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Chapter 5

Electronic payment systems enable online transactions without physical cash, utilizing digital cash like cryptocurrencies and e-wallets. Key types include credit cards, e-wallets, and cryptocurrencies, with micropayments facilitating small transactions for digital content and services. Smart cards enhance security in payments and identification, while credit card transactions involve a process of authorization and approval through banking networks.

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4 views9 pages

Chapter 5

Electronic payment systems enable online transactions without physical cash, utilizing digital cash like cryptocurrencies and e-wallets. Key types include credit cards, e-wallets, and cryptocurrencies, with micropayments facilitating small transactions for digital content and services. Smart cards enhance security in payments and identification, while credit card transactions involve a process of authorization and approval through banking networks.

Uploaded by

hassanmohamedismael7
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Electronic payment systems

Digital cash
• Electronic payment systems facilitate the transfer of money over
the internet, enabling transactions without the need for physical
cash.
• Digital cash refers to money that exists only
in electronic form, such as
cryptocurrencies or digital wallets, and is
used for online transactions without the
need for physical coins or banknotes.
Types of Electronic Payment
Systems
Credit Cards:
 Visa, MasterCard, American Express
 Used for online and in-person payments.
E-Wallets:
PayPal, Apple Pay, Google Pay
Cryptocurrency:
 Bitcoin, Ethereum
 Used for decentralized, blockchain-based transactions.
Micro payments
• Micropayments are small financial transactions typically
involving amounts less than a dollar. Particularly in areas
like online content, gaming, and mobile applications.
Common Use Cases
o In-App Purchases: Buying small items in mobile apps or
games.
o Digital Content: Paying for songs, or videos.
o Online Services: Paying for one-time use of features or
services.
Credit Card Transactions
• Credit card transactions are a fundamental part of modern
payment systems, allowing consumers to make purchases
using credit rather than cash.
How Does A Credit Card
Work?
1. You Make a Purchase: When you use your credit card to
buy something, the merchant sends the payment details
to your credit card network (Visa, MasterCard, etc.).
2. Authorization: The card network sends your payment
request to your bank (the issuer) to check if you have
enough credit available.
3. Approval or Denial: Your bank approves the purchase if
you have enough credit. If not, the transaction is
declined.
Smart Cards
• Smart cards are plastic cards with a built-in chip that stores and
processes data.
• They are used for secure payments, identification, and access
control.
• Examples: Credit cards, ID cards,
and health insurance cards.
Class Work
1. What is the difference between a credit card
and a cryptocurrency?
2. What is an example of an ID card?
3. Explain the difference between life insurance
and health insurance cards?

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