Internet Payment Methods: Mechanism, Application, and Experimentation

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Internet Payment Methods Mechanism, Application,
and Experimentation

• presented by Chong Ka Lung
• Supervisors Dr. Michael R. T. Lyu
• Dr. Y. S. Moon

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Outline

• Introduction
• Motivations
• Characteristics
• Mechanism
• Application
• Future works
• Conclusion

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Introduction

• Cyberspace is one of the world wonders
• Internet invents a new style of life
• People roam around the world without leaving home
• easy to use and easy accessibility

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Introduction (2)

• Wide coverage of the world, not restricted to
  local area
• Internet exposes to a large population of people
• Large customer based
• A new type of business environment in Internet

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Motivations

• Payment system is critical to electronic commerce
  in Internet
• Many existing payment systems in Internet, but
  they are different in message contents,
  mechanisms used, parties involved
• Basic question, not compatible with others
• No choices for payment

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Motivations (2)

• A well-known secure payment method, SET, is
  comprehensively, but too complicated and complex
• Introduce a light weight payment model
• Support credit card and electronic coins payment
  methods
• Extend the system to mobile environment

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Characteristics

• 4 major elements to be decided
• the parties involved
• the means of payment
• the medium of exchange
• the infrastructure handling the transaction

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Characteristics (2)

• 4 criteria to be considered
• security
• cost
• time
• capacity

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Mechanism

• Two methods are used
• credit card payment
• electronic coins payment
• A single payment gateway is used to handle both
  types

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Mechanism (2)

• The flow of payment

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Mechanism (3)

• Credit card architecture

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Mechanism (4)
? Customer ? Merchant
card_name, card_no, e_date, card_type, address,
prod_id, quan, amt, p_optby SSL
? Merchant ? Acquirer
card_name, card_no, e_date, card_type, amt,
m_namemerc_priv, m_id, p_opt, SIGacq_pub
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Mechanism (5)
? Acquirer ? Merchant
RESULT, receipt, m_nameacq_priv, SIG,
acq_certmerc_pub
? Merchant ? Customer
RESULT, receipt, prod_id, quan, card_name,
address
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Mechanism (6)

• Electronic coins architecture

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Mechanism (7)
? Customer ? Bank
acc_no, bank_id, amtcust_priv, SIG,
cust_namebank_pub
? Bank ? Customer
COINS,bank_receipt,amtbank_priv,bank_cert,SIGc
ust_pub COINS amt, i_date, bank_id,
serial_nobank_priv
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Mechanism (8)
? Customer ? merchant
COINS, amt, prod_id, quan, p_optmerc_pub
? Merchant ? Acquirer
COINS, amt, m_namemerc_priv,m_id,SIG,p_optacq_
pub
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Mechanism (9)
? Acquirer ? Merchant
RESULT, receipt, m_nameacq_priv,acq_cert,
SIGmerc_pub
? Merchant ? Customer
RESULT, receipt, prod_id, quan
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Mechanism (10)

• Customer choose the payment method when checkout
  the items
• Execute selected payment method
• Payment is success when it passes every
  validation
• Several small components which resides in
  different places used by different parties

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Comparisons

• Advantages on using it
• Give choices on payment method
• Provide some degree of privacy and anonymity
• Provide a secure payment system
• Unchanged shopping habit for customer

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Comparisons (2)

• Disadvantages on using it
• the one who use our system must have either
  credit card or banking account
• if payment is small, the cost may become
  expensive
• security level is not the highest

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Application

• TravelNet simulates an online travelling agency
• Payment system will be added to become a real
  life e-commerce application
• Using Java card act as a mobile wallet
• Mobile clients such as PDA and mobile phone to
  make use of the payment system

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System architecture
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System architecture (2)
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Future works

• Complete the integration of the payment system
  with the TravelNet application
• Experimentation on the system
• security level vs. time
• performance ...
• Incorporation of the payment system into other
  devices such as PDA and mobile phone

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Conclusion

• Payment system is critical in commerce
  application
• Provide two payment choices
• Secure from being attacks and privacy problems
• It incorporates into different commerce
  applications with different input

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Q A
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Thank you!