Chapter 11 - Online Payment Systems

What you Should Know:

1. B2C versus B2B
2. Payment Methods - Cash, cheque, credit card, debit card
3. Online Payments

Credit Cards

• 85% use their credit card
• 5% of all credit card transactions accounts for 50% of all fraud.

Scrip

Scrip cannot be exchanged for cash, but it can be used to buy things on the internet. In early 2006, they tried to do this but they failed, the following were to companies that failed:

• Flooz
• beenz

Consumer Concerns:

• Convenience - Simple to use
• Phishing - false links to bank accounts

Credit Cards:

Visa and master card - they are cards that provide open loop processing.

Charge Cards:

American Express - There can be no balance on them they must be paid off every month

Advantages to using payment cards:

• Consumer protection from fraud
• Worldwide Acceptance
• Currency conversion handled
• Merchant protection
• Merchant assurance from issuing companies

Disadvantages to using payment cards:

• Costs to merchants - per transaction and monthly fees
• Costs to consumers - Annual fee

Payment Processing:

• EMV Standard
• 30 day shipping requirement
• Merchant accounts required to accept credit cards
• general payment service providers - ICverify
• online payment service providers

Electronic Cash

Advantages:

• Good for micro payment
• Readily exchanged for real cash unlike scrip
• Useful for those who cannot get credit cards
• No need for authorizations as required by credit cards
• independence: unrelated to any proprietary network or storage devices
• Portability: Freely transferable between two parties
• Convenience: Does not require andy special hardware/software

Disadvantages:

• Not standardized or universally accepted
• No Audit trail, due to independance and privacy
• Security Issues: Potential for "double-spending" & Money Laundering
• Security Issues: Suseptable to forgery

Online Systems:

• Checkfree
• Clickshare
• eCharge
• Paypal
• Valista
• Worldpay - Europe
• Authorize.net

electronic wallets

Serverside - Billeo Services

Clientside - illium wallet

Smartcards - Benefits over magnetic

Chapter 10: E-commerce Security

Security Issues:

Types of security:
-Physical security
-logical security (routers etc.)

Minimum Level of Requirements:

-Privacy/secrecy - no unauthorized disclosure
-Data integrity - no unauthorized modification
-Availability/Necessity - No data or message delays
-Key Management - secure encription keys
-Nonrepudiation - end-to-end proof of identity
-Authentication - digital signitures and certificates

Security Policy:

-Physical Security
-Network security
-Access authorization
-Virus Protection
-Disaster Recovery

Risk Management:

1. Terminology
2. Action Model

Client-Side Security:

Cookies:

1. Session Cookie - is deleted whent the browser is exited.
2. Persistent Cookie - this is permanent, is always stored on the harddrive.
3. Web bugs - A little invisible graphic that tells something to store a cookie.

Uses of Cookies:

1. Personalize websites
2. Website tracking
3. User ID and Log-in

Active Content:

1. activeX controls
2. Java Applets
3. Javascript
4. Trojan Horse
5. Viruses, worms & zombies
6. Graphics and Plugins

Encryption:

1. Symmetric (shared key)
2. Asymmetric (public key, private key, digital signiture)
3. digital certificates - comodo, Entrust, Geotrust, Thawte, Verisign, Which SSL, SSL Shopper,

Uses:

1. email (pretty good privacy - pgp)
2. banks
3. accountants

Encryption of disks and folders:

1. Truecrypt
2. Encrypt my folders
3. Hide my folders
4. hide photos
5. VOIP can now be encrypted without slowing down.

Anonymity:

1. anonymizer
2. Operator
3. Onion Routing
4. TOR Project

antivirus:

1. AVG
2. F-Prot
3. McAfee - corp
4. Symantec Norton -corp
5. Microsoft Security Center

Spam:

1. CA Anti spam
2. Choice Mail One
3. Mailwasher
4. Spam Buster
5. Spam Eater
6. Spam Killer

Spyware:

1. Ad-Aware
2. CCleaner - best one
3. Spybot S&D - must be used in conjunction with ad aware
4. Webrobot spy sweeper - commercial spyware

Miscellaneous:

1. brave.net
2. free hostia
3. IPtect
4. Comodo personal firewall

Chapter 8 & 9: Web Server Hardware and Software

Web Server Tools:

AMPP - Consists of MAMPP (Mac Version), WAMPP (windows), and XAMPP (Directly from Apache, if you have a choice, you would always use this). Runs on an operating system called lynix or unix and is half the price of WindowsIIS which has to be run on a windows platform.

