Transcript E-Commerce Payment Process

Automatic Generation
of
B2C E-Commerce
Payment Process
By Jinglei
Mei
Thursday, November 09, 2000
Introduction
 E-Commerce Overview?
 Problem Description
 Research Objectives
E-Commerce Overview
 What is E-Commerce?
 What is B2C E-Commerce?
 Current E-Commerce framework
 Future of E-Commerce
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.
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.
What is B2C E-Commerce?
 B2C means Business-To-Consumer
 B2C transactions where a consumer seeks
goods and services over a network
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
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
Problem Description
 The current existing payment protocols still
lack of supporting for simultaneous atomic
purchases from multiple sources
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.
Research Objectives
 Intend to propose and implement B2C E-
Commerce payment by a transactional
process encompassing the diverse
interactions between all participants
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 customer’s E-Commerce
transaction
Research Objectives(Cont.)
 Intend to develop a payment coordinator
which allows the combination of different
interactions into one E-Commerce
transaction.
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”
Literature Reviews (Cont.)
 Several payment models exist
– Direct cash-like /account-based system
• FirstVirtual, NetCheque
– Electronic wallets
– Electronic Bill Presentment and
Payment(EBPP)
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)
Paym e nt
inte m e diary(SSL
Se ve r and SET/
SSL Gate w ay)
SSL
SET
SSL
SET
Consumer
Merchant
Inte rne t
SET
Ce rtification
Authority
Issuer Bank
SET
SET Paym e nt
gate w ay
Bank Card Ne tw ork
Acquirer
Bank
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)
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.
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
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
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
Receive Payment Information
Che ck Validity of Paym e nt Inform ation
Re cie ve Ke ys from
M e rchantN
Re cie ve Ke ys from
M e rchant1
Commit
Che ck
Tim e out
Abort
Notify
Cus tom e r
Se nt k e ys to
cons um e r
M one y
Trans fe r
Confrim ation
of M e rchant
1
Confrim ation
of M e rchant
N
Notify
Bank
Notify
M e rchant
1
Notify
M e rchant
N
3. Generation of Payment Process
 Architecture of B2C Payment System
 Execution of Distribution Payment
Transactions
Customer
Merchant
We b Brow s e r
We b Se rve r
M e rchant
Application
Shopping
As s is tant
Payment Info
Order, Merchant Info
Paym e nt Proce s s
Ge ne rator
WISE Proce s s
Engine
Payment Coordinator
B2C E-Com m e rce Paym e nt Sys te m
Bank Application
Bank
4. Payment Coordinator
Shopping Assistant
ii. Payment Process Generator
iii. Process Engine
i.
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 customer’s site and is plugged
into customer’s web browser.
 It contains a wallet to manage electronic
cash tokens and stores.
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
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.
WISE Engine
 WISE functionalities include Exception
Handling, Event management and interprocess communication, Quality of Service
and Execution Guarantees.
Coordiantion &
Com m unication
Trading
Com m unity
Process auditing &
Monitoring
Virtual
Busines s
Process
Process de finition
Schem atic specification
Virtural
Enterprise
Process enactm ent
WISE
Engine
Data Analysis
 Properties of Transactional Payment
Processes
–
–
–
–
Guaranteed Termination of Payment Process
Compliance of Payment Process Requirements
Cryptographic Security
Handling of System Failure
Data Analysis
 Laboratory/Simulation may be used to
analyze the characterization of
conventional/digital payment mechanisms
Schedule
 Preliminary approval (1 month)
 Literature reviews (2 month)
 Research Design (3 month)
 Research Implementation (3 month)
 Evaluation (1 month)
 Documentation (1 month)
Facilities and Special Resource
 WISE Process Engine
 Protocols for secure E-Commerce
 Visa/MasterCard Supports
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
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.
Questions?