Table of Contents
Executive Summary 3
Methods and Types of Electronic Payment 4
Electronic Payment Systems 8
Book Bunker is a brick and mortar bookstore located in Any-town, USA that focuses exclusively in rare and used books. As Book Bunker has grown in name and customers so has the business. Expanding to two different locations and finally to its current address, a location with ample space to continue growing. Founded by Mary and Joe Johnson, book retail industry veterans with over 20 years experience, the pair is out to bring socially conscious literature to the masses.
From Book Bunker’s present location, they are able to sell any type of book currently available on the retail market, but locating and selling rare books is their best ability. Book Bunker recently went online in order to increase sales. Plans for the expansion included establishing an online presence by building a website where the goal was to gain greater market penetration. With an emphasis on customer relationships, Book Bunker expects an even closer relationship with its present and future clients and in the process increase sales.
The purpose of this presentation is to help Book Bunker build their retail payment system, and continue with company growth as it expands in online sales. In today’s online world nothing is more convenient than e-payment…enter your personal and financial information, point and click.
Methods and Types of Electronic Payment
An electronic payment or e-payment is a type of transaction that is conducted when buying or selling on the Internet. Normally, an e-payment is thought of as the actual transaction when in reality it is a generic term referring to many forms of electronic payments. In today’s market place, there are many methods of electronic payments being used today, such methods of electronic payment are being discovered on a daily basis and in Book Bunker’s case; the most suitable e-payment method will be presented and discussed.
1. Payment Card
The most common form of electronic payment is credit cards, debit cards and prepaid cards. In every financial transaction, the customer will present their card or card number to the merchant. The card is either swiped through the terminal or the numbers on the card are manually entered and then the data of the purchase is transmitted to the bank for approval. If the customer uses a credit card the settlement for funds will occur later. On the other hand debit or pre-paid cards are debited immediately.
What makes “plastic” cards an attractive option is that they are widely accepted by many merchants. In Book Bunker’s case, before going online “plastic” cards were already accepted in an off-line environment. Once Book Bunker went online nothing else had to be done because you already have an established platform for accepting credit card payment. Purchases made online are similar to the phone purchases Book Bunker has dealt with in the past where the customer is not present. Online and telephone purchases are known as card not present transaction and both require an extra degree of security (VISA)
Debit cards and pre-paid cards, in my opinion, are a much better option for processing payment. When the customer pays using his or her debit card, they will enter their PIN number that is associated with the card. By entering the PIN number, the customer authorizes the transfer of money from their account into Book Bunker’s account. The transaction is processed just as if it were a credit card purchase. (GOpai)
2. Electronic Cash and Electronic Wallets
Electronic cash is the debit Point of Sale (POS) – system that can be used to conduct paperless transactions. Paperless transaction is a term used to describe financial exchanges that do not involve the physical exchange of currency. Instead, monetary value is electronically credited…