1. Online Commerce Environment
UNIT V
Online Commerce Environment

2. Electronic payments (e-payment)
E-payments: payments made electronically rather than by paper (cash, checks, vouchers, etc)
Electronic payments methods expedite payments online and reduces processing costs, but must it must be safe and trusted by users.
The major methods of e-payments in use includes,

3. Electronic Payments Methods
Electronic payment cards (credit, debit, charge)
Virtual credit cards
E-wallets (or e-purses)
Smart cards
Electronic cash (several variations)
Wireless payments
Stored-valued cards payment
Loyalty cards
Person-to person payment cards
Payments made electronically at kiosk
Other methods used mostly for B2B payments
Electronic checks
Purchasing cards
Electronic letters of credit
Electronic funds transfer (ETF)
Electronic benefit transfer (EBT)
Etc
The underling similarity is the ability to transfer or make a payment from one person or party to another person or party over a network without face-to-face interaction.

4. Electronic payments (e-payment)
Electronic cards: are plastic cards that contain digitized information, that can be used for payment and for other purposes such as identification and access to secure locations.
Payment cards: electronic cards that contains information that can be used for payment purposes.
there three types of payment cards
Credit cards: providers the holder with a credit to make purchases up to a limit fixed by the issuers. (users normally don’t pay any fee for using it, just a high interest on their unpaid balance)
Charge cards: are like monthly loans given to the user, that he/she is required to pay back in full at the end of the month or upon receipt of monthly statement. (usually no interest is paid on such cards, just an annual fee and or severe penalty for failure to pay balance in full)
Debit cards: with a card the money for a transact comes directly from the users account

5. Electronic payments (e-payment)
Virtual credit cards: a payment system in which the issuer gives a special transaction number that can be used online in place of a regularly credit card number.
E-wallets: is a software component in which a user stores credit card numbers and other information; when shopping online, the user simply clicks the e-wallet to automatically fill in information needed to make a purchase.

6. Electronic payments (e-payment)
Electronic cash: the digital equivalent of paper currency and coins, which enables secure and anonymous purchase of low-priced items.
E-cash has various variations;
Wireless payments
Stored-value cards
E-loyalty
P2P payment: e-payment schemes that allows the transfer of funds between two individuals
Payment made electronically at kiosk; customers acting as cashiers and checking themselves out.

7. Electronic payments (e-payment)
Smart Cards: an electronic card contains an embedded microchip that enables predefined operations or the addition, deletion, or manipulation of information on the card.
Some applications of smart cards:
Loyalty cards; retailers are using loyalty cards to identify their loyal customers and reward them
Financial application; financial institutions, payment associations, credit cards, debit cards, charge card issuers are all using smart cards to extend the traditional card payment services
Transportation
Identification; smart cards fits perfectly in the identification market

8. Smart Cards
Smart card – plastic card (the size of a credit card) that contains an embedded chip on which digital information can be stored and updated
Debit cards are an implementation

9. Smart Cards Stored-value cards
Can hold private user data, such as financial facts
Can store about 100 times more information than a magnetic strip plastic card
Safer than conventional credit cards

10. Smart Card Reader Device that plugs into your PC
Insert your card and go
All account information is stored on card
Authorize transactions with only a PIN number
No more long Billing and Shipping forms to fill out.
Upload options from your card to “smart Space” or download options and applications to the card through Merchants, Visa, or other locations.
Readers being built into hardware like keyboards and monitors.

11. Compaq Smart Card Reader

12. Ecommerce before Digital Cash
Transactions still based on paper money or credit cards
Couldn’t order products via the Internet
Phone in orders
Consumers could only visit the stores Web site, but still had to go to the store to order products.

