Electronic Payments

Why Pay
Electronic
ally??
 What Electronic
Payment Means??
Common Ways we Pay Electronically

Credit Cards (PoS / Online)

Debit Cards (PoS / Online)
Net Banking (Online)
Wallets (PoS / Online)
Fund Transfer(NEFT, RTGS, IMPS)
Credit Card Payments
Credit Card Number Format
Digit 1 : MII (Major Industry Identifier)
MII Description
1,2 Airlines
3 Travel and Entertainment
4 Banks and FI (Visa, Switch, Electron)
5 Banks and FI (MasterCard, Bankcard)
6 Merchandising & Finance
7 Petroleum
8 Telecommunications
9 National Assignment

Digit 2-6 : Issuer ID/Bank Identification

Number(BIN)
Digit 7-15: User ID
Digit 16 : Check Digit
 BIN??
The bank identification number is a numbering
system developed by the American National
Standards Institute and the International
Organization for Standardization (ISO)
 VISA/MasterCard????
Visa and MasterCard operate global systems
that assume responsibility for
Routing card payment authorization
Settlement requests
Offer added value services such as encryption,
fraud prevention
Set the rules for all parties that issue, accept and/or
recess transactions from cards bearing their brand
Promote the global recognition and acceptance of
those brands
Help facilitate the exchange of money and fees
between the card issuers and merchants and
determine the fees that are paid to and by the
issuers for all card transactions.
Credit/Debit Card Process Flow(PoS)

3
Merchant
Bank
2

6
1

5
Customer 4
Bank
CC/Net Banking Flow(Online)

3
CC/DC
2 4.1.
1
5
Merchant
1 Bank

4.
Net2
4.1.
Customer Banking 2
Bank
 Electronic Fund Transfer
Electronic Fund Transfer in India is
permitted using three routes
NEFT (National Electronic Funds Transfer)
RTGS (Real Time Gross Settlement)
IMPS (Immediate Payment Service)
Reserve Bank of India Governs and
controls the entire system
Uses a 11 digit IFSC (Indian Financial
System Code) to uniquely identify each
bank branch.
 NEFT
One-to-one funds transfer
Individuals, firms and corporate can
electronically transfer funds from any
bank branch to any individual, firm or
corporate having an account with any
other bank branch in the country
participating in the Scheme.
Cash deposits at branches of up to
50,000/- allowed (RBI Mandate)
Hourly system with 12 settlements from
8 AM to 7 PM on bank working days.
 RTGS
Continuous (real-time) settlement of
funds transfers individually on an
order by order basis
Min Rs. 2 Lac
During Bank working hours
Banks settle at EoD with RBI through
Current Account
 IMPS
For smaller payments up to 50000
Designed for instant transfer through
Mobile
Daily transactions sent to RBI
RBI not involved in individual
transactions
 Powers multiple bank accounts into a single mobile
application
Merging several banking features
Caters to the Peer to Peer collect request which can be
scheduled and paid as per requirement and convenience
Launched by National Payments Corporation of India
(NPCI) in 2016
Immediate money transfer
Single mobile application for accessing different bank
accounts
Bill Sharing
Utility Bill Payments