FUNDAMENTALS OF E-COMM. NOTES (BBA SEM.

6)

Subject Code: 606

E-Commerce – Introduction

E-commerce means using the Internet and the web for business transactions and/or
commercial transactions, which typically involve the exchange of value (e.g., money) across
organizational or individual boundaries in return for products and services. Here we focus
on digitally enabled commercial transactions among organizations and individuals.

• E-business applications turn into e-commerce precisely, when an exchange of value

occurs. Digitally enabled transactions include all transactions mediated by digital
technology and platform; that is, transactions that occur over the Internet and the
web. Here we focus on digitally enabled commercial transactions among the
organizations and individuals. These business transactions occur either as business-
to-business (B2B), business-to-consumer (B2C), consumer-to-consumer or
consumer-to-business.

• Digitally enabled transactions include all transactions mediated by digital technology

and platform i.e., transactions that occur over internet.

Meaning of E-Commerce

• The term electronic commerce (ecommerce) refers to a business model that allows

companies and individuals to buy and sell goods and services over the Internet.
Ecommerce operates in four major market segments and can be conducted over
computers, tablets, smartphones, and other smart devices.

• Nearly every imaginable product and service is available through ecommerce

transactions, including books, music, plane tickets, and financial services such as
stock investing and online banking. As such, it is considered a very disruptive
technology

• What Is the Difference Between Ecommerce and E-business?

• Ecommerce involves the purchase and sale of goods and services online and is
actually just one part of an e-business. An e-business involves the entire process of
 running a company online. Put simply, it's all of the activity that takes place with an
online business

E-Commerce – History of E-Commerce

Early Development:

The history of E-commerce begins with the invention of the telephone at the end of last
century. EDI (Electronic Data Interchange) is widely viewed as the beginning of ecommerce
if we consider ecommerce as the networking of business communities and digitalization of
business information. Large organizations have been investing in development of EDI since
sixties. It has not gained reasonable acceptance until eighties. The meaning of electronic
commerce has changed over the last 30 years.

Originally, electronic commerce meant the facilitation of commercial transactions

electronically, using technology such as Electronic Data Interchange (EDI) and Electronic
Funds Transfer (EFT). These were both introduced in the late 1970s, allowing businesses to
send commercial documents like purchase orders or invoices electronically. The growth and
acceptance of credit cards, automated teller machines (ATM) and telephone banking in the
1980s were also forms of electronic commerce. Another form of E-commerce was the airline
and railway reservation system.

Online shopping, an important component of electronic commerce was invented by Michael

Aldrich in the UK in 1979. The world’s first recorded business to business was Thomson
Holidays in 1981. The first recorded business to consumer was Gateshead SIS/Tesco in 1984.
During the 1980s, online shopping was also used extensively in the UK by auto
manufacturers such as Ford, General Motors and Nissan. The systems used the switched
public telephone network in dial-up and leased line modes.

From the 1990s onwards, electronic commerce would additionally include enterprise
resource planning systems (ERP), data mining and data warehousing. An early online
information marketplace, including online consulting, was the American Information
Exchange, another pre-Internet online system introduced-in 1991. In 1990 Tim Berners-Lee
invented the World Wide Web and transformed an academic telecommunication network
into a worldwide everyman everyday communication system called
internet/www(dot)Commercial enterprise on the Internet was strictly prohibited until 1991.

Although the Internet became popular worldwide around 1994 when the first internet
online shopping started, it took about five years to introduce security protocols and DSL
allowing continual connection to the Internet. By the end of 2000, many European and
American business companies offered their services through the World Wide Web. Since
then, people began to associate a word “E-commerce” with the ability of purchasing various
goods through the Internet using secure protocols and electronic payment services.

The various objectives of the e-commerce can be laid down as follows:

1. Development of Business-Relationship:
The business development can be done through the e-commerce being the primary and the
basic object. As their direct contact in between the company and the consumer, their
business relationship will be enhanced. Hence the area of the market can be increased.
2. Better-Customer Service:
As it is done round the clock, the customer will always have online help regarding the
products. As all the information is furnished to the customer, it becomes easy to him to
choose the best product among all other alternatives. As even the service can also be done
through the net immediately, the customer service will be ballooned. By highlighting the
customer service, the companies are trying to subjugate a lion-share in the market.
3. Getting more Customers:
In these days it becomes the mandate of the companies to double its customers, and this
can be done by rendering the value-add service and maintaining the quality. Hence, it is also
one of the primary objectives of the companies which supply impetus for the robust growth
in sales and overall profit.

E-Commerce pertains key features which are explained as follows:

1. E-Commerce is Technology-Enabled:
Traditional commerce is taking place since times immemorial but E-commerce is result of
integration of digital technology with business processes and commercial transactions. The
technological foundations of E-commerce are internet, WWW and various protocols.

2. Technology Mediated:
In E-commerce buyers and sellers meet in cyber space rather than physical place. Hence E-
commerce does not involve face to face contact.

3. Universality:
Buying and selling take place through websites in E-Commerce. The websites can be
accessed from anywhere around the globe at any time therefore it possess the feature of
universality. 
4. Intercommunication:

E-commerce technology ensures two-way communications between buyer and seller. On

one hand by using E- commerce firms can communicate with customers through E-
commerce enabled websites. On the other end, customers can also fill order forms,
feedback forms and can communicate with business operating firms.

 5. Delivery of Information:

E-commerce serves as the best channel of communication. E-commerce technologies
ensure speedy delivery of information at very low cost and considerably increase
information density as well.

6. Completion of Business Processes:

By using E- commerce we can perform business transactions like accounting and inventory
through computers at global level.

 7. Virtual Communities:

Virtual Communities are online communities created by means such as chat rooms and
specifically designed sites like, where people can interact with each other having common
interest using the internet.

The major different types of E-Commerce are:

I. Business-to-Business (B2B);
II. Business-to-Consumer (B2C);
III. Business-to-Government (B2G);
IV. Consumer-to-Consumer (C2C);
V. Mobile Commerce (M-Commerce).

I. Business to Business (B2B):

1. Business to Business or B2B refers to E-Commerce activities between businesses.
2. In E-Commerce B2B, transactions are usually carried out through Electronic Data
Interchange or EDI. EDI is an automated format of exchanging information between
businesses over private networks.
3. EDI is composed of standards that enable businesses’ computers to conduct transactions
with each other, without human intervention.
4. For Example- Manufacturers and wholesalers are B2B companies.
 II. Business to Customer (B2C):
1. Business to Customer or B2C refers to E-Commerce activities that are focused on
consumers rather than on businesses.
2. For instance, a book retailer would be a B2C company such as Amazon.com.

Type III. Customer to Business (C2B):

1. Customer to Business or C2B refers to E-Commerce activities, which use reverse pricing
models where the customer determines the price of the product or services.
2. For example – tele workers and online auctions are C2B processes.

Type IV. Customer to Customer (C2C):

1. Customer to Customer or C2C refers to E-Commerce activities, which uses an auction
style model.
2. Customers are also the business and C2C enables customers to directly deal with each
other. An example of this is peer auction giant, E Bay.
Type V. M-Commerce (Mobile Commerce):
1. M-commerce (mobile commerce) is the buying and selling of goods and services through
wireless technology i.e., handheld devices such as cellular telephones and personal digital
assistants. Japan is seen as a global leader in m-commerce.

