Analysis of Electronic Payment Systems - Essay Example

There are three major categories of e-commerce; they include Business-to-consumer (BBC), Business-to-business (BIB) and Consumer-to-consumer (ICC). Business to consumer is selling of goods to individuals from a business but not to other businesses. This would include retail products, such as books, music, electronics etc.

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Business to business is simply that; the selling of products to other businesses. This would be mainly bulk items that are used to make other products. Chemicals, industrial parts and fuels can be examples of this. The last major category of e- commerce Is consumer to consumer. This would be the process of individuals using a company to sell products to other individuals. EBay Is a good example of this kind of business. Compare and contrast electronic payment systems. Digital wallet is the first type of electronic payment method.

They are used to store and encrypt credit card and personal information on a machine (SYS uses this method). This is used to cut the time required to reenter ones information. Repeat purchases are quickly entered through this method. Next there are incompetent transactions. These are used for low dollar purchases that are considered too small for regular credit card payments. Accumulated balance digital payment is the next method. This method is used to make payments with many micro transactions.

These transactions must be paid periodically thru credit card or phone bills. Stored value payment Is another method of electronic payment system. These are used to purchase goods from sites by freeloading money through them. Papal Is an example of this. Dealt checking Is used to allow the usage of checking accounts online. Money is directly withdrawn from your account and used to make a payment. Lastly there is Electronic billing presentment and payments. These are used for routine transactions such as bill paying.

They are basically online funds transfers from your account to other accounts. Which type do you use most often? I use Papal because I also have an eBay seller’s account and do lots of business over eBay. Which type Is most applicable for organizations you Interact with regularly? I believe the best method of payment Is stored value payment. This makes things more convenient when purchasing online. It allows you to check your balance and determine whether you have the funds for a purchase.

You can also easily transfer Explain how Internet technology supports business-to-business e-commerce. Business to business is supported through making product promotion more effective and less expensive for companies. It also makes international business transactions more effective through the simplicity of the internet, allowing for instant communication between these companies.