EDI (Electronic Data Interchange) refers to electronic 

communications of
business transactions between organizations. EDI implies computer to computer
transactions directly into vendor databases and ordering systems. In 1996 the
National Institute of Standards and Technology defined electronic data
interchange as "the computer-to-computer interchange of strictly formatted
messages that represent documents other than monetary instruments. EDI
implies a sequence of messages between two parties, either of whom may serve
as originator or recipient. The formatted data representing the documents may
be transmitted from originator to recipient via telecommunications or physically
transported on electronic storage media."

EDI ADVANTAGES
It should not come as much of a surprise that there are many advantages to
using EDI in your business.

Better Speed:
EDI decreases the time it takes for an employee to make invoices and handle
purchase orders manually. Timing is crucial when it comes to processing of an
order. Transferring documents electronically improves transaction speed and
perceptibility while reducing the cost involved in manual approach. 

Business Efficiency.
For the reason that human error is lessened, businesses can profit from
improved levels of proficiency. Rather than place attention on common and
tedious activities, staffs can dedicate their attention to more significant value-
adding tasks. EDI transfer guarantees immediate processing and eradicates time
wasting related with manual entering, receiving, and sending orders.

Collective Productivity.
The EDI technology permits more business to take on more operations with less
human resources. With EDI, the whole process is completed in a matter of
seconds. This is due to the reason that automated process allows for instant
completion of tasks like registering and balancing validation.

Environment-Friendly Services.
The movement from paper-based services to the use of electronic transactions
available on EDI decreases CO2 discharges. Thus, the use of EDI encourages
corporate social accountability and help organization achieve sustainable supply
chain management.
EDI DISADVANTAGES
As with all things, wherever there are advantages there might also be
disadvantages. So, with that, here are some ways that EDI might not serve your
business; which means you should consider a different way to network and
incorporate information technology.
 EDI uses multiple standards which can often limit how many devices can
be connected to the network. The XML web-text language, for example,
does not have strict standardization and that allows for multiple
programmers to contribute to the coding.
 In addition to rigorous standards, EDI could also have too many rigorous
standards bodies with too many document formats which can malfunction
in the face of cross-compatibility issues, which you will definitely
encounter as you continue to apply more standards
 EDI has a higher price point, which can be a little pricey for new business
owners
 Large companies might actually find that EDI can limit the types of
partnerships you can develop with.

They specify that the usual processing is done by computer only and human
intervention is intended only for problem resolution, quality review or other
special circumstances.

E-commerce is the buying and selling of good or services via the internet, and
the transfer of money and data to complete the sales. It’s also known as
electronic commerce or internet commerce. 
Successful e-comm sites Amazon, Alibaba: Launching in 1999, The Chinese
company Alibaba is by far the world’s most successful e-commerce company
and retailer, Walmart - offering traditional retail sales, as well as grocery
delivery and subscription services.
 + from text

Types of e-commerce
As commerce continues to evolve, so do the ways that it’s conducted. Following
are the most traditional types of e-commerce models:

1. Business to Consumer (B2C): B2C e-commerce is the most

popular e-commerce model. Business to consumer means that the sale is taking
place between a business and a consumer, like when you buy a rug from an
online retailer.

2. Business to Business (B2B): B2B e-commerce refers to a business

selling a good or service to another business, like a manufacturer
and wholesaler, or a wholesaler and a retailer. Business to business e-commerce
isn’t consumer-facing, and usually involves products like raw materials,
software, or products that are combined. Manufacturers also sell directly to
retailers via B2B ecommerce.

3. Direct to Consumer (D2C): Direct to consumer e-commerce is

the newest model of ecommerce. D2C means that a brand is selling directly to
their end customer without going through a retailer, distributor, or wholesaler.
Subscriptions are a popular D2C item, and social selling via platforms like
 Instagram, Pinterest, Facebook, Snap Chat, etc. are popular platforms for direct
to consumer sales.

