Question

How does e-commerce transaction take place

Answer 1

E-commerce (electronic commerce or EC) is the buying and selling of goods and services, or the transmitting of funds or data, over an electronic network, primarily the internet. These business transactions occur either as business-to-business, business-to-consumer, consumer-to-consumer or consumer-to-business. The terms e-commerce and e-business are often used interchangeably. The term e-tail is also sometimes used in reference to transactional processes for online shopping. E-commerce transactions are vulnerable to fraud, customer disputes and chargebacks to a much greater extent than card-present ones. There are several major reasons why this is the case and the most obvious among them are that neither the merchant can physically verify the validity of the card used for payment and the authenticity of the cardholder, nor can the customer physically inspect the product he is purchasing. Then there are the potential complications that can arise from a late delivery of a purchased product or a premature posting of the transaction to the cardholder’s account that are typically not an issue in payments accepted in a face-to-face setting.