Ecommerce

Categories of e-commerce

• As with traditional commerce, there are four principal categories of e-commerce:
B2B, B2C, C2B and C2C.
• B2B (Business to Business) — This involves companies doing business with each
other. One example is manufacturers selling to distributors and wholesalers selling
to retailers.
• B2C (Business to Consumer) — B2C consists of businesses selling to the general
public through shopping cart software, without needing any human interaction. This
is what most people think of when they hear "e-commerce." An example of this
would be Amazon. 
• C2B (Consumer to Business) — In C2B e-commerce, consumers post a project with
a set budget online, and companies bid on the project. The consumer reviews the
bids and selects the company. Elance is an example of this.
• C2C (Consumer to Consumer) — This takes place within online classified ads,
forums or marketplaces where individuals can buy and sell their goods. Examples of
this include Craigslist, eBay and Etsy.
What is a Domain Name?

• (Domain name, ip address, URL)
• New computer users often confuse domain names with
universal resource locators, or URLs, and Internet
Protocol, or IP addresses.
• The universal resource locator, or URL, is an entire set of
directions, and it contains extremely detailed information.
• The domain name is one of the pieces inside of a URL.
• An Internet Protocol, or IP, address is different than a
domain name
• For example, in the URL
http://www.pcwebopedia.com/index.html, the domain
name is pcwebopedia.com.

• Every domain name has a suffix that indicates which
top level domain (TLD) it belongs to. There are only a
limited number of such domains.
Figure 8.5: Supply Chain Management

Principles of Information Systems, Seventh Edition 5
Electronic Payment Systems
• Digital certificate: an attachment to an
e-mail message or data embedded in a
Web page that verifies the identity of a
sender or a Web site
• Certificate authority (CA): a trusted
third party that issues digital certificates
• Secure Sockets Layer (SSL): a
communications protocol used to secure
sensitive data
• Electronic cash: an amount of money
that is computerized, stored, and used as
Principles of Information Systems, Seventh Edition 6
Characteristics of Domain Name
• Domain names are restricted to
• only the ASCII letters 'a' through 'z' (in a case-
insensitive manner).
• the digits '0' through '9‘.
• and the hyphen ('-').
Ecommerce infrastructure
• Information superhighway infrastructure
• Internet, LAN, WAN, routers, etc.
• telecom, cable TV, wireless, etc.
• Messaging and information distribution infrastructure
• HTML, XML, e-mail, HTTP, etc.
• Common business infrastructure
• Security, authentication, electronic payment, directories,
catalogs, etc.

3/9/01 EMTM 553 8
Infrastructure for E-commerce
• The Internet
• system of interconnected networks that spans the globe
• routers, TCP/IP, firewalls, network infrastructure, network protocols
• The World Wide Web (WWW)
• part of the Internet and allows users to share information with an
easy-to-use interface
• Web browsers, web servers, HTTP, HTML
• Web architecture
• Client/server model
• N-tier architecture; e.g., web servers, application servers,
database servers, scalability

3/9/01 EMTM 553 9
Types of Payment Systems in
Ecommerce
• 1:- Cash
• properties: wide accept, convenient, anonymity,
untraceability, no buyer transaction cost
• 2:- Online credit card payment, Smart Cards
• Secure protocols: SSL, SET
• 3:-Internet payment systems
• Electronic cash, digital wallets
• 4:- Micro-payments

3/9/01 EMTM 553 10
Deal with Total Flow of Material from
supplier to customer
Domain Name Level
• Top Level Domain -  A top-level domain (TLD) is the part of the
domain name located to the right of the dot. The most common
top-level domains are .COM, .NET, and .ORG. Some other
popular top-level domains are .BIZ, .INFO, .NAME and .IN etc.
• Generic top level maintained by IANA and country code top level
reserved for a country.
• Second Level Domain - . The second-level domain name is the
part of the domain name located to the left of the dot.
• Third level domain name:-which are written immediately to
the left of a second level Domain.
• Each level is separated by a dot or period symbol.
What is a Subdomain?
• A subdomain is a domain name that is a part of the
main domain.
• It is used to organize a website with regard to various
functions, sections, topics, etc.
• For example www.google.com is the main domain
name.
• They have separated “Gmail”, that handles their mail
section of the website as mail.gmail.com.
• Similarly they have other subdomains too which are
other sections of their main website.
• like maps.google.com, news.google.com,
Digital Certificate
• An attachment to an electronic message used for security purposes
• It is trusted ID card in electronic form that binds a website’s public
encryption key to their identity for the purpose of public trust.
• Digital certificates are issued by an CA(certification authority).
• Two example of highly Trusted CA’s are Verisign(
www.verisign.com),Thawte.
• If your browser does not recognize a certificate Authority, it will alert
you.
• The most common use of a digital certificate is to verify that a user
sending a message is who he or she claims to be, and to provide the
receiver with the means to encode a reply.
•.
• The digital certificate contains an entity’s name, address, public key,
expiration date.
• When a web browser make a secure connection, the digital certificate
is automatically turned over for review.
• The browser check it for andy problem and pops up an alert if any
found.

