The world is behind E- Governance and E- Banking.
What is E- Banking ?
The back bone of E-Banking is the Inter-Bank Networks. The top International E-Banking Networks are
1. Cirrus Network – Owned by Master Card Inc.
2. Plus Network – Owned by Visa Inc.
Cards Issued under Cirrus Network – Master Card (Credit Card) & Maestro (Debit Card)
Cards Issued under Plus Network – Visa (Credit Card) & Visa Electron (Debit Card)
The safety and security of Bank Cards (Hard Cards) can be protected by choosing any one of the following Cards.
1. Visa ( Verified by Visa )
2. Master Card ( Master Card Secure Code )
What is the advantage of using Verified by Visa or Master Card Secure Code technology ?
Normally if your Card is stolen or Financial Codes (Described Below) in your card is stolen anybody can empty your account fully through Internet or Card Processing Terminals because they need only the financial codes for fund transfer ( Yes it is Dangerous ! ) . You may be wondering that you have a secret code called PIN , then how pirates can steal my money, but reality is that PIN is needed only for ATM transactions.
Here comes the power of Verified by Visa or Master Card Secure Code technology, these technologies provide your card with a secret password, which is a must for Internet or Card Processing Terminals transactions. Yes you are highly protected when you hold a Verified by Visa or Master Card Secure Code protected card ! . Nobody can do nothing with your Financial Codes if it is stolen.
Credit Cards of Other Companies – American Express, JCB, Diners Club
Debit Cards of Other Companies – Solo, Switch
Net banking accounts are safe and secure by default.
Banks generally issue two types of tools to the customers for E-Banking , they are Bank Cards and Net Banking Accounts.
Bank Cards ?
Financial Codes in Bank Cards ( Both Hard & Soft / Net Card ) ?
Card Type – Visa / Master Card / American Express / Discover
Credit Card Number – The 16 digit number printed on your card
Expiration Month & Year – This will be printed on your card
Card Security Code ? – The secret ( but public if you don’t care ! ) will be printed on the back / front of your credit card usually it will be a 3/ 4 digit code. For MasterCard or Visa, it’s the last three digits in the signature area on the back of your card. For American Express, it’s the four digits on the front of the card.
NB – Please note that if you use your credit / debit cards in shops, the information excluding the Card Security Code can be leaked out if you throw your receipts in waste bin after purchase and another person manages to get this information and he / she manages to read your Card Security Code then you are at risk, because they can empty your account with this information!
- Another possible leak point of this information is where you are asked to present the photocopy of your Credit / Debit card. Try to avoid such an occasion to the maximum extend possible. If it become necessary carefully hide your Card’s Security Code from photocopy.
E-Banking uses three broad forms of Telecommunication Transactions
1. Card Processing Terminals
POS – Point of Sale Terminal
EDC – Electronic Data Capture Terminal
CASST – Customer Activated Sales and Service Terminals
Card Processing Terminals are the most preferred form of E-Banking by common man. Card Processing Terminals uses a physical mode of transaction in the banking process which always ensures safety and security of banking. It also offer some sort of control over currency flow.
2. Card and Currency Processing Terminals
ATM – Automated Teller Machine
This another most preferred form of E-Banking by common man, in which a machine called ATM controls the entire transaction.
3. Electronic Commerce
Electronic Commerce uses an Electronic Mode of Transaction in the banking process. Electronic commerce can be classified in to two based on the technology used for banking.
1. Net Banking
Net Banking is the safe banking method of Electronic Commerce. In the Net banking, the customer’s bank offer a Net Banking Account. Thus those customers who hold a Net Banking Account with the bank can transfer funds to the bank approved vendors accounts. The main limitation with Net Banking is that the customers can shop only on the Domains / Websites of vendors who already have a tie up with the bank. Thus Net Banking never offer a free world of World Wide Web Market.
