Page 22 - DCAP306_DCAP511_E-COMMERCE_AND_E-BUSINESS

Unit 1: Introduction to E-Commerce and E-Business

Figure 1.1 shows the network of electronic transaction process taking place between buyers and sellers.

Figure 1.1: Electronic Transaction Process

B2C e-commerce systems on the Web depend on credit card transaction processes. But many B2B e-
commerce systems depend on more complex transaction processes based on the use of purchase orders.
B2C and B2B e-commerce systems generally use an electronic shopping cart process. This process
allows consumers to select various products from a Web site catalog and place them temporarily in a
virtual shopping basket. These selected products can later be checked out and processed for payment.
Electronic Funds Transfer
Electronic Funds Transfer (EFT) is the main method of e-commerce transaction systems in banking and
retailing industries. Various information technologies are used in EFT systems to process money and
credit transfers between banks and businesses and their customers.
Secure Electronic Payments

Network sniffers, software that easily recognize credit card number formats, may capture your credit
card information when you make a purchase online. Various basic security measures are being
implemented to solve this problem. They include:
1. Encryption of data passing between the customer and merchant
2. Encryption of data passing between the customer and the company to authorize the credit card
transaction
3. Taking sensitive information offline

The security methods developed for secure electronic transactions include:
1. Secure Socket Layer (SSL): It helps to automatically encrypt the data passing between your Web
browser and a merchant’s server.

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