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CHAPTER ONE
INTRODUCTION

1.1 BACKGROUND OF STUDY
Electronic commerce, commonly written as e-commerce, is the trading or facilitation of trading in products or services using computer networks such as the internet.E-commerce paymentsystem is one of the main requirements in e-commerce which is the ability to accept a form of electronic payment. This form of electronic payment is referred to as Financial Electronic Data Interchange (FEDI). Financial electronic data interchange has become increasingly popular over the last number of years due to the widespread of use of the internet based shopping and banking through the use of credit cards and smart cards.
Over the years, credits cards have become one of the most common forms of payment for e-commerce transactions. In the early years of the business to consumer, many consumers were apprehensive of using their credit cards over the internet because of fear that their credit cards numbers would get stolen. However, due to increased security with credit card companies such as Visa, American Express and MasterCard there is widespread use of credit card use over internet, especially in North America. Despite this widespread use in North America, there are still a number of countries such as China, India and Pakistan that have some problems to overcome in regards to credits card security. In the meantime, the use of smartcards has become popular. A smartcard is similar to a credit card.
This free online service allows consumers and businesses to send money to anyone with an email address in 45 countries. PayPal is accepted by thousands of businesses worldwide and is the preferred payment method on eBay.com. PayPal is now owned by ebay.com are usually assessed a fee (either to the recipient or to the sender) to recoup the transaction fees charged to the media.
Electronic bill present and payment is fairly new technique that allows consumers to view and pay bills electronically. There are significant numbers of bills that consumers pay on a regular basis, which include: power bills, water, oil, internet, phone service, mortgages, car payments etc. Electronic bills present payment systems that send bills from service providers to individual consumers via the internet.
The biggest difference between Electronic bill present and payment systems and the traditional method of bill payment is that of technology. Rather than receiving a bill through the mail, writing out and sending a check, consumers receive their bills in an email, or are prompted to visit a website to view and pay their bills.[http://www.google.com].
1.2 STATEMENT OF PROBLEM
It has been observed that most telecommunication firms make use of paper based voucher systems when making available telecommunication services such as recharge cards, bill generation whether post-paid or prepaid, transaction and pin based operations.
1. There is less security in the manual system.
2. The problem of using paper voucher to litter the environment.
3. The problem of fake voucher cards that is using fake pins.
4. Errors such as transposition of figures in the Voucher
1.3 AIM OF THE STUDY
The aim of study is to design and implement an electronic voucher system which provides a fast and easy way to purchase vouchers online.
1.4 OBJECTIVES OF THE STUDY
The objectives of this project are as follows:
a. To design an electronic voucher management and payment system.
b. To provide a systems requirement document for the design and implementation of such an application.
c. To evaluate the project’s results, provide recommendations of refinements and enhancements for interested system developers and designers.

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1.5 SCOPE OF STUDY
The study cover the design and implementation of e-voucher for online recharge card for top leading telecommunication companies in Nigeria, which is MTN, GLOBALCOM, AIRTEL AND ETISALAT etc. It is restricted to any other telecommunication company in Nigeria.
1.6 SIGNIFICANCE OF STUDY
The significance of the study of this project is to bring to light the advantages of Online voucher system, the earring problems associated with the manual method and how this problems can be solved using online techniques and the best approach in which we can go about solving problems involving recharging is through Online application.
1.7 LIMITATION OF THE STUDY
However, there are also areas of limitation due to some uncontrollable factors which include the following:
1. Shortage of personnel to carryout research to a logical conclusion.
2. Reluctance of service providers providing adequate and concise information.
3. Financial limitation in carrying adequate research in for the project.
4. Time constraint in concluding the detailed project.
5. Rapid change in information technology trends and the expansion of telecom service provision to 3G, 4G and other next generation services.
6. Policy of the respondent company.
7. Insufficient information regarding the topic being discussed.
1.8 DEFINITION OF TERM
1. E-commerce:Refers as electronic commerce is the buying and selling of goods and services or transmitting of funds or data over an electronic network,primarily theinternet.
2. FEDI:Refers as Financial Electronic Data Interchange is the computer-to-computer exchange of payment and payment- related information between companies using a standard format.
3. PayPal:Is used to send and receive payments through the internet.
4. Credit card:Is a card issued by a financial company giving the holder an option to borrow funds, usually at point of sale. It charges interest and primarily used for short-term financing.

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