The Secure Payment System

The Problem

In the digital economy, how can we avoid payments scams in which the provider accepts payments and doesn't deliver the services or goods? This is particularly important today that we have a worldwide market connected by the Internet and digital media. What's demanded is a secure payment system which safeguards the attention of both the provider and the purchaser. This paper describes such a method.

The Process

We presume that the seller and buyer have made the relationship with one another. The purchaser would like to buy the provider's product. On the other hand, the purchaser and provider are distant from each other however they could communicate through email (some other instantaneous communications station could do). In addition, we assume that there's an online website, known as the Secure Payment Site (SPS).

Measure 1

The purchaser logs on to the SPS and pays the agreed number and 5 percent to the website. The website then creates a Despatch Key (a exceptional sequence of letters and numbers) and mails this to the provider. The purchaser also places a time limit on despatch along with also a minimal number of times between despatch and payment.

Step2

The provider despatches the goods and also enters the despatch crucial on the SPS website. The website then mails the purchaser a Satisfied Key and mails this to the purchaser. The provider also sets a time limitation on the client for satisfactory receipt together with the minimum being the amount of times proposed by the client.

Measure 3

On receipt of these merchandise, the Purchaser enters the Satisfied Key about the SPS Website. The website creates a payment to the provider and refunds the 5 percent.

This is a simple payment trade at which nothing goes wrong. At Step 1, the provider knows that there'll be payment when he provides the merchandise. At Step 2, purchaser understands he could authorise the discharge of their funds if he's satisfied with the merchandise.

To know how this system may protect the interests of both the buyer and the seller, we will need to spell out the condition of the trade through the Steps as well as the exclusion handling.

Despatch Issues

If the provider doesn't input the Despatch Key to the SPS inside the time limitation, the transaction is voided and the SPS will repay the amount to the purchaser in total.

Satisfaction Issues

Whenever following the despatch crucial is sent and before the time limitation determined by the provider, the purchaser may put this trade to a contested standing. When the time limit decided by the provider was attained, if no Satisfaction Key was entered, then the money will automatically paid into the provider.

Disputed Status and Resolution

When a trade is at a contested standing, the website automatically generates two unique keys; the Customer Dispute Key along with the Supplier Dispute Key. The website will make it possible for both parties to convey officially through website mail messages. These messages will be listed to make an audit course of the talks. The funds will only be published as follows:-

Using the Supplier Dispute Key, the provider may decide on a flag to repay to the purchaser; Using the Buyer Dispute Key, the purchaser may decide on a flag to cover the provider; Either party may use to SPS admin to create a settlement if everything else fails.
Benefits

The Buyer

The buyer gains are evident. This type of payment method will stop the 'no-supply' scams. Additionally, it provides the provider more electricity over the provider over the grade of the item. In case the product provided is found to be disappointing on receipt, then he can instantly place the trade into question and induce the provider to react. If all cash received to the SPS is put to a customer's trust account, they'd be protected legally too from any fiscal instability from the business operating the SPS.

The Supplier

For the fair supplier or vendor, there's the comfort of knowing that the money will be there to cover the merchandise if it's satisfactory. Since the purchaser has already parted with his cash, there's not any profit for the purchaser to set the payment into dispute.

The Business Opportunity

Most credit cards charge merchants from 3 percent to 6% of the trade value. The SPS operator may impose a similar fee on the provider. Alternately, the fee may be levied on the purchaser for a kind of insurance. From a fiscal perspective, there should be a minimal transaction value, state #12 or 20. As for me, I would favour a fixed fee on the purchaser of state #1.20 or 2 with a choice of earning another charge of state #10 when the SPS organisation must manually intervene to resolve a disputed transaction.

The target market would clearly exclude the well known brands that are reputable. But, employing an SPS system may be quite appealing to smaller, not as renowned retailers in addition to people selling things particularly if those retailers wish to go worldwide.

Conclusion

Such a method will promote trading online. Not only is this thought likely to earn money but also it helps to promote honest trading from the electronic market. Think about it?