Payment Methods in Electronic Commerce
When it comes to delivering money, trust and acceptance in the world of e-commerce are becoming more important than traditional trade. In traditional trade, the customer sees and inspects the product and makes the payment by cash or credit card. In the e-commerce world, in most cases the customer cannot see the physical product while the transaction and payment are made electronically. Electronic payment systems (EPS) are integrated hardware and software systems that enable customers to receive goods and services online. Its main objectives are to increase efficiency, strengthen security and provide ease of use to customers.
Credit cards are an important source of financing in line with the individual needs of consumers ları (Kutlu, Gün and Karamustafa, 2015). It is the most widely used payment tool in e-commerce since it has security and legal infrastructure which has become standard in the world and reach to many people.
In order to divert consumers from traditional trade to e-commerce, banks have added some additional features to the credit cards they provide. One of these features is virtual credit cards. Consumers connected to the main credit card, card number, expiration date and safe code is different from this card, consumers can buy the money of the product they want to transfer the main credit card limits by completing their purchases in a high margin of security.
In addition to these features, there are strict security measures of card issuers such as Master, Visa, Maestro. E-commerce and consumers who shop with a process called chargeback. Chargeback rules bind banks that distribute cards legally. The system operates as follows; If the product is not sent to someone who purchases on the Internet, the product is not returned to the recognition and qualifications of the product, or if the price of the canceled / returned order is not reimbursed to the consumer, the application will be returned within 90 days after the consumer submits a chargeback to the bank and the money from the bank account of the owner is paid to the consumer. In fact, banks are responsible for providing physical / virtual POS devices to commercial enterprises.
Pos is a software developed by Verifone that enables the storage of card information, keys and cryptography of virtual stores that process e-commerce. In this system, credit card provisioning is performed by transferring security and encryption prototypes such as SSL and TLS.
An online payment system and infrastructure are established between the virtual POS and the buyer-seller or the vendor-supplier. The system is basically based on the transfer of the money, which is the price of the product or service received by the buyer who entered the information of the company through the website of the company, in the bank and credit institutions, to the bank’s own bank account. In VPOS applications, transactions are performed as follows:
- VPOS software to a server that wants the electronic commerce business Installed.
- The card information, shopping information and digital signature of shoppers are checked by VPOS.
- Then it is contacted to the bank and sends the customer’s card details, shopping information and company’s certificate to the customer.
- The bank keeps the shopping from the client’s account after verifying the information to the bank where the account of the enterprise engaged in electronic commerce is transferred.
The benefits of virtual pos usage according to Zerenler can be listed as follows;
- The most effective and safe edema in shopping via the Internet it is a method.
- Retail (B2C-to-customer-) sales between 35-40% it provides.
- It allows the company to recover its marketing area from a narrow region and city, to have a widespread network throughout the country and even to increase the export opportunities.
- It provides a big plus value to the business in terms of image, promotion and competitiveness.
- It allows you to shop in a much shorter time than the face-to-face sales process.
- Electronic transactions are completed in a short time, savings are provided. This increases customer satisfaction and provides continuity.
- It transfers and stores information about orders and sales to the database.
The electronic wallet carries the bank card numbers, electronic money and the owner’s identity and contact details in a similar way to the physical wallet. Since there is a card that can be loaded on the money, users who have already installed money can use it in the market, universities, cafes, libraries without the need for a credit card or debit card. They can convert physical money into electronic money using electronic machines that transfer physical money to wallets without needing any bank account in their e-wallets.
Electronic Funds Transfer (EFT)
The payment systems, which enable the transfer and reconciliation of money to be realized in electronic environment, have an important place in the country’s economy and electronic banking services. With these systems, which are also called Electronic Funds Transfer (EFT), the flow of money is realized in a fast, safe and risk-free environment. With this system, which was put into service in 1992 in our country, the bank of the debtor evaluates the debiting instructions from the EFT system in terms of authorization, limit adequacy and amount, and after checking that the order came from an account which was specified by the customer in an authorization this amount is sent to the creditor’s bank via the EFT system.
