The Importance of Diversity in the University Research Paper

The Importance of Diversity in the University - Research Paper Example While institutional diversity is highly regarded as a positive thing by many, others argue that it can lead to institutional drift and mission overload if parity of esteem does not prevail between institutional types. Despite the many benefits associated with institutional diversity, many institutions of learning in the current day education system are highly characterized with student bodies which are highly deficient of the desired diversity (Vught, 2009). Many factors have been put forth to explain this severe lack of diversity in the institutions of higher learning among them being lack of proper selection mechanisms into the institutions of higher learning and discrimination during the selection process (Devins, 2003). Emergence of many private institutions offering higher education is another major causative agent for higher deficiencies of diversity in higher institutions of learning. Such institutions are merely profit driven and at times tend to compromise the educational va lues associated with diversity. They often concentrate on the breed of students who are capable of raising the huge amounts of tuition fees they charge with less regard to diversity balance (Warner and Palfreyman 2001). In attempts to enhance diversity in institutions of higher learning, states and governments have well defined legal provisions focusing on matters related to students’ diversity (Mellor, 2008). The numerous benefits associated with a diverse student body are universally acknowledged and practices such as provision of racial bonus points are constitutional in some nations. This offers the minority foreign applicants a higher probability of securing places in institutions of higher learning outside their own countries. In other provisions, race is an important factor during admissions for undergraduate programs (Vught, 2009). This helps to achieve a balanced ethnic diversity hence attaining the so much desired diversity in the student body. Notable also is the i ncorporation of affirmative action policies in many public education systems, a strategic move usually geared towards elimination of discrimination and also aimed at coming up with a student body which is ethically balanced in order to a achieve a diverse student body. In most states, measures to mitigate discrimination based on gender, colour, race, religion, which are deeply embedded in their constitutions (Bankston, 2006). Everyone has equal rights to access education and this further enhances diversity since selection process is free and fair and not in favor of any particular group of people. To further uphold diversity in higher institutions of learning, special consideration is usually given to special groups of people in the society (Pollak and Louis, 2005). Women and the disabled for instance are at times given special consideration during the selection process to ensure their numbers in the institutions of higher learning match that of their male counterparts. An important legal provision also aimed at upholding diversity in the institutions of higher learning is the great emphasis given to respect of basic human rights. For purposes of peaceful co-existence of the diverse student community, basic human rights such religious and cultural rights are highly upheld. This allows easy integration of people of different cultural and religious background in a

BUS IP 4 Essay Example | Topics and Well Written Essays - 750 words

BUS IP 4 - Essay Example Today distance learning is gaining popularity in various groups of peoples who are keen to learn and upgrade them for better career opportunities. There are numbers of benefits offered by distance learning educations. Some of the key benefits are convenience, flexibility and freedom, effectiveness, Interactivity, increase access to learning and efficiency. Distance learning offers student increased access to learning. They have an opportunity for knowledge and skill enhancement simultaneously working or doing their job. Student can learn from wider number of institutions from their choices and have access to learning at any time and any place. It basically provides an alternative to traditional classroom learning. It has been found that some times it is more effective than traditional classroom learning. It can meet the needs of student who can not attend on-campus classes or lives far from school. It also provides an opportunity to the student to learn with their own pace which is generally not provided by traditional classroom training. Student can also submit their assignment by using email which removes the travel time to school for submitting assignments. Distance learning uses wide variety of materials such as audio, video, books and many more other types of learning resources that can meet every student learning preferences. One of the main benefits of distance learning is increased interactions among students. Many of the courses offered by distance learning institutes have options of attending class room on specific weekdays or period of time. This offers another benefit of distance learning as interactions among student’s increases. In such cases distance learning creates interactions that stimulate understanding and exchange of ideas between students from correspondences and also it provides ability to do interactive teamwork between groups. The financial and

Cantonese opera Essay Example for Free

