THE DESIGN AND IMPLEMENTATION OF A MONEY TRANSFER SYSTEM

ABSTRACT
Research has shown traditional money transfer systems are prone to attacks through falsified deposit slips and drafts, forgery of signatures, use of false cheques, theft of debit cards and so on. Also, a lot of transactions which are required to take place during the weekend or after banking hours cannot happen because banks do not open on weekends and do not attend to customers after hours. This system offers a platform independent of transferring money from one place to another at any time and on every day of the week.
The main aim of this project is to improve on existing money transfer systems. To achieve this aim the use of CVC(card verification code) and randomly generated numbers on a token to provide a secure system for transferring money.
This project is not just the development of standard software or just the implementation of a money transfer system but a portal that solves some issue when it comes to transferring of money, which in this case we focused on the security and the aspect of a friendly and simple system.
After carefully considering and analyzing the need and challenges of the users, there was a conclusion that the portal, definitely not as large or comprehensive as already existing portals but it is an innovation that can perform the most desired activities of the user.
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TABLE OF CONTENTS
CHAPTER ONE ……………………………………………………………………………………………………… 11
INTRODUCTION …………………………………………………………………………………………………… 11
1.1BACKGROUND OF THE STUDY ………………………………………………………………………. 11
1.2 PROBLEM STATEMENT …………………………………………………………………………………. 12
1.3 AIM AND OBJECTIVES …………………………………………………………………………………… 13
1.4 SIGNIFICANCE ………………………………………………………………………………………………… 13
1.5 SCOPE ………………………………………………………………………………………………………………. 14
1.6 LIMITATIONS ………………………………………………………………………………………………….. 14
1.7 SIGNIFICANCE OF THE PROJECT ………………………………………………………………… 15
1.8 PROJECT FEASIBILITY AND PLAN ………………………………………………………………. 15
1.9 DEFINITION OF TERMS …………………………………………………………………………………. 16
1.10 ORGANIZATION OF SUBSEQUENT CHAPTERS …………………………………………. 17
CHAPTER TWO …………………………………………………………………………………………………….. 20
LITERATURE REVIEW ………………………………………………………………………………………… 20
2.1 INTRODUCTION ……………………………………………………………………………………………… 20
2.2 HISTORICAL BACKGROUND OF MONEY TRANSFER SYSTEMS ………………. 21
2.2.1 EVOLUTION OF MONEY TRANSFER MECHANISMS ………………………………………………21
2.3 THE NEED FOR AUTOMATION ……………………………………………………………………… 23
2.4 CHALLENGES OF MONEY TRANSFER SYSTEMS………………………………………… 24
2.4.1 SECURITY ………………………………………………………………………………………………………………..24
2.4.1 INTEGRITY ………………………………………………………………………………………………………………25
2.4.2 CONFIDENTIALITY ………………………………………………………………………………………………….25
2.4.3 AUTHORIZATION …………………………………………………………………………………………………….25
2.5 REVIEW OF RELATED WORKS ……………………………………………………………………… 26
2.5.1 PAYPAL ……………………………………………………………………………………………………………………26
2.5.2 SKRILL ……………………………………………………………………………………………………………………..27
2.5.3 DWOLLA ………………………………………………………………………………………………………………….27
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2.5.4 VERSAPAY ……………………………………………………………………………………………………………….28
2.5.5 QUICKTELLER …………………………………………………………………………………………………………28
2.5.6 MONEY GRAM …………………………………………………………………………………………………………29
2.6 METHODOLOGY …………………………………………………………………………………………….. 30
2.7 MODULE OFA MONEY TRANSFER SYSTEM ………………………………………………… 30
2.8 PROPOSED SYSTEM ……………………………………………………………………………………….. 31
CHAPTER THREE …………………………………………………………………………………………………. 34
SYSTEM DESIGN AND DESIGN METHODOLOGY ……………………………………………… 34
3.1 SYSTEM ANALYSIS …………………………………………………………………………………………. 34
3.2 RESTATEMENT OF PROJECT OBJECTIVES ………………………………………………… 34
3.3 DESIGN METHODOLOGIES …………………………………………………………………………… 34
3.3.1 Pros and Cons of the Waterfall Development Model ……………………………………………………….35
3.4 ANALYSIS OF PROPOSED SYSTEM ………………………………………………………………. 36
3.5 USER REQUIREMENTS …………………………………………………………………………………… 36
3.6 SYSTEM REQUIREMENTS ……………………………………………………………………………… 37
3.7 FUNCTIONAL REQUIREMENTS …………………………………………………………………….. 37
3.8 NON-FUNCTIONAL REQUIREMENTS …………………………………………………………… 38
