What Is the Impact of GDPR on Online

Transactions?
From the first online transaction in 1994, we've seen online transactions evolve faster than
anticipated. With this also came an evolution of rules and regulations to avoid the abuse of
personal data. The GDPR is one such regulation that has an important role in regulating the
whole structure of online transactions.

But what exactly is the impact of GDPR, and how is it helping? Let's go over all these details
and put things into perspective.

What is GDPR?
The General Data Protection Regulation came into force in 2018 all over the European Union.
This standard replaced all other data protection laws that were in force before it. And since then,
we have seen a transformation in the way businesses and organizations process and use data.
In fact, it has also led to the development of a specialized field for fintech cybersecurity.

The main aim of the standard is to ensure the protection of user data from any form of misuse.

Who Does It Affect?

Every business that operates online is affected by the GDPR. Even if a business isn't directly
operating in the EU, it might still have to fulfill the requirements of GDPR. If you fall under any of
the following categories, you're required by law to operate in line with the regulations of GDPR.
● You deal with customers who are residents of the EU.
● Visitors from the EU access your website.
● Your emails are addressed to EU citizens.

The bottom line is if a business's transactions involve EU citizens, they need to be in

compliance with GDPR.

How Does It Work?

The guidelines of the GDPR are pretty straightforward and help businesses operate online,
maintaining ethical boundaries. It works by defining certain requirements of data protection and
processing.

Following is a list of all the things covered by this standard.

● The GDPR has clearly defined what user data an online seller can and can not use.
● How companies process user data is also one of the core elements of GDPR.
 ● It covers the rights of the clients of online sellers.
● It also goes over the details of how user data should be kept secure.

What Data is Protected by the GDPR?

Online businesses receive tons of information about their users through online transactions. Out
of all this data, only the information that may potentially reveal the identity of the customer is
protected by GDPR.

This means companies need to be careful about names, IP addresses, contact details, credit
card numbers, cookie tracking, etc. Even unimportant things like gender, age, and the ethnicity
of the user can't be used by the seller.

If the seller does want to process any of the said data, they need 'consent' from the users. If the
user provides consent for the processing of their information, then the business is allowed to
use it in whatever way it prefers.

What is Data Processing Consent?

Whenever we sign up for websites or simply open a website, we encounter pop-ups requesting
consent in one form or the other. It could be a website asking for cookie tracking or a detailed
consent form. But that's just one way of organizations asking for consent according to the
GDPR.

The standard has set other merits for granting consent as well. Whenever a customer makes an
online purchase, they consent to the use of their information; even if there isn't any special
consent form that needs to be filled out, this data can legally be used by the seller. Because
according to GDPR guidelines placing an order itself is automatic consent.

Which Data can be Processed?

Every piece of information that allows the user complete anonymity can be processed by the
seller. Apart from this, the information acquired after the user's consent, whether explicit or
automatic, can be used by the business.

What Does Data Processing Mean?

When a company receives data that the users consent to, it is allowed to do whatever it wants
with that information.

They can save that data in their database, use it to send emails, or even display it. As long as
the organization receives prior consent from the user, it can use the information however it
wants.
Although the companies have free reign over the ethical use of data it’s their responsibility to
keep it safe from being misused. This is why big names like Toyota, Walt Disney, IBM, and HP
hire the help of professional cybersecurity experts.

Does This Regulation Apply to Marketing Emails?

As far as the question of marketing emails goes, they are exempted from GDPR rules. This
means that the seller doesn't need consent to send marketing emails.

Article (6) of the General Data Protection Regulations dictates that companies possess the right
to use customer information for legitimate use. Recital 47 has deemed marketing a 'legitimate
interest.' However, there's one catch. This exemption holds only if emails are sent to existing
customers.

If the business chooses to send marketing emails to new customers, they need consent. A
simple checkbox requesting them to be a part of the e-mail list is sufficient. However, the
company has to make sure to keep a record of this consent to avoid potential legal action.

So, businesses using customer data for marketing purposes don't need to worry about the
regulations of GDPR too much.

How Do Organizations Protect Data?

Online businesses store a lot of information, including any details a customer provides for
purchase in an online transaction. This information needs to be protected due to its sensitive
nature.

For this reason, companies are willing to go to all lengths to protect this data. They have special
divisions that work in collaboration with cybersecurity companies to ensure data security. These
cybersecurity companies specialize in data protection in compliance with the GDPR standard
and use elaborate measures to ensure no data leak occurs.

Conclusion
GDPR is a revolutionary set of regulations that ensures customer data isn't misused. It is clearly
defined to make sure no ambiguity or confusion arises. It's because of regulations like the
GDPR that companies take extra measures to ensure data security. With GDPR enforced,
companies and customers enjoy a trustworthy and safe relationship.