bank, and financial institution. Internet is an open system and the communication path between each other is insecure. All communications are potentially open for an eavesdropper to read and modify as they pass between the communicating endpoints. Therefore, the payment information transmitted between the cardholder and the merchant through Internet is dangerous without a secure path. SSL (Zeus Technology, 2000) is a good example to secure the communication channel. Besides the issue of insecure communication, there are a number of factors that each participant must consider. For example, merchant concerns about whether the credit card or the cardholder is genuine. There is no way to know the consumer is a genuine cardholder. As a result, the merchant is incurring the increase in losses due to cardholder disputes and frauds. On the other hand, cardholders are worried about the theft of the privacy or sensitive information such as the credit card number. They don’t want any unauthorized usage of their credit cards and any modification to the transaction amount by a third party. These security issues have deterred many potential consumers from purchasing online. Existing credit card-based EPSs solve the problems in many different ways. Some of them use cryptography mechanisms to protect private information. However, they are very complicated, expensive, and tedious (Xianhau, Yuen, Ling, & Lim, 2001). Some EPSs use the Certificate Authority (CA) model to fulfill the authentication, integrity, and nonrepudiation security schemes. However, each participant requires a digital certificate during the payment cycle. These certificates are issued by independent CAs but the implementation and maintenance cost of this model is very high. In addition, the validation steps of Certificate-based systems are very time-consuming processes. It requires access to an online certificate server during the payment process. Moreover, the certificate revocation list is a major disadvantage of the PKI-based certification model (The Internet Engineering Task Force). The cardholder’s certificate also includes some private information such as the cardholder’s name. The requirement of a cardholder’s certificate means software such as e-Wallet is required to be installed on the cardholder’s computer. It is the barrier for the cardholder to use Certificatebased payment systems. To solve this problem, Visa Company has developed a new payment system called Verified by Visa (VbV) (http:www/visa-asia.com/ ap/sea/merchants/productstech/vbv_implementvbv. shtml). However, sensitive information such as credit card number is still passed to the merchant. Therefore, the cardholder is not protected by the system.

scholarly journals Neural mechanisms of credit card spending

2021 ◽  
Vol 11 (1) ◽  
Author(s):  
Sachin Banker ◽  
Derek Dunfield ◽  
Alex Huang ◽  
Drazen Prelec
Keyword(s):  
Credit Card ◽  
Credit Cards ◽  
Purchase Behavior ◽  
Facilitation Effect ◽  
Product Price ◽  
Personal Credit ◽  
Psychological Mechanisms ◽  
Network Activation ◽  
Payment Instruments ◽  
Reward Network

AbstractCredit cards have often been blamed for consumer overspending and for the growth in household debt. Indeed, laboratory studies of purchase behavior have shown that credit cards can facilitate spending in ways that are difficult to justify on purely financial grounds. However, the psychological mechanisms behind this spending facilitation effect remain conjectural. A leading hypothesis is that credit cards reduce the pain of payment and so ‘release the brakes’ that hold expenditures in check. Alternatively, credit cards could provide a ‘step on the gas,’ increasing motivation to spend. Here we present the first evidence of differences in brain activation in the presence of real credit and cash purchase opportunities. In an fMRI shopping task, participants purchased items tailored to their interests, either by using a personal credit card or their own cash. Credit card purchases were associated with strong activation in the striatum, which coincided with onset of the credit card cue and was not related to product price. In contrast, reward network activation weakly predicted cash purchases, and only among relatively cheaper items. The presence of reward network activation differences highlights the potential neural impact of novel payment instruments in stimulating spending—these fundamental reward mechanisms could be exploited by new payment methods as we transition to a purely cashless society.

scholarly journals Transaksi E-Commerce dalam Perspektif Islam

2019 ◽  
Vol 2 (1) ◽  
pp. 90 ◽  
Author(s):  
Annisa Dwi Kurniawati
Keyword(s):  
Credit Card ◽  
Payment System ◽  
The Internet ◽  
Face To Face ◽  
The Status ◽  
Almost All

