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Role Security Plays in E-Commerce

What role does security play in ecommerce? What specific security technologies are used by companies to protect themselves?

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Everything in today's world is electronised whether it is EDI (Electronic Data Interchange), EFT(Electronic Funds Transfer), ECash (Electronic Cash), E-Stamp (Electronic Stamp), E-mail (Electronic Mail), E-Business (Electronic Business)and E-Commerce (Electronic Commerce). There have been a number of factors which have led to the growth of E-Commerce. A few of them are: -

1. Age of competition.

2. Globalisation of economy.

3. Commercialization and privatization of Internet.

4. High labour cost and lesser available time.

5. Higher volumes of sales at lower profits.

6. Shorter product life cycles due to changes in technology.

7. Faster communication of information over computer networks thus reducing distances world wide as a result of emergence of a new field Information Technology which is a combination of telecommunications and computer science.

Problems with E-Commerce

The most important challenge that e-commerce faces is the ability to guarantee customers' privacy and safety when using credit cards to purchase online. A vast majority of consumers who shop online usually choose to complete their purchase over the phone for fear that their credit card information will be seen by a third party. The major worries encountered in electronic commerce transactions are that of data protection , data authenticity and taxation .

To deal with the concerns that online customers have about security of their private information, many online companies have begun to use secure servers for future transactions. ...

Solution Summary

This discusses the role of security in E-Commerce