Electronic Funds Transfer (EFT), as in traditional banking, is the transfer of funds from one place to another in a short time by using modern communication technologies, not physically in the form of check, payment order, etc. The main function of the EFT system is to perform all kinds of communication between banks, transfers, transactions between the Central Bank and the banks, checks, bills and salaries, payments to public services (such as electricity, water, natural gas) and statistical data communication in a fast and effective manner. In general, the following operations are carried out in the EFT system;
- Money market transactions
- Open market operations
- Securities markets transactions
- Foreign and foreign exchange transactions
- Currency transfers ~ Interbank fund transfers
- Other operations
Electronic money is a payment tool that is increasingly used in electronic commerce applications. Electronic money is a cash displacement, storage and transferable phenomenon. Electronic money can be considered as the equivalent of the online vouchers used in daily life.
Persons wishing to benefit from this system should first be a member of systems developed by companies providing electronic money services and identify their card information on these sites. After that, they can make virtual purchases with other parties from the sites of contracted stores with electronic money. Thanks to these systems people do not have to enter the card information site on each site. When people are shopping, they write their account information on the system, the system passes the payment to the vendor, and the buyer pays the amount of money from the buyer’s card, so that the buyer assures himself, he only pays to a firm. Electronic money systems allow the withdrawal of the desired amount of money from a bank account to be stored electronically for use on the internet.
Paypal and CyberCash, DigiCash is the largest and most advanced system in the world for some of the organizations that provide electronic money and payment services. Debit Card: It provides consumers with direct electronic transfer from their bank accounts to the account of the seller. It’s like credit cards. In general, debit cards, credit cards and other electronic account cards are evaluated within this scope.
Electronic check is a payment tool that allows e-commerce companies to pay their invoices directly via the Internet without the need for paper withdrawals. It was originally developed by the Financial Services Technology Consortium (FSTC) in the United States. In the electronic check system, payments are made by entering the bank account information on the e-commerce site without a credit card. In this sense, in this system, which checks the money transfer, the banks check the money transfer and checks whether there is enough money in the account to terminate the shopping and sends the result to the site. The Netcheque system developed by the University of Southern California in the USA is a good example. This system applies normal withdrawal principles to electronic payment systems. This e-check, which has all the features that should have a normal pull, which should have a normal pull, such as the account number of the Investigator, the name of the holder, the amount to be paid and the currency in which the payment will be made, is valid after the approval by the digital signature.
Crypto Coins and Other Tools
Crypto coins are becoming increasingly popular as a means of payment in trade, starting with bitcoin, which was first established in 2009 on a decentralized architecture, and now has more than 2500 numbers. The trade of a product is made possible by transferring money from a digital purse to another wallet in the form of electronic codes by disabling agents such as visa / mastercard and their commissions or expenses. The most preferred crypto coins today are: bitcoin, etherium, litecoin, ripple, iota and tron.
Paypal: Internet is an online banking system that provides online payment infrastructure for traditional commercial enterprises with e-commerce entrepreneurs and virtual stores. One of the biggest benefits is that it allows consumers to shop with credit cards even from very small businesses. Another plus is the convenience it offers. Individuals do not have to enter payment and address information on repeated purchases every time, it is enough to sign in to paypal accounts and to approve the payment. PayPal, which provides additional security to the buyer with its customer protection program, protects consumers against commercial deceptions such as the product which does not come with the product or does not have the desired features.
Eserip: For some special low-paying payments, such as donation payments,
IPIN: It is a system that transfers Internet expenses to ISS bills.
Pay-by-link: a system that allows vendors to create customized shopping carts. It allows different buyers to present different price and quality from a single system. For example, if the seller wants to offer a product at a more affordable price for a particular customer, he can send a link to the buyer so that he is only referred to the payment page that is customized for himself.
E-Commerce in the world and Turkey
Rapidly evolving technology of the Internet to support, as a preferred shopping channel in the world and Turkey, and hence the volume of e-commerce is growing. In this channel, it is possible for enterprises to remain competitive and to offer better mix of products and to better understand consumer behavior and the factors affecting behavior.
E-Commerce in the World
With the increase in access to internet and information technologies in the world, the share of e-commerce in the global trade market is increasing. As of 2017, approximately 3.6 billion people, approximately half of the human population, are internet users. According to the 2016 global B2C e-commerce report published by Ecommercefoundation.org, the number of people over the age of 15 is 5,563 billion, and 26% of these people, 1.436 billion people, have exchanged products or services at least once over the Internet. Global e-commerce transaction volume increased by 17.5% in 2016 from $ 2,272 trillion in 2015 to $ 2,671 trillion.
