Online Banking

ABSTRACT:

With the onset of the Information Age, our nation is becoming increasingly dependent upon network communications. Computer-based technology is significantly impacting our ability to access, store, and distribute information. Among the most important uses of this technology is electronic commerce: performing financial transactions via electronic information exchanged over telecommunications lines. A key requirement for electronic commerce is the development of secure and efficient electronic payment systems. The need for security is highlighted by the rise of the Internet, which promises to be a leading medium for future electronic commerce.

Electronic payment systems come in many forms including digital checks, debit cards, credit cards, and stored value cards. The usual security features for such systems are privacy (protection from eavesdropping), authenticity (provides user identification and message integrity), and no repudiation (prevention of later denying having performed a transaction) .

The type of electronic payment system focused on in this paper is electronic cash. As the name implies, electronic cash is an attempt to construct an electronic payment system modelled after our paper cash system. Paper cash has such features as being: portable (easily carried), recognizable (as legal tender) hence readily acceptable, transferable (without involvement of the financial network), untraceable (no record of where money is spent), anonymous (no record of who spent the money) and has the ability to make “change.” The designers of electronic cash focused on preserving the features of untraceability and anonymity. Thus, electronic cash is defined to be an electronic payment system that provides, in addition to the above security features, the properties of user anonymity and payment untraceability..

EXISTING SYSTEM:

There are a number of conventional mediums of payment in the traditional retail system. They include, for example: coins and currency; checks; money orders; travelers’ checks; bankers’ acceptances; letters of credit; and credit cards. There also are several electronic fund transfer (“EFT”) systems in wide use today, including:

Automated Teller Machines (“ATMs”): automated devices used to accept deposits, disburse cash drawn against a customer’s deminf account or pre-approved loan account or credit card, transfer funds between accounts, pay bills and obtain account balance information.

• Debit Cards: cards used for purchases which automatically provide immediate payment to the merchant through a point-of-sale (“POS”) system by debiting the customer’s deposit account.

• POS Systems: systems that provide computerized methods of verifying checks and credit availabilities, and debiting or crediting customer accounts.

DISADVANTAGES OF EXISTING SYSTEM:

These schemes are far less satisfactory, however, from a law enforcement point of view. In particular, the dangers of money laundering and counterfeiting are potentially far more serious than with paper cash. These problems exist in any electronic payment system, but they are made much worse by the presence of anonymity. Indeed, the widespread use of electronic cash would increase the vulnerability of the national financial system to Information Warfare attacks.

PROPOSED SYSTEM:

The new “electronic cash” technologies that are the subject of this article include a wide variety of approaches in which monetary “value” is stored in the form of electronic signals either on a plastic card (“Stored Value Card Systems”) or on a computer drive or disk (“E-Cash Systems”). As is discussed below, some of these approaches require a network infrastructure and third party payment servers to process transactions; others allow the direct exchange of “value” between remote transacting parties without requiring on-line third-party payment servers.

ADVANTAGES OF PROPOSED SYSTEM:

These developing electronic cash systems differ from EFT systems in various respects. A key difference is that in electronic cash systems the monetary value has been transferred to the consumer’s stored value card or computer or other device before the customer uses it, whereas in EFT systems the value is not transferred toa device controlled by the customer. Rather, the EFT system is itself the mechanism to transfer value between the customer’s deposit account and the merchant’s or other third party’s deposit account.

1. Customer establishes account with issuer (“Virtual Bank”) by depositing funds with Issuer.
2. Issuer holds funds from customer for future draw by recipient of value from customer.
3. When customer wants to make purchase over the Internet, customer sends encrypted electronic e-mail message to Virtual Bank requesting funding. Message contains unique digital “signature.”

1. Virtual Bank debits customer’s account and sends customer digital cash via phone lines to customer’s computer.

• Digital cash system may create audit trail of transactions or may be anonymous, depending upon the particular system.

• In anonymous system, Virtual Bank adds private signature that only it can create. Computer users can decode public version of signature using key (provided by Virtual Bank) to verify that digital cash was issued by Virtual Bank.

1. Customer transmits digital cash to vendor, who can verify its authenticity and have it credited to vendor’s account with Virtual Bank, or who can e-mail it to another person or bank account.
2. In all likelihood, Virtual Bank will charge customer and/or vendor a transaction fee or service charge for use of system (although anonymous systems raise different issues in this regard from accountable systems).

SYSTEM REQUIREMENTS:

HARDWARE REQUIREMENTS:

• System             : Pentium Dual Core.
• Hard Disk       : 120 GB.
• Monitor           : 15’’ LED
• Input Devices : Keyboard, Mouse
• Ram                  : 1 GB.

SOFTWARE REQUIREMENTS:

• Operating system : Windows 7.
• Coding Language : NET,C#.NET
• Tool                         : Visual Studio 2008
• Database                : SQL SERVER 2005