Electronic Payment Systems and Their Security

Electronic Commerce

Electronic commerce (or e-commerce) can be defined as any transaction involving some exchange of value over a communication network. This broad definition includes

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  Business-to-business transactions, such as EDI (electronic data interchange).

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  Customer-to-business transactions, such as online shops on the Web.

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  Customer-to-customer transactions, such as transfer of value between electronic wallets.

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  Customers/businesses-to-public administration transactions, such as filing of electronic tax returns.

Business-to-business transactions are usually referred to as e-business, customer-to-bank transactions as e-banking, and transactions involving public administration as e -government. A communication network for e-commerce can be a private network (such as an interbank clearing network), an intranet, the Internet, or even a mobile telephone network. In this chapter, the focus is on customer-to-business transactions over the Internet and on the electronic payment systems that provide a secure way to exchange value between customers and businesses.