The study of following factors show the need for E-Commerce in modern business era:

1. Wider Audience- The internet provides businesses, access to millions and millions of
people. A 2010 survey by Internet World Stats showed there are 266,244,500 internet users
in North America. On the World Wide Web, companies move beyond geographic limits to
reach wider audience.

2. Cost Efficiency- At the beginning of the internet age in the 1990s, creating websites was a
costly undertaking. As the years passed, building websites became less and less expensive.
In fact, small businesses can now build their own sites.

3. Faster Information- The information superhighway permits speedy exchange of data

across the world, which also means new information, is available faster.

4. Enhanced Service- Development of E-Commerce equipped domestic providers to offer

more services to clients.
Advantages of E-Commerce

• E-commerce offers consumers the following advantages:

• Convenience: E-commerce can occur 24 hours a day, seven days a week.

Increased selection: Many stores offer a wider array of products online than they carry in
their brick-and-mortar counterparts. And many stores that solely exist online may offer
consumers exclusive inventory that is unavailable elsewhere

Affordability: As there is a lot of variety available, customer can choose the product
according to his/her budget.

Less Effort: The product can be easily ordered sitting at home meaning one has to put less
effort contrary of physical shopping where one has to travel or move in marketplace for
finally choosing the product.

Easy Return and Refund: If one faces some problem in product, he/she can easily return the
product and also can get the money back.

Feedback: One can also put their feedback regarding the service on the company’s website
through which customer gets better goods and services eventually

• But there are certain drawbacks that come with ecommerce sites, too. The
disadvantages include:

• Limited customer service: If you shop online for a computer, you cannot simply ask
an employee to demonstrate a particular model's features in person. And although
some websites let you chat online with a staff member; this is not a typical practice.

• Lack of instant gratification: When you buy an item online, you must wait for it to be
shipped to your home or office. However, e-tailers like Amazon make the waiting
game a little bit less painful by offering same-day delivery as a premium option for
select products.

• Inability to touch products: Online images do not necessarily convey the whole story
about an item, and so e-commerce purchases can be unsatisfying when the products
received do not match consumer expectations. Case in point: an item of clothing
may be made from shoddier fabric than its online image indicates.
• Security: Security continues to be a problem for online businesses. Customers have
to feel confident about the integrity of the payment process before they commit to
the purchase. Banks such as ICICI Bank, HDFC Bank, State Bank of India have added
secure payment gateways to process online banking transactions quickly and safely.
• 2. System and Data Integrity: Data protection and the integrity of the system that
handles the data are serious concerns. Computer viruses are rampant, with new
viruses discovered every day. Viruses cause unnecessary delays, file backups, storage
problems, and other similar difficulties. The danger of hackers accessing files and
corrupting accounts adds more stress to an already complex operation.
• Products-People Won’t Buy Online:
• Imagine a website called furniture, com or living.com, where venture capitalists are
investing millions in selling home furnishings online. In the case of a sofa, you would
want to sit on it, feel the texture of the fabric etc. Beside the sofa test, online
furniture stores face costly returns which makes the product harder to sell online.
•
• BASIC REQUIREMENT OF ECOMMERCE

• Enhanced Shopping Cart 

• Fact: “More than 74% of online shoppers abscond before completing an online

transaction due to complex check-out process” 

• Requirement: Having a simple navigation page helps identify and organize your

buyers' products easily. You can also use a guest checkout option to enable
a fast and easy checkout process. Feature: An enhanced shopping cart with a
secured single page check-out avoids complexity and improves customer conversion
rate. 

• 2. Flexible Return Policy 

• Fact: “42% of online shoppers have returned an item they bought online and also
63% of online shoppers said that they would not purchase if they couldn’t find the
return policy.” 

• There’s no way to avoid returning the product. After all, people can’t see, touch, or
try the products before they buy them—they’re making their decision based on your
product’s photography, description and reviews.  

• Sometimes the product won’t work out as expected, and there is always the
possibility of a manufacturing defect or damage during the delivery process. 
• Requirement: There should be an easy way for the customers to return or exchange
an item they are not happy with.  

• Feature: Make your return policy easy to find and understand. Drafting a flexible and

trustworthy return policy can boost sales. 

• Mobile-Friendly Website 

• Fact: “Mobile commerce sales comprised 63.5% of the total sales in ecommerce in

2018.” 

• The increasing mobile phone usage has had a massive impact on the growth of
ecommerce as it allows consumers to instantly make purchases wherever they may
be. 

• Requirement: Ecommerce stores that are not optimized for mobile devices forces
your customers to zoom in and out to because of improper visualization while
navigating to another page. So, it is highly recommended to optimize your site for
mobile phones, tablets, etc.

• Feature: Creating a mobile-friendly website, and using responsive design is one of

the best ways to drive more mobile traffic to your site. 

• Highly Customizable Themes 

• Fact: “38% of people will leave a website if they find the layout unattractive or too
difficult to use.” 

• Always the appearance makes your brand stand out from other brands, so it's

necessary to have high-quality customizable themes and templates. 

• Requirement: Themes must support the website owners to edit the content of the
products and manage the portfolios. It should include blog posts to promote the
product. Also, it should reflect the product niche or business vertical. 

• Content management system

• Fact: “Nearly 55% of marketers’ top priority will be blog content creation.” 

• Nowadays, customers want to know and interact with the brand at multiple
touchpoints. They also want to know the story behind the creation of the brand. 
• Requirements: Blogging and product description help buyers learn about products
and platforms in a detailed manner. So, it's necessary for you to provide a highly
clear and relevant content about the product. 

• Feature: Content management system allows your customers to know about the

story behind your brand creation. 

• Third-party shipment integration 

• Fact: "More than three-quarters of online shoppers would like their orders

shipped on the same day.” 

• Most of the customer expects no shipping charge or less shipping charges and expect
trusted delivery services. 

• Requirement: Once customers placed their order, there should be detailed

information regarding the shipment which includes delivery time, order status, and
documentation like invoice and bills. Shipment services must provide continuous
tracking and frequent communication regarding any new update. 

• Customer’s Buying through various platforms like Flipkart, Amazon etc.

• They shop during lunch hours

• People are most likely to shop online during their lunch hour. According to Infinite
Analytics, an analytics company, 11 a.m. to 2 p.m. is the time when e-commerce
websites witness the most traffic. The research also revealed that after 2 p.m., as
evening approaches, the traffic starts to peter out. The least traffic is during the
morning hours.

• COD still holds sway

• According to Ernst & Young, Cash on Delivery (COD), is one of the key growth drivers
of e-commerce and accounts for 50% to 80% of online transactions in India. COD is a
risk-free transaction for a customer who is still testing online shopping.
• It’s all about discounts

• Everyone loves a good deal. Discounts are one of the major factors that attract
people to shop online. In fact, a recent study conducted by YourStory in
collaboration with Kalaari Capital, revealed that 32% of Indian shoppers viewed a
product catalogue online at least once a day. The study also indicated that there is a
pattern where customers are making many impulsive and unplanned purchases
based on what they like while browsing. The same study found that 74% of shoppers
preferred shopping online because of discounts!

