E-commerce with WWW / Internet

It describes the web based buying and selling through Internet or through a VAN that provides gateways to the Internet. Web based electronic commerce includes the following : 1. Business to business 2. Business to consumer 3. Consumer to consumer

Web-based E-commerce
Revenue opportunities for Web commerce includes 1. Technical & consulting services 2. Merchandising products / information 3. Transport services 4. Directory services 5. Content creation 6. Subscriptions

Web-based E-commerce
7. Access services 8. Advertising services 9. Hosting of Web sites Web publishing is joining newspapers, magazines, radio, television, direct mail & toll-free services as a marketing channel to reach new customers.

Web-based E-commerce
With the Web infrastructure, business can be reached to millions of customers on a world wide basis. Internet as a useful platform in distributing information & in maintaining close ties with customers.

Web-based E-commerce
It merges marketing & transaction mechanisms to provide business with increased abilities to influence purchasing & facilitate e-commerce. Web commerce combines the power of television with the browsing capability of catalogs. Downloading speeds remain a problem .

Web-based E-commerce
Improved communication among employees & between employees & customers. Internet users 72% - for W W W applications 65% - for e-mail applications 36% - non interactive discussions

Web-based E-commerce
31% - download software 21% - participate in interactive discussions 19% - real- time audio or video Activities related with Web based commerce includes :

Web-based E-commerce
1. Market Development - Assess the opportunities & make their own presence visible. 2. Business development - Find targeted groups of potential customers & partners. 3. Market Intelligence - Develop & validate Web commerce strategies.

Web-based E-commerce
4. Comarketing Leverage marketing activities with others, the Commerce Net 5. Education Acquire up-to-date Internet commerce knowledge for the company Opportunities. Characteristics of Internet market - Millions of consumers, companies & value-added services

Web-based E-commerce
- A global business community with conducive legal & regulatory environment & standard business practices - Vertical market opportunities in financial services, health care, manufacturing, retailing & other key vertical markets. - A common technology platform for security, payment , directories, EDI, collaboration & other essential services.

Web-based E-commerce
On-line Web selling : Four ways that Web commerce can be undertaken over the Internet. 1. Toll-free or other telephone numbers Toll-free numbers allow callers to reach businesses or individuals without being charged for the call. The charge for using a toll-free number is paid by the called party instead of the calling party.

Web-based E-commerce
2. Shopping clubs Requires new customers to join the club by submitting their credit card information via fax & subsequent purchases are billed to the credit card. 3. Off-line ordering & paying Customers send cheques to the company for the goods they wish to purchase.

Web-based E-commerce
4. On-line credit card entry An increasing number of web-based vendors now offer on-line order blanks for shoppers to enter their credit card number but do not encrypt the card number. Virtual malls - Combination of home PC and the Internet is making on-line services & shopping easier to implement.

Web-based E-commerce
List of virtual shopping malls are Apollo advertising http://apollo.co.uk MarketNet http://mkn.co.uk MarketPlace.Com http://marketplace.com Advertising advantages Sponsor can measure how many people see the information & can interact with them.

Web-based E-commerce
Home banking & financial services - reduces fees for on-line banking Catalog Publishing Many organizations have built home page that incorporate electronic catalogs listing products & services that offer.

Web-based E-commerce
Interactive ordering - Many companies allow interactive ordering of their goods by implementing secure credit card payments over internet Hackers can pick off logins & password in 3 ways.

1. The Hacker physically taps the communication line with a protocol analyser.

Web-based E-commerce
2. The Hacker can reprogram the table of network router to route information to one of his or her devices for further analysis. 3. The Hacker can actually break into server by frustrating its host security mechanism & then can read privileged information.

Customer Service & technical support

FTP host site :- Gives customers easy access to a library of companys s/w programs, documentation etc. News groups :- Act as bulletin board system where customers can chat about companys product. E-mail To communicate problems or questions to a companys customer support staff.

Customer Service & technical support

Publishing database of technical information in a searchable format by using tools such as Gopher on the web. Business Information Research companies use Internet to find other business information Search Engines - used to find sites and documentation. Eg :Yahoo

Direct Marketing
- Direct Marketers use Internet to disseminate e-mail advertising for their products and services.
- the only charge associated with Internet mailing is the monthly fee charged by access provider

Direct Marketing
Direct marketers can utilize news groups and discussion forum which represent the audience most likely to purchase their products.

