E-commerce software and security issues

Because they are impersonal, Internet transactions can get downright touchy. A sense of security needs to be established without creating the feeling of fort Knox. Customers must be able to select a mode of payment and the software must verify their ability to pay. This can involve credit cards, electronic cash or purchase orders. Specialized software such as cyber cash and Microsoft wallet can verify the purchaser and the purchase. e-commerce software usually work with the Secure Sockets Layer (SSL) developed by Netscape or the Secure Electronic Transaction( SET) technologies for encryption of data transmission. The more of these supported by an e-commerce package, the better. Most e-payment solution providers will require that the company establish a special bank account to handle the online transactions. More on opening your online store later on in this article.

With security being an issue with most online customers merchants and others are looking to exploit the huge potential on-line market with two choices: use conventional follow up systems like faxes and phone numbers to make the customers feel more secure or develop better systems of online security. While the first will probably continue, its second choice which is gaining more credibility- Digital cash. Encryption as already discussed is being used to protect information while it is being transmitted between a customer and a merchant on the Internet. Netscape uses the secure socket layer in their commerce server to provide server authentication, data encryption, and message integrity. SSL provides capabilities similar to the more familiar " berkely sockets" or Winsock services. SSL sits between application protocols such as http, telnet, ftp etc and the underlying protocol TCP/IP. but unlike ordinary socket connection, once your web browser has established a connection to a server using SSL, you know which merchant you are connected to , and you that your communication with that merchant is secure from eavesdropping or tampering.

The method used to establish identity is based upon an object called digital certificate. A digital certificate simply ties together a public key with say the name and address of the customer or merchant. The trick is that a trusted third party signs these certificates, in much the same way that the government that issues it signs the passport. Verisign, a spin off from RSA data security is in the business of issuing these certificates, which they called Digital IDs. Currently the Indian government does not recognize these digital IDs.

The other methods besides Credit card processing are e cash and e credit , both of which require you to set up an account with an e cash provider and buy only from merchants who have also registered with that provider. When you purchase something online it gets charged to your real credit card, with the provider taking extra measures to protect your security. Although electronic or digital cash is not yet wide spread, banks are issuing it allowing you to purchase items at registered retail sales. Electronic cards are coming up fast employing coded messages secret numbers and electronic buyer identification. Besides Verisign another guarantee of security can be found in Secure Electronic Transaction (SET) . Set was developed by Visa and Master card with participation from several technology companies including IBM and Microsoft. This system means that your entire credit card number is never traveling across the net- rather pieces of it are- and that no human eye sees the entire card number.

E-Commerce in India

The past 2 years have seen a rise in the number of companies' embracing e-commerce technologies and the Internet in India. Most e-commerce sites have been targeted towards the NRI's with Gift delivery services, books, audio and videocassettes etc. Major Indian portal sites have also shifted towards e-commerce instead of depending on advertising revenue. The web communities built around these portal sites with content have been effectively targeted to sell everything from event and movies tickets, the grocery and computers. The major in this services being Rediff on the net (www.rediff.com) and India plaza which started a shopping section after their highly successful content site generated WEB visitors. Inspite of RBI regulation, low Internet usage e-commerce sites have poppedup everywhere hawking things like groceries, bakery items, gifts, books, audio & videocassettes, computer e.t.c. None the major players have been deterred by the low PC penetration and credit card usage in India and have tried to close the success worldwide of online commerce.

BPB publication went online selling its complete range of computer books about 2 years ago; it might not have the success of either Amazon.com of Barnes and noble. But they definitely have promised the cause of e-commerce in India with atleast 1 to 5 web sites like Indiabookshop coming online. This is not to say that the e-commerce scenario has been bad in India as highly successful e-business like baba bazaar and India mart have proved. Indian Banks too have been very successful in adapting EC and EDI Technologies to provide customers with real time account status, transfer of funds between current and checking accounts, stop payment facilities. ICICI Bank, Global TRUST BANK and UTI-Bank also have put their electronic banking over the internet facilities in place for the up-coming e-commerce market. Speed post also plans to clone the federal express story with online package status at any moment in time. The future does look very bright for e-commerce in India with even the stock exchanges coming online providing a online stock portfolio and status with a fifteen minute delay in prices. The day cannot be far when with RBI regulations we will able to see stock transfer and sale over the Net with specialized services like schwab and e*trade. Though with security and encryption being proven Technologies for transfer of funds over the Internet, the Indian Government still has problems with 'Digital signatures' and verification processes over the Internet. This combined with RBI norms and regulations has proved to a major handle for e-commerce even though VSNL India's monopolistic ISP does want to jump on to the electronic transaction bandwagon with the advent of private ISP's and India new and positive attitude towards IT and the prime ministers new 'IT policy " the future is very positive in India for doing commerce with a-e

The Future of E-Commerce

Commerce What does the future hold for e-commerce? Many would say it is difficult to predict. The forces that determine the web's winners and losers are just taking shape and technological advances could add even more uncertainty. On the downside, some experts predict that it will be increasingly difficult for smaller companies to establish their presence. Public companies and additional brand name retailers have deep pockets and a name recognition that will make it difficult for smaller sites and mom-and-pop shops to attract customers, thereby forcing them to compete with the big boys. On the Net, it's one big neighborhood. On the upside, nearly all experts believe that overall e-commerce will increase exponentially in coming years. Business to business transactions will represent the largest revenue. Online retailing will also enjoy a drastic growth. Areas expected to go include financial services, travel, entertainment and groceries. And for those considering opening a virtual storefront, forthcoming technology and standards agreements will make it easier to create a site, to protect it against payment fraud, and to share information with suppliers and business partners.