EasyPHP - frequently used.

HFS - Http File Server, running this on your computer will allow people to access your computer files through a web browster. http://rejetto.com/hfs/

Server2go - Similar to HFS but it is using XAMPP, but it is meant to be used off a usb drive or your computer.

WindowsIIS - You would only use this if you were using active server pages (.asp). Otherwise you would use an apachy server.

My Local Web:

When you run a web page on your local computer is HTTP://localhost so xampp will always run on the local host. HTTP://127.0.0.1 is the same as your local host.

Web Design Tools:

Free:
-Nvu
-KompoZer (Best one) , doesnt need to be installed.
-Net Objects
-Blocknote.Net

Commercial:
-Adobe Dreamweaver
-Microsoft Expression Web

Content Management Systems (CMS):
A content management system stores all of the data in a database. When you go to the website, the website will access the database and pull up the data. Most websites are built on content management systems.

Local Data Base: Based on your computer
-city desk
-CMS Encore
-Blogjet (blogging)
-Ecto (blogging)
-Windows Live Writer

Webbased:
The data base is stored on a website. The database can be changed and viewed from any computer.

Some examples are:
1) CMS matrix
2) CMS From Scratch
3) CMS Made simple
4) silverstripe

Web Hosting:
Once a website is built on your server, you must host it somewhere so that everyone can see.
Some examples of hosts are:

1. okanaganhosting.com
2. oakparksolutions.com
3. tophosts.com

Chapter 7 Mind Map

Chapter 6 Key Concepts

Chapter 6: Auctions, Communities & Portals

Online Auctions:

C2C - Amazon.com auctions, Ebay, Truste, Escrow.com, e-deposit.com
C2B - priceline.com, cruisecompete.com (this is where the customer has the buying power, etc see how much they are willing to sell it for)
B2B - Liquidation brokers, ingram micro(computer wholesalers)
B2C - Amazon.com store, Ebay Stores, Overstock auctions, Yahoo Merchants (online stores)
Resources - Autionbytes.com, Auctionguide.com, Pricewatch.com, snipe software

Types of Auctions:

English (Ascending Price)
Dutch (Descending Price)
Sealed-Bid Auctions
Open-outcry Auctions
Sealed Bid Double
Reverse (Seller Bid) - This is like what governments use to contract jobs out to companies.

Web Portals:

• Nielsens NetRatings
• Advertising-Supported
• Mixed Revenue --> AOL.com
• intranet portals

Building Longterm Customer Relationships:

• Blogs
• Wikis
• Forums
• Facebook
• Friendster
• Linkedin
• Myspace

Chapter 5 Key Concepts Map

Chapter 4 key concepts mind map

Chapter 3 Key Concepts

E-Commerce – Week 3 Revision Notes

Chapter 3 – Selling on the web: Revenue Models & Building a Web Presence:

Revenue Models:

Not all e-commerce initiatives have the goal of providing revenue; some are undertaken to reduce costs or improve customer service.
Various models for generating revenue: web catalog, digital content, advertising-supported, advertising-subscription mixed, and fee based.
Most companies use the same revenue model for B2C and B2B.

Creating an Effective Web Presence:
Many customers and stakeholders of a web business know the company only through its web presence.
Creating an effective web presence can be critical even for the smallest and newest firms operating on the web.

Identifying Web Presence Goals:

Web based businesses and organizations have the luxury of building their web sites intentionally to create distinctive presences.
A good website design can provide many image-creating and image-enhancing features very effectively—it can serve as a sales brochure, a product showroom, a financial report, an employment ad, and a customer contact point.

Achieving Web Presence Goals:

An effective web site is one that creates an attractive presence that meets the objectives of the business or organization. The objectives include:

Attracting visitors to the web site.
Making the site interesting enough that visitors stay and explore.
Convincing visitors to follow the site’s links to obtain information.
Creating an impression consistent with the organization’s desired image.
Building a trusting relationship with visitors.
Reinforcing positive images that the visitor might already have about the organization.
Encouraging visitors to return to the site.