Cantonese opera Essay Most foreign people know what Bejing opera is, but Chinese national Opera has a long history and 275 species of Chinese operas have been saved, there are a wide range of operas were not extended yet, Cantonese opera is very popular in the south of China, many Chinese people prefer Cantonese opera to Beijing Opera. The biggest difference between Beijing Opera and Cantonese Opera is language, the Beijing Opera use Mandarin, the Cantonese Opera use Cantonese. Cantonese opera is local opera in Han Dynasty is formerly known as drama or Guangdong opera from the Southern Opera. Cantonese opera began to appear in Guangdong, Guangxi from AD 1522 to 1566 (Ming Dynasty Jiajing) included singing, read, hit musicians ,soundtrack, stage costumes, The abstract body performing arts. Each Cantonese opera role has its own unique costumes dress. The initial performance language is Zhongyuan phonological, also called matshed Mandarin. At the end of the Qing Dynasty, the intellectuals changed the opera language to Guangzhou language in order to facilitate their revolution, also aimed to make Cantonese understand easier. Cantonese opera ranked into national intangible cultural heritage on May 20, 2006. The UNESCO add Cantonese opera in the human intangible cultural heritage list on September 30, 2009. Cantonese opera originated in the Chinese folk songs which called Qi folk songs, the earliest folk songs can be traced back to the Book of Songs from pre-Qin Dynasty, but this is the common origin of all Chinese opera, such as Beijing opera, Cantonese opera, class opera, Shanghai opera, Shaoxing opera, and Huangmei opera. The stage art style is impressionistic. The scenery is simple, the play provides situational by virtual performance program, or write captions on board like riverside, alpine instead of stage background. Performances who in the city called GD-HK learned drama, opera and movies to improved their performance and made theme reflect contemporary life. Later, people Change falsetto into true voice in Cantonese opera. The men sing like relatively stable, low; women sing like very delicate and mellow. As some Cantonese opera are very favorite in new media, these famous Cantonese opera has recomposed in movies, TV series, dramas, and music. For example, Princess Chang Ping Purple Hairpin Peony Pavilion , Gemini worship the Moon, The Reincarnation of Hongmei mind Butterfly and Red Pear Hanada Baxi Xiangluo Otsuka Red Cherry broken heart A Dry White Begonia Red, A Dream of Red Mansions the Sanxiao marriage White Rabbit Guizhi complain Dou E Yuan (also known as June Feishuang or June Snow ), also included the first national intangible cultural heritage Butterfly Lovers.

The persuasive speech

The persuasive speech Persuasive Speech Did you know that 50% of kids in foster homes die from child abuse a year? There are a half of a million children in the foster care system. Many people are unaware of this hidden tragedy that happens behind closed doors and away from the public eye. We should take a stand and fight for stricter regulations with Child and Youth when children are placed in foster care. We should advocate tougher laws and guidelines for social workers, foster families and the ?system? that runs it. First, we should talk about the social workers that work for Division and Youth services. The regulations for social workers are poor and unethical. Most states do not have requirements to work in this profession only a high school diploma and the ability to pass a criminal background check. In Pennsylvania, the state does not demand a license for these workers. Social workers believe that their actions they take violates the law but say ?they are necessary to comply with ethical standards. Fredrick Reamer a PHD writes, ?social workers follow their own personal option and reasons of why they do the things they do? and ?believe that the laws are unjust and harmful? (Reamer 1). They are suppose to follow the laws that are in place by our Constitution and by the National Association of Social Workers Code of Ethics. What gives them the right to be above the law? In my case coming from New Jersey, the social workers came in and took us out for good reasons. In Pennsylvania, my neighbor was going to have her kids taken away because they missed so many days of school. Child and Youth came to her house and demand a reason for this. Jess, my neighbor, told me ? the lady came into my house and yelled at me in front of my kids, calling me an unfit parent and said that they were going to take the kids? (Jess, PI). Children and Family Justice Center says that technique is a criteria and ?see the bully fight as worth having, stand up for despised, demonized, brilliant and tenacious children? (Bernadine Dohrn 1). What should be done with these so called social workers? We should demand that all get a license in this field which requires a masters or a doctrine degree. We should tell the National Association of Social Workers to enforce penalties on those who do not follow the law and ethical standards that are in place to protect the families and children that are innocent. We have to come together as families and protect ourselves and know the laws in our state. Another problem we face is the foster homes and state run facilities. Agencies fail to investigate abuse reports, find permanent homes for children or track children under care. In Pennsylvania a judge wrote, ?In recent years, the system run by DHS and overseen by DPW had repeatedly failed to fulfill its mandates and unfortunately has often jeopardized the welfare of the children in its care? (Rick Thomas 1). Did you know that there are 20,000 kids in foster care in Pennsylvania and 30 percent of them have no prospect of having a permanent home? Or that ?28% of children in foster homes are abused a year and half of them die of abuse? (Donna Devane 1). There is more abuse occurring in foster homes than the general public and it is increasing each year. For example, Gilbreanie