3.9 SYSTEM DESIGN ……………………………………………………………………………………………… 38
3.9.1 DESIGN MODELS ……………………………………………………………………………………………………..39
3.9.2 USE CASE DIAGRAM ……………………………………………………………………………………………..39
……………………………………………………………………………………………………………………………….. 43
3.10 DATABASE DESIGN ………………………………………………………………………………………. 44
3.11 DEVELOPMENT TOOLS ……………………………………………………………………………….. 49
3.11.1 PROGRAMMING LANGUAGES ………………………………………………………………….. 49
3.11.1.1 HTML (HyperTextMarkup Language) ………………………………………………………………50
3.11.1.2 JAVASCRIPT …………………………………………………………………………………………………..50
3.11.1.3 CASCADING STYLE SHEETS …………………………………………………………………………51
3.11.2. INTEGRATED DEVELOPMENT ENVIRONMENT (IDE) TO BE USED …………………….52
3.11.2.1 ADOBE DREAMWEAVER ………………………………………………………………………………53
3.11.2.2 SUBLIME TEXT ………………………………………………………………………………………………53
3.12 WEB DEVELOPMENT ENVIRONMENT TO BE USED …………………………………. 53
3.12.1 WAMP PACKAGES …………………………………………………………………………………………………53
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CHAPTER FOUR ……………………………………………………………………………………………………. 55
SYSTEM IMPLEMENTATION AND REVIEW ……………………………………………………… 55
4.1 ………………………………………………………………………………………………….. INTRODUCTION ……………………………………………………………………………………………………………………………….. 55
4.2 SOFTWARE DEVELOPMENT TOOLS ……………………………………………………………. 55
4.3 COMPONENT AND SYSTEM TESTING ………………………………………………………….. 55
4.3.1 DATABASE TESTING ……………………………………………………………………………………………….56
4.3.2 PROCESS TESTING …………………………………………………………………………………………………..56
4.3.3 INTERFACE TESTING ………………………………………………………………………………………………56
4.4 THE SYSTEM ……………………………………………………………………………………………………. 57
4.4.1 USER MODULE ………………………………………………………………………………………………………..57
4.4.2 ADMINISTRATOR MODULE …………………………………………………………………………………….61
4.2.3 Cashiers Module …………………………………………………………………………………………………………63
4.4 ………………………………………………………………………………….. SYSTEM REQUIREMENTS ……………………………………………………………………………………………………………………………….. 65
4.4.1 HARDWARE REQUIREMENT …………………………………………………………………………….65
4.4.2 SOFTWARE REQUIREMENTS …………………………………………………………………………65
4.4.3 RESPONSIVENESS ……………………………………………………………………………………………66
4.5 …………………………………………. SOFTWARE TESTING AND QUALITY ASSURANCE ……………………………………………………………………………………………………………………………….. 67
CHAPTER FIVE …………………………………………………………………………………………………….. 70
SUMMARY AND CONCLUSION …………………………………………………………………………… 70
5.1 INTRODUCTION ……………………………………………………………………………………………… 70
5.2 SUMMARY ……………………………………………………………………………………………………….. 70
5.3 CONCLUSION ………………………………………………………………………………………………….. 71
5.3 RECOMMENDATIONS…………………………………………………………………………………….. 71
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Figure 3. 1 Stages of the software development process model …………………………………………………….35
Figure 3. 2 Use case Diagram of the Cashier/Agent …………………………………………………………………….39
Figure 3. 3 Use case Diagram of the User ………………………………………………………………………………….40
Figure 3. 4 Use case Diagram of the Admin ……………………………………………………………………………….41
Figure 3. 5 Use case Diagram of the user …………………………………………………………………………………..42
Figure 3. 6 Admin Database Table ……………………………………………………………………………………………45
Figure 3. 7 Application Database table ………………………………………………………………………………………45
Figure 3. 8 Cashier Database table …………………………………………………………………………………………….46
Figure 3. 9 ContactUs Database table ………………………………………………………………………………………..46
Figure 3. 10 Customer Database Table ………………………………………………………………………………………47
Figure 3. 11 Transaction Database Table ……………………………………………………………………………………47
Figure 3. 12 Inbox Database Table ……………………………………………………………………………………………48
Figure 3. 13 Token Database Table …………………………………………………………………………………………..48
Figure 3. 14 Snapshot of the Database ……………………………………………………………………………………….49
Figure 4. 1 Homepage ……………………………………………………………………………………………………………..57
Figure 4. 2 About us Page ………………………………………………………………………………………………………..58
Figure 4. 3 FAQ page ………………………………………………………………………………………………………………58
Figure 4. 4 Contact us page ………………………………………………………………………………………………………59
Figure 4. 5 Login Page …………………………………………………………………………………………………………….59
Figure 4. 6 New account page …………………………………………………………………………………………………..60
Figure 4. 7 User dashboard ………………………………………………………………………………………………………61
Figure 4. 8 Admin login …………………………………………………………………………………………………………..62
