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
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
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