Money in the e-commerce network, represents information moving at the speed of light, where fraud (digital crime) within the banking and financial services happened very fast and can cost billions of dollars each year-undetected and unreported. In this paper I present a comprehensive framework that mines and detect fraudulent transactions of Card-NotPresent (CNP) in the e-payment systems with a...

When most cardholders swipe a card at a retailer to purchase goods and services, they are probably unaware of what happens behind the scenes between the time the card is swiped and when the merchant is finally paid. There is, however, a detailed set of arrangements between financial institutions that ensure that the merchant is paid and the cardholder’s account debited. Historically, these arra...

Electronic payment transactions using smart card are based on the Europay Mastercard Visa (EMV) specifications. This standard appeared in 1995 in order to ensure security and global interoperability between EMV-compliant smart cards and EMV-compliant payment terminals throughout the world. Another purpose of EMV specifications is to permit a secure control of offline credit card transaction app...

Economics provides a useful framework for understanding both drivers of and barriers to retail payments security. This paper documents economic principles that underpin retail payments security and describes how a game theory approach can be used to evaluate and construct security strategies. It then demonstrates in four case studies how economics can help explain why some payment security mech...

Credit card fraud is already a significant factor inhibiting consumer confidence in ecommerce. As more advanced payment systems become common, what legal and technological mechanisms are required to ensure that fraud does not do long-term damage to consumers' willingness to use electronic payment mechanisms?

MasterCard and VisaCard use credit cards to support a number of services, such as Masterphone or Visaphone, which allow cardholders to make phone calls from any telephone. However, these services take little or no security precautions. Although SET protocol has defined a secure payment method for card transactions over open networks, it cannot fit in telephone systems. In this paper, we propose...

Rapid innovation is changing the array of financial services and payment options available to customers. To examine the driving forces behind the surge of innovation and the adoption of new technology, the Payment Cards Center and the Research Department of the Federal Reserve Bank of Philadelphia hosted a conference on “Innovation in Financial Services and Payments” on May 16-17 of this year.

This paper examines how competition among payment card networks—three-party scheme networks and four-party scheme networks—affects pricing as well as the welfare of various parties. A competing network has an incentive to provide rewards to its card users. By providing more generous rewards than its rival networks, the network can increase its own card transactions because multihoming cardholde...