In the area of B2C, Asia-Pacific is the strongest region in the world. Looking at the 2015 data, the Asia-Pacific region outperformed North America ($ 664 billion) and Europe ($ 505 billion) in the trading volume of $ 1,056 trillion. On a country-by-country basis, China maintained its leadership position over the United States ($ 595 billion) and the United Kingdom ($ 174.5 billion), with a transaction volume of $ 766.5 billion. These three countries have 68% of the global B2C market transaction volume. World GDP grew by 1.9% in 2015 compared to the previous year. The e-GDP ratio, which can be defined as the share of e-commerce in GDP, increased from 2.44% in 2014 to 3.11% in 2015 and increased its share of global GDP. It can be said that the popularity of e-commerce is increasing.
According to the Global Connected Commerce 2016 report by Nielsen, all product categories of the increase in online sales are not equal. The product groups are divided into two classes. Consumption goods and durable consumer goods in the classification of most of the people participating in the study in the online shopping consumed in the consumer durables consumption group was found to be more than the purchase. 55% of the participants stated that they bought clothing products, 50% books, music and stationery products and 49% of them bought their travel products / services at least once online.
According to the study, travel products were one of the five most preferred categories in all regions, while books, music and stationery products ranked top in Japan, America, Australia and South Africa. Consumables are listed below in the order list. 11% of the participants stated that they ordered fresh food or alcoholic drinks online. As an exception, the percentage of those who ordered beauty and personal care products online was 35%, 30% in the video game category, and 23% in furniture and decoration products. Very suitable for customizing and customizing online channels
Having been the factor increasing the online sale of beauty and personal care products. Again, according to the same research, the frequency of buying countries has significant differences. In Asia and European countries, this rate was quite high. 77% of South Korean participants preferred to buy clothes online, while in Japan, 79% of books, music and stationery products, Germany reached 76% and 75% in both categories.
Ecommerce continued to grow steadily in the global arena, it is trying to keep pace with the developments in Turkey. Although data and statistical resources are limited in our country regarding e-commerce, three important sources have been used in the research. These Turkstat, Interbank Card Center (BKM) and IT Industrialists Association of Turkey (TUBISAD) reports.
TUBISAD published by E-Commerce Market Size in 2015 according to the 2015 report on Turkey e-commerce transaction volume was realized as 24.7 billion TL. Compared to 2013, there is a 75% increase and an increase of 31% compared to 2014. In 2015, TL 11.4 billion of the total transaction volume was non-retail and TL 13.3 billion was in the retail sector.
When the categories and site numbers are examined, only the number of sites available in the online area is 365 for 2015, 6 for betting sites, 129 for travel sites and 385 for multi-channel retail sites. Referring to some of the country’s online retail e-commerce / retail index in Turkey could receive a total score of 2%. This rate was 12.6% for England and 9.2% for America.
According to the shopping statistics published by TÜİK, in the twelve-month period between April 2015 and March 2016, 60% clothing and sports equipment, 29.7% travel ticket, car rental, 25.8% household goods (furniture, toys, white goods), 21% electronic devices (mobile phone, camera, radio, TV, DVD player), 19.8% of food items with daily requirements (flowers, cosmetics, tobacco and drinks included). In 2015, the proportion of those who ordered or purchased goods and services from the internet increased from 33.1% in 2015 to 34.1% in 2016. The most preferred product category in our country was clothing and sports equipment with 60%. This was followed by travel expenditures and household goods purchases.
According to the index published by TÜİK issue of the percentage of shoppers who have trouble in Turkey over the Internet in 2015 from 23.2% in 2016 it increased to 24.9%. The two most important problems faced by Turkish consumers can be said to be logistical problems, especially the slow delivery and lack of damaged product or delivery.
In a study conducted by TÜİK for 2015, the rate of those who did not buy any product or service over the internet was 72.3%. When the reasons why these people do not shop online are examined, it is seen that 81.2% of the customers are in need of seeing the product and 44.9% of them pay privacy or security concerns. Figure 1.18 shows all grounds.