4. Consumer to Consumer (C2C): C2C e-commerce refers to the

sale of a good or service to another consumer. Consumer to consumer sales take
place on platforms like eBay, Etsy, Fivver, etc.

5. Consumer to Business (C2B): Consumer to business is when an

individual sells their services or products to a business organization. C2B
encompasses influencers offering exposure, photographers, consultants,
freelance writers, etc.
+ from text.

Advantages of E-commerce
 Faster Buying Process: E-commerce has speed up the whole buying
process for customers. They do not need to visit physical outlets for
shopping and can purchase products by just sitting at their home. It saves
huge times and performs faster transactions.
 Eliminates Operating Cost: It has reduced the overall operating cost of
businesses. E-commerce has eliminated the need of opening physical
outlets by the business. For operating an outlet, there are huge expenses in
terms of rent, utilities, various bills, and staff salaries. It saves all these
expenses and operates all business activities through an online website.
 Personalize Shopping Experience:  E-commerce enables customers in
enjoying personalized shopping experience. Customers can search for a
large variety of products as per their choice and needs without any
restrictions. Online business shows products to customers according to
their interest and their location. 
 Available 24×7: Online shopping facility is available at all the time that is
24 hours a day and 7 days a week. This is one of the major advantages of
e-commerce that customers can access online products at any time. Unlike
physical outlets, there is no official opening and closing time here.
 Connects far and wide: Online businesses are able to reach and connect
to customers at far distant places with no geographical limits. People can
place their orders from any place and get their orders delivered at their
location. 
 Disadvantages of E-Commerce
 Lack of Personal Touch: Customers lack the facility of touching and
feeling products in case of online shopping. They are sometimes more
satisfied by purchasing at physical outlets by properly checking the
product before buying.
 No Guarantee about Product Quality: Customers cannot get ensured
regarding the quality of products available online. They may be cheated by
companies and receive faulty products.
 Security Issues: Customers may lose their essential credentials while
shopping online. There are various hackers over the internet which may
steal customer’s data and may cause great loss to them. 
 Long Delivery Period: Another major disadvantage of online
shopping is that customers need to wait for longer time periods for
getting their products delivered. In the case of offline shopping,
customers get on-spot delivery of their products.
 Cannot try before Buying: Customers cannot take a trial of products
before purchasing when they are doing online shopping. They don’t have a
facility of negotiating the prices and cannot acquire better information
regarding usage and features of the product as in case of the physical
outlet where salesperson interacts directly.
==================================================================================

Traditional Commerce or Commerce is a part of business, which

encompasses all those activities that facilitate exchange. Two kinds of
activities are included in commerce, i.e. trade and auxiliaries to trade.
Key Differences Between Traditional Commerce and e-Commerce

The following points are noteworthy so far as the difference between

traditional commerce and e-commerce is concerned:

1. In traditional commerce, the transactions are processed manually

whereas, in the case of e-commerce, there is automatic processing of
transactions.
2. In traditional commerce, the exchange of goods and services, for
money can take place, only during working hours. On the other hand,
in e-commerce, the buying and selling of goods can occur anytime.
3. One of the major drawbacks of e-commerce is that the customers
cannot physically inspect the goods before purchase, however, if
customers do not like the goods after delivery they can return it within
 the stipulated time. Conversely, in traditional commerce physical
inspection of goods is possible.
4. In traditional commerce, the interaction between buyers and sellers is
direct, i.e. face to face. As against this, there is indirect customer
interaction, in the case of e-commerce, because it may be possible
that the customer is miles away from where they place an order for
the purchase of goods.
5. The scope of business in traditional commerce is limited to a
particular area, i.e. the reach of business is limited to the nearby
places where it operates. On the contrary, the business has
worldwide reach in case of e-commerce, due to its ease of access.
6. As there is no fixed platform for information exchange in traditional
commerce, the business has to rely on the intermediaries for
information fully. Unlike e-Commerce, wherein there is a universal
platform for information exchange, i.e. electronic communication
channel, which lessen the dependency on persons for information.
7. In traditional commerce, the business relationship is vertical or linear,
while in the case of e-commerce there is directness in command
leading to a horizontal business relationship.
8. In traditional commerce, due to standardisation, there is mass/one
way marketing. However, customization exists in e-commerce leading
to one to one marketing.
9. Payment for transactions can be done by paying cash, cheque or via
credit card. On the other hand, payment in e-commerce transactions
can be done through online payment modes like credit card, fund
transfer, etc.
10. The delivery of goods is immediate in traditional commerce but in
the case of e-commerce, the goods are delivered at the customer’s
place, after some time, usually within a week.

