2 MARKS QUESTION BANK

Faculty Name
Subject Name
Year

: K.Kavitha
: Electronic Commerce
: II Year

Degree & Branch

: MCA

Subject Code
Semester

:MC9271
:IV

UNIT I - INTRODUCTION
1. Define E-com?
Electronic commerce commonly known as E_com. It is a common via any electronic
media such as TV, fax and online networks. Buying and selling the product or services
over electronic system, such as the internet and other computer networks.
2.

Goal of E_commerce.
Fast loading pages.
Clean, product centric layout.
Efficient and intuitive navigations structure.
Checkout oriented usage flow.
Search engine friendly code.

3.

What are the advantages of E_com.

Faster buying/selling procedure, as well as easy to find products.
More each to customers, there is no theoretical geographic limitations.
Low operational costs and better quality of services.
Easy to start and manage a business.

4. List the type of e_com.

There are mainly five types of e_commerce modes.
i)Business to customer(B-to-C)
ii)Business to Business(B-to-B)
iii)Customer to Customer(C-to-C)
iv)Peer to Peer(P-to-P)
v)m_commerce.

5. Difference between E_commerce and E_business.

i)
E_commerce is the subset of E_Business. If you remember the venn
diagram studied in school then u can well understand.
ii)
Those activities which effectually involve monetary transactions are
termed as e_commerce. However, e-business is a much broader term.
iii)
To sell online is e_commerce but to bring and retain customers and
educate them online about the product or service is e-business.
6. What are the functions of E_commerce?.
Marketing and communication
Student service
Healthcare
Online content and administration
administration and intranet.
7. What are the features of e_commerce.
1.
2.
3.
4.
5.
6.
7.

Ubiquity
Global each
Universal standards
Richness
Interactivity
Information density
personalization and customization

8.Define network.
In information technology a network is a series of points or nodes interconnected by
communication paths networks can interconnect with other networks and contain sub
networks.
9. Define distributed processing and is advantages.
A variety of computer systems that use more than one computer, or processor to run an
application. This includes parallel processing in which a single computer uses more than one
CPU to execute programs. More often however, distributed processing refers to local area
networks designed so that. Single program can run simultaneously at various sites. Most
distributed processing systems contains sophisticated software that detects idle CPU on the
network and parcels out programs to utilize them.

Advantage:
Quicker response time
Lower costs
Improved data integrity
Reduced host processors costs
Resource sharing
10. Define EDI.
EDI can be defined as the exchange of business data from one organizations computer
application to the computer application of a trading partner.
EDI message exchange is typically orders and invoices, although there are hundreds of
available messages.
11. Define TCP/IP:
Stands for transmission control protocol/ Internet protocol. These two protocols were
developed in the early days of the internet by the U.S military. The purpose was to allow
computers to communicate over long distance networks. The TCP part has to do either the
verifying delivery of the packets.
The IP part refers to the moving of data packets between nodes. TCP/IP has since then
become the foundation of the internet, therefore, TCP/IP software is built into all major o/s,
such as unix, windows and the mac os.
12. What is commercial transaction? Give an example.
An interaction between two or more parties in which goods, services or something of value is
exchanged for some type of remuneration. Some aspects of commercial transactions, such as
truthful representation and contract provisions, are governed by law .
Examples:
Sales Contracts
Generally for goods (toasters, cars, etc.)
License Contracts
Generally for intangibles (software, electronic media, etc.)
Banking Transactions
Negotiable instruments (checks, promissory notes, letters of credit, warehouse receipts, bills
of lading).

13. Define Internet and Intranet.

The Internet is sometimes called as The Net, is a world wide system of computer
networks a networks in which users at any one computer can ,if they have permission ,get
information from any other computer.
An intranet is a private network that is contained with in an enterprise. It may
consists of many inter linked local area network and also used leased lines in the world wide
area network. They typically, the intranet includes connections through one or more gateway
computer to the outside Internet.
14. Define web server and web browsers.
A web server is a program, that using the client/server model and world wide
webs Hyper Text Transfer Protocol (HTTP),serves the files that form web pages to web users.
Ex:
Apache.
MS IIS (Internet Information Server).
Novells web server for users of its NetWare.
A browser is an application program that provides a wave to look at and interact
with all the information an the world wide web. The word browser seems to have originated
prior to the web as a generic term for user interfaces that let you brows text file online.
15.What is the purpose of IETF?
->Internet Engineering Task Force.
-> To create high quality, relevant standard for the internet.
-> develop and promotes internet standards.
16. Define electronic transaction.
An electronic transaction is the sale or purchase of goods or services, whether between
businesses, households, individuals, governments, and other public or private organizations, conducted
over computer-mediated networks. The goods and services are ordered over those networks, but the
payment and the ultimate delivery of the good or service may be conducted on or off-line.