• COD is a risk-free transaction for a customer who is still testing online shopping.

• Your customer is most likely a woman

• Women in India are becoming financially and economically more powerful and their
purchasing power has increased. According to Ernst & Young’s recent article, Gender
Inclusiveness: Women’s Growing Role in the Buying Decision, urban, earning women
already form an important consumer segment and a significant market for the e-
tailing industry in India.

• Today, Indian women are increasingly influencing buying decisions and contributing
to the economic prosperity by becoming a fast-growing consumer market.

• A report commissioned by PE fund Everstone Capital reveals that women will make

India 25% richer by 2025 by making a significant impact as consumers. For a seller,
this means increased potential. Sellers can build a large and loyal consumer base by
engaging women customers and selling products under women-specific categories

Concept of Internet

The Internet is “the global system of interconnected computer networks that use the
Internet protocol suite (TCP/IP) to link devices worldwide.” It has changed the way we
do our daily chores. The usual tasks that we perform like sending an email, looking up
train schedules, social networking, paying a utility bill is possible due to the Internet. The
structure of internet has become quite complex and it cannot be represented as it is
changing instantaneously. Every now and then some resources are being added while
some are being removed. Internet comprises of various networks that include public,
private, government, business, and academic sectors linked together using different
electronic technologies. It interconnects global networks with local and vice-versa. The
resources of Internet range in both information (including digital documents like image,
video, text etc.) and services (including information sharing, email, video conferencing
g) domains. Though the terms Internet and World Wide Web are used interchangeably
in lay man terms they are not the same. It is common practice to say "going on the
Internet" whenever we open any web page on a browser. However, the World Wide
Web or the Web is one of the most popular Internet services available. The Web is a
collection of interconnected documents (web pages) and other web resources, linked by
hyperlinks and URLs. It uses HTTP as an underlying protocol for information transfer
which is one of the several other protocols available in networking theory.

Evolution of Internet

The Defence Department of US, in 1969, funded a research project for developing a
robust network that should be resilient to even bombing. The main objective was to
develop a network that should be secure and robust enough to withstand even a nuclear
attack. This project was named as the ARPANET. The idea was to have a distributed
network in order to avoid attacks on the central authority. This led to the development
of Local Area Network (Local Area Network) and workstations equipped with the ability
to connect to the Ethernet. These local area networks were eventually connected to the
ARPANET. The distributed aspect of the ARPANET catalysed the rapid evolution of the
ARPANET over the next decade. Initially, ARPANET used National Control Protocol (NCP)
as the standard set of rules defining the communication between the computers
connected to ARPANET. However, owing to the rapid development of the information
technology, NCP was replaced by the Transmission Control Protocol/Internet Protocol
(TCP/IP). The TCP protocol fragments the messages into packet streams at the source
and performs reassembly of these packets at the destination. The transmission of these
packets from source to destination is handled by the IP. The IP protocol takes care of the
addressing conventions and ensures the delivery of the packet at the destination across
multiple nodes or even multiple networks. The agile nature of the TCP/IP protocol in
handling the communication across multiple heterogeneous networks attracted the
other networks to connect to the ARPANET and employ TCP/IP as their underlying
communication protocol. Eventually, the ARPANET developed into a large network of
networks and is now called as ‘Internet’.

3 Basic Concept

What is the Internet?

The Internet is a global collection of computer networks that are linked together by
devices called routers and use a common set of protocols for data transmission known
 as TCP/IP (transmission control protocol / Internet protocol). The primary purpose of the
Internet is to facilitate the sharing of information. There are many different tools used
on the Internet to make this possible. Some of the more common tools include email,
list servers, newsgroups, telnet, gopher, FTP, and the World Wide Web. Probably the
most popular of all Internet tools is the World Wide Web.

Characteristics of Internet

Easy to Use
The software that is used to access the Internet or web browser is designed in such a way
that is very simple and can be easily learned and used. Also, it is easy to develop.

Flexibility
Flexibility in terms of transfer of data. Basically, the internet network carries information in
digital form in a majority of cases instead of voice information in analog form.

Accessibility
Internet service is a worldwide service and access to all. People located in remote or
anywhere interior can also use the Internet. Therefore, information through the internet
flows across the networks in a standardised manner.

Interaction with Media and Flexibility of Communication

Businesses are expanding with the help of the Internet. There is a high degree of interaction
with the media due to internet service. Like, News, magazines, publishing houses, etc. have
extended their business with the help of Internet service.  Also, communication is flexible
due to internet service. With the help of text voice, video people can communicate easily. 

Low Cost and Security

The maintenance and development costs of Internet service are comparatively low. Also,
Internet service helped the security system both at an individual and national levels. For
example CCTV cameras, etc.

Limitations of Internet

Addiction, time-waster, and causes distractions

If any person is spending much time on the Internet connected devices, he can be addicted
to the Internet. An Internet addictive person can lead to spending his precious time on the
Internet, rather than doing something productive. 

Bullying, trolls, stalkers, and crime

A person who uses the Internet very frequently can face abusive or trolls' people. Another
issue cyberbullying is also increasing rapidly over the years. Sometimes, you can be tracked
on the Internet by hackers or unauthorize persons; they can be harmful to you by stealing
your personal information.
 Spam and advertising

The Internet is the best place to advertise any service or product as compared to traditional
advertising methods (for example, TV, newspaper, and radio). But you might see more spam
in your inbox than junk mail in real life because digital advertising can be sent on a massive
scale.

Never being able to disconnect from work

The Internet is the best creation to offer connectivity and enable people to work from
anywhere. Therefore, anyone can expect you to be available any time to work, even if you
are not available to work there. For instance, you have received an important work-related
e-mail while you may be at home and then without getting paid, end up working on the
content of that e-mail.

Identity theft, hacking, viruses, and cheating

There are various malicious users and computer hackers that can steal your personal
information and hack accounts, which can be used for identity theft and can be harmful to
you personally. As the Internet connects all computers to each other, so hackers can quickly
identify what computers are vulnerable to attack by scanning millions of computers.
Additionally, the Internet also enables students to find others to do their homework and
offers ways to cheat on their studies.

Affects focus and patience

The sites have an instant gratification effect that we use on the Internet every day. On-
demand, they also offer a large amount of menu of things to experience and think at any
moment. Getting information this way can affects your interactions and make you more
impatient and less focused on your activities. To solve this problem, try to focus on more
productive real-life activities like exercise or cleaning, and balance this natural effect with
time away from social media.

HTTP
HTTP is the short form for Hypertext Transfer Protocol. An example of the standard URL is
http://www.google.com. The prefix http in the URL designates the protocol being used for
communication. The HTTP protocol is used to access hypertext documents on the World
Wide Web.