Therefore, with the above discussion, it is quite clear that both the
methods have their advantages and disadvantages. e-Commerce is just
like the traditional commerce, i.e. when you log in to the website, e-
Commerce is not suitable for perishable goods and also for high-value
items, while traditional commerce is not suitable for purchasing software
or music.\
=====================================================
Step 1: Prepare the documents to be sent

The first step is to collect and organize the data. For example, instead of
printing a purchase order, your system creates an electronic file with the
necessary information to build an EDI document. The sources of data
and the methods available to generate the electronic documents can
include:

 Human data entry via screens

 Exporting PC-based data from spreadsheets or databases
 Purchasing application software that has built-in interfaces
for EDI files
Step 2: Translate the documents into EDI format

The next step is to feed your electronic data through translator software
to convert your internal data format into the EDI standard format using
the appropriate segments and data elements. This requires specialized
mapping expertise in order to define how internal data is to be mapped
(i.e. correlated) to the EDI data. Translation software is available to suit
just about any computing environment and budget, from large systems
that handle thousands of transactions daily to PC-based software that
need only process a few hundred transactions per week.

Alternatively, you can use the translation services of an EDI service

provider.

Step 3: Connect and Transmit your EDI documents to your business

partner

Once your business documents are translated to the appropriate EDI

format they are ready to be transmitted to your business partner. You
must decide how you will connect to each of your partners to perform
that transmission. There are several ways, the most common of which
include

1) to connect directly using AS2 or another secure internet protocol,

2) connect to an EDI Network provider (also referred to as a VAN

provider) using preferred communications protocol and rely on the
network provider to connect to your business partners using whatever
communications protocol your partners prefer, or
3) a combination of both, depending on the particular partner and the
volume of transactions you expect to exchange. Our types of EDI
page goes into detail of the various options of EDI a business can
implement.

An electronic funds transfer, or EFT, refers to the act of transferring money from one
account to other electronically by using a computer or mobile network.

EFT has truly revolutionized the way banks run today. An Electronic funds transfer is
blindingly faster than transacting via a check. Various leading e-commerce sites
such as Amazon, eBay, Flipkart and others are a glowing testimony to the extensive
use of technologies such as Electronic Data Exchange (EDI) and Electronic Funds
Transfer (EFT).

EFT covers some of the most widely accepted payment systems in vogue including
payment cards (credit & debit cards), SWIFT, Online Banking, Mobile Banking,
NEFT (National Electronic Funds Transfer), and RTGS (Real Time Gross
Settlement) to name a few.

Advantages
You can dispute a transaction
If you make a mistake when using EFT, you have the right to ask your bank to
investigate the issue.
Although it may take some time, you have the security of knowing that you
won’t lose money over any transaction.
It is fast
Sometimes when you transfer money traditionally, it may take some time for
you to access the money. However, with electronic money transfer, you can
access it within 1-2 business days, or even the same day.
If you transfer money overseas, it will take 3-4 business days for the recipient to
access the money.
Cheaper and safe
Traditional money transfer is more expensive because of the bank fees charged.
It also eliminates any chances of you losing your money through fraud.
ou can organize automatic payments
If you have monthly subscriptions, it can be easy for you to forget to pay for
them every month. Electronic money transfer allows the business person to bill
money directly from your account without you doing anything.
They don’t need a hold on your funds
You do not have to wait for any money to clear before claiming or using your
money.
Disadvantages
You must have the money immediately
To transfer money electronically or pay for something, you need to have the
money with you, unlike when you use a credit card.
You don’t get a canceled check
After making payments using electronic money transfer, you do not get a
canceled check from the bank, so you have to look at your statements to ensure
it was the right transaction.
How much can you transfer in a day?
There is no fixed limit to how much money you can transfer, and it all depends
on the type of your transaction.
Electronic money transfer is useful if you do not want to use a debit or credit
card. It is also good if you want a quick transfer, but if you want to have a
canceled check, you should use the traditional money transfer methods
• Danger the card/bank details will fall into the wrong hands and be used
fraudulently
• Need a computer and internet access to use electronic payments
Conclusion
It is not completely unfair to say that EFTs have brought a fundamental change in
the manner business is done around the globe. One can only agree that EFT is one
of the most telling inventions of the modern era.