Wallace was placed in foster care because her grandmothers house became unlivable when her pipes broke and flooded her house. Instead of Division and Youth helping the family out and finding them another house, they took Gilbreanie and placed her with a family. A few months later, she was killed by the foster mother, who had several complaints against her already and a record of a troubled history. Thousands of children are removed from homes a day, mostly from non-abusive parents. Why does this occur? States receive thousands of dollars for grant money which taxpayers pay from the Federal government when they put children in State Protective Services, foster care or state run facilities. They get even more money if the parental rights are terminated after 15 months. This is destroying families and our country. Innocent families cannot afford the thousand of dollars to get an attorney to defend their rights and by that time it is too late. Even if they are proved to be innocent they are forced into treatment. Devane writes, ?falsely accused families run up the National Defense Budget by 4.1 billion dollars a year? (Devane 1). The taxpayers are left to pay for this bill. What impact does this have on the kids that go through the foster care system and are abused? Children experience separation anxiety disorder, trauma, physical and sexual abuse and sometimes death. It is a scary and traumatic experience being taken away from your family and your home. To be put in a home that sometimes are classified as unfit and not healthy for children to be in. Many states are cracking down on these homes and facilities but it is not enough. California alone had last year ? 3,000 cases of foster care facility problems that were not reported to the state? (Ben Tanzer 1). Lets put a stop this abuse in foster care settings and demand to the government to enforce stricter laws. We should advocate that every state has the same standards in foster and adoptive homes. We should fight for the right to have every person gets background checks before they let children stay with them. The government should have mandatory classes that teach these parents instead of throwing kids at their door with no prior knowledge. The law states in Pennsylvania, ?only a Police Officer is allowed to remove the children from the home and put them into protective custody when their in danger? (Rutherford Institute 1 ). Many states in this country have this law, except a few like New Jersey, where they are allowed to take the children without consent of the parents. So why does Pennsylvania allow social workers to slip through the cracks or have our homes searched without probably cause? We should crack down on the government and stand up for our children. The Federal government should have more investigations on child abuse reports that occur in foster care facilities. The states should start penalizing more homes and facilities that fail to provide promised medical and health services, and not checking children in their care. They should also change their reviews on each case. The Federal law requires a six month review for each child in foster care. We should petition for them to change that review to more frequent ones. I believe this would lessen the children that are waiting for homes. We should also demand that Pennsylvania change their adoption policy to an ?open adoption?. Right now the law states, ?adoption is a closed adoption, where you have no ties and cut from your birth family? (Adam Fleming 1). Many children in foster care do not want to have permanent homes because of them loosing ties with their birth parents. Changing the laws would encourage families and the children to move into permanent homes. The goal with the foster care system is to look after the children and defend them when abuse is at hand. I believe somewhere along the line we got off track and now the government set out to help is destroying our children. Cases that involve birth parents abusing their children should be top priority and the children should be taken out. Social workers and the Federal Government should not try to intervene with parents trying to raise their kids for something they do not like.

can money buy happiness Essay -- essays research papers

In today’s materialistic world, the phrase that ‘money can’t buy happiness’ is tending to be proved hence otherwise. Social research and surveys have shown results based on an individuals income, health and the political scenario which is dominant in his or her region. It is quite obvious that the gap between the privileged and the not so is growing into a great divide giving rise to different class and status, thus defining ones social circle. It should therefore be understood how an individuals economic status affects their personal happiness throughout all aspects of life. Many tend to refer to this age-old quote especially when they tend to belong to sector of people who can’t afford the modern day luxuries of life. What they do not realize is that money, might in fact do just that, buy happiness. On the other hand, those who have pockets as heavy as themselves think that money Is nothing but a burden and a complication in life, which is too net worked to figure out, let alone solve. Happiness as defined in the Oxford Dictionary is a feeling of luck, fortune and contentment. The trends of music have hip hop artists expressing their childhoods as miserable experiences because they grew up in the ghetto. However once they have acquired their wealth, things couldn’t have been going more smoothly. Could they have not made the best out of their childhood, knowing that they were loved and cared for? Weren't they truly happy then without all the material accessories? In my opin...

