E-Commerce Security

The Security is the major aspect in E-Commerce as the e-commerce is done over an open network called Internet.

In E-Commerce the Customer provides his credit card and other important details over the internet which may be stolen by an unauthorized person/hacker and can be misused.

For Example a customer has ordered for 100 quantities and it may convert into 1000 quantities during sending it to trader.

E-Commerce Security is classified same as Network Security into below four sections.

(1) Confidentiality

(2) Integrity

(3) Authentication

(4) Non-repudiation

(1) Confidentiality:

Confidentiality means security of Information, so that an unauthorized person can not read it.

Confidentiality can be achieved by cryptography.

In cryptography messages are sent into encrypted (changed) form between two parties.

(2) Integrity :

Integrity means the receiver will receive only the information which is actually sent to him by the sender.

By integrity if any one makes changes in the information/data, then it can be identified very easily.

By integrity we can overcome the problem of changes in order and payment.

Advantages of E-Commerce

(1) Fast Transaction:

The Company/organization can put the online order without delay.

The Producer can immediately process the order.

(2) Low Cost:

The online marketing and sales decrease the cost of business expense. The company can do all the transaction online that decrease the cost of correspondence/courier and telephone.

The producer can keep the less stock of goods and this saves storage capacity as they can immediately get the goods due to fast transaction.

(3) Customer Satisfaction:

By providing fresh and corrected information the relationships with the customer becomes strong. The Customer can have the wide range of choice and can get the things with best price

Electronic wallets Payment Method

(5) Electronic wallets:

The Electronic wallet is used to save our time and efforts in filling the credit card and other details every time we shop online.

By using the electronic wallets there is no need to fill credit card and other details every time, it is automatically stored in the respective fields of form. By electronic wallets shopping becomes very speedy and easy.

The electronic wallet is same as our physical wallet in which we can store the details of credit card, identity, address and e-cash.

The user/customer can store the electronic wallet in his personal computer or in the server provided to him.

If the electronic wallet is stored in user/customers computer, then the shopping is only made from this computer only. Hence the use of this electronic wallet becomes limited.

Also if the electronic wallet is stored on the server, then the shopping can be made from anywhere by get connecting with server.

Electronic Cash (E-Cash) Payment Method

(4) Electronic Cash (E-Cash):

Electronic cash are same as physical cash.

The user put e-cash in digitally signed file on the medium of floppy / cd / pen drive / flash drive.

A user can get the e-cash by paying through credit card or ATM.

The trader who accepts the e-cash open his account with the bank who issue e-cash to the customer. The customer who shops from such online trader’s website, transfers the e-cash into the traders special account.

The e-cash providing by Digicash (www.digicash.com) is an example of electronic cash.

In e-cash there is no personal identification, so security is the major question of e-cash. However for high security the bank who provides the electronic cash issue the notes and coins with digitally signature.

The e-cash is stored as token in the file which includes total amount, serial numbers and digital signature. The e-cash is used only once by matching the digital signature.

Also nowadays the credit card and other payment facility are very famous and easy, so electronic cash is reducing slowly.

Net Banking Payment Method

(3) Net Banking:

Net Banking means online Banking.

The Bank provides the Net Banking Password to the customer to operate his bank account and online payment.

<<<<===How to pay using Net Banking==>>>>>>

When user selects the option of Net Banking Payment, he is asked to select the Bank Name.

When user selects the Bank Name, the respective Bank Web Site is opened.

A user can now login using his provided Account Number and Net Banking Password.

After login he transfer amount to online trader account.

Net Banking Payment Method

(3) Net Banking:

Net Banking means online Banking.

The Bank provides the Net Banking Password to the customer to operate his bank account and online payment.

<<<<===How to pay using Net Banking==>>>>>>

When user selects the option of Net Banking Payment, he is asked to select the Bank Name.

When user selects the Bank Name, the respective Bank Web Site is opened.

A user can now login using his provided Account Number and Net Banking Password.

After login he transfer amount to online trader account.

Smart Card Payment Method

(2) Smart Card:

The Smart Card stores the information using microchips.

A user can store the information of credit card, Billing & Delivery, and Health on the Smart Card.