Types of EFT 
There are a number of ways to transfer money electronically. Here are just some
common EFT payments you might use for your business.

Direct deposit lets you electronically pay employees. After you run payroll, notify
your direct deposit service provider of the amount to deposit in each employee’s
bank account. Then, the direct deposit provider transfers that money to employee
accounts on payday. Not all employers can make direct deposit mandatory, so
brush up on direct deposit laws.

Wire transfers are a fast way to send money. They are typically used for large,
infrequent payments (because there’s a fee). You might use wire transfers to pay
vendors or make a large down payment on a building or equipment.

The Electronic Federal Tax Payment System (EFTPS) is a tax payment service
you can use to make tax payments to the IRS.

ATMs let you bank without going inside a bank and talking to a teller. You can
withdraw cash, make deposits, or transfer funds between your accounts.

Debit cards allow you to make EFT transactions. You can use the debit card to
move money from your business bank account. Use your debit card to make
purchases or pay bills online, in person, or over the phone. And, you can accept
debit card payments from customers. 

Electronic checks are similar to paper checks, but they are used electronically.
You enter your bank account number and routing number to make a payment.

Mobile wallets let you pay bills, transfer money between accounts, or receive
payments over the phone.

Personal computer banking lets you make banking transactions with your

computer or mobile device. You can use your computer or mobile device to move
money between accounts.
How Does EFT Work?

EFT payments need two parties to make them work: a sender and a
receiver. When the sender commits to sending funds to the receiver, that
payment goes out through the appropriate payment network and moves
money from the sender’s account to the receiver’s account. Pretty simple,
right?

Here’s a more in-depth description to help you understand how money

moves across payment networks: When you’re ready to pay for your
groceries, you’ll slide your debit card into the payment terminal to settle up
your bill. Once you enter your PIN and approve the transaction, money is
moved in real time from your checking account to the grocery store’s
account. You can grab your groceries and head home.

In another example, the money in your checking account is most likely

there because your paycheck is direct deposited into your account every
payday. For this transaction, your employer is the sender and you’re the
receiver.
When you set up direct deposit, you provide your employer with your bank
account and routing information. Your employer inputs your banking
information into their payroll provider’s system. The payroll provider then
initiates batches of transactions each month that debit your employer’s
bank account and send funds directly to their employees’ bank accounts.
These transactions happen over the ACH network and take a few days to
complete. You, as the receiver, never see that delay and enjoy having the
funds hit your bank account on payday as scheduled.

EFT payment processing time

The amount of time needed to process an EFT payment depends on:

 The type of payment

 Your EFT provider
  When you submit the payment

Your EFT payment might take anywhere from one to four days. Some electronic
funds transfers are sent and received on the same day (e.g., wire transfers). 

EFT payments typically only process on business days. And, there might be certain
cut off times. For example, you might need to make an electronic money transfer
before 9 p.m. If you place the transaction after that time, the transaction won’t
begin until the next business day.