Symbol and Allegory :: essays research papers fc

The use of symbol in poetry and in literature as a whole is commonplace because it is an outlet for the author’s creative psyche. A symbol is a creative use of metaphor, using a comparison but not just a direct comparison. The author attempts to achieve the effect that there is much more than just the reader’s initial reaction creating a want to delve deeper into the true meaning, leaving a vast space of interpretation. Allegory on the other hand is a specific comparison, a symbol that is set in its meaning. This would point towards the absolute meaning of the comparison the poet or author was trying to convey (in other words, a parallel). I have chosen the E.E. Cummings poem â€Å"l(a† because it not only encompasses the idea of symbolism through its need for interpretation, but also due to its simple beauty, creating a visual image of a leaf falling. Edward Estlin Cummings was born on October 14, 1894 in Cambridge, Massachusetts, in his family’s home, within an extremely short distance of Harvard (Dreams 9). His word usage and literary abilities were garnered at a young age from his parents. His father Edward was a professor (in fact, the first professor of sociology at Harvard) and a Unitarian minister and his mother Rebecca utilized reading poetry and stories to her children. His father’s strong voice and use of wordplay from his sermons and his mother’s encouragement for E.E. to keep a diary starting at age five started to shape his craft at an early age (Revisited 11). Rebecca aspired for her son to be the next Henry Wadsworth Longfellow (the Cummings family lived across the street from the Longfellow home before E.E. was born) (Dreams 19). Edward Estlin was also a cubist painter in addition to being a poet. During World War I, E.E. Cummings was an ambulance driver in France and was imprisoned under the p retense of treason (Poets.Org). The experience led to one his more important works, The Enormous Room. Around the time of writing â€Å"l(a† E.E. Cummings health was in a very poor state. The poetry reading tours he took part in were furthering his terrible stomach problems in which he had been suffering from around 1955-56 (Dreams 459). In late 1957, his stomach ailments came to a head when a bleeding polyp was discovered in his colon. He spent his sixty-third birthday in a hospital bed and then spent six months in recovery while his â€Å"wife† Marion (of whom he was never actually married to) was in New York (Dreams 461).

Electronic Payment System

UNIT – 3 Electronic Payment System Contents †¢ What is E-payment? †¢ Types of E-payment Systems †¢ Digital Token-based Electronic Payment Systems †¢ Smart Cards & Electronic Payment Systems †¢ Credit Card-based Electronic Payment Systems †¢ Risk & Electronic Payment Systems †¢ Designing Electronic Payment System What is E-payment ? †¢ E-payment systems is the mechanism of transferring money over the Internet and technology used in this transfer is called as EFT. EFT defined as â€Å" any transfer of fund initiated through an e-terminal, telephonic instrument, or computer or magnetic tape to order, instruct or authorize a financial institution to debit or credit an account. It is mostly used for Business to business (B2B) commerce where companies doing business together tend to use electronic data interchange (EDI) system to send each other bills and notices of payment. E-Payment †¢ Information online offline $Products/services Adva ntages of E-Payment †¢ †¢ †¢ Increase payment efficiency – Reduce transaction costs – Enable trade in goods and services of very low value Increase convenience of making payments – Payment can be made swiftly and remotely using various devices Can be used for – e-commerce / e-Trade – For other purposes like paying bills, taxes, etc MBA-II, EBF (FT-204C) Unit-3, Study material compiled by Prof. Vanita Joshi, SOM, SIMS, Indore 1Categories of EFT Banking and financial payments * Large-scale or wholesale payment * Small scale or retail payment * Home banking Retailing payments * Credit cards * Debit cards On-line electronic commerce payments * Token-based payment system ~ Electronic cash ~ Electronic checks ~ Smart cards or debit cards * Credit card-based payment systems ~ Encrypted credit cards ~ Third-party authorization numbers Main factors when selecting e-payment method †¢ Availability (bank system, laws and regulations) †¢ The consideration of size and type of business, type of a target group of consumers, types of products and services. The ability to provide security against fraudulent activity †¢ Being cost effective for low value transaction fees †¢ Being protective of the privacy of the users †¢ Easy to use, and being convenient for purchasing on the web based e-business Token-based E-Payment Systems Electronic tokens are the new financial instruments which are in the form of electronic cash/money or checks.Electronic tokens are same as cash that is backed by bank. They are of three types: 1. Cash or real-time ( e-cash) 2. Debit or Prepaid (smart cards, e-purses) 3. Credit or Postpaid (credit/debit cards, e-checks) E-cash Electronic cash is a consumer-oriented electronic payment. Though it replaces the cash but still cash is quite dominant form of payment for three reasons: 1. Lack of trust in banking system 2.Inefficient clearing and settlement of non-cash transaction 3. Negativ e real interest rates paid on bank deposit Advantages of cash over credit cards †¢ It is negotiable †¢ Cash is a legal tender †¢ Cash is a bearer instrument †¢ It need require bank account to operate †¢ No risk on the part of acceptor that the medium of exchange may not be good MBA-II, EBF (FT-204C) Unit-3, Study material compiled by Prof. Vanita Joshi, SOM, SIMS, Indore 2Properties of e-cash E-cash must have following four properties: Monetary values: Interoperability Retrievability Security E-cash in Action †¢ E-cash based on cryptographic systems called â€Å"digital signature† †¢ †¢ †¢ This method involves pair of two numeric keys (very large number or integer) that work in tandem (cycle): one for encoding and another for decoding. Message encoded with one numeric key can only be decoded with other numeric key and none other. The encoding key is kept private while the decoding key is made public. E-checks †¢ E-checks are a nother form of electronic tokens. †¢ †¢ A new electronic version of paper check. E-check is an instruction to a financial institution to pay a given amount of money to the payee. It is a specially formatted email message sent over the Internet. It contains as the same information as on paper based check. Check service providers PayByCheck (http://www. paybycheck. com) CyberSource (http://cybersource. com) Transaction Payment Sequence in E-check system Payer Transfer e-check Payee Deposit e-check Forward e-check for payer authentication Bank Accounting Server MBA-II, EBF (FT-204C) Unit-3, Study material compiled by Prof.Vanita Joshi, SOM, SIMS, Indore 3 Transaction Payment Sequence in E-check system †¢ Buyer must register with third party account server using electronic check. †¢ On receiving the check, the seller presents it to accounting server for verification and payment. †¢ The accounting system verifies the digital signature on the check. †¢ Proper ly signed and endorsed checks can be electronically exchanged between financial institutions through electronic clearing house. Advantages of E-Check †¢ They work in the same way as traditional checks. †¢ E-checks are suited for micro payments. Eliminate the need for expensive process reengineering and taking advantage of the banking industry. †¢ Financial risk is assumed by accounting server. †¢ E-checks create a float through third-party accounting server. They make money out of buyers and sellers transaction by providing deposit account. Difference b/w EFT and E-check †¢ In E-Cheque, electronic versions of the cheque are issued, received & processed. So, payee issues an E-Cheque for each payment. †¢ In EFT transfer automatic withdrawals are made for monthly bills or other fixed payments; no cheques are issued.Smart cards †¢ A smart card is a plastic card with an embedded microchip containing information about you. †¢ A smart card can store about 100 times the amount of information that a magnetic strip plastic card can store. †¢ A smart card contains private user information, such as financial facts, private encryption keys, account information, credit card numbers, health insurance information, etc. †¢ So far not successful in U. S. , but popular in Europe, Germany, Singapore and Japan to pay for public phone call, transportation.Mondex Smart Card †¢ Holds and dispenses electronic cash (Smart-card based, stored-value card) †¢ Developed by MasterCard International †¢ Requires specific card reader, called Mondex terminal, for merchant or customer to use card over Internet †¢ Supports micropayments and works both online and off-line at stores or over the telephone †¢ Secret chip-to-chip transfer protocol †¢ Loaded through ATM – ATM does not know transfer protocol; connects with secure device at bank MBA-II, EBF (FT-204C) Unit-3, Study material compiled by Prof. Vanita Joshi , SOM, SIMS, Indore Mondex Smart Card Processing Mondex Smart Card †¢ Disadvantages – Card carries real cash in electronic form, creating the possibility of theft – No deferred (overdue) payment as with credit cards – cash is dispensed immediately Types of Smart cards Smart cards are basically of two types: 1. Relationship-based Smart Cards 2. Electronic Purses and Debit Cards Relationship-based Smart Cards It is the enhancement of existing card services that offer customers far better options like: 1. Access to multiple accounts (debit, credit, e-cash) on one card. 2.Offer various functions ( cash access, bill payment, balance inquiry, fund transfer) 3. Multiple access options at multiple location using multiple access device (ATM, PC, PDA or screenphone etc) Electronic Purses and Debit Cards Electronic Purses or E- wallet are the smart cards embedded with programmable microchip that store sum of money instead of cash. Once a purse is loaded with money it require card reader vending machine which verifies its authenticity . Then after amount is deducted from balance. It shows the remaining balance on the card hence eliminate the small bill in busy stores.E-wallets when depleted can be recharged with money . MBA-II, EBF (FT-204C) Unit-3, Study material compiled by Prof. Vanita Joshi, SOM, SIMS, Indore 5 Credit cards-based e-payment system Credit Cards †¢ A credit card is a small plastic card issued to users dealing in e-commerce. Most credit cards are the same shape and size, as specified by the ISO 7810 standard. †¢ A credit card is different to a debit card in that it does not remove money from the user's account after every transaction. In the case of credit cards, the issuer lends money to the consumer (or the user) to be paid to the merchant.Credit