A user can also put the electronic cash (E-Cash) in the Microchips.

The Microchips provides the capacity for information process and communication with other devices.

The Smart Card store all the information in the form of encrypted, so it very safe. Encrypted information can only be retrieved by using PIN (Personal Identification Number).

The Smart Card Reader Machine is required to be attached with a computer to access the Smart Card.

Credit Card / Debit Card Payment Method

(1) Credit Card / Debit Card:

The Credit Card / Debit Card store the limited information of customer on Magnet Strips.

The Magnet trips are only cryptography iced.

The Credit/Debit Card No is printed on the front side of card and the signature is visible on the back end part of the card.

If a Credit/Debit Card is stolen or lost then it can be misused as all the important information is visible on the card.

A Card Reader Machine is required for the use of credit/debit card.

Online Payment Methods:

The typical online payment methods are as under:

1. Credit Card / Debit Card
2. Smart Card
3. Net Banking
4. Electronic Case (E-Cash)
5. Electronic wallets

Legal Questions of E-Commerce

Ø A Legal structure is needed for the e-commerce as global activities includes intelligence, proprietorships, confidential, and secret information.

Ø Each country has developed his own rules and laws

Ø The Indian Government has developed IT Laws applicable for Information Technology under IT Act.

Ø By the IT Law a customer free from fear that his information will be confident and will not be misuse by any other person

Ø The online trading companies will get legal assistance whenever their company logos or content/information is misuse by any other person.

Ø In E-Commerce country borders are not important so , an international deed is necessary

G2C – Government to Citizen

This Model is also a part of e-governance.

The objective of this model is to provide good and effective services to each citizen.

The Government provides the following facilities to the citizens through website.

Ø Information of all government departments,

Ø Different welfare schemes,

Ø Different application forms to be used by the citizens.

The Gujarat Government has developed his own network called Gujarat State Wide Area Network (GSWAN) for the same purpose mentioned above.

A typical example of this model is GSWAN.

http://gswan.gov.in

The above web site contains the link of different government departments, so any citizen can know and get the information by this website.

G2B – Government to Business

This Model is a part of e-governance.

Under this Model all the information and services are provided by the Government to the Business Organizations through vast network of government websites.

A Business Organization can get the information about business rules, requirement and permission needed for starting a new business, and other specifications.

A Business Organization can also download the different forms and submit it online or off line to the related office.

For Example:

http://www.incometaxindia.gov.in

provides all the rules related to Tax, different forms, and facility for submission of online tax returns.

C2C – Customer to Customer

For the Last few years this model has also become very famous.

Under this Model customer directly contacts with each other without involvement of third party business organization, a business organization works as agent/mediator only.

An online Auction is a very good example of C2C Model

For Example:

http://www/eBay.com

http://www.fabmart.com

B2C – Business to Customer

This is a very famous and commonly used model.

Any Shop/Company/Organizations/institutes which directly sales their products/services to the customers comes under B2C Model.

For Example: www.amazon.com

A different online service like Net Banking, Insurance, Passport & Visa etc. are also comes under this Model.

B2B – Business to Business:

Under B2B the Producers deals with their raw material providers or wholesalers.

Under B2B two Business organizations communicate/transfer information through Electronic Data Interchange (EDI) Standards.

For the execution of B2B Model a very high security is needed.

By using B2B Model process of order, sales and purchase becomes very fast with less cost expense and without any mistakes.

We can also know the status of order.

For Example:

The Maruti Car Company deals with their spare parts making Company:

www.marutisuzuki.com

The CISCO System:

http://www.cisco.com

E-Commerce Business Models:

The E-Commerce Business Models are classified by involved parties or commercial activities or providing services.

(7) Helping Services

These services start after completion of transactions i.e. services after goods sold.

The Electronic item seller firm allows their customers to complain online.

The Software Companies provide the online helps for software installations, configurations, or any sort of problem in using the software to their customers.

The Software Developing Companies provides the facility to download the recent updated version of software to their licensed software holders/customers.

The Hardware Producers allows their clients/customers to download their products drivers.