Approaches to safe electronic commerce

Overview Computer security has several fundamental goals.
1. Privacy

Keep private documents private, using encryption, passwords & access control systems.

Fundamental goals
2. Integrity Data & applications should be safe from modification without the owners consent. 3. Authentication Ensure that the people using the computer are the authorized users of that system.

Fundamental goals
4. Availability The end system (host) & data should be available when needed by the authorized user. Secure Transport Protocols. 1. SSL (Secure socket Layer) developed by Netscape communications , is a security protocol that provides privacy over the Internet.

SSL uses a 3-part process

1. Information is encrypted to prevent unauthorized disclosure. 2. The information is authenticated to make sure that the information is being sent & received by the correct party. 3. SSL provides message integrity to prevent the information from being altered during interchanges between the source & sink.

S-HTTP( Secure Hyper Text Transfer Protocol)

It is a secure extension of HTTP developed by the Commerce Net SEPP ( Secure Electronic Payment Protocol) Major business requirements addressed by SEPP. 1. To enable confidentiality of payment information

SEPP
2. To ensure integrity of all payment data transmitted 3. To provide authentication that a card holder is the owner of a card account. 4. To provide authentication that a merchant can accept Master card payments with an acquiring member of financial institution.

SEPP
SEPP is the electronic equivalent of paper charge slip, signature and submission process. SEPP takes input from the negotiation process ( payment amount, order description, payment method etc.)

SEPP
The payment happens via a three way communication among the card holder, merchant and acquirer. SEPP only addresses the payment process. Privacy of non financial data is not addressed in the SEPP protocol.

SEPP
SEPP system is composed of a collection of elements involved in E-commerce. 1. Card holder An authorized holder of a bank card supported by an issuer & registered to perform E-commerce. 2. Merchant Merchant of goods, services or eproducts who accepts payment for them electronically & may provide selling services or electronic delivery of items for sale.

SEPP
3. Acquirer Financial institution that supports merchants by providing service for processing credit card based transactions. 4. Certificate management system An agent of one or more bank card associations that provides for the creation & distribution of electronic certificates for merchants, acquirers & cardholders.

SEPP
5. Banknet Represents existing network which interfaces acquirers, issuers & the certification management system. Messages for SEPP compliant processing of payment transactions. 1. Purchase Order Request 2. Authorization Request

SEPP
3. Authorization Response 4. Purchase Order Inquiry 5. Purchase Order Inquiry Messages for on-line customer 1. Initiate 2. Invoice 3. Purchase Order Response

SEPP
Messages for off-line transactions - Purchase Order Response (acknowledgement without authorization) SEPP architecture SEPP buying cardholder is represented by a cardholder workstation, can be based on a world wide web browser.

SEPP
Two designs of cardholder workstations. 1.Integrated e-commerce workstations include W W W browsers to support electronic payments in an integrated fashion. 2. An independent browser to implement the payment process

SEPP
Functions added to W W W browsers to support electronic payments include encryption & decryption of payment data, certificate management & authentication & support for electronic payment protocols. To obtain a certificate, 1. The buying cardholders s/w interfaces with the certificate request server in the certificate management system CMS)

SEPP
2. The CMS generates certificates needed to identify the buying cardholder. 3. The interface to the certificate request server is based on HTTP interactions. The buying card holders second & primary interface is with the merchant system. This interface supports to initiate payment, perform inquiries, receive acknowledgement & status.

SEPP
The merchant computer system is based on a Web server that provides a convenient interface with the cardholder for the support of electronic payments. The merchant interfaces with the merchant registration authority in the acquirer bank. The merchant needs to support SEPP protocols for the capture & authorization of e-commerce transactions initiated by the buying cardholder.

SEPP
The SEPP acquirer consists of traditional acquirer with the addition of an acquirer gateway & a merchant registration authority. It is a system that provides e-commerce services to the merchants. The CMS consists of computer systems providing certificate authorities to support reliable certificate granting service to cardholders, merchants & acquirers.

SEPP
The CMS interfaces through Banknet to issuer banks to obtain authorization for the generation of certificates for cardholders.