URL
URL refers to Uniform Resource Locator. URLs are used as the address of the documents
available on the World Wide Web. A URL is the fundamental identifier of any resource
available on the web e. g., hypertext pages, images, and sound files. The standard format of
a URL has
been specified as –
protocol://hostname/
other_information
 A protocol is, basically, a specification of the flow of information in a network. The
protocol required for accessing the resources available on the web is called Hyper Text
Transfer Protocol (HTTP). Other protocols supported by the web browsers include
telnet, FTP, Gopher, etc. The name of the protocol is followed by a colon, two forward
slashes, and then the hostname. The hostname refers to the computer having the
requested resource. Hostname is followed by a single forward slash and links to
subdirectories or any particular file. The path to the directory holding the requested file
or resource may contain single forward slashes.

Website
Website refers to a collection of web pages usually written in markup language. For
example: www.google.com refers to the website of Google having ‘com’ as the domain
name. Websites can be understood as a location on the World Wide Web that holds the
resources which people can request when required. The first or the initial page of any
website is known as the home page of that particular website.

What is the World Wide Web (WWW)?

WWW stands for World Wide Web. A technical definition of the World Wide Web is −
All the resources and users on the Internet that are using the Hypertext Transfer
Protocol HTTP. The World Wide Web is the universe of network-accessible information,
an embodiment of human knowledge. The World Wide Web is a way of exchanging
information between computers on the Internet, tying them together into a vast
collection of interactive multimedia resources. It is a hypertext interface to internet
information resources. Internet and Web is not the same thing: Web uses internet to
pass over the information.

What is Email?

Known as Email (Electronic Mail), it is the most popular communication system on the
Internet. Email is a system that allows us to send messages from local computers to remote
computers, be it on a home network or a worldwide network such as the Internet.

Advantages of Email
The main advantages of email are:

 Immediacy
It allows you to send a message to anyone in the world in a matter of seconds.
  Asynchronous
You can send the email and let the person read it whenever they want.

 Free
Today, there are thousands of free email providers

 Send documents
You can send messages and attach personal documents, photos, videos, and much more.

 Simple learning curve

It is usually easy to learn how to send emails, both personal and corporate.

Disadvantages
 Disk storage
Some free providers impose stringent limits on their users, especially regarding the disk
quota they assign to the box.

 Single box
Free providers also generally only allow you to create one package unless you have a paid
provider.

 Requires Internet access

Both to send and to receive, you need to have Internet access. You cannot use email offline.
Otherwise, you will not be able to send or receive from the remote server.

 Spam
Since its inception, a big problem with email is a large amount of junk mail (spam) that you
will receive daily or weekly.

What can I do with an Email?

Some certain features and workings are inherent to all mail providers: things that they allow
you to do, no matter if it is a free or a paid provider. They are:

 Send messages
 Receive messages
 Create, modify and delete folders
 Manage spam (junk mail)
 Create forwarders and autoresponders
 Send attachments
 Create contacts and use them to send emails
 Forward, Reply, and Delete messages
 Change identities, ideal for users who use the same computer
  Prioritize sent emails (high, medium, or low)
 Create mailing lists to send group mailings
 Send a single copy or blind copy to multiple senders
 Calendar: ideal for organizing your most important affairs
Golden rules when Sending an Email
Comparable to everything on the Internet and in real life, here are all the time rules and tips
to follow while sending or replying to an email:

 Try to be as brief as you can. Nobody likes to read a bible. That’s what voice or audio
messages are.
 Try not to abbreviate words. Write to them correctly.
 Please correct your spelling before submitting it.
 Please choose the subject of the email as a summary of it
 Do not use capital letters, except to start a sentence. Take to mean as a shout or
loud voice.
Types of Email Accounts
Simply put, the email can be personal or corporate, or professional. Let’s see what it’s
about:

Personal Mail
It is usually the most common type of email, the one you use for your business. It serves to
send mail to friends and acquaintances, such as family, or even use it to register on social
networks, web and mobile applications, or actively subscribe to different newsletters on
topics of interest to you.

You should never use a personal account to handle business matters.

Corporate Mail
The corporate email remains often used for your work, both your own company and one for
the third company you work. The email you will want to use to contact your clients, business
contacts, and others. You will send estimates and receive formal communications regarding
the company you represent.

Collaborative tools are situated generally integrated into corporate emails, such as Google’s
Gsuite, which includes access to Google Docs, Sheets, and others, commonly used by work
teams.

Most Popular Providers

There are many email providers, but the most popular without a doubt are the ones listed
below:

Gmail
Google’s popular email service is today, and for years, the most widely used free email
service in the world. It also has a variant called G-Suite, which is the paid version of Google’s
mail suite and office applications, which is what we mentioned above, a perfect integration
for companies and work teams.

It also stands out for having one of the best spam filters globally, something many other
providers often fail. He is always receiving updates and new news from his development
team, who seek to make your life easier every day. The downside of the paid version is that
they charge almost $ 5 per box, which becomes very expensive if you have many
compartments, considering that there are similar services for much less.

Outlook
The outlook is one of the first mail services in the world. It became popular thanks to the
famous Outlook Express that stood installed on all computers with Microsoft Windows. But
the forerunner of this favorite email service is Hotmail, where almost everyone has or had
an email until Gmail’s appearance.

For nearly a decade, Microsoft bought Hotmail and merged it into what we know today as
Microsoft Outlook. Microsoft’s free email service and the gateway to corporate customers
who later decide to subscribe to Microsoft 365 email are the paid version. It costs like G-
Suite about $ 5 per month.

Yahoo!
The email from Yahoo! Mail was another top-rated service during the 90s and 2000s. It was
a pioneer on the Internet, which could not keep up with the changes, and which today is a
shadow of what it used to be. Even so, they continue to offer free service as always, and of
high quality.

What Is File Transfer Protocol (FTP)?

The term file transfer protocol (FTP) refers to a process that involves the transfer of files
between devices over a network. The process works when one party allows another to
send or receive files over the internet. Originally used as a way for users to communicate
and exchange information between two physical devices, it is now commonly used to store
files in the cloud, which is usually a secure location that is held remotely. 1

FTP may be used by a busines or individual to transfer files from one computer system to
another or by websites to upload or download files from their servers.

How File Transfer Protocol (FTP) Works

File transfer protocol allows individuals and businesses to share electronic files with others
without having to be in the same space. This can be done using an FTP client or through
the cloud. Regardless of the option, both parties require a working internet connection. 2
Most web browsers come with FTP clients that enable users to transfer files from their
computer to a server and vice versa. Some users may want to use a third-party FTP client
because many of them offer extra features. Examples of FTP clients that are free to
download include FileZilla Client, FTP Voyager, WinSCP, CoffeeCup Free FTP, and Core FTP.

Telnet
 is an application protocol used on the Internet or local area network to provide a
bidirectional interactive text-oriented communication facility using a
virtual terminal connection. User data is interspersed in-band with Telnet control
information in an 8-bit byte oriented data connection over the Transmission Control
Protocol (TCP).
Telnet was developed in 1969 beginning with RFC 15, extended in RFC 855, and
standardized as Internet Engineering Task Force (IETF) Internet Standard STD 8, one of the
first Internet standards. The name stands for "teletype network".

