Commerce refers to all the activities surrounding the purchase or sale of goods or services. As we step into the next century, the Internet promises to bring unpredictable change in the society. Spanning the entire globe, crossing all boundaries, the net has redefined the methods of communication work, study, education, interaction, Entertainment, Health, Trade and commerce. There are some activities in commerce such as marketing, sales, payment, fulfillment, customer service etc.
Electronic commerce is the application of communication and information sharing technologies among trading partners to the aim of business objectives. Electronic Commerce is associated with the buying and selling of information, products and services via computer networks.
Electronic Commerce is a new way of conducting managing and executing business transactions using computer and telecommunication networks. Electronic Commerce refers to the paperless exchange of business information using EDI (Electronic Data Interchange), Electronic Mail, EFT (Electronic Funds Transfer) and other networks based technologies. Electronic Commerce applications started in the early 1970s, with such innovations as EFT.
Objectives Of The Study:
Purpose of the study is to diagnose the state of efficiency in itself and trace out the factors responsible for lower or higher efficiency in discharging various operation and activities of analysis in Electronic Money security.
1. To review rational and motives underlying term lending agencies in the present day complex mechanism of Electronic Money.
2. To analyze the institutional and organizational constraints hampering efficiency, efficiency and effectiveness of Electronic Money.
3. To assess their quality performance through structural analysis.
4. To examine the impact of new business policies and liberalization on these Electronic Money.
5. To study and analyze the security of Electronic Money transaction.
6. To suggest possible remedies for these institutions to halt their present declining trends.
7. To suggest the techniques for lending to higher growth of Electronic Money security.
Advantages Of Electronic Money:
Digital cash will allow for the immediate transfer of funds from an individual’s personal account to a businesses account, without any actual paper transfer of money. This offers a great convenience to many people and businesses alike.
Banks can offer many services whereby a customer can transfer funds, purchase stocks, and offer a variety of other services without having to handle the physical cash or cheques. Customers do not have to wait in lines, and this provides a lower hassle environment.
Disadvantages Of Electronic Money :
Although there are many benefits to digital cash, there are also many significant disadvantages. These include fraud, failure of technology, possible tracking of individuals and the loss of human interaction. It is very common that almost all systems have drawbacks. However, the question that needs to be asked is whether the advantages of using the system overpass the disadvantages.
Fraud over digital cash has been a pressing issue in recent years. Hacking into bank accounts and the illegal retrieval of banking records has led to a widespread invasion of privacy, and has promoted identity theft.
There is also a pressing issue in regards to the technology involved in digital cash. Power failures, loss of records, undependable software often cause a major setback in promoting the technology.
Fraud over digital cash has been a pressing issue in recent year. Hacking into bank accounts and illegal retrieval of banking records has led to a wide spread invasion of privacy and has promoted identity theft.
Power failures, loss of records and undependable software often cause a major set back in promoting the technology.
Frame Work Of Electronic Commerce:
Many people things Electronic Commerce is just having a web site, but Electronic Commerce is much more than that. There are dozens of applications of Electronic Commerce such as home banking, shopping in online stores and malls, buying stocks, finding a job, conducting an auction and collaborating electronically on research and development projects.
To execute these applications, it is necessary to have supporting information and organizational infrastructure and system.
Electronic Commerce applications are supported by infrastructures and their implementation is dependent on four major areas such as
4.protocols and organizations
Peoples – Buyers, sellers, intermediaries, services etc.
public policy – Taxes, legal, and privacy issues, domain names.
technical standards – For documents, securities, and network protocols.
Organizations – Partners, competitors, associations, Govt. services.
There are some other area of Electronic Commerce infrastructure such as
1.Common business services infrastructure – security smart cards / authentication, Electronic Payment, directories / catalogs.
2.Messaging and information distribution infrastructure – EDI, Electronic Mail, HTTP.
3.Multimedia content and network publishing infrastructure – HTML, Java, WWW, VRML.
4.Network infrastructure – Telecom, cable, TV, wireless, Internet, WAN, MAN, LAN, Intranet, Extranet.
5.Interfacing infrastructure – To databases, customers and applications.
Electronic Money System Model:
The e-money system is a mechanism that facilitates payments – generally of limited value – in which e-money can be considered as an electronic surrogate for coins and banknotes. The e-money system is described on the basis of a model with a set of sub-systems through which electronic value (EV) is transferred, under the responsibility of a System Supervisor who monitors the security of EV creation, EV extinguishment and EV circulation within the system.
The three main elements which make up our e-money system model are EV, EV circulation between sub-systems and supervision. Put together, these elements constitute the core of the e-money system model. The notions of transactions, compensation, EV life cycle and actors then complete this model.