NEFT
The acronym “NEFT” stands for National Electronic Funds Transfer. It is
an online system for transferring funds from one financial institution to
another within India usually the banks). The system was launched in
November 2005, and was set to inherit every bank that was assigned to
the SEFT (Special Electronic Funds Transfer System) clearing system. It
was made mandatory by the RBI for all banks on the SEFT system to
migrate to NEFT by mid December 2005. As such, SEFT was
discontinued as of January 2006. The RBI welcomed banks that were full
members of the RTGS to join the NEFT system.
RTGS
The acronym “RTGS” Stands For ‘Real Time Gross Settlement’. RTGS is a
funds transfer system where money is moved from one bank to another
in ‘real-time’, and on gross basis. When using the banking method, RTGS
is the fastest possible way to transfer money. ‘Real-time’ means that the
payment transaction isn’t subject to any waiting period. The transaction
will be completed as soon as the processing is done, and gross settlement
means that the money transfer is completed on a one to one basis
 without clustering with another transaction. The transaction is treated as
final and irrevocable as the money transfer occurs in the books of the RBI
(Reserve Bank of India). This system is maintained by the RBI, and is
available during working days for a given number of hours. Banks using
RTGS need to have Core banking to be able to initiate RTGS.

TABLE OF DIFFERENCES BETWEEN NEFT & RTGS

Criteria NEFT RTGS (R

Settlement Done in batches (Slower) Real time

Full Form National Electronic Fund Transfer Real Tim

Timings on Mon – Fri 8:00 am – 6:30 pm 9:00 am –

Timings on Saturday 8:00 am – 12:30 pm 9:00 am –

Minimum amount of money transfer limit No Minimum 2 lacs

Maximum amount of money transfer limit No Limit No Limit

When does the Credit Happen in beneficiary account Happens in the hourly batch Between Banks Real time

Upto 10,000 – Rs. 2.5

Rs. 25-30
from 10,001 – 1 lac – Rs. 5
Maximum Charges as per RBI Rs. 50-55
from 1 – 2 lacs – Rs. 15
(Lower c
Above 2 lacs – Rs. 25

Suitable for Small Money Transfer Large Mo

IMPS provides robust & real time fund transfer which offers an instant, 24X7,
interbank electronic fund transfer service that could be accessed on multiple
channels like Mobile, Internet, ATM, SMS. IMPS is an emphatic service which
allow transferring of funds instantly within banks across India which is not only
safe but also economical. Currently on IMPS, 590 members are live which
includes banks & PPIs.

This facility is provided by NPCI through its existing NFS switch.

The eligible criteria for the Banks who can participate in IMPS is that the entity
should have valid banking or prepaid payment instrument license from Reserve
Bank of India to participate in IMPS.
Objectives of IMPS
 To enable bank customers to use mobile instruments as a channel for accessing their banks
accounts and remit funds

 Making payment simpler just with the mobile number of the beneficiary

 To sub-serve the goal of Reserve Bank of India (RBI) in electronification of retail payments

 To facilitate mobile payment systems already introduced in India with the Reserve Bank of India
Mobile Payment Guidelines 2008 to be inter-operable across banks and mobile operators in a safe
and secured manner

 To build the foundation for a full range of mobile based Banking services.

Types of Security Threats & Issues to E-commerce Industry

Distributed denial-of-service attack –

This attack is just meant to shut down the network and making it
impossible to access through its intended users.

Phishing –
These attacks generally start with an email message showing a trusted
source like a major retailer or a big e-commerce company that directs
the recipients to a “spoofed” website that looks trustworthy but, it’s
actually fake and a form of bogus plan.

Ransomware –
Ransomware is malicious software that infects the system and shows
messages demanding to be a fee paid for the system to work again.  It is
a big criminal moneymaking idea installed through various summarized
links in any email, website, or post.

Bad bots –
Bots steal strategic pricing database, and these website bots are mostly
used for price scraping, which pulls detailed pricing and product data
from the website by exhausting inventory and creating card fraud. Bad
bots also create e-commerce scalping resulting in slowing down the
website speed.