Historically, Telnet provided access to a command-line interface on a remote host. However,

because of serious security concerns when using Telnet over an open network such as the
Internet, its use for this purpose has waned significantly in favor of SSH. The term telnet is
also used to refer to the software that implements the client part of the protocol. Telnet
client applications are available for virtually all computer platforms. Telnet is also used as
a verb. To telnet means to establish a connection using the Telnet protocol, either with a
command line client or with a graphical interface. For example, a common directive might
be: "To change your password, telnet into the server, log in and run the passwd command."
In most cases, a user would be telnetting into a Unix-like server system or a network device
(such as a router).

Intranet: 
Intranet is owned by a single organization and is a tool for sharing information throughout
the organization. It is the type of Internet that is used privately. Since, intranet is a private
network so no one can use the intranet whose have not valid username and password. In
intranet, there are a limited number of connected devices as compared to internet.
Intranet is highly secure and has a small number of visitors. It is used in order to get
employee information, telephone directory etc. 

Extranet: 
Extranet is owned by either a single or a many organization. It is managed on a contractual
basis between organizations and is a tool for sharing information between the internal
members and external members. Like intranet, it is also a private network so only those
who have a valid username and password can use the extranet. Extranet is used to check
status, access data, send mail, place order etc. 
 
Let’s see the difference between Extranet and Intranet which are given below:- 
 

S.N
O Intranet Extranet

Intranet is a tool for sharing Whereas Extranet is a tool for sharing

information throughout the information between the internal members
1. organization. and external members.

Intranet is owned by a single While Extranet is owned by either a single or a

2. organization. many organizations.

In intranet, security is Whereas in this, security is implemented

implemented through a through a firewall in order to separate the
3. firewall. extranet and the internet.
S.N
O Intranet Extranet

Intranet is managed by an Whereas Extranet is managed by many

4. organization. organizations.

Intranet has a limited number Whereas in the extranet, connected devices

5. of connected devices. are comparable with the intranet.

While it is also a private network in which

Intranet is a private network public network is used in order to share the
6. type for an organization. information to the suppliers and customers.

Intranet is used in order to get

employee information, While It is used to check status, access data,
7. telephone directory etc. send mail, place order etc.

Intranet is the limited and

compromised version of While Extranet is the limited and
8. Extranet. compromised version of Internet.

A particular organization is the

regulating authority for While it is regulated by multiple
9. intranet. organizations.

It is accessible to only the It is accessible to members of organization as

10. members of organization. well as external members with logins.

It’s restricted area is upto an It’s restricted area is upto an organization and
11. organization. some of its stakeholders.

12. It is derived from Internet. It is derived from Intranet.

Limitations of Internet

Addiction, time-waster, and causes distractions

If any person is spending much time on the Internet connected devices, he can be addicted
to the Internet. An Internet addictive person can lead to spending his precious time on the
Internet, rather than doing something productive. Thus, anyone who is addicted to surf the
Internet can hamper workplace productivity as well.

2. Bullying, trolls, stalkers, and crime

A person who uses the Internet very frequently can face abusive or trolls' people. Another
issue cyberbullying is also increasing rapidly over the years. Sometimes, you can be tracked
on the Internet by hackers or unauthorize persons; they can be harmful to you by stealing
your personal information.

If you are spending your more time on the Internet, so it will be easier for hackers to find
your personal information through various means. To run business without as much fear of
being caught, the web deep, and the hidden places on the internet can also be a place for
criminals. Additionally, there are several people that provide criminals more ways to solicit
their goods.

3. Spam and advertising

The Internet is the best place to advertise any service or product as compared to traditional
advertising methods (for example, TV, newspaper, and radio). But you might see more spam
in your inbox than junk mail in real life because digital advertising can be sent on a massive
scale.

4. Pornographic and violent images

In modern times, there is a huge amount of content available on the Internet. Also, there
are various resources that contain a large amount of data, such as Wikipedia, and some sites
are also available that have less desirable content. Accordingly, users can see pornographic
or violent images that they may not want to see while using sites.

5. Never being able to disconnect from work

The Internet is the best creation to offer connectivity and enable people to work from
anywhere. Therefore, anyone can expect you to be available any time to work, even if you
are not available to work there. For instance, you have received an important work-related
e-mail while you may be at home and then without getting paid, end up working on the
content of that e-mail.

6. Identity theft, hacking, viruses, and cheating

There are various malicious users and computer hackers that can steal your personal
information and hack accounts, which can be used for identity theft and can be harmful to
you personally. As the Internet connects all computers to each other, so hackers can quickly
identify what computers are vulnerable to attack by scanning millions of computers.
Additionally, the Internet also enables students to find others to do their homework and
offers ways to cheat on their studies.

7. Affects focus and patience

The sites have an instant gratification effect that we use on the Internet every day. On-
demand, they also offer a large amount of menu of things to experience and think at any
moment. Getting information this way can affects your interactions and make you more
impatient and less focused on your activities. To solve this problem, try to focus on more
productive real-life activities like exercise or cleaning, and balance this natural effect with
time away from social media.

8. Health issues and obesity

If you are surfing the Internet frequently, playing games and spending too much time on the
computer, it can also lead to obesity and an unhealthy lifestyle. Also, a person who spends
too much time on the computer can face a problem like carpal tunnel syndrome as a
computer requires a lot of repetitive movement.

You are required to move your body parts to operate the computer, for example, typing and
moving hand to the mouse are repetitive actions that can cause injuries. Understanding
computer ergonomics, keeping the proper posture, and taking breaks can all help delay or
prevent these injuries.

Hardware and Software Requirements for Internet connection:

The following are the methods of connecting a computer to the Internet using software and
hardware peripherals.

 Three

• Connecting a computer using Wireless Broadband

• Connecting a computer using an Ethernet Cable

• Connecting a Computer Using Dial-Up Community

Hardware Requirement:
• To connect the Internet, any one of the following is mandatory.

• Modem is used to connect Internet through Telephone connection.

• NIC- Network Interface Card(wired/ wireless) facility is the most important hardware
required to connect Internet. For example, the Laptop can be connected Internet through
the wired/wireless.

• Dongle is used to connect the Internet using cellular network

• Wi-Fi router or Hotspot is used to connect the Internet using wireless network

• Electronic device which supports cellular network

• Internet Connectivity such as Dial-up connection, ISDN, DSL, Cable TV, wired and wireless
(Cellular) Network.

Software Requirement

• The operating system should support TCP (Transfer Control Protocol) / IP (Internet
Protocol), SMTP (Simple Mail Transfer Protocol), FTP (File Transfer Protocol), HTTP (Hyper
Text Transfer Protocol) and HTTPS (Hyper Text Transfer Protocol Secured) protocols.

• Browsers and other Internet clients access to the web applications such as Outlook, Gmail,
WhatsApp, Facebook, Twitter and etc.

 Connection Types:

The following methods are able to connect internet.

 Dial-up Connection :

A dial-up connection is established when two or more data communication devices use
a Public Switched Telephone Network (PSTN) to connect to an Internet Service Provider
(ISP) from computers. Many remote locations depend on Internet dial-up connections
because broadband and cable are rare in remote areas with low population. Internet Service
Providers often provide dial-up connections, a feasible alternative for budget-conscious
subscribers.
 