17. Advantages of internet.

1.communication
2.Informations
3.Entertainment
4.Services
5.Ecommerce.
19. Define EFT.
Moving founds between different accounts in the same or different banks , through
the use of write transfer ,Automated Teller Machine or Computers but without the use of paper
documents.
20. What are the advantages of electronic transaction?

Reduces Errors
Creates Transaction Database
Increases Accountability
Minimizes Fraud
Quicker Transactions
Eliminates Equipment
Lowers Transaction Costs
Faster Billing
Recurring Billing

21. What are the features of electronic transaction?

Electronic transaction has the following features
1. Simple to use
2. Cost effective
3. Flexible
4. Secure.
22. Define WWW.
The term WWW refers to the World Wide Web or simply the Web. The World Wide Web
consists of all the public Web sites connected to the Internet worldwide, including the client devices
(such as computers and cell phones) that access Web content. The WWW is just one of many
applications of the Internet and computer networks.

23. What are the components of WWW?

Structural Components
Clients/browsers to dominant implementations
Servers run on sophisticated hardware
Caches many interesting implementations
Internet the global infrastructure which facilitates data transfer
Semantic Components
Hyper Text Transfer Protocol (HTTP)
Hyper Text Markup Language (HTML)
eXtensible Markup Language (XML)
Uniform Resource Identifiers (URIs)

UNIT II SECURITY TECHNOLOGIES

1. Why the internet is unsecure?

Not using single PC
Data is transmitted to everywhere
Connected in different networks
2. What are the layers used for internet protocol?
Application layer
Transport layer
Internet layer
Link layer
3. What are the risks when transmitted data across the internet?
Some serious risks when we transmit data across the Internet are:
Interception by third party (some one other than the intended recipient reads mail you
send).
Forgery( someone sends mail and signs your name)
Modification(someone intercepts your mail, changes it, and sends it on to its final
destination)

4. What is a computer virus?

A computer virus is a remarkable analogy of its biological counterpart. Like a bio-virus,
computer viruses not "alive", in the sense that a computer virus must first infect a normal
program before its code can be run. Once a computer virus has infected a program, the next
time the program (possibly even part of the operating system) runs, the virus's payload will be
activated. Typically a virus will try to copy itself to other programs or across the network, but
most also contain some form of harmful instructions: delete files, format drives, send personal
files across the Internet, and so forth.

5. What is meant by Trojan horse?

Trojan horse is a program that looks normal (even inviting, like the original Trojan Horse), but
that carries a terrible payload. Some Trojan horses may masquerade as cute little dancing frogs
on the screen, or whatever.

6. What are the guidelines for protecting the password?

The password should not be easy to guess
The password should not be written down near the computer from which it will be used.
The user should not give out the password to anyone, ever
The user should not leave an active session running on an unattended, unprotected
system
Passwords should be changed periodically

7. What are the various attacks in E-com?

Inside attacks
Outside attacks
Service Denial
Malicious downloads
8. What is cryptography?
Cryptography is the art of encrypting confidential information and messages before
transmitting them to another computer or location and then decrypting them when they reach
the intended destination.

9. Mention the terminologies used in cryptography.

Symmetric Cipher Model: Before beginning, we define some terms.
Plain text: An original message is known as the plain text.
Cypher text: The coded message is called the cipher text.
Encryption or enciphering: The process of converting from plain text to cipher text is
known as encryption or enciphering.
Decryption or deciphering: Restoring the plain text from the cipher text is
deciphering or decryption.
Cryptography: The many schemes used for enciphering constitute the area of study
known as cryptography.
Cryptanalysis: Techniques used for deciphering the message without any knowledge
of these enciphering details fall into the area of cryptanalysis.
Cryptology: The area of cryptography and cryptanalysis together are called cryptology.

