Analysis of Security Issues in Electronic Payment Systems

The emergence of e-commerce has created new financial needs that in many cases cannot be effectively fulfilled by the traditional payment systems. Recognizing this, virtually all interested parties are exploring various types of electronic payment systems, issues surrounding electronic payment system and digital currency. Broadly, electronic payment systems can be classified into four categories: online electronic cash system, electronic cheque system, online credit card payment system, and smart cards based electronic payment system. Each payment system has its advantages and disadvantages for the customers and merchants. We highlight the analysis of the security levels in relationship with fraud vulnerability, and determine how this relationship affects or boosts the confidence of the users.