E-commerce Security: Online Payment Systems and Security Measures

This report provides an overview of e-commerce payment systems and the associated security challenges. It examines various online payment methods, including credit/debit card systems and e-wallets, highlighting the importance of security measures to protect customer data and prevent fraud. The report discusses the role of third-party gateways and the vulnerabilities inherent in online transactions, such as potential for financial losses. It also explores security protocols like MasterCard and Visa, along with authentication methods such as digital signatures and PINs. The report points out flaws in these verifications, including stolen card usage and transaction reversal attacks, and emphasizes the need for robust security measures to build customer trust and ensure the integrity of online transactions. References from various academic sources are included to support the analysis and provide further context on the subject.

E commerce security and payment system:
Article 1:
In terms of payment and security system in the commercial settings, the online payment system
is the facility that helps the customers to take the services from the online mediums. Some of the
websites or the online shopping sites does not allow the customers to pay in cash at the time of
delivery thus the online payment system has been generated to facilitate the customers. Internet
bank card payment system is one of the systems that allow the customer’s pay online. In this
system, the customers can use his debit or credit card details to make the payment. Other systems
are E-cash system or E-purse system that involves a third party gateway to make the payment.
As this payment involves internet thus they are not safe as cash payments. This required the
company to ensure about the security of these payments to the customers. The security of these
payments is divided into two parts. One is the computer network security and another on eyes the
information security. It has been reported that the companies have to install they security system
so that the payments of the customers can be secured.
References:
Hartono, E., Holsapple, C.W., Kim, K.Y., Na, K.S. and Simpson, J.T., 2014. Measuring
perceived security in B2C electronic commerce website usage: A respecification and
validation. Decision Support Systems, 62, pp.11-21.
Article 2:
It has been analysed that the internet or the online payment system has make the life of the
customers and the companies very easy. Now the customers do not have to send DD or cheques
to the companies but can do only transfer and transactions. As far as the online transactions are
considered, they are secured by the third party gateway but still there are some issues. Some of
the people have conservative nature and thus they have fear of losing their one because there are
cases where the money is debited from the account but not been credited to the other account.
This is an aspect that creates tension. A study has been counted to analyse the situation and the

security issues as well as the remedies to remove the same. Involvement of middlemen is the
most effective way to secure the payment.
References:
Chaudhry, S.A., Farash, M.S., Naqvi, H. and Sher, M., 2016. A secure and efficient
authenticated encryption for electronic payment systems using elliptic curve
cryptography. Electronic Commerce Research, 16(1), pp.113-139.
Article 3:
There are many security protocols that are being used by the companies such as MasterCard, visa
etc. these protocols are the gateways that suppose the transaction between the companies or the
two parties but it is also not secured totally. There are different authentications that are being
required by these porticos. Some of the authentication are digital signatures, PIN, etc. there are
some flaws in these verifications as well. If the PIN flaws are concerned, it has been analysed
that stolen card can be sued in some of the countries as the fraudsters in out the some of the
electronics between the card and the terminal such that terminal verifies the PIN and the
transactions is made. There are some other flaws as well such as transaction reversal, pre play
attack etc.
References:
Murdoch, S.J. and Anderson, R., 2014, March. Security protocols and evidence: Where many
payment systems fail. In International Conference on Financial Cryptography and Data
Security (pp. 21-32). Springer Berlin Heidelberg.