10. What are the objectives of cryptography?

The whole point of cryptography is to keep information out of the hands of
anyone but its intended recipient. Even if the massage gets intercepted, the meaning
wont be apparent to the interceptor unless the interceptor is able to decipher it.
Cryptography as we know it uses encryption to transform plain texts into
encrypted texts. The main objectives are

Confidentiality
Data Integrity
Non repudiation
Authentication

11. Notes on codes and ciphers.

Code:
A code actually uses some method of interchanging vocabularies so that
each code word represents some other non code word. Codes requires special code books
which act like dictionaries; it the code book is lost encoded text cannot be interpreted and any one with the code book can read encoded text.
Cipher:
Ciphers are the basis of encryption scheme ciphers act on each character
of a massage, transforming it according to some repeatable rule or algorithm.
12. What is the disadvantage of internet?
The fit of personal information
Spamming
Virus threat
Pornography.
Spamming: It refers to sending unknown email bulk.
Virus: It causes crashing your hard disk disrupts the normal functioning of computer.
Pornography: The biggest threat related to your children healthy mental life.
13. What is passive attack?
Passive attacks are attempted to learn or make use of information from the system but do not
affect system resources. By eavesdropping on, or monitoring of, transmissions to obtain
message contents or monitor traffic flows. These are difficult to detect because they do not
involve any alteration of the data.

14. What is active attack?

It is attempted to alter system resources or affect their operation. Active attacks involve some
modification of the data stream or the creation of a false stream and can be subdivided into four
categories

masquerade of one entity as some other

replay previous messages
modify messages in transit
denial of service

15. What is meant by one time code?

A one-time code is a prearranged word, phrase or symbol that is intended to be used only
once to convey a simple message, often the signal to execute or abort some plan or confirm that it
has succeeded or failed. One-time codes are often designed to be included in what would
appear to be an innocent conversation.

16. Define cryptanalysis?

Techniques used for deciphering a message without any knowledge of the enciphering
details.
17. Define cryptography?
The schemes used for enciphering is known as cryptography.
18. What is encryption ?
The process of converting plaintext to cipher text is known as encryption or
enciphering.
19. What is plain text?
This is the original message or data that is fetch into the algorithm as input.
20. What is secret key?
It is also an input of an input of an encryption algorithm. It is the value independent of
the plain text. The algorithm will product a different output depending on the specific key being
used at the time.
21. What is cipher text?
This is the scrambled message produced as output. It depends on the plain text and the
secret key.
22. What is Decryption Algorithm?
This is essentially the encryption algorithm run in reverse . It takes the cipher text and
the secret key and produces the original plain text.
23. What are the two requirements for secures use of conventional encryption?
We need a strong encryption algorithm.
Sender and receiver must have obtained office of the secret key in a secure fashion and
must keep the key secure.

24. What is brute-force attack?

The attacker tries every possible key on a piece of cipher text until an intelligible
translation into plain text is obtained.
25. What are the cryptography application?
There are three cryptography application .they are
Encryption
Digital signature
Non-repudiation
26. Define non-reputation?
It reference to digital security. Non-repudiation means to ensure that a transformed
message has been send and received by the parties claiming to have sent and received the
message. Non-reputation is a way to guarantee that the sender of a message cannot later
deny having sent the message and that the recipient cant deny received the message.
27. What are the types of ciphers?
Historical cipher:- Historical pen and paper ciphers used in the past are sometimes
known as classical ciphers. They include simple substitution ciphers and transposition ciphers. For
example "GOOD DOG" can be encrypted as "PLLX XLP" where "L" substitutes for "O", "P" for "G",
and "X" for "D" in the message. Transposition of the letters "GOOD DOG" can result in "DGOGDOO".
These simple ciphers and examples are easy to crack, even without plaintext-cipher text pairs.

Modern cipher:- Modern encryption methods can be divided by two criteria: by type of key
used, and by type of input data. By type of key used ciphers are divided into:
* Symmetric key algorithms (Private-key cryptography), where the same key is used for
encryption and decryption, and
* Asymmetric key algorithms (Public-key cryptography), where two different keys are used for
encryption and decryption.
28. What is meant by DES and AES?
The main standard for encrypting data was a symmetric algorithm known as the Data Encryption
Standard (DES). However, this has now been replaced by a new standard known as the
Advanced Encryption Standard (AES) which we will look at later. DES is a 64 bit block cipher which
means that it encrypts data 64 bits at a time. This is contrasted to a stream cipher in which only one
bit at a time (or sometimes small groups of bits such as a byte) is encrypted.

