Online Payment Gateways Used to Facilitate E-Commerce Transactions and Improve Risk Management

Communications of the Association for Information Systems (CAIS), Vol. 17, No. 6, pp. 1-48, 2006

49 Pages Posted: 3 Feb 2006 Last revised: 25 Aug 2009

See all articles by Paul Benjamin Lowry

Paul Benjamin Lowry

Virginia Polytechnic Institute & State University - Pamplin College of Business

Taylor Michael Wells

California State University

Gregory D Moody

University of Nevada, Las Vegas - College of Business

Sean Humphreys

Brigham Young University - Department of Information Systems

Degan Kettles

My eBiz

Abstract

As online transactions continue to increase and become a significant part of the global economy, the ability to accept payments online becomes more important for businesses. This paper evaluates the literature and provides current information for IS researchers and instructors focusing on electronic commerce. In this paper, we explore the components of e-credit providers (conventional, person-to-person, and third-party) and explain how each system processes a single transaction. We then analyze several market leaders in each segment and summarize the strengths and weaknesses of each company. We provide guidelines for selecting an e-credit provider and highlight the options that apply best to online businesses. Finally, we outline potential areas of future research and provide a simple tutorial on creating a business account with PayPal website Payments Standard as an example of an online payment provider.

Keywords: online payment systems, e-credit, e-commerce, payment gateway, merchant account, shopping cart, PtP payment processes, education

Suggested Citation

Lowry, Paul Benjamin and Wells, Taylor Michael and Moody, Gregory Daniel and Humphreys, Sean and Kettles, Degan, Online Payment Gateways Used to Facilitate E-Commerce Transactions and Improve Risk Management. Communications of the Association for Information Systems (CAIS), Vol. 17, No. 6, pp. 1-48, 2006. Available at SSRN: https://ssrn.com/abstract=879797

Paul Benjamin Lowry (Contact Author)

Virginia Polytechnic Institute & State University - Pamplin College of Business ( email )

1016 Pamplin Hall
Blacksburg, VA 24061
United States

Taylor Michael Wells

California State University ( email )

Gregory Daniel Moody

University of Nevada, Las Vegas - College of Business ( email )

United States

HOME PAGE: http://https://faculty.unlv.edu/wpmu/gmoody/

Sean Humphreys

Brigham Young University - Department of Information Systems ( email )

510 Tanner Building
Marriott School
Provo, UT 84602
United States

Degan Kettles

My eBiz ( email )

629 E. 730 Street, Suite 103
American Fork, UT 84003
United States

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