Page 16 - DCAP306_DCAP511_E-COMMERCE_AND_E-BUSINESS

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

Electronic Payment Systems (EPS)
The method of financial exchange that takes place between buyers and sellers in an online transaction
with the aid of digital financial instruments is termed as EPS. These digital financial instruments can be
encrypted credit card numbers, electronic checks, or digital cash backed by a bank, an intermediary, or
by legal tender.
EPS has a lot to do with billing and payment which are considered as the final activities in any sales
transactions. It is a key element in the closure of an e-commerce cycle. The growth of e-commerce in
developing countries is affected adversely because of the weak electronic payment systems. Due to the
several legal and business issues that exist in these countries, entrepreneurs are not able to receive credit
card payments over the Internet. Transaction security is the major concern here.

Factors to be Considered for an E-Commerce Web site

There are four factors to be considered before having a Web presence for your business.
They are:
1. Content development

2. Research analysis
3. Strategy planning
4. Branding

Search the Internet and discuss how the four factors, such as, content development,
research analysis, branding, and strategy planning affect the development of an e-
commerce Web site.

Anatomy of an E-Commerce Web Site
E-Commerce Web sites help considerably to foster online business. The main aim of such Web sites is to
convert the user to a potential customer. Your Web site must be attractive enough with lots of useful
content and products in order to be noticed by various search engines and customers.
An e-commerce site must have some important elements, they are:
1. Online Product Catalog: This is the place where information about the products is stored and
handled.

2. Shopping Cart: This is an interface that customers apply to pick the products of their choice. It
provides necessary information about the product that customers want to buy. It also supports the
customers with the checkout process.
3. Checkout System: This is a method which collects required payment details from the customer.
These payment details include shipping and billing addresses, credit card details, or other
payment mechanism details. It also presents shipping rates, taxes, vouchers, or estimates other
variations to reach at the final cost.
4. Payment Gateway: This is a service with the help of which payment and credit card details can be
sent from the Web site to a merchant account. The account needs to be assigned by a bank or
financial organization that deals with online transactions. Payment gateway is a highly protected
service. It is also responsible to handle and resolve any feedback or complaints received from the

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