29. What is meant by secret key encryption?

Secret key cryptography goes back to at least Egyptian times and is of concern here. It involves
the use of only one key which is used for both encryption and decryption (hence the use of the term
symmetric). It is necessary for security purposes that the secret key never be revealed.

Secret key encryption

30. What are the Strength and Weakness of DES?

1. Strength- The strength of DES lies on two facts:
The use of 56-bit keys: 56-bit key is used in encryption, there are 256 possible keys. A
brute force attack on such number of keys is impractical.
The nature of algorithm: Cryptanalyst can perform cryptanalysis by exploiting the
characteristic of DES algorithm but no one has succeeded in finding out the weakness.
2. Weakness- Weakness has been found in the design of the cipher:
Two chosen input to an S-box can create the same output.
The purpose of initial and final permutation is not clear.

UNIT III ELECTRONIC PAYMENT METHODS

1. What is an offline transaction?
The business transactions are done in face-to-face manner. The merchant and consumer are
met directly to do business transactions. These traditional transactions are often called as offline
transactions. Not every commerce transaction is identical, and not every transaction is the same
type of transaction.
2. What are the Types of offline transactions?

Retail store
Retail special order
Catalogue store
Phone order from catalogue
bargaining
3. What are characteristics of offline transactions?
Identity
Immediacy
Value
Discourse
Community
Privacy
4. What is the payment methods used in traditional transactions?

Debit cards
Money orders
Bank checks
Travelers checks
Barter systems
Tokens

5. What are the actions to taken for building a commercial environment?

product delivery instructions

transaction settlement
account activity reports
confirmations
order status reports
gathering of marketing information

6. Give some examples of offline transactions.

Electronic and laser barcode readers that are used in grocery stores for keeping track of
stock,
Payment receipt books used in order to record sales transactions of businesses
customers and information on their payments,
Various accounting software applications and such other software used like Microsoft
Excel to calculate the various accounts required of any viable company.

7. What are the advantages of offline transactions?

More security
More reliability due to face-to-face transactions
Minimal infrastructure requirement

8. What are the disadvantages of offline transactions?

Less accuracy, speed and the number of transactions processed in any given time period.
Poor advertisement on consumers the offline transactions does not offer much
advertisement by the merchant instead manufacturer.
Not cover the global consumers.
Less competition on products to the consumers due to the availability minimal brand
products on the store, the consumer may not get the choice to compare with products to
choose best one.
Less choices of products for consumers the consumer has to buy the available products on
the store at the time.
Not adequate information available about the products to the consumers.
Non availability of comments and suggestions from other consumers
9. What is meant by c-gold and web money?
C-gold-digital gold currency backed by gold stored in vaults. It is fully redeemable for actual,
physical gold bars, which makes the weight-based balance of a c-gold.com user account the
same as buying physical gold with no taxes or surcharges.
Web Money - an online payment system that allows you to transact with other web Money
users or merchants, in a number of currencies; WMG purses are denominated in gold grams.
10. What are the needs for digital currencies?

Digital currencies are cheaper

Digital currencies are safer
Digital currencies are faster
Digital currencies are borderless
Digital currencies are convenient

11. Define electronic malls.

Setting up a web site for buying and selling can be complicated and expensive, it is not for
everyone. However some companies have been setting up electronic or vital or online malls. The
shopping mall is a familiar and comfortable model for consumers and merchants and it is
relatively straightforward to simulate using the World Wide Web. Mall operators allow
individual merchants to rent space on the mall.

12. Define online transactions.

Transaction through the internet. An online transaction, also known as a PIN-debit transaction,
is a password-protected payment method that authorizes a transfer of funds over an electronic
funds transfer (EFT).
13. What is the purpose of EFT?
When processed as an online transaction, the exchange of funds is completed using an EFT
network, such as Star, Pulse or Interlink, depending on which EFT system your bank is associated
with as a member bank. The cost of the transaction typically amounts to an interchange fee of
1% of the total purchase price, which is charged to the vendor/merchant.
14. State the advantages of digital currencies.
-

EuroGoldCash: registered in Panama but having its headquarters in Europe, it has a void in
the market for private financial transactions in a secure, honest, and multi-jurisdictional
venue.
Global Digital Pay: a private offshore internet payment system with Digital Trade Network
Ltd handling the currency reserves that back up the complete system.
Liberty Reserve : Instant, real-time currency for international commerce; its safe, reliable
and confidential