Web Site Usability:

Research indicates that few businesses accomplish all of their goals for their websites current web presence.
Most firms’ websites give the general impression that the firm is too important and its employees are too busy to respond to inquiries.

Chapter 2 key concepts Mind Map

Ch. 2 Key Concepts

Chapter 2 - Technology Infrastructure: The internet and the world wide web

Terms:

- A computer Network is any technology that allows people to connect computers to each other.

-The Internet is a large system of interconnected computer networks that span the globe.

- The World Wide Web (or more simply the Web) is a subset of the computers on the internet that are connected to one another in a specific way that makes them and their contents easily accessible to each other.

- Hypertext is a page linking system where the text on one page links to the text on another page.

- Hypertext Markup Language (HTML) is a language that includes a set of codes attached to text.  These codes describe relationships among text elements.

- Graphical User Interface (GUI) is a way of presenting program control functions and program output to users.

- The world wide web is the name for the system of hyperlinked HTML documents.

-Packet Switched Networks includes Local Area Networks (LAN) and Wide Area Networks (WAN).

Internet Protocols:

TCP/IP = Transmission Control Protocol and Internet Protocol

The TCP controls the disassembly of a message or a file into packets before it is transmitted over the internet, and the reassembly  of those packets into their original formats when they reach their destination.

The IP specifies the addressing details for each packet, labeling each with the packet's origination and destination addresses.

Domain Names: 

Domain names are a set of words that are assigned to specific IP addresses.  This is to eliminate the confusion of the dotted decimal notation.

Chapter 1 Key Concepts - Introduction to E-Commerce

Introduction to E-Commerce:

Business Model - focused on all the strategic elements of a business and is bottom line driven

Revenue Model - More focused on the sales and how to generate revenue for the company

Know:
-Globalization

-Localization

-Translation

Soundbites:
-Fortunes have been made and lost.
-60% of internet content is in english
-50% of internet users do not speak english
-75% of internet users live outside the USA
-Still riding the learning curve of what works and what doesn't
-EDI (Electronic Data Interchange) and EFT (Electronic Funds Transfer) have been around since the 60's
-Being first to the market is not that important.

E-Commerce Defiined:

E-commerce is the exchange of informations across electronic networks at any stage of the supply chain.

E-commerce is just commerce, but it is commerce accelerated and enhanced by IT.

E-Business Defined:

The transformation of key business processes through the use of internet technologies. -IBM

E-Commerce vs. E-Business:

two views:
1. E-Commerce is broadly equivalent to E-Business
2. E-Commerce is a subset of e-business.

Catagories of E-Commerce (or E-Commerce Models):
1. b2b (supply chain, value chain) eg. dell & their suppliers
2. b2c (commerce over the net) eg. amazon.com
3. c2b (demand aggregation) eg. consumer groups
4. c2c (community groups) eg. ebay

*There is also b2g which is business to government.

B2B vs. B2C:

B2B marketplaces (Ford's Auto Exchange)
B2C Vendors (amazon, otto, wal-mart)

Disintermediation - Getting rid of the middle man

First Wave of E-Commerce Defining Characteristics:

- Dominant influence of US businesses
- Extensive use of the english language
- Many companies started with outside inventors as a way to raise capital

2nd wave of E-commerce:

-Global enterprises are participating in e-commerce; native language websites

Product/process suitability:

-Commodity Item
Hard to distinguish from competitor's products or services.

-Shipping Profile
How easily can a product be packaged and delivered?

-High-value to weight ratio
what is the shipping cost to selling price ratio

-Digital Products

Advantages of E-Commerce:

-Can increase sales through enhanced customer service
-can decrease costs of handling inquiries and transactions
-can reach potential customers in every country
-can increase purchasing opportunities/ options for buyers


Disadvantages:

-Companies may become myopic
-Some products may require inspection by the customer before purchase
-Cultural and legal obstacles.

Global nature of E-commerce:

-Trust Issues
-Language Issues
-Cultural Issues
-Infrastructure Issues

Welcome to my bio

My name is Fergie Cancade, I am a business student at Okanagan College. I currently work for Orage clothing in Quebec. I am graduating in the summer of 2008 and plan to pursue a career in action sports.