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Some Electronic Payment Transaction Means


added to create more convenience for customers. Most small and medium-sized banks are in this form. 11

E-business

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In this form, the basic processing of the bank both at the customer side (front-end) and the manager side (back-end) is integrated with the Internet and other distribution channels. This stage is distinguished by the increase in products and functions of the bank with the differentiation of products according to the needs and relationships of customers with the bank. Moreover, the coordination and sharing of data between the bank headquarters and distribution channels such as branches, the Internet, wireless networks, etc. help to process requests and serve customers faster and more accurately. The Internet and science and technology have increased the connection and sharing of information with banks, partners, customers, management agencies, etc. Some advanced banks in the world have built this model and are aiming to build an electronic bank.

complete. 11

Some Electronic Payment Transaction Means

Electronic banking (E-bank)

It is the ideal model of an online bank in the electronic economy, a complete change in business model and management style. These banks will utilize the real power of the global network to provide a full range of financial solutions to customers with the best quality. From the initial steps of providing existing products and services through many separate channels, banks can use these multiple communication channels to provide different solutions for each specialized customer group. 11

1.2.2. Electronic banking products and services

In principle, the essence of e-banking services is to establish a channel for exchanging financial information between customers and banks to serve customers' needs for using banking services quickly, safely and conveniently. After much research, testing and application, e-banking services are currently provided by Vietnamese commercial banks through the following main channels: card services, automatic teller machine services (ATM/POS) and modern e-banking services such as home-banking, telephone banking services.


phone-banking, mobile-banking, call-center, internet-banking and kiosk banking. 12

Home-banking

Characteristic

Home - banking is a service distribution channel of the electronic bank, allowing customers to conduct transactions with the bank (where the customer opens an account) at home or at the company office without having to go to the bank through the internal network built by the bank. Through the home - banking service, customers can perform transactions such as account inquiries, transfers, payments, etc. 12

Customer benefits when using the service

Using home-banking service, customers will have a direct connection channel to the bank, thereby being proactive in terms of time in transactions with the bank, not depending on the opening and closing hours of the bank, as well as paperwork procedures when transacting directly at the bank. This is a transaction channel built specifically for businesses, customers should ensure safety when making transactions, avoiding risks of fraud, theft of account information, and users. Therefore, from the customer's side, home-banking has brought practical benefits thanks to fast, safe, convenient transactions and 24/7 banking services.

is a great advantage that electronic banking products and services have. 12

Conditions for using the service

Home-banking service is built on one of two platforms: the application software system (Software Base) and the web technology platform (Web base), through the server system, the Internet network and the customer's workstation, financial information will be established, encrypted, exchanged and confirmed between the bank and the customer. The application and development of home-banking is a step forward for commercial banks.


12 Electronic banking products and services. Source: Nguyen Huu Thang, 2014, Solutions for developing “Electronic banking” products at Military Commercial Joint Stock Bank – Viet Tri Branch . Master's thesis. Hanoi University of Science and Technology. Pages 5-11.


Vietnam's banking sector is under great pressure from the global integration process in banking services. 12

Risks and dangers for customers and banks

Besides the benefits it brings to customers, this service also has potential risks such as:

- For banks: Because this service creates a direct connection channel to the bank, it will be very dangerous for the banking system when hackers access and gain access control from the customer side.

- For customers: From easily performing transactions through the established system and the security key given to the customer, it leads to risks in managing access rights and using the customer's security key. If the customer discloses access information and security key to others, it is very easy to lose money in the account. 12

Phone - banking

Characteristic

The bank's phone-banking system offers customers a new banking utility. Customers can use their landline or mobile phones anytime, anywhere to hear information about the bank's products and services, and personal account information quickly, conveniently and time-savingly. 12

Customer benefits when using the service

When registering to use the Phone - banking service, customers will be provided with a customer code, or account code and depending on the registered service, customers can use many different services. Through phone - banking, customers can use many banking services such as: instructions on how to use the service, introduction of information about banking services, providing account information and transaction statements, debt and credit notifications, providing banking information such as interest rates, exchange rates, money transfers, bill payments and customer support services, ... anytime, anywhere, even outside of business hours. Phone - banking also provides customers with the above information via fax when

customer request. 12

Conditions for using Phone - banking service


It is an automatic answering system that operates 24/7. Customers press the keys on the phone keyboard according to the code specified by the bank to request the system to respond with the necessary information. This service is also provided through a server system and management software located at the bank, linked to customers through the service's switchboard. Through predefined function keys, customers will be served automatically or through switchboard staff. 12

Risks and dangers for customers and banks

Phone-banking is built on the basis of a server system and automatic management software, so for customers and banks there will be the following risks:

- For banks: reputational risks can arise when product and service systems do not function as expected and create negative reactions from customers.

- For customers: customers' failure to properly manage their access codes (accounts) and passwords can lead to information about their accounts and transactions being leaked, causing risks such as falsifying transaction information and stealing money from customer accounts. 12

Mobile banking service

Characteristic

Along with the development of mobile information networks, banking services in Vietnam have also quickly applied these new technologies. Mobile-banking is a channel for distributing banking products and services through mobile telecommunications networks.

In principle, this is the process of information being encrypted, secured and exchanged between the bank's processing center and the customer's mobile device. This is also a form of online payment via mobile network. This method was born to solve payment needs with small transaction values ​​or automatic services without human service. 12

Customer benefits when using the service

Mobile banking service is a utility provided by the bank to customers with bank accounts to use money in their accounts to pay bills.


services, shopping for goods and services is simple, safe, anytime, anywhere without using cash.