cards-based e-payment system Customers who purchase any goods send their credit card details to the service provider involved and the credit card organization will handle thi s payment. Online credit card payment has following categories: 1. Payment using plain credit card details 2. Payments using encrypted credit card details 3. Payment using third-party verification Entities involved in Credit card Transaction Consumer (Buyer or Card holder) Merchant (Seller) Card Issuer (Consumers’ Bank) Acquirer or Principal (Merchant’s Bank) Card Association (Visa, Master Card etc) Third party processor How an Online Credit Transaction WorksEncryption and Credit cards Encryption process starts when credit card information is entered into a browser and sent securely over network between buyer to seller. Encryption process includes following steps: 1. Customer presents his credit card information securely to merchant. 2. Merchant validates the authenticity of card holder 3. Merchant relays this information to its bank or on-line card processor. MBA-II, EBF (FT-204C) Unit-3, Study material compiled by Prof. Vanita Joshi, SOM, SIMS, Indore 6 4. The bank r elays the information to customer’s bank for authorization approval 5.The customer’s bank returns the credit card , charge authentication and authorization to the merchant Processing Payment with Encrypted Third-party authorization and Credit cards In third party processing, consumer register with third party on the internet to verify emicrotransaction. The companies providing third party payment service on internet are: ( First Virtual) †¢ http://www. fv. com †¢ http://www. openmarket. com †¢ http://www. 2checkout. com/ †¢ http://www. paypal. com/ Payment can be made by credit card via clearing house.Online Third-Party Processor (OTPPs) has following steps for buying information online. 1. Consumer registers for an OTPP a/c that is backed by credit card. 2. To purchase customer request merchant by her OTPP account no. 3. Merchant then contact the OTPP payment server with customer’s account no. 4. OTPP payment server verifies the customerâ₠¬â„¢s account no. for vender (merchant) & checks for sufficient funds. 5. OTPP server send a message to buyer that can be responded back by buyer as ; yes/agree; No/disagree; fraud. 6.If OTPP gets ‘Yes’ from customer, merchant is informed & then customer is allowed to download material. MBA-II, EBF (FT-204C) Unit-3, Study material compiled by Prof. Vanita Joshi, SOM, SIMS, Indore 7 Online Payment Processing using a Third-party Processor Risk in using Credit cards †¢ Customer uses a stolen card or account number to fraudulently purchase goods or service online. †¢ Many people who will be on the Internet have not even had their first Web experience. †¢ Hackers find the ways into an e-commerce merchant’s payment processing system and then issue credits to hacker card account numbers. Many users are also likely to be younger and have less access to credit and debit cards †¢ Many purchases they make will be micropayments. †¢ Credit cards canno t be used for large sums of B2B transactions †¢ Customer falsely claims that he or she did not receive a shipment Limitations of Online Credit Card Payment Systems †¢ Security – neither merchant nor consumer can be fully authenticated. †¢ Cost – for merchants, around 3. 5% of purchase price plus transaction fee of 2030 cents per transaction. †¢ People living in rural areas don’t have same access to computers and Internet that others do. Social equity – many people do not have access to credit cards (young and old age), disabled, individuals who are not computer savvy and individuals who cannot afford cards ( poor credit risk). Designing Electronic Payment Systems Following criteria should be satisfied while designing any new E-payment System: 1. Privacy 6. Pricing 2. Security 7. Standards 3. Intuitive Interface 4. Database Integration 5. Brokers MBA-II, EBF (FT-204C) Unit-3, Study material compiled by Prof. Vanita Joshi, SOM, SIMS, Ind ore 8 Electronic Payment System UNIT – 3 Electronic Payment System Contents †¢ What is E-payment? †¢ Types of E-payment Systems †¢ Digital Token-based Electronic Payment Systems †¢ Smart Cards & Electronic Payment Systems †¢ Credit Card-based Electronic Payment Systems †¢ Risk & Electronic Payment Systems †¢ Designing Electronic Payment System What is E-payment ? †¢ E-payment systems is the mechanism of transferring money over the Internet and technology used in this transfer is called as EFT. EFT defined as â€Å" any transfer of fund initiated through an e-terminal, telephonic instrument, or computer or magnetic tape to order, instruct or authorize a financial institution to debit or credit an account. It is mostly used for Business to business (B2B) commerce where companies doing business together tend to use electronic data interchange (EDI) system to send each other bills and notices of payment. E-Payment †¢ Information online offline $Products/services Adva ntages of E-Payment †¢ †¢ †¢ Increase payment efficiency – Reduce transaction costs – Enable trade in goods and services of very low value Increase convenience of making payments – Payment can be made swiftly and remotely using various devices Can be used for – e-commerce / e-Trade – For other purposes like paying bills, taxes, etc MBA-II, EBF (FT-204C) Unit-3, Study material compiled by Prof. Vanita Joshi, SOM, SIMS, Indore 1Categories of EFT Banking and financial payments * Large-scale or wholesale payment * Small