Q15E-Commerce and ERP
Question
4 marks
Discuss the key features of an E-payment system.
Answer
A comprehensive review of Electronic Payment Systems. Explains the critical architectural features including absolute cryptographic security, mathematical non-repudiation, interoperability, and micro-payment efficiency.
To replace physical cash, an E-Payment architecture (like PayPal or a Credit Card Gateway) must mathematically guarantee several absolute features to prevent catastrophic financial collapse and maintain consumer trust.
Core Architectural Features
- 1. Absolute Cryptographic Security: The system must violently encrypt all data (AES-256) during transit. The credit card numbers must be mathematically tokenized so that even if the E-commerce database is breached, the hackers only steal useless tokens, not the actual card data.
- 2. Authentication and Authorization: The system must aggressively prove the buyer is who they claim to be (via 2FA, OTPs, or biometric scans), and must instantly contact the issuing bank network to mathematically authorize that the account has sufficient funds before executing the transaction.
- 3. Non-Repudiation: It must be mathematically impossible for a user to buy a laptop, receive it, and then falsely claim to the bank that they never authorized the transaction. Digital Signatures provide this absolute legal proof.
- 4. Interoperability: A payment gateway must mathematically interface with thousands of vastly different global banking mainframes (Visa, Mastercard, Swift) seamlessly and instantly in the background.
- 5. Micro-transaction Feasibility: Traditional credit cards charge a flat 0.10 digital purchase mathematically impossible. Advanced e-payment systems must possess the architecture to bundle micro-payments efficiently to support digital content creators.