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Describe the Process of online transaction

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(i) Registration:  Before online shopping, one has to register with the online vendor by filling-up a registration form. Registration means that you have an ‘account’ with the online vendor.  Among various details that need to be filled in is a ‘password’ as the sections relating to your ‘account’, and ‘shopping cart’ are password protected. Otherwise, anyone can login using your name and shop in your name. This can put you in trouble. (ii) Placing an order:  You can pick and drop the items in the shopping cart. Shopping cart is an online record of what you have picked up while browsing the online store. Just as in a physical store you can put in and take items out of your cart, likewise, you can do so even while shopping online. After being sure of what you want to buy, you can ‘checkout’ and choose your payment options. (iii) Payment mechanism:  It is clear from Exhibit 5.1 that payment for the purchases through online shopping may be done in a number of ways: • Cash-on Delivery (CoD):  As is clear from the name, payment for the goods ordered online may be made in cash at the time of physical delivery of goods. • Cheque:  Alternatively, the online vendor may arrange for the pickup of the cheque from the customer’s end. Upon realisation, the delivery of goods may be made.(i) Registration:  Before online shopping, one has to register with the online vendor by filling-up a registration form. Registration means that you have an ‘account’ with the online vendor.  Among various details that need to be filled in is a ‘password’ as the sections relating to your ‘account’, and ‘shopping cart’ are password protected. Otherwise, anyone can login using your name and shop in your name. This can put you in trouble. (ii) Placing an order:  You can pick and drop the items in the shopping cart. Shopping cart is an online record of what you have picked up while browsing the online store. Just as in a physical store you can put in and take items out of your cart, likewise, you can do so even while shopping online. After being sure of what you want to buy, you can ‘checkout’ and choose your payment options. (iii) Payment mechanism:  It is clear from Exhibit 5.1 that payment for the purchases through online shopping may be done in a number of ways: • Cash-on Delivery (CoD):  As is clear from the name, payment for the goods ordered online may be made in cash at the time of physical delivery of goods. • Cheque:  Alternatively, the online vendor may arrange for the pickup of the cheque from the customer’s end. Upon realisation, the delivery of goods may be made.• Net-banking Transfer:  Modern banks provide to their customers the facility of electronic 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. • 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, who 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 instalments 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. Payments through credit cards can be processed either manually, or through an online authorisation system, such as SSL Certificate (see box on, History of e-commerce).• Net-banking Transfer:  Modern banks provide to their customers the facility of electronic 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. • 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, who 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 instalments 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. Payments through credit cards can be processed either manually, or through an online authorisation system, such  as SSL Certificate 

Devashish Shrivastava Top Contributor
Undergraduate student | Content Writer

Online exchange handling (OLTP) is data frameworks that encourage and oversee exchange situated applications, regularly for information passage and recovery exchange preparing. So online transaction is finished with the assistance of the web. It can't happen without a legitimate web connection.  

 

Steps Involved in Online Transaction  

1] Registration:

  •  The customer needs to enroll online on a specific site to purchase a specific decent or administration.  
  • The client's email id, name, address, and different subtleties are spared and are sheltered with the site.  
  • For security reasons, the purchaser's 'Record' and his 'Shopping basket' is secret key ensured.  

2] Placing an Order :

  • At the point when a client enjoys an item or a help, he/she places the item in the 'shopping basket'.
  • The shopping basket gves a record of the considerable number of things chose by the purchaser to be bought, the number of units or amount wanted to be purchased per thing chose and the cost for each thing.  
  • The purchaser at that point continues to the installment choice subsequent to choosing all the items.  

3] Payment :

The purchaser at that point needs to choose the installment choice, he/she has different installment alternatives. These installment pages are made sure about with extremely elevated level encryptions so the individual budgetary data that you enter (bank/card subtleties) remain totally secure. A few manners by which you can make this installment are:  

 

  •  Cash on Delivery : The Cash on Delivery choice lets the purchaser pay when he/she gets the item. Here, the installment is made at the doorstep. The client can pay in real money, or by charge or Visa.  
  • Cheque: In this kind of installment, the purchaser sends a check to the merchant and the dealer sends the item after the acknowledgment of the check.  
  • Net Banking Transfer: Here, the installment is moved from the purchaser's record to the vender's record electronically for example through the web. After the installment is gotten by the merchant, the dealer dispatches the products to the purchaser.  
  • Credit or Debit Card: The purchaser needs to send his platinum card or Visa subtleties to the merchant, and a specific sum will be deducted from his/her record.