scale or retail payment * Home banking Retailing payments * Credit cards * Debit cards On-line electronic commerce payments * Token-based payment system ~ Electronic cash ~ Electronic checks ~ Smart cards or debit cards * Credit card-based payment systems ~ Encrypted credit cards ~ Third-party authorization numbers Main factors when selecting e-payment method †¢ Availability (bank system, laws and regulations) †¢ The consideration of size and type of business, type of a target group of consumers, types of products and services. The ability to provide security against fraudulent activity †¢ Being cost effective for low value transaction fees †¢ Being protective of the privacy of the users †¢ Easy to use, and being convenient for purchasing on the web based e-business Token-based E-Payment Systems Electronic tokens are the new financial instruments which are in the form of electronic cash/money or checks.Electronic tokens are same as cash that is backed by bank. They are of three types: 1. Cash or real-time ( e-cash) 2. Debit or Prepaid (smart cards, e-purses) 3. Credit or Postpaid (credit/debit cards, e-checks) E-cash Electronic cash is a consumer-oriented electronic payment. Though it replaces the cash but still cash is quite dominant form of payment for three reasons: 1. Lack of trust in banking system 2.Inefficient clearing and settlement of non-cash transaction 3. Negativ e real interest rates paid on bank deposit Advantages of cash over credit cards †¢ It is negotiable †¢ Cash is a legal tender †¢ Cash is a bearer instrument †¢ It need require bank account to operate †¢ No risk on the part of acceptor that the medium of exchange may not be good MBA-II, EBF (FT-204C) Unit-3, Study material compiled by Prof. Vanita Joshi, SOM, SIMS, Indore 2Properties of e-cash E-cash must have following four properties: Monetary values: Interoperability Retrievability Security E-cash in Action †¢ E-cash based on cryptographic systems called â€Å"digital signature† †¢ †¢ †¢ This method involves pair of two numeric keys (very large number or integer) that work in tandem (cycle): one for encoding and another for decoding. Message encoded with one numeric key can only be decoded with other numeric key and none other. The encoding key is kept private while the decoding key is made public. E-checks †¢ E-checks are a nother form of electronic tokens. †¢ †¢ A new electronic version of paper check. E-check is an instruction to a financial institution to pay a given amount of money to the payee. It is a specially formatted email message sent over the Internet. It contains as the same information as on paper based check. Check service providers PayByCheck (http://www. paybycheck. com) CyberSource (http://cybersource. com) Transaction Payment Sequence in E-check system Payer Transfer e-check Payee Deposit e-check Forward e-check for payer authentication Bank Accounting Server MBA-II, EBF (FT-204C) Unit-3, Study material compiled by Prof.Vanita Joshi, SOM, SIMS, Indore 3 Transaction Payment Sequence in E-check system †¢ Buyer must register with third party account server using electronic check. †¢ On receiving the check, the seller presents it to accounting server for verification and payment. †¢ The accounting system verifies the digital signature on the check. †¢ Proper ly signed and endorsed checks can be electronically exchanged between financial institutions through electronic clearing house. Advantages of E-Check †¢ They work in the same way as traditional checks. †¢ E-checks are suited for micro payments. Eliminate the need for expensive process reengineering and taking advantage of the banking industry. †¢ Financial risk is assumed by accounting server. †¢ E-checks create a float through third-party accounting server. They make money out of buyers and sellers transaction by providing deposit account. Difference b/w EFT and E-check †¢ In E-Cheque, electronic versions of the cheque are issued, received & processed. So, payee issues an E-Cheque for each payment. †¢ In EFT transfer automatic withdrawals are made for monthly bills or other fixed payments; no cheques are issued.Smart cards †¢ A smart card is a plastic card with an embedded microchip containing information about you. †¢ A smart card can store about 100 times the amount of information that a magnetic strip plastic card can store. †¢ A smart card contains private user information, such as financial facts, private encryption keys, account information, credit card numbers, health insurance information, etc. †¢ So far not successful in U. S. , but popular in Europe, Germany, Singapore and Japan to pay for public phone call, transportation.Mondex Smart Card †¢ Holds and dispenses electronic cash (Smart-card based, stored-value card) †¢ Developed by MasterCard International †¢ Requires specific card reader, called Mondex terminal, for merchant or customer to use card over Internet †¢ Supports micropayments and works both online and off-line at stores or over the telephone †¢ Secret chip-to-chip transfer protocol †¢ Loaded through ATM – ATM does not know transfer protocol; connects with secure device at bank MBA-II, EBF (FT-204C) Unit-3, Study material compiled by Prof. Vanita Joshi , SOM, SIMS, Indore Mondex Smart Card Processing Mondex Smart Card †¢ Disadvantages – Card carries real cash in electronic form, creating the possibility of theft – No deferred (overdue) payment as with credit cards – cash is dispensed immediately Types of Smart cards Smart cards are basically