ISDN

ISDN is the acronym of Integrated Services Digital Network. It establishes the connection

using the phone lines (PSTN) which carry digital signals instead of analog signals. It is a set of
communication standards for simultaneous digital transmission of data, voice, video, and
other services over the traditional circuits of the public switched telephone network. There
are two techniques to deliver ISDN services such as Basic Rate Interface (BRI) and Primary
Rate Interface (PRI).

The following diagram shows accessing internet using ISDN connection:

 

DSL:

Digital Subscriber Line (DSL) is a high-speed Internet service for homes and businesses that
competes with cable and other forms of broadband Internet. DSL provides high-speed
networking over ordinary Telephone lines using broadband modem technology. The
technology behind DSL enables Internet and telephone service to work over the same
phone line without requiring customers to disconnect either their Voice or Internet
connections.

Cable TV Internet Connection (setup box):

The cable TV network can be used for connecting a computer or a local network to the
Internet, competing directly with DSL (Digital Subscriber Line) technology.

This type of network is classified as HFC (Hybrid Fiber-Coaxial), as it uses both fibre optics
and coaxial cables. The connection between the cable TV company to the distribution points
(Optical nodes) is made using fiber optics, with distances up to 25 miles (40 km). Each
optical node is typically serves between 500 and 2,000 clients (customers).
 search engine is a software program that helps people find the information they are looking
for online using keywords or phrases.

Search engines are able to return results quickly—even with millions of websites online—by
scanning the Internet continuously and indexing every page they find.

When a user enters a search term, the search engine looks at the website page titles,
contents and keywords it has indexed and uses algorithms (step-by-step operations) to
produce a list of sites—with the most relevant websites at the top of the list.

Companies use search engine optimization (SEO) to help search engines recognize their
websites as highly relevant to particular searches. Popular search engines include Google,
Bing and Yahoo.

hey search the World Wide Web in a systematic way for particular information specified in a
textual web search query. The search results are generally presented in a line of results,
often referred to as search engine results pages (SERPs). The information may be a mix of
links to web pages, images, videos, infographics, articles, research papers, and other types
of files. Some search engines also mine data available in databases or open directories.
Unlike web directories, which are maintained only by human editors, search engines also
maintain real-time information by running an algorithm on a web crawler. Internet content
that is not capable of being searched by a web search engine is generally described as
the deep web.

What Is a Credit Card?

A credit card is a thin rectangular piece of plastic or metal issued by a bank or financial
services company, that allows cardholders to borrow funds with which to pay for goods
and services with merchants that accept cards for payment. Credit cards impose the
condition that cardholders pay back the borrowed money, plus any applicable interest, as
well as any additional agreed-upon charges, either in full by the billing date or over time.
An example of a credit card is the Chase Sapphire Reserve. (You can read our Chase
Sapphire Reserve credit card review to get a good sense of all the various attributes of a
credit card).

In addition to the standard credit line, the credit card issuer may also grant a separate
cash line of credit (LOC) to cardholders, enabling them to borrow money in the form of
cash advances that can be accessed through bank tellers, ATMs or credit card convenience
checks. Such cash advances typically have different terms, such as no grace period and
higher interest rates, compared to those transactions that access the main credit
line. Issuers customarily pre-set borrowing limits, based on an individual's credit rating. A
vast majority of businesses let the customer make purchases with credit cards, which
remain one of today's most popular payment methodologies for buying consumer goods
and services.
The benefits of credit cards are innumerable, and some prime ones are:

1. Buy on credit:

What makes a credit card attractive is the credit limit allowed to the cardholder. You can
buy anything within that limit and pay later. Your monthly budget will not affect, even if you
buy items of high value on credit. One among the most important benefits of credit card is
you can convert the total amount of your purchases into low-cost EMIs to enable you to
repay it easily over a period of time. This has helped revolutionize the shopping experience.

2. Most accepted method of payment:

You can travel anywhere, without carrying much money if you have this card. Being the
most accepted method of payment, you can use a credit card to pay anything.

3. Interest-free cash withdrawals:

There are a few credit cards that allow you to withdraw money up to a certain limit in case
of emergency, with no interest charged up to 45 to 50 days. You can make use of it in times
of financial emergency.

4. Unlimited reward points:

These cards come with reward points when you use them. For instance, IDFC FIRST
Bank credit cards offer unlimited and never-expiring reward points, which are easily
redeemable.

5. Insurance coverage:

You get personal accident coverage, as well as comprehensive travel insurance coverage
and this is one of the significant benefits of credit cards, which make them attractive.

6. Make travel easy:

The uses of credit cards in travel make them important. When it comes to IDFC FIRST Bank
credit cards, they give you a unique experience through complimentary lounge access at the
airports and railway stations in India and priority check-in. Other than these, you can also
enjoy discounts on food in more than 280 restaurants.

7. Discounts and cashbacks:

The advantages of credit cards extend to discounts on some of your favourite entertainment
and dining outlets, travel and shopping apps, etc. You can also enjoy fuel surcharge waivers
at petrol pumps across the country. To check the host of offers, click - 
8. Improve your credit score:

The benefits of credit cards do not limit to shopping on credit; instead, it helps improve your
credit score. If you know how to use a credit card and how to make use of the credit period,
and repay the amount used on time, you can boost your CIBIL score. This will help you
obtain loans, without any difficulty in future.

9. Offers safety:

You don’t have to carry much money if you have a credit card.

10. Keep track of your expenses:

The statements you get every month from net banking helps you check your expenses and
plan the repayment without any delay. 

What Is a Debit Card?

A debit card is a payment card that deducts money directly from a consumer’s checking
account when it is used. Also called “check cards” or "bank cards," they can be used to buy
goods or services; or to get cash from an automated teller machine or a merchant who'll let
you add an extra amount onto a purchase.

KEY TAKEAWAYS

 Debit cards eliminate the need to carry cash or physical checks to make purchases,
and they can also be used at ATMs to withdraw cash.
 Debit cards usually have daily purchase limits, meaning it may not be possible to
make an especially large purchase with a debit card.
 Debit card purchases can usually be made with or without a personal identification
number (PIN).
 You may be charged an ATM transaction fee if you use your debit card to withdraw
cash from an ATM that's not affiliated with the bank that issued your card.
 Some debit cards offer reward programs, similar to credit card reward programs,
such as 1% back on all purchases.

How a Debit Card Works
A debit card is usually a rectangular piece of plastic, resembling any charge card. It is linked
to the user's checking account at a bank or credit union. The amount of money that can be
spent with it is tied to the account size (the amount of funds in the account).

In a sense, debit cards work as a cross between ATM cards and credit cards. You can use
them to get cash from a bank's automated teller machine, as with the former; or you can
make purchases with them, like the latter. In fact, many financial institutions are replacing
their plain vanilla, single-purpose ATM cards with debit cards that are issued by major card-
payment processors such as Visa or Mastercard. Such debit cards come automatically with
your checking account.
Whether being used to obtain cash or to buy something, the debit card functions in the
same way: It draws the funds immediately from the affiliated account. So, your spending is
limited to what’s available in your checking account, and the exact amount of money you
have to spend will fluctuate from day to day, along with your account balance.