• An individual wishing to send an encrypted message applies for a
digital certificate from a Certificate Authority (CA).
• The CA issues an encrypted digital certificate containing the
applicant's public key and a variety of other identification information
• In the physical world, you protect your written
correspondence by putting it in an envelope before
posting. In the online world, sending an email message
is like sending a postcard.
• it is easy to intercept and read as it travels across the
Internet. Instead of risking disclosure of your private
email message,
• one option for safeguarding them is to use a digital
certificate
Merchant Account
• Understanding e-commerce is actually quite easy.
• There are 3 things that make up an e-commerce
transaction.

•   A shopping cart

•   A payment gateway

•   A merchant account
The Shopping Cart
• The shopping cart is a software
• what keeps track of the products your customers want to
purchase.
• It is the software that powers the "Add to Cart" buttons that
you have probably seen on many e-commerce websites.
• There are hundreds of popular shopping cart programs to
choose from.
• Think of the shopping cart as the cashier.
• It is their job to figure out how much money you are
supposed to pay
The Payment Gateway
• When you go to a gas station and pay with your credit
card,
• The attendant swipes your card through a payment
terminal.
• The payment gateway does the same job as that little
electronic device,
• except because it's an online transaction the credit card
is not physically swiped through a terminal.
• The payment gateway will electronically contact the
customers card issuing bank and check to see if they
have sufficient credit to pay for the sale.
• If so, the card issuing bank will return an authorization
and the funds will be debited from the customers credit
card balance.
• When those funds are captured from the customers
credit card account, then this money must go
somewhere.
• This will go to the merchant account.
Payment Gateways:

• And another main function is encryption.
• A payment gateway uses SSL 128-bit encoding technology to
encrypt and decrypt all the data being sent through it.
• Safety and security in online credit card processing is a very vital
point.
• Without encryption all the credit card holders data could be
stolen and used illegally.
how a payment gateway works

•A cardholder/customer orders a product or service at an e-
Commerce merchants website by clicking the Order or Send to
Shopping Cart buttons.

•The cardholder is taken to an automatically generated (by an
integrated shopping cart script) order form,

• where he/she is asked to provide the credit card details and the
shipping details.
•After clicking the Submit Form button at the bottom of the
form(s) all the data is encrypted (SSL 128-bit) by the
cardholders web-browser,
• A key is generated and passed on, along with the details,
to the e-Commerce merchants payment gateway.

•The payment gateway (if function available and switched
on) decrypts some of the information (only for statistical
usage, no credit card details are held), re-encrypts it

•and forwards it to the e-Commerce merchants acquiring
bank.
•The acquiring bank forwards the data to the credit card
issuing bank for verification and authorization.
•The issuing bank sends a so-called response code back
• to merchant bank,
and the latter sends it to the payment gateway.
• This response code is used to denote any error that
•might have had occurred during the verification
or transaction process.
The Merchant Account

• When the payment gateway processes the transaction
and the customers credit card is charged for the sale,
that money has to go somewhere.
• Specifically, it needs to deposited into a bank account.
• Funds from credit card sales are deposited into a
special type of bank account -- called a "merchant
account".

• That really is all a merchant account is - a bank
account that is used to hold funds captured from
your credit card sales.
Types of Merchant Account

There are two main category types when it comes to credit card
processing.
• They are "swiped" and "keyed."
• Under these categories, you have several different methods or ways of
processing that information.
• Swiped is referred to as when you have the customer in person and
swipe their credit card.
• Keyed is referring to when you take the information over the phone,
Internet or by fax.

"Swiped"

Retail Merchants - typically conduct transactions face to face in a retail environment.
The customer's card is swiped through a credit card machine and their signature is
captured on the terminal or on paper.
• Wireless / Mobile - typically conduct transactions face to face but in a wireless
environment as there is not a physical store. A wireless terminal machine is used
instead of the traditional standalone unit. An example merchant would be a limo driver
or a pizza delivery.
• Restaurant - typically conduct their transactions face to face in a retail store. The
difference is they may require the ability to add tips to their charges. This is done by
using the tip function which settles the transaction for the larger amount that includes
the tip.
• Lodging - typically processes their transactions like retail merchants except they may
adjust the settlement amount depending on the customer's length of stay or include
any additional charges they incurred while staying at the merchant. Example merchants
would be hotels, motels and bed & breakfasts.
"Keyed"

Internet / Ecommerce Merchants - conducts business through a web site by
utilizing a shopping cart and an Internet payment gateway service. The
shopping cart allows the customer to browse, add items to their cart and
checkout like at the grocery store. The payment gateway then collects the credit
card information and processes it in real time.
• Mail & