Automatic Generation of B2C E-Commerce Payment Process

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Automatic Generation of B2C E-Commerce
Payment Process

• By Jinglei Mei
• Thursday, November 09, 2000

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Introduction

• E-Commerce Overview?
• Problem Description
• Research Objectives

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E-Commerce Overview

• What is E-Commerce?
• What is B2C E-Commerce?
• Current E-Commerce framework
• Future of E-Commerce

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What is E-Commerce?

• E-Commerce is the conducting of business
  transactions, sharing of business information,
  delivery of information/goods and maintaining
  business and customer relationships via an
  electronic network.

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What is E-Commerce?

• E-Commerce affects the way that business
  interactions occur, influences how end customers
  negotiate, order, and pay for goods and services.

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What is B2C E-Commerce?

• B2C means Business-To-Consumer
• B2C transactions where a consumer seeks goods
  and services over a network

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Current E-Commerce framework

• E-Commerce is an environment that facilitates
  business and organizational transactions over
  networks
• E-Commerce is a new term for an old practice,
  which was standardized as Electronic Data
  Interchange (EDI)
• The TCP/IP protocol, Internet, WWW, and
  international networks are increasing being used
  for traditional labor-intensive business
  processes

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Future of B2C E-Commerce

• Consumer confidence/security becomes more
  important in B2C
• Reliable/convenient Consumer Relationships is one
  of the most important parts in B2C
• Consumers want to purchase in a distributed
  environment

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Problem Description

• The current existing payment protocols still lack
  of supporting for simultaneous atomic purchases
  from multiple sources

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Problem Description (Cont.)

• When a customer interacts with multiple merchants
  within one single E-Commerce transaction, the
  traditional bilateral communication between
  participants cannot provide a feasible solution.

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Research Objectives

• Intend to propose and implement B2C E-Commerce
  payment by a transactional process encompassing
  the diverse interactions between all participants

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Research Objectives

• Introduce a mechanism to generate processes at
  the payment coordinators site based on a generic
  payment process template, which is filled with
  the description of customers E-Commerce
  transaction

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Research Objectives(Cont.)

• Intend to develop a payment coordinator which
  allows the combination of different interactions
  into one E-Commerce transaction.

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Literature Reviews

• Several agent-based approaches exist
• L.Kerschberg and S. Banejee presented an
  agency-based framework for E-Commerce
• Peter Cassidy presented Online payment systems
  for retail E-Commerce activating the automated
  Till

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Literature Reviews (Cont.)

• Several payment models exist
• Direct cash-like /account-based system
• FirstVirtual, NetCheque
• Electronic wallets
• Electronic Bill Presentment and Payment(EBPP)

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Literature Reviews (Continues)

• E-Commerce payment infrastructure
• Electronic cash and Electronic checks
• Internet-based Credit card payments
• Secure Electronic Transaction(SET)
• Secure Socket Layer(SSL)

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Importance/Benefits of Research

• E-Commerce is a very interdisciplinary research
  area.
• The most important phase in E-Commerce
  interactions is the payment, due to the transfer
  of sensitive information(e.g. credit card number)

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Importance of Research(Cont.)

• The accomplishment of payments is the crucial
  part in B2C E-Commerce interactions, since this
  phase does not only determine the success or
  failure but also requires sensitive information
  to be transferred.

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Research Design

1. Requirements of B2C E-Commerce payment process
2. Basic structure of payment process
3. Generation of payment process
4. Architecture of payment coordinator

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1.Requirements of B2C payments

• Security
• Use current cryptographic technologies
• Key transfer in an encrypted way
• Anonymity
• Protect customer and his/her spending patterns
• Partial anonymity

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Requirements (Cont.)

• Verification and Provability
• Customers and merchants must be able to
  prove/verify the transactions
• Atomicity
• Includes Money transfer, Goods Delivery and
  Distributed purchase atomictiy

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3. Generation of Payment Process

• Architecture of B2C Payment System
• Execution of Distribution Payment Transactions

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4. Payment Coordinator

1. Shopping Assistant
2. Payment Process Generator
3. Process Engine

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i.) Shopping Assistant

• It collects and performs all payment information
  captured during the initial negotiation phase,
  where data is exchanged by MIME types.
• It runs at the customers site and is plugged
  into customers web browser.
• It contains a wallet to manage electronic cash
  tokens and stores.

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ii.)Payment Process Generator

• The execution of payment process
• Handles the transformation
• Is plugged into the process engine
• Consists of order,merchant and payment information

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iii.) Process Engine

• Workflow based Internet Services(WISE) is driven
  the design and implementation of software tools
  for E-Commerce.
• WISE is based on virtual business process,
  virtual enterprises, and trading communities.

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WISE Engine

• WISE functionalities include Exception Handling,
  Event management and inter-process communication,
  Quality of Service and Execution Guarantees.

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Data Analysis

• Properties of Transactional Payment Processes
• Guaranteed Termination of Payment Process
• Compliance of Payment Process Requirements
• Cryptographic Security
• Handling of System Failure

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Data Analysis

• Laboratory/Simulation may be used to analyze the
  characterization of conventional/digital payment
  mechanisms

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Schedule

• Preliminary approval (1 month)
• Literature reviews (2 month)
• Research Design (3 month)
• Research Implementation (3 month)
• Evaluation (1 month)
• Documentation (1 month)

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Facilities and Special Resource

• WISE Process Engine
• Protocols for secure E-Commerce
• Visa/MasterCard Supports

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Summary

• This research shows the structure of Automatic
  Generation of B2C payment process
• This research presents a system allowing a
  customer to encompass different independent
  interactions with different merchants into one
  single E-Commerce transaction

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Summary (Cont.)

• This research will extend and generalize the idea
  of dynamically generating payment process by
  allowing to use different payment methods for
  different goods within one single process.

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Questions?