13. Minimum Requirements for Digital Cash
Atomicity
Transactions occur completely or not at all
Consistency
All parties must agree on critical factors of exchange
Isolation
Transactions should not overlap
Durability
If computer crashed money should still be there

14. Additional Features Secure – unable to alter or reproduce
Anonymous – untraceable
Portable – physical independence
Infinite Duration – until destroyed
Two-way – peer to peer transactions are possible
Off-line capable – availability
Divisible – change can be made
Wide acceptability – trust
User Friendly – simple
Unit-of-value freedom – non-political
(never happen)

15. The Internet International network of networks
Universal technology platform: Any computer can communicate with any other computer
World Wide Web and Web sites

16. What You Can Do on the Internet?
Communicate and collaborate
Access information
Participate in discussions
Supply information
Find entertainment
Exchange business transactions

17. Internet Strategies Promote the brand internationally
Strategy Objectives
Promote the brand internationally
Support global, Field organization building
Enable efficient e-commerce

18. Promote the Brand Internationally
About the company
– Brand message
– Region/country message
– Public information
About the opportunity
– Stories/testimonials
– How to get started
• About the products
– Categories/local specifics
– Science
– Marketing
– How to purchase or promote

19. Support Field Organization Building
Lead generation/conversion
• Contact management
– Collect, organize and mine information
– Leverage web technologies
Training and communication
– Electronic documentation and presentation

20. Enable Efficient E-Commerce
Cost and operational interaction
– Global reach
– Self-service
– Process integration
• Information for business management
– Personnel
– Product transactions
• Marketing
– To distributors
– To ultimate users

21. What is e-commerce Software?
Front-end
For Visitors and Customers
Web-based by definition
Backend
For enterprise business managers
Merchandisers, Account Mangers, Customer Support, etc.
Middleware
To interface with existing systems
Customer, Inventory, Credit, Payment and Order Processing systems

22. e-Commerce Front-end Web Application Server Functionality
Personalization and Profiling
Complex, Dynamic Content Presentation
Process Support
Shopping Process
Buying Process

23. e-Commerce Backend Content Management Process Support Merchandizing
Catalog management
Price and on-line collateral management
Process Support
Customer Support
Anomaly management
Payment or Order processing hiccups

24. e-Commerce Middleware
Payment Processing
Customer specific credit, purchase orders, etc.
Electronic payment including EDI and credit cards
Order Processing
Interface to proprietary, custom enterprise systems
e-enabled systems of large warehouses
e-Services that provide Order Distribution
Inventory Management
Soft and hard reserve functionality
Direct access to specific inventory

25. Web Server Basics
Main job of a Web server computer is to respond to requests from Web client computers
Three main elements of a Web server
Hardware
Operating system software
Web server software

26. Web Server Software Most popular Web server programs
Apache HTTP Server
Microsoft Internet Information Server (IIS)
Sun Java System Web Server (JSWS)

27. Microsoft Internet Information Server
Comes bundled with current versions of Microsoft Windows Server operating systems
Used on many corporate intranets
Supports the use of
ASP
ActiveX Data Objects
SQL database queries

28. Microsoft Commerce Server 2002
Allows businesses to sell products or services on the Web using the following tools
User profiling and management
Transaction processing
Product and service management
Target audience marketing
Provides many predefined reports for analyzing site activities and product sales data

29. Electronic Data Interchange (EDI)
“ The electronic interchange of formatted data between computer applications using agreed message standards”
Preceded Web-based Electronic Commerce
Is appropriate for the exchange of structured business documents
orders, invoices, delivery notes
Links suppliers, customers and banks 29

30. EDI Supplier Retailer Retailer’s Bank Supplier’s Bank
CRP, Purchase order,
purchase order change,
Purchase order acknowledgement, invoices
Retailer
Supplier
Retailer’s Bank
Supplier’s Bank
Payment
authorization
Electronic Transfer of funds
Retailer
CRP, Purchase order,
purchase order change,
Payment
authorization
Purchase order acknowledgement, invoices
Electronic Transfer of funds
Retailer’s Bank
Supplier’s Bank 30