WHAT IS E-COMMERCE?

E-Commerce is conducting business on-line. This includes, for example, buying and selling products with digital cash and via Electronic Data Interchange (EDI).

There are several ways of paying for products purchased online.

NET CHECKS:

A net check is similar to a regular check. You enter the data in a form on the internet and it is then sent to the merchant where it is converted into a paper check. Users registered with NetCheque accounting servers are able to write electronic checks to other users. These checks may be sent through e-mail or as payment for services provided through other network protocols. When deposited, the check authorizes the transfer of account balances from the account against which the check was drawn to the account to which the check was deposited.

DIGITAL SIGNATURES:

Digital Signature was first proposed in 1976 by Whitfield Diffie. A digital signature transforms the message that is signed so that anyone who reads it can be sure of who sent it. These signatures have a secret key used to sign messages and a public one used to verify them. A digital bank would offer electronic bank notes: messages signed using a particular private key. Different denominations have different keys. These electronic bank notes are authenticated using the corresponding public key, which the bank has a record of, which then assures both merchant and consumer of safety and honesty.