Figure 4. 9Admin Dashboard ……………………………………………………………………………………………………63
Figure 4. 10 Cashier Login……………………………………………………………………………………………………….63
Figure 4. 11 Cashier Dashboard ………………………………………………………………………………………………..64
Figure 4. 12A sample view of the registration on a mobile phone screen size(375 x 667) ………………..66
Figure 4. 13 Web responsiveness ………………………………………………………………………………………………67
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CHAPTER ONE
INTRODUCTION
1.1BACKGROUND OF THE STUDY
Sending or receiving money for either payment of services, settlement of business transactions, payment of utility bills, or for family support is common both for businesses and individuals because there will always be a need to transfer money from one user to another. It requires efficient, reliable and affordable money transfer services whereby money can be deposited in one location and withdrawn in another in both urban and rural areas.
Electronic money transfer is a regulated payment service performed from an electronic device which enables users have access to their money anywhere and at anytime without need for a bank account. Real money is converted into electronic money (e-money) and put into electronic devices so that financial transactions such as the transfer of funds from one subscriber to another can be carried out through an electronic device. The concept of mobile money was established to ensure financial services are made available to the unbanked population.(Odior,2012) By enabling digital payments, electronic money transfer reduces dependency on cash whilst providing a platform for customers to access a much broader range of financial services.
More Nigerians have been found to own gadgets that can connect them to the internet than bank accounts, thereby demonstrating the great potential of online money transfer in Nigeria. However, since its inception, online money transfer has been reported to make very little impact in the country. But with the policy put in place by the Central Bank of Nigeria (CBN) on cashless Nigeria the future of money transfer in the country lies in the hands on electronic transfer.(Odior,2012)
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Nigeria’s primary aim of electronic money transfer is to promote a cashless society by providing financial inclusion for the over 80 million Nigerians who do not own bank accounts. 77% of adults in Nigeria are unbanked while there is well over 54% mobile penetration rate. This is especially significant because of the fact that 57% of Nigerians live in the rural areas where financial institutions find it commercially unviable to operate; thus emphasizing the immense potential of electronic money transfer services in Nigeria. (Philips Consulting Mobile Money Report, 2013)
1.2 PROBLEM STATEMENT
Research has proven that traditional money transfer systems are prone to attacks through falsified deposit slips and drafts, forgery of signatures, use of false cheques. This project intends to create a safe and easy platform to transfer money from one user or location to another.
The cashless policy put in place by the central bank of Nigeria stipulates a cash handling charge on daily cash withdrawals that exceed N500,000 for Individuals and N3,000,000 for Corporate bodies. The new policy on cash-based transactions (withdrawals) in banks, aims at reducing (NOT ELIMINATING) the amount of physical cash (coins and notes) circulating in the economy, and encouraging more electronic-based transactions (CBN,2012). With the policy that has been put in place, there will be a greater need in the society to transfer money (especially in large amounts) through an electronic platform. This would help to solve the inability to withdraw physical cash(over N500,000) and give it to another individual or organization.
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Also, a lot of transactions which are required to take place during the weekend or after banking hours cannot happen because banks do not open on weekends and do not attend to customers after hours. This system offers a platform independent way to transfer money from one place to another at any time and on every day of the week.