2. Card Banking
Card Banking is a technology which offers the customers a free world of World Wide Web Market. The main difficulty in Card Banking is that, the customer must be an expert in World Wide Web to ensure the safety and security of the Transaction.
Here I will give you some security tips from my experience ?
1. Always use a Net Card for Card Banking – Net Cards are nothing but Credit / Debit Cards created virtually through your Net Banking Accounts. The advantage is that you can specify the exact amount and currency before creating the card. So even if you loss Financial Codes of such cards, the pirates can only steal the amount that you specified before creating the card.
2. Always ensure that the website you are going to shop is active. Check this by sending an E- Mail to them before purchase.
3. Try to shop from sites which use E-Commerce giants such as Pay Pal, E-Bay, 2 Checkout, Click Bank etc.
4. Ensure that your bank can make payments in the desired currency of the Merchant.
5. Read the Security Tips in our article on SSL Certificates - Click Here
Word Wide Web Market ?
In the World Wide Web Market there are Whole Sale Merchants and Retail Merchants.
1. Wholesale Merchants
Wholesale merchants are vendors large business. Wholesale merchants will be having Whole Sale shops in their Website for their products.
Eg: Microsoft , Adobe , Apple etc.
In the case of wholesale merchants the wholesale shops are a part of their root domain and these shops are fully controlled and run by them. The following diagram represents how the sale of a merchandise from the shops of a wholesale merchant will occur.
Buyer ——————————————– > Whole Sale Merchant
Buyer’s Bank ————————————– > Whole Sale Merchant’s Bank
Here there are no third party firms or bank involved in this transaction.
2. Retail Merchants
Retail merchants are third party merchants who are running a retail shop for others products. These retail shops are generally meant for vendors with small business. Vendors with small business will get the permission to display his merchandise for sale in the Retail Show Cases of the retail merchant’s website. The retail merchant in return will get a commission for sale of each item from his shop/ website. The following diagram represents how the sale of merchandise from the shops of a retail merchant will occur.
Buyer ———————> Retail Merchant ——— > Vendor ——–
< ——- Getting Products
Buyer’s Bank —————————— > Retail Merchant’s Bank
———————– > Vendor’s Bank
Here there is a third party firm & bank involved in this transaction.
Retail Merchants can be classified in to two according to the mode of operation.
a. Dependent Retail Merchants
Dependent Retail Merchant’s sales are mainly dependent on the root domain / website of the Vendors. Dependent Retail Merchants allow integration of the retail showcases of their website to the vendors root domain, which enables the vendor’s customers to shop from his domain apart from shopping from the shopping malls of the Dependent Retail Merchants website.
Eg; Pay Pal , 2CO, CC Now etc.
b. Independent Retail Merchants
Independent Retail Merchant’s sales are solely through their root domain/ website. Independent retail merchants generally don’t allow the integration of the retail showcases to the vendor’s root domain / website, so the only option available for the customers of the vendors is to shop from the shopping malls of the Independent Retail Merchant’s Website. The main advantage of taking an account with Independent Retail Merchants is that even vendors with out a root domain can sell his merchandise through the web.
Eg: Amazon, e bay etc.
Good Qualities of a top Retail Merchant ?
1. The credibility and international reputation must be maximum
2. Must have high security, high technology servers
3. Must have quick access to the new solutions for the upcoming security threads
4. In the case of the national market, the merchants must be able to offer settlements in the national currency of the market where the products are ultimately sold.
5. In the case of the international market, the merchants must be able to offer settlements in the top major international currencies of the market where the products can be ultimately sold.
6. In the case of national and international market, the merchants must be able to offer settlements in the national currency as well as all the top international currencies of the market, where the products are ultimately sold.
7. The service charges must be minimum
8. Must be able to accept all major cards
9. Must be able to accept the Net Banking accounts of all major banks.
10. Must have Sub-Merchant friendly Account Interfaces.
Best Wishes for all Success !
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