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transfer of funds over the net. In this case, therefore, the buyer may

transfer the amount for the agreed price of the transaction to the
account of the online vendor who may, then, proceed to arrange

for the delivery of goods.
Iv. Credit or Debit Cards:

Popularly referred to as ‘plastic money,’ these cards are the most
widely used medium for online transactions. In fact, about 95 per

cent of online consumer transactions are executed with a
credit card.

• Credit card allows its holder to make purchase on credit. The
amount due from the card holder to the online seller is assumed by

the card issuing bank, which later transfers the amount involved
in the transaction to the credit of the seller.

• Buyer’s account is debited, who often enjoys the freedom to
deposit the amount in installments and at his convenience. Debit

card allows its holder to make purchases through it to the
extent of the amount lying in the corresponding account.

• The moment any transaction is made, the amount due as
payment is deducted electronically from the card. To accept

credit card as an online payment type, the seller first needs a
secure means of collecting credit card information from its

customer.
iv. Digital Cash:

This is a form of electronic currency that exists only in cyberspace.

This type of currency has no real physical properties, but offers
the ability to use real currency in an electronic format.

SECURITY AND SAFETY OF e-TRANSACTIONS: e-BUSINESS

RISKS
Online transactions, unlike arm’s length transactions in

physical exchange, are prone to a number of risks. Risk refers
to the probability of any mishappening that can result into

financial, reputational or psychological losses to the parties