15. What is a secured web server?

- A secure web server must by definition support some type of security protocol. The two
important are S-HTTP & SSL.
16. What are then advantages of online commerce trading?
Online Transaction Processing has two key benefits: simplicity and efficiency. Reduced paper
trails and the faster, more accurate forecasts for revenues and expenses are both examples of
how OLTP makes things simpler for businesses.
17. What are the risks available in electronic payment system?
a. Customer's risk
b. Merchants risk
c. Main issue: Secure payment scheme.
18. What is the objective of S-HTTP?
The Secure Hypertext Transfer Protocol (S-HTTP) is the logical extension of the Hypertext
Transfer Protocol (HTTP), which is the basis of the World Wide Web. HTTP defines the
interactions between web browsers and web servers, determining how requests from browsers
are handled by web servers.
19. What is meant by bargaining?
It is a good deal or negotiable purchase. Just give a price, and decide whether or not to pay it.

20. What are the requirements of online transactions?

Span a network
Transaction management software
Decentralized database system
Organizational database
21. What are the advantages of online transactions?
Online Transaction Processing has some benefits:
simplicity
Efficiency.
Reduced paper trails and the faster,
More accurate forecasts for revenues and expenses are both examples of how OLTP
makes things simpler for businesses.

22. What are the disadvantages of online transactions?

As with any information processing system, security and reliability are important considerations.
When organizations choose to rely on OLTP, operations can be severely impacted if the
transaction system or database is unavailable due to data corruption, systems failure, or
network availability issues. Additionally, like many modern online information technology
solutions, some systems require offline maintenance which further affects the cost-benefit
analysis.

23. What are the required facilities supports for e-commerce?

Hardware
Software
Services
24. What are the classifications of payments?

Zero payments (0 )
Nanopayments (0.001 0.1 )
Micropayments (0.1 - 5 )
Medium Payments (5 1.000 )
Macropayments (> 1.000 )

25. What is meant by micropayment?

A micropayment is an e-commerce transaction involving a very small sum of money in exchange
for something made available online, such as an application download, a service or Web-based
content.

26. What is meant by macro payment?

This method offers very larger amount of business transaction. Established business relationship
between sellers and buyers. Business relationship is fixed by contracts. Therefore, payments are
not as important as continuous business relationship. Payments are not internet-based.

27. Define hard goods.

Hard Goods are goods that cannot be transmitted via the Internet. Examples: Books, cars, food.
Hard Goods Shops require an integration of
Online shop-systems,
Merchandise planning and control systems / enterprise resource planning systems (ERP)
Distribution channels / partners

28. What is meant by soft goods?

Soft Goods are goods that can be transmitted via the Internet. Example : Software, Demos,
Music, Video-Clips, Electronic Documents. Soft goods shops do not require merchandise planning and
control systems and physical distribution. Usual way of delivery: Customer enters e-mail address, then
Receives a link to download or Can download directly.
Receives a product key.

29. What is SET? List any four requirements of SET?

SET is Secured Electronic Transactions.
Provide confidentiality of payment information and enable confidentiality of order
information that is transmitted along with the payment information.
Ensure the integrity of all transmitted data.
Provide authentication that a cardholder is a legitimate user of a branded payment card
account.
Provide authentication that a merchant can accept branded payment card transactions
through its relationship with an acquiring financial institution.

30. List the credit card business basics.

Cardholder
: the consumer
Issuer
: the bank who issued you a credit card
Merchant
: the party from whom you are buying goods and services
Acquirer
: the financial institution/bank who establishes an account with the
merchant and processes payment authorizations and transactions for the merchant.
Payment Gateway
: a device operated by an acquirer (financial institutions) that
processes the merchant payment messages.
Brand
: Visa, MasterCard, discover, etc.

31. What are the participants in SET system?

Cardholder
Merchant
Issuer
Acquirer
Payment gateway
Certification authority

32. What is credit card?

A credit card is a small plastic card issued to users as a system of payment. It allows its holder to
buy goods and services based on the holder's promise to pay for these goods and services. The
issuer of the card creates a revolving account and grants a line of credit to the consumer (or the
user) from which the user can borrow money for payment to a merchant or as a cash advance to
the user.

