Modes of Electronic Commerce

Explain in detail about Modes of Electronic Commerce.

What is electronic commerce?

v  Commerce is the interchange of goods or services, especially on a large scale.  In the past, trading typically took place face-to-face between parties.  Over the centuries and decades, trading has continued to become more sophisticated.  At this time, a large percentage of transactions are no larger done face to face, but are conducted over a telephone or via mail, with the exchange of new plastic money.

v  The major difference between the way in which electronic commerce has been conducted until now and the way it is now proposed to operate relates to a paradigm shift:  moving from    Using a closed private network, in which two parties have previously established some type of agreement, to utilizing an open public network such as open public network such as the internet, without any prior knowledge of the buyer.

v  In effect, that is how regular commerce takes place: anyone can walk into any store and buy something without having to be previously known by the store personnel.  The internet and the Ancillary e-commerce software allow transactions between parties that do not previously know each other.

Some open issues

v  Although there are traditional concerns about credit fraud and bank embezzlement, the potential for high-volume fraud and automated fraud is greater in e-commerce with the introduction of public network computerized transactions.

v  In addition, protecting intellectual property rights becomes a problem when digital duplication is easy and fast, leading to the proliferation of pirated copies. Therefore, methods to ensure that cardholder’s payments are safely made, that Merchants information is retained as confidential and that banks maintain a high degree of security over protected funds are issues that must be addressed and solved.