What is a smart card?

A smart card is a physical card that has an embedded integrated chip that acts as a security
token. Smart cards are typically the same size as a driver's license or credit card and can be
made out of metal or plastic. They connect to a reader either by direct physical contact --
also known as chip and dip -- or through a short-range wireless connectivity standard such
as radio-frequency identification (RFID) or near-field communication.

The chip on a smart card can be either a microcontroller or an embedded memory chip.
Smart cards are designed to be tamper-resistant and use encryption to provide protection
for in-memory information. Cards with microcontroller chips can perform on-card
processing functions and manipulate information in the chip's memory.

Smart cards are used for a variety of applications but are most commonly used as credit
cards and other payment cards. The payment card industry's support of smart cards for the
Europay, Mastercard and Visa (EMV) card standard has driven the distribution of smart
cards. Smart cards capable of short-range wireless connectivity can be used for contactless
payment systems. They can also be used as tokens for multifactor authentication (MFA).

International standards and specifications cover smart card technology. Some of those
standards and specs are industry-specific applications. In the United States, smart card
technology conforms to international standards -- International Organization for
Standardization/International Electrotechnical Commission 7816 and ISO/IEC 14443 --
backed by the Secure Technology Alliance.

The first mass use of smart cards was Télécarte, a telephone card for payment in French pay
phones, launched in 1983. Smart cards are now ubiquitous and have largely
replaced magnetic stripe -- also known as mag stripe -- card technology, which only has a
capacity of 300 bytes of nonrewriteable memory and no processing capability.

How smart cards work

Smart card microprocessors or memory chips exchange data with card readers and other
systems over a serial interface. The smart card itself is powered by an external source,
usually the smart card reader.

Smart cards communicate with readers via direct physical contact or using RFID or another
short-range wireless connectivity standard. The chip or processor on the card contains data
that the card reader accesses. The processor on the card contains a basic operating system
(OS) that lets the card hold, transmit and protect the data.

Uses of smart cards

Smart cards are generally used in applications that must deliver fast, secure transactions.
They can protect personal information in numerous situations, including the following:

 credit cards;

 other types of payment cards;

 corporate and government identification cards;

 transit fare payment cards; and

 e-documents, such as electronic passports and visas.

Smart cards, such as debit cards, are often used with a personal identification number (PIN).
Organizations also use them for security purposes, as MFA tokens and for
authenticating single sign-on (SSO) users and enabling passwordless authentication.

Types of smart cards

Smart cards are categorized based on criteria such as how the card reads and writes data,
the type of chip used and its capabilities. They include the following types:

 Contact smart cards are the most common type of smart card. They are inserted
into a smart card reader that has a direct connection to a conductive contact
plate on the surface of the card. Commands, data and card status are
transmitted over these physical contact points.

 Contactless cards require only close proximity to a card reader to be read; no

direct contact is necessary. The card and the reader are both equipped with
 antennae and communicate using radio frequencies over a contactless link. The
antennae are often a copper wire that wraps around the edge of the card.

 Dual-interface cards are equipped with both contactless and contact interfaces.

This type of card enables secure access to the smart card's chip with either the
contactless or contact smart card interfaces.

 Hybrid smart cards contain more than one smart card technology. For example,
a hybrid smart card might have an embedded processor chip that is accessed
through a contact reader and an RFID chip for proximity connection. The
different chips may be used for different applications linked to a single smart
card -- for example, when a proximity chip is used for physical access control to
restricted areas and a contact chip is used for SSO authentication.

 Memory smart cards only contain memory chips and can only store, read and
write data to the chip. The data on these cards can be overwritten or modified,
but the card itself is not programmable. So, data can't be processed or modified
programmatically. These cards can be read-only and used to store data such as a
PIN, password or public key. They can also be read-write and used to write or
update user data. Memory smart cards can be configured to be rechargeable or
disposable, in which case the data they contain can only be used once or for a
limited time before being updated or discarded.

 Microprocessor smart cards have a microprocessor embedded onto the chip, in

addition to memory blocks. A microprocessor card may also incorporate specific
sections of files where each file is associated with a specific function. The data in
the files and the memory allocation are managed with a smart card OS. This type
of card can be used for more than one function and usually enables adding,
deleting and otherwise manipulating data in memory.

Smart cards can also be categorized by their application, such as credit card, debit card,
entitlement or other payment card, authentication token and so on.

Advantages of smart cards

Smart cards offer several advantages, such as these:
  Stronger security. Smart cards provide a higher level of security than magnetic
stripe cards because they contain microprocessors capable of processing data
directly without remote connections. Even memory-only smart cards can be
more secure because they can store more authentication and account data than
traditional mag stripe cards. Smart cards are generally safe against electronic
interference and magnetic fields, unlike magnetic stripe cards.

 Information persistence. Once information is stored on a smart card, it can't be

easily deleted, erased or altered. That is why smart cards are good for storing
valuable data that should not be reproduced. However, applications and data on
a card can be updated through secure channels, so issuers do not have to issue
new cards when an update is needed.

 Multiple uses. Multiservice smart card systems let users access more than one
service with one smart card.
Smart credit cards became common as banks embraced the EMV standard.

Disadvantages of smart cards

While smart cards have many advantages, there also drawbacks, including the following:

 Cost. The cards and the smart card readers can be expensive.

 Compatibility. Not all smart card readers are compatible with all types of smart
cards. Some readers use nonstandard protocols for data storage and card
interface, and some smart cards and readers use proprietary software that is
incompatible with other readers.

 Security vulnerabilities. Smart cards are secure for many applications, but they
are still vulnerable to certain types of attack. For example, attacks that can
recover information from the chip can target smart card technology. Differential
power analysis (DPA) can be used to deduce the on-chip private key used by
public key algorithms, such as the Rivest-Shamir-Adleman (RSA) algorithm. Some
implementations of symmetric ciphers are vulnerable to timing attacks or DPA.
Smart cards may also be physically disassembled in order to gain access to the
onboard microchip.
Examples of smart cards
Examples of smart card applications include the following:
  Payment cards, including debit and credit cards issued by commercial credit card
companies and banks, are used for financial transactions.

 Electronic benefits transfer cards are used for distribution of government

benefits, such as the U.S. Supplemental Nutrition Assistance Program.

 Transit cards let local and regional transit systems process payments, as well as
give riders points on their purchases.

 Access control cards enable schools, companies and government entities to

control access to physical locations.

 Smart health cards help medical facilities securely store patient medical records.

 SIM cards, used inside of digital cameras and smartphones, store media and
other data.

E-banking

Definition: E-banking is a blanket term used to indicate a process through which a customer
is allowed to carry out, personal or commercial banking transactions using electronic and
telecommunication network.

E-banking

Definition: E-banking is a blanket term used to indicate a process through which a customer
is allowed to carry out, personal or commercial banking transactions using electronic and
telecommunication network.

It is a product offered by banks which facilitates online banking, with the help of which the
customer can have access to the bank account in just one click.

