Professional Documents
Culture Documents
Until recently consumers were extremely reluctant to use their credit card numbers on the
Web
Many of people who will be on the Internet in 2004 have not even had their first Web experience
today
85% of the transactions that occur on the Web are B2B rather than B2C (credit cards are rarely used
in B2B transactions)
Message Integrity
– Is the ability to ascertain that a transmitted message has not been copied or
altered
– Protect against improper modifications to message
Non repudiation
– You can not deny a message you received from a certain person
Ciphertext—a plaintext message after it has been encrypted into unreadable form
method of encryption that uses a pair of keys—a public key to encrypt a message and a
private key (kept only by its owner) to decrypt it, or vice versa
An identifying code that can be used to authenticate the identity of the sender of a
message or document
Used to:
2. Using special software, you “hash” the message, converting it into a string
of digits (message digest)
3. You use your private key to encrypt the hash (your digital signature
4. E-mail the original message along with the encrypted hash to the receiver
5. Receiver uses the same special software to hash the message they
received
6. Company uses your public key to decrypt the message hash that you
sent. If their hash matches the decrypted hash, then the message is valid
Cardholder
Merchant (seller)
Third-party processors (outsourcers performing same duties formerly provided by issuers, etc.)
E-cash
the digital equivalent of paper currency and coins, which enables secure and anonymous
purchase of low-priced items
Micropayments
Wireless payments
Vodafone “m-pay bill” system that enables wireless subscribers to use their mobile phones
to make micro-payments
Qpass (qpass.com)
Charges to qpass account, are charged toa specified credit card on a monthly basis
Payback only comes from repeat customers who are likely to refer other
customers to a site
Electronic script—a form of electronic money (or points), issued by a third party as
part of a loyalty program; can be used by consumers to make purchases at
participating stores
Partnered with MasterCard to offer rewardzcard—stored-value card used in U.S. and Canada for purchases where
MasterCard is accepted
Transfer beenz into money to spend on Web, by phone, mail order, physical stores
RocketCash
Parents will not let them (children) their (the parents) credit cards online
Gives the user shopping privileges at online stores that carry an InternetCash icon
Legal issues
Eliminate need for expensive process reengineering and takes advantage of the competency
of the banking industry
eCheck Secure (from vantaguard.com) and checkfree.com provide software that enables the
purchase of goods and services with e-checks
Order fulfillment and order taking are integral parts of the supply chain.
External partners
Manufacturers, warehouses, and distribution channels were not in sync with the e-tailers
Delivery times depend on factors ranging from machine failures to road conditions
Quality problems of materials and parts (may create production time delays)
Order fulfillment problems are created due by lack of coordination and inability or
refusal to share information
Bullwhip effect—large fluctuations in inventories along the supply chain, resulting from
small fluctuations in demand for finished products
Managerial Issues
Assignment
Deadline:
• How do credit card purchases online differ from credit card purchases face-to-face?
• What is an e-check?
• What is meant by supply chain? What are some typical problems that can arise in the supply chain?
Thank You
Any Question?