Poor management –
When security is vulnerable and delicate, it possesses a threat to the
networks and high-security systems. Also, these e-commerce threats
occur due to no proper budgets allocated for the purchase of the security
vendor and solutions.
As there is a rise in connectivity to the Internet, there is also a danger to
security with new threats emerging every day; updated security software
is a pre-requisite to have a fully secured environment.  In this scenario,
E-commerce industry is facing many challenges.
--===================================================
One of the first elements addressed in e-commerce transactions is how to guarantee that
a valid contract has been entered between the parties. Assessing the validity of contracts
is complicated in the Internet environment because the contracts are paperless. Digital
signatures are therefore essential in helping to promote e-commerce because they
ensure that all parties have entered in a binding contractual agreement.

Going Digital 2000- "the use of digital signature technology clearly establishes the
necessary evidence for the integrity of the electronic contract. If any part[y] changes
any aspect of a digitally signed document then the digital signature verification process
will identify that the document has either been changed since it was signed or that it was
not signed by the party who is attributed as being the signatory"

How do digital signatures work?

Digital signatures, like handwritten signatures, are unique to each signer. Digital
signature solution providers, such as DocuSign, follow a specific protocol,
called PKI. PKI requires the provider to use a mathematical algorithm to generate
two long numbers, called keys. One key is public, and one key is private.

When a signer electronically signs a document, the signature is created using the
signer’s private key, which is always securely kept by the signer. The mathematical
algorithm acts like a cipher, creating data matching the signed document, called a
hash, and encrypting that data. The resulting encrypted data is the digital signature.
The signature is also marked with the time that the document was signed. If the
document changes after signing, the digital signature is invalidated.

As an example, Jane signs an agreement to sell a timeshare using her private key.
The buyer receives the document. The buyer who receives the document also
receives a copy of Jane’s public key. If the public key can’t decrypt the signature (via
the cipher from which the keys were created), it means the signature isn’t Jane’s, or
has been changed since it was signed. The signature is then considered invalid.

To protect the integrity of the signature, PKI requires that the keys be created,
conducted, and saved in a secure manner, and often requires the services of a
reliable Certificate Authority (CA). Digital signature providers, like DocuSign, meet
PKI requirements for safe digital signing.
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5. Secure Socket Layer (SSL)

Secure socket layer is the most consistent security model used and developed
for eCommerce business, secured through its payment channel.

Through the SSL, transmission of data is encrypted, client and server

information is authenticated and message integrity for TCP/IP connections. The
protocol is design to prevent tampering of information and forgery while
transmitting data over the internet between interacting applications.

6. Secure Hypertext Transfer Protocol (S-HTTP)

S-HTTP is an advanced version of normal HTTP internet protocol with

enhanced security which ensures secure authentication, public key encryption
and digital signatures.

Secure HTTP enabled website makes the transaction more secure by negotiating
encryptions schemes used between a server and the clients. It can seamlessly
integrate with the HTTP and ensure an optimal end-user security with different
defence mechanisms.

7. Secure Electronic Transaction (SET)

SET is a joint collaboration by MasterCard and VISA which ensures that safety
of all parties involved in electronic payments of an eCommerce transaction. It is
designed to handle complex and critical functions like:

 Authenticating the cardholders and merchants

 Confidentiality of information and payment data
  Define protocols & electronic security service, providers

http://www.simplynotes.in/e-notes/mbabba/electronic-commerce/e-
commerce-security/

http://ideku.net/resources/pptcs1661.pdf
https://www.scirp.org/html/4-9702035_62254.htm
https://supermetrics.com/blog/ecommerce-data-warehouse
https://www.slideshare.net/tusharkute/mis-06-data-warehousing-and-mining
PAGE 577-578, 271-273…TEXT

Digital certificates are used in public key cryptography functions; they are
most commonly used for initializing secure SSL connections between web
browsers and web servers. Digital certificates are also used for sharing
keys to be used for public key encryption and authentication of digital
signatures.

Digital certificates are used by all major web browsers and web servers to
provide assurance that published content has not been modified by any
unauthorized actors, and to share keys for encrypting and decrypting web
content. Digital certificates are also used in other contexts, both online and
offline, for providing cryptographic assurance and privacy of data.