E-banking covers facilities such as – fund transfer, checking account statements, utility bill
payments, opening of bank account, locating nearest ATM, obtain information on financial
products and services, applying for loans, etc. using a personal computer, smartphone,
laptop or personal digital assistant.

E-banking Services

In simple words, e-banking refers to a banking arrangement, with which the customer can
perform various transactions over the internet, which is end-to-end encrypted, i.e. it is
completely safe and secure.
E-banking promotes paperless/cashless transactions. It comes with a number of rights,
responsibilities and fees as well. The range of services covered under E-banking are:

1. Internet Banking: A banking facility provided to the customers through which the
customers are able to perform a number of monetary and non-monetary
transactions, using the internet, through the bank’s website or application.

2. Mobile Banking: Almost all the banks have designed their mobile applications with
which you can perform transactions at your fingertips. For this, four things are
required – a smartphone, internet, mobile application, and mobile banking service
enabled in your bank account.

3. ATM: Automated Teller Machine, popularly known as ATM is one of the most
common and initial service, provided under e-banking. It is not just a machine with
which you can withdraw cash as and when required, but it also allows you to check
your account status, transfer fund, deposit fund, changes mobile number, change
Debit Card PIN, i.e. Personal Identification Number.

4. Debit Card: Debit cards are used in our day to day life so as to perform end number
of transactions. Debit cards are linked to the customer’s bank account and so the
customer only needs to swipe the card, in order to make payment at Point of Sale
(POS) outlets, online shopping, ATM withdrawal. In this way, the amount is deducted
from the customer’s account directly.

5. Credit Card: Just like a debit card, a credit card is also a payment card which the
banks issue to the customers on their request, after checking their credit score and
history. It enables the cardholder to borrow funds upto the pre-approved limit and
make payment. The limit is granted by the banks which issue the card. The
cardholder promises to repay the amount within a stipulated time, with some
charges, for the use of credit card.

6. Point of Sale (POS): Points of sale system refers to the point, in terms of date, time
and place (retail outlet) where the customer makes a payment, using a plastic card,
for the purchase made or services received.

7. Electronic Data Interchange (EDI): EDI is a new mode of communicating information

between businesses electronically using a standardized format, which was
conventionally paper-based.
 8. Electronic Fund Transfer (EFT): When money is transferred electronically from one
bank to another, it is called as electronic fund transfer. It covers direct debit, direct
deposits, wire transfers, NEFT, RTGS, IMPS, etc.
Benefits of E-banking

 It enables digital payments, which encourages transparency.

 It allows 24/7 access to the bank account.
 It also sends notifications and alerts to get updated with the banking transactions
and changes in the rules.
 It lowers transaction cost for the banks.
 It is convenient and easy for customers, as they are not required to visit the bank
branch every time.
In a nutshell, any type of banking transaction performed through electronic mode comes
under E-banking.

It is a secure, fast and convenient electronic banking facility that allows its customers to
undertake online banking services.

What is Electronic Data Interchange (EDI)?

Electronic Data Interchange (EDI) is the electronic interchange of business information using
a standardized format; a process which allows one company to send information to another
company electronically rather than with paper. Business entities conducting business
electronically are called trading partners.

Many business documents can be exchanged using EDI, but the two most common are
purchase orders and invoices. At a minimum, EDI replaces the mail preparation and handling
associated with traditional business communication. However, the real power of EDI is that
it standardizes the information communicated in business documents, which makes possible
a "paperless" exchange.

The traditional invoice illustrates what this can mean. Most companies create invoices using
a computer system, print a paper copy of the invoice and mail it to the customer. Upon
receipt, the customer frequently marks up the invoice and enters it into its own computer
system. The entire process is nothing more than the transfer of information from the seller's
computer to the customer's computer. EDI makes it possible to minimize or even eliminate
the manual steps involved in this transfer.

The process improvements that EDI offers are significant and can be dramatic. For example,
consider the difference between the traditional paper purchase order and its electronic
counterpart:
A Traditional Document Exchange of a An EDI Document Exchange of a
Purchase Order Purchase Order

This process normally takes between three and This process normally occurs overnight and
five days. can take less than an hour.

Buyer makes a buying decision, creates Buyer makes a buying decision,

the purchase order and prints it. creates the purchase order but does
Buyer mails the purchase order to the not print it.
supplier. EDI software creates an electronic
Supplier receives the purchase order version of the purchase order and
and enters it into the order entry transmits it automatically to the
system. supplier.
Buyer calls supplier to determine if Supplier's order entry system
purchase order has been received, or receives the purchase order and
supplier mails buyer an updates the system immediately on
acknowledgment of the order. receipt.
Supplier's order entry system
creates an acknowledgment an
transmits it back to confirm receipt.

 Benefits include:
Minimal paper usage
EDI reduces associated expenses of storage, printing, postage, mailing and recycling

Enhanced quality of data

EDI  minimises data entry errors, improves accounts payable/receivable times as processes
become streamlined and can be used for forecasting

Improved turnaround times

Your business cycle is improved and stock levels are kept constantly up to date and visible
Improved timelines
EDI transfer ensures real-time processing and eliminates times associated with manually
sending, receiving and entering orders

Costs saving in operational efficiency

EDI reduces the time it takes your staff to manually create invoices and process purchase
orders
Helps create a greener world
EDI eliminates paper trails and ensures paper usage is kept to a minimum
Following are the disadvantages of EDI:-

1. Too many standards:-

There are too many standard bodies developing standard documents formats for EDI. For
example, one company may be following the x12 standard format, while it’s trading partner
follows EDIFACT standard format.

2. Changing standards:-

Each year, most standards bodies revisions to the standards. This poses a problem for EDI
users. One organization may be using one version of the standard while it’s trading partners
might still be using older versions.

3. EDI is too expensive:-

EDI is expensive and requires a heavy investment to launch and maintain the technology.
Small companies might find it difficult to invest in EDI because of the expenses to be
incurred in implementing and maintaining it.

4. EDI limits your trading partners:-

Some large companies tend to stop doing business with companies who don’t comply with
EDI. For example, WalMart is doing business with only those companies that use EDI. The
result of this is a limited group of people you can do business with.

5. Rigid requirements:-

EDI needs highly structured protocols, previously established arrangement, unique

proprietary bilateral information exchanges.
 6. Requires maintenance of links with other systems:-

Responsibilities may have to be changed during the introduction of the EDI system. Unless
this system and the links with the other systems are managed well, it is not possible for the
data processing department to be involved in production and purchasing decisions.

7. Open to limited traders:-

EDI requires expensive VAN (Value Added Network) networking to operate at peak
efficiency. Only high-volume, large trading partners can afford this investment.

Components of EDI

Standard Document Format: A SDF agreed by both the parties which do not require
complicated hardware pr software to access the information. Both parties communicate
directly through a web application.

Translator and a mapper: A translator is used to convert the raw data into meaning
information according to the specifications provided by the mapper. A mapper is used to
create conversion specification and then gives instructions to the translator on how to
convert the data

Communication Software: It is used to transmit the data and covert business documents
into a specific format. It followed a standard communication protocol which is incorporated
in the software

Communication Network: It provides a direct link between trading partners who a willing to
exchange the documents through the EDI