Answer the following questions below based off the proposed system request: To d

Question

Answer the following questions below based off the proposed system request:

To develop a system same like the present instant bank transfer system for PayPal but with some innovations, flexibility, and customization. Users should be able to use instant bank transfer as a frequent and permanent payment option when purchasing online

-Be sure you thoroughly describe the current problem/issue and then provide reasonably, strong evidence that the proposed system will address or solve the problem/issue you have identified (i.e., operational feasibility).

-Perform a technical feasibility study where you assess risk and the extent to which the firm possesses the technical capabilities to complete the project (e.g., ability to procure hardware, software, human resources, etc.)

-Discuss the proposed system from an organizational feasibility perspective. For example, how would the system support the sponsoring organization from a strategic alignment perspective?   Are other organizational factors such as ethics, legal and contractual feasibility, and political feasibility relevant?

Explanation / Answer

· Digital Payments Overview – Provides an introduction to digital payments and puts them into market context. Why are digital payments happening now and not five years ago? We’ll look at the role of tokens, authentication, and cloud — and share our overall taxonomy of the space.

· Tokenization Fundamentals – You can’t understand digital payments if you don’t understand tokenization. It’s as simple as that. We’ll start with the key tokenization concepts and take a look at the two leading approaches –– security tokens and EMVCo payment tokens. We’ll explore the models, look at the flows, and describe the roles and the data elements. We will also share current thinking on how tokenization concepts might be applied in non-card payment systems.

· POS Mobile Wallets – POS Mobile Wallets are the first major deployment of EMVCo payment tokens. We will do a complete tear down on Apple Pay and then use that as a point of comparison against Android Pay, Samsung Pay, and Chase Pay to illustrate similarities and differences. Given the recent announcements at Money 20/20, we’ll also be exploring CurrentC (MCX) and the rise of NFC-enabled banking apps.

· Checkout Wallets – Checkout Wallets are the second shoe dropping in the shift to digital payments. We’ll take a look at Visa Checkout and its underlying security model, as well as MasterCard MasterPass and Amex Express Checkout. We’ll share how they work, how they differ, and their likely evolution. Checkout Wallets are distinctly different than the old digital wallets as alternative forms of payment –– so you may be surprised.

· Digital Payments Enablers – For online merchants, the rise of digital payments enablers has represented a sea change in the approach to online payment acceptance. Here we’ll compare Braintree, Stripe, and WePay and take a look at what they do, where they fit, and why they represent the next wave in payment acceptance. Our exploration will include a special emphasis on how these providers address the needs of ‘Marketplace’ providers.

· P2P Mobile Apps – The shift to digital payments can also be seen in P2P Mobile Apps. This module will look at the general model and economics found in these types of systems. We’ll compare the underlying transaction model of Venmo, Square Cash, and Facebook Messenger––and share our perspective on P2P Mobile Apps in the developing world. This will include a case study on the evolution of the M-Pesa system in Kenya.

· What Comes Next – The day will finish with a look at In-App payments and Buy Buttons, both important new developments that play right to the shift to digital payments. As part of What Comes Next, we will also share our thesis in how digital payments fit against the emerging Internet of Things. - See more at: http://paymentsviews.com/#sthash.2ufYsXb9.dpuf

1) PayPal

As a default solution, and for those that aren’t sure, I would definitely suggest PayPal. Most shopping cart solutions for WordPress have PayPal payment processing built in right out of the box.

That’s because PayPal is one of the biggest players in this space with the most history. PayPal also has an API like no other, allowing developers to get as basic or as sophisticated as they like when tying store software into the system.

Also, PayPal can handle many aspects of the transaction if desired. For example you can choose to have PayPal create invoices and receipts, and you can pass the task of calculating tax off to PayPal as well.

Not only that, PayPal can be used as a payment method even from folks that don’t use PayPal. They can simply use their credit card for their transaction. So, essentially, you can accept credit cards via PayPal without a merchant account.

Note: This shouldn’t be confused with PayPal Pro though which is the paid version of PayPal, and more of a white label solution for accepting credit cards via PayPal.

The argument by some is that it’s not obvious during checkout that credit cards can be accepted by non PayPal users. For that reason, many people use Authorize.net or other popular provider as a backup method for taking credit card payments.

We’ll talk about Authorize.net (or simply Auth.net) next, and then discuss a few other payment gateways that sometimes come bundled with shopping cart plugins for WordPress.

2) Authorize.net

Authorize.Net is the most common choice of credit card payment gateway. This gateway mimics the routing transactions like the traditional credit card swipe machine used in the physical retail world, except it uses the Internet instead of a traditional phone line. Authorize.net is a browser-based payment gateway that requires no software to be downloaded or maintained. This makes it much easier to manage this often time consuming and complex aspect of business. This service is not only available to process transactions 24/7 but it also provides other services to its customers to help manage their business and provide protection from fraud.

Once an account is established, merchants can log into the “Merchant Interface.” Here they can manage transactions, customize settings, view statements, and generate reports as well as many other actions to help keep their business organized.

One confusing point of Authorize.Net is their fee guide. Their typical fees; including set-up, monthly, and optional “value-adding products” are all determined by the site’s re-sellers. They do provide “suggested retail prices” on their web site.

Authorize.Net offers a variety of solutions that can be personalized to your unique needs. These include both online and retail merchant solutions, as well as mail-order, phone and mobile merchant solutions. Generally, whatever your gateway services you are looking for, Authorize.Net can provide a browser-based solution fine-tuned for your specific requirements. An “Authorize.Net Merchant Seal” is available free of charge that can be added to your merchant web site to help guide customers to this payment gateway option.

Next we’ll explore the “decentralized peer-to-peer payment network that is powered by its users with no central authority or middlemen” known as Bitcoin.

3) Bitcoin

Bitcoin is a newer and innovative, although complex, choice to use as a payment gateway for WordPress. It’s not extremely common but some trends suggest that that may change. Some of the unique components of Bitcoin include; instant peer-to-peer transactions and zero or very low processing fees. Bitcoin is an open-source network that has a public design. This means that Bitcoin is not owned my one individual and requires no central authority or bank to operate. These properties means that Bitcoin can offer different uses other payment gateways are unable to provide.

Bitcoins are virtual coins that you send through the Internet directly to a peer, therefore, cutting out the middle man of a bank or clearinghouse. This is how the fees at Bitcoin can remain so low.

Bitcoins are generated by computers running a free application called “The Bitcoin Miner.” As your computer creates these bitcoins they are stored in your individual wallet. When you transfer these coins, an electronic signature is attached, and after a few minutes a miner verifies the transaction and it is permanently stored in the public network. Bitcoins can also be traded for different currencies.

This system is a great way for a small business to get noticed. It does not cost anything to start accepting them; there are no “charge backs” and little to no fees. Another huge advantage is that you will get more business from the growing Bitcoin economy.

The advantages of using Bitcoin are numerous. International payments can be as fast as 10 minutes since there is no “middle-man” banks to make you wait three business days. Also there is no PCI compliance required because Bitcoin security is built in such a way that this approach to accepting credit card payments is no longer necessary. Much like a bank’s “multi-signature” cheque, Bitcoin allows coins to only be spent if a specific group of people sign the transaction. This expands the merchant’s ability of taking payment from more potential buyers. One other benefit is that the merchant receives free visibility by accepting these coins from a constantly growing number of new customers who are searching for ways to spend this currency.

This choice of payment gateway is very safe due to very strict cryptographic rules. Among Bitcoin’s security features, the fact that these coins are impossible to counterfeit or spoof and that this protocol is resistant against a long list of potential attacks leave the merchant feeling safe and secure. These features may very well out-weigh the complexity of understanding the inner workings of this gateway.

4) 2Checkout

2Checkout is a payment gateway option for merchants looking to expand into the International markets. Customers are given the option of selecting from any of 15 languages and 26 currencies through the checkout process. You also have the ability to create customizable interfaces. 2Checkout features a PCI Level 1 compliance which is the highest level in the industry. You can feel confident that you are protecting yourself and your customers from online threats when using this gateway.

Unlike Bitcoin, 2Checkout publishes flat-rate fees. This makes it easy to predict costs and budget accordingly. These fees also include ALL of the services offered through this gateway. These additional services include; fraud prevention, recurring billing, custom checkout features and a very flexible integration.

2Checkout offers 8 payment methods including major credit cards, pin debit cards, and even PayPal.

The biggest benefit I feel with adding the 2Checkout payment gateway is that it allows you to expand into the International market without additional fees, when you are ready.

In Conclusion

Although not mentioned, I think having the ability for Manual Checkout as an additional payment option in many cases is also very important. This allows payments with bank transfers, checks, money orders, or sometimes local payments. For some stores this is key to have, for others though it would be irrelevant.

At any rate, as you can see, there are plenty of things to consider in terms of payment gateways for your online store. What it boils down to is the feature set you need, the fees you are willing to live with, what’s involved in gaining access to the money, and a lot of times, the geographic location of your expected customer base. I hope that this quick guide gave you a launching point for some gateways to consider.

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.