33. What are the different types of cheque?

Bearer Cheque

Order Cheque
Uncrossed / Open Cheque
Crossed Cheque
Anti-Dated Cheque

Post-Dated Cheque
Stale Cheque

34. What are the types of credit card?

secured credit cards
prepaid credit cards
balance transfer credit cards
low interest credit cards

35. What are the steps involved in credit card transaction?

Authorization:
The credit card holder makes purchase and the merchant submit the
transaction to acquirer.
Batching:
It refers to storing of the entires day transactions together before sent to
acquirer.
Clearing and settlement:
This request is transferred money form customers account to the merchant
amount.
Funding:

After the money reaches to acquirer the amount transfers from acquirer to
the merchant account. The merchant receives the amount from acquirer after the
deduction of transaction fee.
36. What are the credit card features?
The main feature of credit card is interest rate the user pay unpaid balance. After
purchase, the user gets 30 days to make the user payment. There is no interest charge
because is no balance, left to pay.
The next feature is credit limits. This is the amount of money the user one allowed
to change to the user. A credit card is fees associated with just having the credit card.
This is the annual fee. Many cards have n annual fee.

37. Define EFT:

Electronic funds transfer. Any transfer of funds that are indicated by electronic
means, such as the electronic terminal, telephone, computer, ATM or the magnetic tape.
A banking system by which transaction, such as the deposits or bill payments, are made
through computer database. (E.g): the user investment for therapeutic work with EFT. It
is used to solve problem through phone.
38. Define advantages of SLL.
The first advantage is that SLL can be applied to any internet application not just
world wide web although it was initially implemented only under HTTP.
The second advantage is that once SSL connection has been negotiated between a
server and a client, the resulting data communication channel private
authentication and reliable.
39. Define acquirer.
The financial institution or bank who establishes an account with the merchant and
processes payment authorization and transactions for the merchants. Acquirer verities
that credit card number of the credit holder and the transaction type.

UNIT IV ELECTRONIC COMMERCE PROVIDERS

1. What are the online commerce options?
Consumer choice
Merchant choice
Service providers
2. What is meant by host & non host solutions?
Host solution: the developers of the software host everything and we are not responsible for
installing or configuring anything on your web hosting server.
Non host solution: With non-hosted solutions like what we call traditional e-commerce
software, your website is a unique installation of the software and every time there are new
features, security upgrades, etc, you are responsible for doing the upgrades.

3. List some e-commerce service providers.

PayPal: PayPal has two levels: Standard and Pro. Their Standard program is used for
those Buy Now buttons you may see on some websites. Typically this is used for sites
which are selling just a few simple products from their website. It allows people to quickly
and easily start selling products online.
Foxy cart: Foxy Cart is a hosted shopping cart and checkout system. It is more advanced
than PayPal Buy Now buttons, but not to the level of a full e-commerce solution like
Shopify or Traditional e-commerce software.
Shopify: Shopify is a hosted platform built for simple e-commerce which we have found
to be a great match for many of our clients starting their first e-commerce store.

4. What are the features of online commerce?

Reliability
Simplicity
Security
Acceptability
5. What is payment system? Give an example.
An e-commerce payment system facilitates the acceptance of electronic payment for online
transactions. Also known as a sample of Electronic Data Interchange (EDI), e-commerce
payment systems have become increasingly popular due to the widespread use of the internetbased shopping and banking.
(E.g) Google checkout, Sage payment solution, World pay, Web money

6. Define electronic payment system.

Electronic Payment is a financial exchange that takes place online between buyers and sellers.
The content of this exchange is usually some form of digital financial instrument (such as
encrypted credit card numbers, electronic cheques or digital cash) that is backed by a bank or an
intermediary, or by a legal tender.

7. What are the benefits of electronic payment system?

Decreasing technology cost: The technology used in the networks is decreasing day by
day, which is evident from the fact that computers are now dirt-cheap and Internet is
becoming free almost everywhere in the world.
Reduced operational and processing cost: Due to reduced technology cost the
processing cost of various commerce activities becomes very less. A very simple reason
to prove this is the fact that in electronic transactions we save both paper and time.
Increasing online commerce: The above two factors have lead many institutions to go
online and many others are following them.

8. What is meant by electronic tokens?

An electronic token is a digital analog of various forms of payment backed by a bank or financial
institution. There are two types of tokens:
Pre-paid tokens - These are exchanged between buyer and seller, their users pre-pay for
tokens that serve as currency. Transactions are settled with the exchange of these
tokens. Examples of these are DigiCash, Debit Cards, Electronic purse etc.
Post Paid Tokens are used with fund transfer instructions between the buyer and
seller. Examples Electronic cheques, Credit card data etc.