(6) Information Services

Under these facility a company/organization/institutes provides the Information to their clients/users/members/customers.

For Example: Educational Institutes and Universities

A user can download and use the different forms available from respective websites.

A Company can get the information by online forms/surveys from their clients / customers / publics.

A Company can send the different notices to their clients/customers.

For Example

www.gujaratuniversity.org.in

(5) Online Trading of Share

Nowadays most of the trading company/agents provide the online trading facility to their customers. Using online trading a customer can sell or purchase the shares of different companies and receive/pay the payment online. A customer can also store and view the history of his transactions.

A few Examples of Web Sites that Provide facilities for online trading of shares are as under

• www.sharekhan.com

(4) Online Billing

This is further a very useful facility of E-commerce over the internet for the companies who provide the different services and charges for their services after fix interval/periods/months to customers.

Using Internet any Company can distribute their Service Bills to their Customers and customer pays the bill online using Net Banking / Credit Card or any other online payment methods.

For Example an electricity/insurance/mobile company can send their regular bills for their service to the customers.

(3) Net Banking

Nowadays Net Banking is a very important and useful facility of E-Commerce. Currently Most of the Bank provides the facilities of Net Banking. The Bank provides the Net Banking Password to their Account Holders/Customers. Using the Net Banking Password a customer login into his account and does the transaction.

Using Net Banking a customer can know his Bank Balance, get the Bank Statement of his Account, and transfer funds into other accounts.

Also a customer can do the online shopping, online ticket booking by the help of Net Banking.

The only service not available by the Net Banking is CASH WITHDRAWAL, for cash withdrawal customer has to go to his nearest Bank or ATM.

A few Examples of Web Sites that Provide facilities for Online Auctions are as under

• www.sbi.com
• www.hdfc.com
• www.icici.com
• www.bankofbaroda.com

(2) Online Auctions:

This is again a very useful facility of e-commerce available on the Internet. This service provides the medium for transaction to both buyer and seller without involving any third party like commission agents. In online Auctions the Buyer is called as Bidder and seller is called Auctioneer.

The Bidder bid for the things/products available for the sales without wastage of time.

The Auctioneer can get the best value for their things/products.

At the end of Auctions, the Bidder gets the delivery of products and pays the amount to Auctioneer.

A few Examples of Web Sites that Provide facilities for Online Auctions are as under

• www.eBay.com
• www.fabmart.com

(1) Marketing and Sales

This is very useful service of e-commerce for small, medium or large producer/company/ entrepreneurship. A producer/company/entrepreneurship can put the images, icons, text, videos and online catalog of their products for MARKETING.

Any Customer or interested person can watch these products and if he/she likes the product then puts in the Shopping Cart.

A Shopping Cart is the virtual basket available on the market to store our purchased things on e-commerce. We can compare a Shopping Cart with a plastic bag / trolley that we used for the shopping in the Shopping Mall or at any other place.

After completing the purchasing and adding the products to the Shopping Cart puts the order. He/she provides his/her contact/address details for the process of order. After providing the contact and address details for the things to be transport, pays by the medium of Internet.

Please refer the ONLINE PAYMENT METHODS for how to pay online while e-shopping on internet.

A few Examples of Web Sites that do online marketing and sales are as under

• www.amazon.com ( It online market and sales different books through Internet)
• www.irctc.co.in (This is the Indian Railway web site that provide facilities of online ticket booking and payment. After booking the ticket and payment he/she gets electronic copy of tickets and gets print out of e-tickets by printer)

E-Commerce Usages

(1) Marketing and Sales

(2) Online Auctions

(3) Net Banking

(4) Online Billing

(5) Online Trading of Share

(6) Information Services

(7) Helping Services

What are the E-Commerce Models?

There are Lots no of Models are there for E-Commerce,but basically only 5 Models are very Populars.

(1) B2B (Business to Business)
(2) B2C (Business to Customers)
(3) C2C (Customers to Customers)
(4) G2B (Government to Business)
(5) G2C (Government to Citizens)

What is an E-Commerce?

E-Commerce Stand for Electronic Commerce. When we do any transaction via medium of internet/Phone is called E-Commerce.