of two types: 1. Relationship-based Smart Cards 2. Electronic Purses and Debit Cards Relationship-based Smart Cards It is the enhancement of existing card services that offer customers far better options like: 1. Access to multiple accounts (debit, credit, e-cash) on one card. 2.Offer various functions ( cash access, bill payment, balance inquiry, fund transfer) 3. Multiple access options at multiple location using multiple access device (ATM, PC, PDA or screenphone etc) Electronic Purses and Debit Cards Electronic Purses or E- wallet are the smart cards embedded with programmable microchip that store sum of money instead of cash. Once a purse is loaded with money it require card reader vending machine which verifies its authenticity . Then after amount is deducted from balance. It shows the remaining balance on the card hence eliminate the small bill in busy stores.E-wallets when depleted can be recharged with money . MBA-II, EBF (FT-204C) Unit-3, Study material compiled by Prof. Vanita Joshi, SOM, SIMS, Indore 5 Credit cards-based e-payment system Credit Cards †¢ A credit card is a small plastic card issued to users dealing in e-commerce. Most credit cards are the same shape and size, as specified by the ISO 7810 standard. †¢ A credit card is different to a debit card in that it does not remove money from the user's account after every transaction. In the case of credit cards, the issuer lends money to the consumer (or the user) to be paid to the merchant.Credit cards-based e-payment system Customers who purchase any goods send their credit card details to the service provider involved and the credit card organization will handle thi s payment. Online credit card payment has following categories: 1. Payment using plain credit card details 2. Payments using encrypted credit card details 3. Payment using third-party verification Entities involved in Credit card Transaction Consumer (Buyer or Card holder) Merchant (Seller) Card Issuer (Consumers’ Bank) Acquirer or Principal (Merchant’s Bank) Card Association (Visa, Master Card etc) Third party processor How an Online Credit Transaction WorksEncryption and Credit cards Encryption process starts when credit card information is entered into a browser and sent securely over network between buyer to seller. Encryption process includes following steps: 1. Customer presents his credit card information securely to merchant. 2. Merchant validates the authenticity of card holder 3. Merchant relays this information to its bank or on-line card processor. MBA-II, EBF (FT-204C) Unit-3, Study material compiled by Prof. Vanita Joshi, SOM, SIMS, Indore 6 4. The bank r elays the information to customer’s bank for authorization approval 5.The customer’s bank returns the credit card , charge authentication and authorization to the merchant Processing Payment with Encrypted Third-party authorization and Credit cards In third party processing, consumer register with third party on the internet to verify emicrotransaction. The companies providing third party payment service on internet are: ( First Virtual) †¢ http://www. fv. com †¢ http://www. openmarket. com †¢ http://www. 2checkout. com/ †¢ http://www. paypal. com/ Payment can be made by credit card via clearing house.Online Third-Party Processor (OTPPs) has following steps for buying information online. 1. Consumer registers for an OTPP a/c that is backed by credit card. 2. To purchase customer request merchant by her OTPP account no. 3. Merchant then contact the OTPP payment server with customer’s account no. 4. OTPP payment server verifies the customerâ₠¬â„¢s account no. for vender (merchant) & checks for sufficient funds. 5. OTPP server send a message to buyer that can be responded back by buyer as ; yes/agree; No/disagree; fraud. 6.If OTPP gets ‘Yes’ from customer, merchant is informed & then customer is allowed to download material. MBA-II, EBF (FT-204C) Unit-3, Study material compiled by Prof. Vanita Joshi, SOM, SIMS, Indore 7 Online Payment Processing using a Third-party Processor Risk in using Credit cards †¢ Customer uses a stolen card or account number to fraudulently purchase goods or service online. †¢ Many people who will be on the Internet have not even had their first Web experience. †¢ Hackers find the ways into an e-commerce merchant’s payment processing system and then issue credits to hacker card account numbers. Many users are also likely to be younger and have less access to credit and debit cards †¢ Many purchases they make will be micropayments. †¢ Credit cards canno t be used for large sums of B2B transactions †¢ Customer falsely claims that he or she did not receive a shipment Limitations of Online Credit Card Payment Systems †¢ Security – neither merchant nor consumer can be fully authenticated. †¢ Cost – for merchants, around 3. 5% of purchase price plus transaction fee of 2030 cents per transaction. †¢ People living in rural areas don’t have same access to computers and Internet that others do. Social equity – many people do not have access to credit cards (young and old age), disabled, individuals who are not computer savvy and individuals who cannot afford cards ( poor credit risk). Designing Electronic Payment Systems Following criteria should be satisfied while designing any new E-payment System: 1. Privacy 6. Pricing 2. Security 7. Standards 3. Intuitive Interface 4. Database Integration 5. Brokers MBA-II, EBF (FT-204C) Unit-3, Study material compiled by Prof. Vanita Joshi, SOM, SIMS, Ind ore 8