9. What are the different offerings of e-commerce?

Products
Services
Information
10. What is meant by first virtual?
First virtual, on the other hand, approaches digital commerce using different assumptions about
the sale of information over the internet. First virtual allows information merchants the
opportunity to offer their information for a fair price, while still giving information consumer the
opportunity to take products for a test drive.

11. Define cyber cash.

Cyber cash offers digital payment mechanisms that use modern cryptographic technologies,
including public and private key encryption and digital signatures, implemented through special
client and servers software.

12. Define Infohaus.

First virtual offers a virtual mall, called infohaus, through which just about anyone can sell
information on which commissions and fees are paid to first virtual. First virtual also provides,
through their internet service , sample HTML code, an application programming interface, and
source code for implementing the system on existing server and client software.

13. What are the assumptions of first virtual payment system?

Marginal cost
Skim through a book
Low cost
Support large transactions
No sales return
Should be virtual
14. What is meant by pioneer payment system?
The Pioneer sellers program is designed for people who want to start selling their information
over the internet without establishing themselves as traditional sellers requiring a credit check
or other bureaucracy.

15. What is meant by express payment system?

The express seller program is for those sellers who already have a credit card merchant number
available to accept credit card payments. The application fee is US$350 and the annual renewal
is US$250.

16. What are the requirement of Infohaus?

Business name the name under which your information products will be sold.
First Virtual account identifier, required for settling transactions.
The e-mail address linked to your First Virtual account, so transaction notifications can
be sent.
Your preferred currency; these defaults to United States dollars, which so far is the only
option available.
Preferred language, which also is so far limited to English (EN).
A brief description of your business, which will appear beneath your business name on
the InfoHaus main page.

17. What are the cyber cash security considerations?

Cyber Cash uses a combination of RSA public key and DES secret key
technologies to protect and guarantees data through encryption and digital
signatures.
The CyberCash software has been approved for export from the United States,
even though it employs very strong versions, using 768-bit RSADSI keys. This high
level of encryption is intended to protect the sensitive portions of commercial
transactions.
The CyberCash software uses the strongest encryption approved so far by the
U.S. Government for worldwide use. It uses full 768 bit RSA as well as 56-bit
DES encryption of message. All transactions are authenticated with MD5 (a
message digest procedure) and RSA digital signatures.
18. What are the tasks performed by cyber cash merchant?
Open an account with bank offering cyber cash services.
Modify server home pages to include cyber cash PAY button.
Install the related cyber cash software on server
19. What are the benefits of merchant using cyber cash?
There is no extra charge for using cyber cash
It is a convenience for customer who may prefer not to have to re enter credit card
numbers on the Internet
It offers merchants useful tools for tracking and transacting business on the Internet.
It is soon to be widely supported by banks and credit card companies.
20. What is meant by skrill or money bookers?
electronic payment system to carry out Internet transactions from credit cards to bank accounts
for ecommerce websites, web auctions and many other corporate users. Currently undergoing
rebranding and is now called Skrill. Have a few verification steps to minimize fraud. Over
100,000 of merchants around the world are actively using this service.

21. Define electronic check. Give its benefits.

The electronic cheques are modeled on paper checks, except that they are initiated
electronically. They use digital signatures for signing and endorsing and require the use of digital
certificates to authenticate the payer, the payers bank and bank account. They are delivered
either by direct transmission using telephone lines or by public networks such as the Internet.

Benefits of electronic Cheques:

Well suited for clearing micro payments. Conventional cryptography of e-cheques
makes them easier to process than systems based on public key cryptography (like
digital cash).
They can serve corporate markets.
Firms can use them in more cost-effective manner.
They create float and the availability of float is an important requirement of Commerce.