Customers can choose additional utilities such as account balance notifications when transactions occur, helping customers continuously monitor their balance and account activity.

With the growing development of telecommunications and mobile technology, using smartphones, customers can control their financial transactions anytime, anywhere. 12

Conditions for using the service

The bank must equip a modern server and software system, closely linked with telecommunications service providers and software companies to have applications on customers' phone platforms. To participate, customers must register and provide important information such as mobile phone number, personal account number used for payment. Then, the customer will be provided with an identification number (ID) by the service application provider through this network to help provide customer information when making payment quickly, accurately and simply. Along with the identification number, the customer is also given a personal identification number (PIN) for customers to confirm transactions.

payment when requested by the payment service provider. 12

Risks and dangers for customers and banks

Similar to Phone - banking, Mobile - banking service also has potential risks for banks and customers.

- For banks: reputational risks can arise when the product and service system does not operate as expected and creates negative reactions from customers. At the same time, the security of this service is also a factor that causes concern for customers when choosing a product.

- For customers: if customers do not manage their identification numbers and personal codes well, they may risk losing money and revealing transaction information. In addition, when smartphones are currently developing, the risk of viruses stealing account information to withdraw money is also a risk for customers when using this service channel. 12


Call - center

Characteristic

Call center is a telephone banking service with the task of: providing all information about the bank's products and services, including: payment deposits, savings, loans, money transfers... Introducing the bank's card products over the phone, registering for cards over the phone, registering loans for customers over the phone, making payments for electricity, water, telephone, Internet bills... and other forms of money transfer, receiving complaints and questions from customers over the phone when using the bank's products and services. 12

Customer benefits when using the service

Customers will be provided with complete information about the bank's products and services through 24/7 call center staff. This is the bank's free service channel for customers, helping to answer questions and provide remote service consultation to customers, thereby helping customers access and use the service easily and conveniently. 12

Conditions for using the service

The basic requirement for this service is a telephone switchboard system capable of responding to several hundred to several thousand calls at the same time, along with a team of telephone operators on duty 24/7. 12

Internet banking services

Characteristic

Internet - banking is a channel for distributing banking products and services via the internet. Customers with computers connected to the internet can access Internet - banking anywhere and anytime and will be provided with full instructions on all banking products and services. 12

Customer benefits when using the service

Internet Banking service helps customers transfer money online through accounts as well as control the activities of these accounts. To participate, customers access the Bank's website and perform financial transactions, collecting necessary information. The information is very rich, down to every detail of the customer's transaction.


as well as other information about the bank. Customers can access other websites to make purchases and make payments to the bank. 12

Infrastructure conditions

Internet-banking is built on a web-based technology platform, including a system of servers that ensure the reception and processing of a large amount of transaction information. The requirement for this system is to use security technologies, transmission encryption (such as RSA, SSL, OTP...) to ensure that transactions from the customer's workstation are carried out in the safest way. 12

Risks and dangers for banks and customers

Compared to other current products and services, Internet-banking is a product and service with the fastest growth rate but also contains the most risks.

- Risks for banks: this service channel is implemented on the web and internet platforms, so it always faces security risks such as DDOS denial of service attacks, hackers illegally accessing and stealing account information, customer information... creating technological risks for banks. From technological risks, it will lead to reputational risks when customers do not trust to use this service.

- Risks to customers: due to the technological risks of this service channel, customers can become victims of hackers or criminals who defraud money from their accounts. 12

1.2.3.Some means of electronic payment transactions

Digital cash

Electronic money is a means of payment on the Internet. People who want to use electronic money send a request to the bank. The bank that issues electronic money will issue a telegram signed by the bank's private key and encrypted by the customer's public key. The content of the telegram includes information identifying the issuer, Internet address, amount of money, serial number, expiration date (to avoid double issuance or use). The bank will issue money to each specific customer. Customers store electronic money on their personal computers. When making a purchase or sale, the customer sends the supplier an electronic message


encrypted by the public key of the service provider. The provider uses its private key to decrypt the message, and at the same time checks the authenticity of this payment message with the issuing bank using the issuing bank's public key and checks the serial number of the electronic money. 13

Digital check

The same technique is used to transfer electronic checks and drafts over the Internet. Electronic checks have the same content as regular checks, the only difference is that the check is electronically signed (ie the message is encrypted with the personal password of the person signing the check). When the beneficiary's bank performs the check collection operation, they will mark the electronic message and the fact that this message is encrypted with the public key of the check issuing bank will be the basis for payment of this electronic check. 13

Smart card - Electronic wallet (Stored value smart card)

It is a plastic card attached to a micro-processor chip. The card user loads money into the card and uses it to make purchases. The amount written on the card will be deducted until it reaches 0. At that time, the owner can load money or discard the card. Electronic wallets are widely used in transactions such as ATM (Automated Teller machine), Internet banking, Home banking, Telephone banking or shopping on the Internet with a smart card reader connected to a personal computer. 13

1.2.4.The role of electronic banking services

- For customers: Electronic banking services help save costs, time and effort for customers as well as bank staff and help customers access the bank faster and more effectively.

- For banks: The emergence of e-banking services creates more opportunities for banks to increase profits, helping banks create better relationships with customers, allowing effective exploitation of achievements in science and technology. Developing e-banking helps banks improve their competitiveness and position.


13 Some means of electronic payment transactions. Source: Nguyen Thi Phuong Tram, 2008, E-Banking Service Quality: Comparison between two models SERVQUAL and GRONROOS . Master's thesis. Ho Chi Minh City University of Economics. Page 10-11.

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