ecommerce recommendations and related topics
EDI
Short for Electronic Data Interchange, the transfer of data between different companies using networks, such as the Internet. As more and more companies get connected to the Internet, EDI is becoming increasingly important as an easy mechanism for companies to buy, sell, and trade information. ANSI has approved a set of EDI standards known as the X12 standards.
digital cash
A system that allows a person to pay for goods or services by transmitting a number from one computer to another. Like the serial numbers on real dollar bills, the digital cash numbers are unique. Each one is issued by a bank and represents a specified sum of real money. One of the key features of digital cash is that, like real cash, it is anonymous and reusable. That is, when a digital cash amount is sent from a buyer to a vendor, there is no way to obtain information about the buyer. This is one of the key differences between digital cash and credit card systems. Another key difference is that a digital cash certificate can be reused.
Digital cash transactions are expected to become commonplace by the year 2000. However, there a number of competing protocols, and it is unclear which ones will become dominant. Most digital cash systems start with a participating bank that issues cash numbers or other unique identifiers that carry a given value, such as five dollars. To obtain such a certificate, you must have an account at the bank; when you purchase digital cash certificates, the money is withdrawn from your account. You transfer the certificate to the vendor to pay for a product or service, and the vendor deposits the cash number in any participating bank or retransmits it to another vendor. For large purchases, the vendor can check the validity of a cash number by contacting the issuing bank.
Anatomy of a Credit Card Transaction: The Basics
For a bigger understanding of a credit card transaction, the consequent is a
step-by-step breakdown: from the customer making a purchase using ECmerchant to
the merchant receiving an authorization on the value request. This not only
shows who is involved in this path , however it will highlight some considerations
in choosing an Internet value supply and establishing a merchant credit card
account.
Once the merchant account is in settle with an acquiring financial school
the merchant will desire to understand how money will be moved from the customers'
accounts to the merchant account. The best path to appreciate how an Internet
merchant gets paid is to follow a typical credit card transaction path . Fully
automated from end-to-end, in most cases it takes just seconds to entire.
1. A customer visits a web site, using average web browser software,
and fills her ECmerchant shopping cart.
2. The customer and ECmerchant exchange details online regarding
addresses, delivery and final value.
3. ECmerchant then displays the 'BUY' button to the customer, and a
transaction is initiated.
4. The customer clicks the 'BUY' button, prompting ECmerchant
to mail and electronic invoice.
5. ECmerchant provides transaction details in a form or the shopper's
browser automatically opens her online wallet, allowing her to select a value
instrument.
6. An encrypted charge value message is sent to ECmerchant.
7. When the server software receives the value message, it adds
merchant identification data.
8. The value request is encrypted and forwarded to gateway server
hosted by an ECommerce value supply corporation.
9. The gateway server decrypts the message and authenticates customers'
data and merchant validation.
10. A message is sent over secure, private financial networks to the
merchant's bank or authorized processor requesting charge approval.
11. Once the request is processed, a positive or negative response is
sent back to ECmerchant and on to the customer.
12. If the transaction is authorized, a digital receipt is delivered,
and the transaction is entire and captured.