UNIT V ELECTRONIC COMMERCE ENVIRONMENTS

1. List the advantages of Internet based EDI.
EDI can offer for buyer-supplier relationships are significant and a majority of
respondents felt that the introduction of I-EDI would have a dramatic positive
effect.
EDI and other similar technologies save a company money by providing an
alternative to, or replacing, information flows that require a great deal of human
interaction and materials such as paper documents, meetings, faxes, etc.
It reduces the handling costs of sorting, distributing, organizing, and searching
paper documents. EDI and similar technologies allow a company to take
advantage of the benefits of
storing and manipulating data electronically without the cost of manual entry.
Another advantage of EDI is reduced errors, such as shipping and billing errors,
because EDI eliminates the need to rekey documents on the destination side.
One very important advantage of EDI over paper documents is the speed in
which the trading partner receives and incorporates the information into their
system thus greatly reducing cycle times.
2. What is EDI?
Electronic data interchange (EDI) is a method for transferring data between different
computer systems or computer networks. It is commonly used by big companies for ecommerce purposes, such as sending orders to warehouses or tracking their order.
3. Define smart cards.
A smart card is a plastic card about the size of a credit card, with an
embedded microchip that can be loaded with data, used for telephone calling,
electronic cash payments, and other applications, and then periodically refreshed for
additional use.
4. State the advantages of digital currencies.
a. Digital currency
a. Non-intermediated transactions
b. Anonymity
c. Ecommerce benefits
1. Privacy preserving
2. Minimizes transactions costs
3. Micropayments

b. Security issues with digital currency

a. Authenticity (non-counterfeiting)
b. Double spending
c. Non-refutability
5. Distinguish between digital currencies and electronic payment system.
Electronic money is money that is exchanged electronically. This involves the use
of computer networks, the internet and digital stored value systems.
Bank deposits, electronic funds transfer (EFT), direct deposit, payment
processors and digital currencies such as bit coin are all examples of electronic
money.
The main difference between digital currencies is the way they are
accounted. Some are simply accounted in a specific national currency and some
others are accounted in weight of metal like gold or silver.
6. What is the need for server in e-commerce?
Microsoft
Commerce Server is a Microsoft product
commerce systems using Microsoft .NET technology.

for

building e-

Initially released in 2000, Commerce Server replaced Microsoft Site Server,

expanding on the functionality and establishing a focus on e-commerce
functionality (rather than concerning itself with document management or
content metadata).
It helps to create an e-commerce solution and/or Web site with highperformance, familiar tools that simplify setup, management, and administration
tasks.
7. What are the techniques and tools of internet for doing business?
Shopping techniques:
- Buying commodities online
- Buying special items online
- Making store easy to reach
- Making web site easy to use
- Making products easy to purchases
Tools:
- Good World Wide Web client
- Electronic mail client
- File transfer software

Networking software

8. What are the key elements of digital cash?

Minimum requirements
a. Confidentiality
a. Anonymity
b. No monitoring
b. Authentication
a. Digital Cash is valid
b. Banks can authenticate parties
c. Integrity
a. Should not be easy to alter a piece of digital cash
d. Non-Repudiation
e. Confirmation that the transaction was complete
f. Settlement
Other characteristics
g. Divisibility
h. Off-line capability
i. Peer-to-Peer transactions
j. Scalability
9. What is meant by blind signature?
Blind signatures are used when you want someone to sign something but you
dont want them to see what they are signing
This is done by multiplying the message by a secret number (called blinding).
The signer signs the blinded message
The secret number can be divided out to get a signed version of the message
10. What are the two types of smart card?
- Contact smart card
- Contactless smart card
11. What are the advantages and disadvantages of smart card?
Advantages:
More Secure
Safe to Transport
Double as an ID Card

Disadvantages
Easily Lost
false sense of security
Slow Adoption
Possible Risk of Identify Theft

12. What are the advantages of secure server?

The advantage of secure server is that it serves the casual internet consumer who has a
new World Wide Web browser and a credit card , but has never set up to use any
electronic payment or digital money system. Since software publishers are continuing to
incorporate SSL and S-HTTP and other secure protocols into their World Wide Web
browser products, secure servers supporting those protocols are also growing in the
marketplace.

13. What are the three protocols used in Netscape commerce server?
- Uniform Resource Locator(URL)
- Hypertext Transfer Protocol(HTTP)
- Hyper Text Markup Language(HTML)
14. What are the threats available in Netscape commerce server?
The Human Element;
Viruses and Worms;
Trojan Horses;
Logic Bombs;
Denial Of Service Attacks;
Ping Of Death;
SYN Flooding;
Phishing Attacks
Data Packet Sniffing;
IP Spoofing;
Port Scanning;
Trapdoors and Backdoors

15. What is meant by Microsoft wallet?

A digital wallet capability built into Internet Explorer. The client-based wallet was
superseded by the server-based wallet in Microsoft's Passport service, later
renamed Windows Live ID.
To support secure and convenient Internet-based payment for consumers,
Microsoft is currently delivering an open payment architecture based on Site
Server and the Microsoft Wallet.
The Wallet is available free on the Web and will be part of future releases of
Microsoft Internet Explorer and Microsoft Windows.