1.3 AIM AND OBJECTIVES
The aim of this project is to improve on existing money transfer systems. The objectives to achieve this aim are:
 To use a CVC code and randomly generated numbers on a token to provide a secure system for transferring money.
 To provide users with a money transfer system that is available at all times (even after working hours and on weekends)
1.4 SIGNIFICANCE
To provide a very easy to use and maintain platform for cashless transactions with a high emphasis on security and portability.
This projects aims at developing and implementing a necessary tool by enabling digital payment, electronic money transfer reduces dependency on cash whilst providing a platform for customer to access a much broader range of financial services. In light tothis the system will perform the following:
1 Transfer money from one user to another
2 Securing users account by authenticating transactions using Card Security Code (CSC) and a token generated code.
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2.1 Each user will have a Card that allows them to withdraw money from ATM and at the back it will have a CSC also known as Card Verification Number (CVN) for online verification apart from the pin.
2.2 And an extra security will be in place for transactions above N500, 000 using a Token.
3 Portability the system seeks to be portable by working on as many system configurations as possible.
4 Payment of DSTV bills
5 Airtime purchasing
6 Provide user friendly environment for users
1.5 SCOPE
The output of this study is to develop a platform (Cash Go) for Nigerian business economy, where money can 1.be transferred from one user to another, and users being able to pay for DSTV and also mobile top up.
The project will be deployed using a local sever, which runs on a stand-alone PC and not deployable to the internet. The Token as well will be simulated. For now a desktop application would be developed as there is no time to extend to mobile platform.
1.6 LIMITATIONS
This project will go as far as deploying web technologies in the implementation. Sublime Text will be used as the major development tool. Database connection using MySQL will extensively be covered in this project.
Below are some of the limitations we foresee;
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 Narrow scope of technical expertise as a result of deficiency in skills.
 Limited resources especially in terms of funding and time
1.7 SIGNIFICANCE OF THE PROJECT
To provide a very easy to use and maintain platform for cashless transactions with a high emphasis on security and portability.
This projects aims at developing and implementing a necessary tool by enabling digital payment, electronic money transfer reduces dependency on cash whilst providing a platform for customer to access a much broader range of financial services.
1.8 PROJECT FEASIBILITY AND PLAN
A money transfer platform must be able to bring users to a user friendly environment where they are able to make transactions without stress and yet very effective. To accomplish this we will
I. Study ways to manage information and data on the website.
II. Understand the basic concepts of designing a Money Transfer Portal.
III. Choose a suitable DBMS (Database Management Systems), development software and web based development programming language.
IV. Develop the Money Transfer Platform.
V. Test the designed Platform
VI. Document the activities of the project.
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1.9 DEFINITION OF TERMS
Money: Money is any item or verifiable record that is generally accepted as payment for goods and services and repayment of debts in a particular country or socio-economic context. The main functions of money are distinguished as: a medium of exchange; a unit of account; a store of value; and, sometimes, a standard of deferred payment. Any item or verifiable record that fulfills these functions can be considered money.(Misckin,2007)
Cashless Policy: this is a policy put in place by the Nigerian government on cash based transactions which stipulates a cash handing charge on a daily cash withdrawals that exceed N500, 000 for individuals and N3, 000,000 for corporate bodies. The new policy on cash based transaction (withdrawals) in banks, aims at reducing the amount of physical cash (coins and notes) circulating in the economy and encouraging more electronic based transactions. (CBN, 2012)
Transaction: Agreement, contract, exchange, understanding, or transfer of cash or property that occurs between two or more parties.
Online: connected to, served by, or available through a system and especially a computer or telecommunications system (as the Internet).
Electronic Funds: electronic money, also known as digital money, includes the use of computer network like internet and digital stored value systems for transactions.
Electronic Fund Transfer (EFT): EFT is a system of transferring money from one account directly to another without any paper money exchanging hands. This term will be used interchangeably with money transfer systems to avoid confusion between transfers involving
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physical money and electronic funds which refers to the type of money being discussed in this project.
Virtual Currency (also virtual money): this is a digital representation of value that is neither issued by a central bank or a public authority, nor necessarily attached to a fiat currency but is accepted by natural or legal persons as a means of payment and can be transferred, stored or traded electronically. (European Banking Authority, 2014)