Abstract: The development of technology flows is increasing. The internet, which was initially used by several groups as a medium for the transformation of scientific and academic data, has now been used in almost all aspects of people's lives, including e-commerce transactions. E-commerce transactions are transactions carried out without meetings between parties. By using e-commerce, many reservations are obtained from the seller or buyer. The convenience offered doesn't mean it doesn’t rise the problems. For Muslims, understanding the status of e-commerce transactions is important. E-commerce accepts payments with bai’s-salam, which is about non-related transactions and the suspension of goods for payments that have been hastened. It's just that if on Bai 's-Salam a face-to-face meeting is held for the implementation of sighat, it is different with e-commerce that communicate only through chat. E-commerce is permitted in Islam with a note that there is no riba ',gharar, maisir, etc. Therefore, if it is approved by the payment system on e-commerce, it is asked not to use a credit card to avoid riba’.الملخص: يشهد تطوير تدفقات التكنولوجيا زيادة هائلة. يستخدم الإنترنت في جميع جوانب حياة الناس تقريبًا ، بما في ذلك معاملات التجارة الإلكترونية، معاملات التجارة الإلكترونية هي معاملات تتم بدون اجتماع بين الطرفين .باستخدام التجارة الإلكترونية، الكثير من السهولة حصلت من البائع أو المشتري. يتم تقديم التسهيلات المقدمة. التسهيلات المقدمة لايمكن تسبب مشاك. معلومات المسلمين عن حالة المعاملة التجارة الإلكترونية شيء مهمة. التجارة الإلكترونية مثل بيع السلام هي عن العناصر فى المعاملات وتأخير القبض دفعت مقدما. إذا كان بيع السلام يتم عقد اجتماع وجها لوجه في تنفيذ سيغات تختلف عن التجارة الإلكترونية استخدام التواصل مع الدردشة. التجارة الإلكترونية مباحات في الإسلام مع ملاحظة عدم وجود عناصر الربا والغرار والميسر وغيرها لذلك ، إذا كانت مرتبطة بنظام دفع في التجارة الإلكترونية المستحسن عدم استخدام بطاقة الائتمان لتجنب الربا.. Abstrak: Perkembangan arus teknologi mengalami peningkatan yang masif. Internet yang pada awalnya digunakan oleh beberapa kalangan sebagai media transformasi data ilmiah dan akademik, kini telah digunakan di hampir seluruh aspek kehidupan masyarakat, termasuk transaksi jual beli (e-commerce). Transaksi e-commerce merupakan transaksi yang dilakukan tanpa adanya pertemuan antar para pihak. Dengan menggunakan e-commerce, banyak kemudahan yang diperoleh baik dari pihak penjual maupun pembeli. Kemudahan yang ditawarkan bukan berarti tidak menimbulkan masalah. Bagi kaum muslim, mengetahui status dari transaksi e-commerce merupakan hal yang penting. E-commerce  memiliki kesamaan dengan bai’ as-salam yaitu mengenai unsur-unsur terjadinya transaksi serta adanya penangguhan barang untuk pembayaran yang telah disegerakan. Hanya saja, jika pada bai’ as-salam dilakukan pertemuan face to face untuk pelaksanaan sighat, berbeda halnya dengan e-commerce yang melakukan komunikasi via chatting. E-commerce diperbolehkan dalam Islam dengan catatan tidak adanya unsur riba’, gharar, maisir, dsb. Oleh karena itu, jika dihubungkan dengan sistem pembayaran pada e-commerce, maka dianjurkan tidak menggunakan kartu kredit guna menghindari terjadinya riba’.

On-Line Credit Card Payment Processing and Fraud Prevention for e-Business

2010 ◽  
pp. 455-473 ◽  
Author(s):  
James G. Williams ◽  
Wichian Premchaiswadi
Keyword(s):  
Credit Card ◽  
Preventive Measures ◽  
Personal Information ◽  
Credit Cards ◽  
The Internet ◽  
Payment Methods ◽  
On Line ◽  
Card Payment ◽  
Debit Cards ◽  
Cyber Criminals

As the volume of purchases for products and services on the Internet has increased and the chosen method of payment is a credit or debit card, e-commerce merchants must be capable of accepting such payment methods. Unfortunately, cyber-criminals have found ways to steal personal information found on credit cards and debit cards and fraudulently use this information to purchase products and services which costs merchants lost revenue and fees for chargebacks. This article discusses the process by which credit card payments are processed beginning with the e-commerce merchant’s web site to a credit card processor or service gateway to the credit card company’s network to the issuing bank’s network with an accept or decline response being returned to the merchant’s shopping cart system via the same networks. The article addresses the issue of credit card fraud in terms of how the cyber-criminals function and the potential solutions used to deter these attempts by the cybercriminals. A list of preventive measures that should be used by e-commerce merchants is provided.

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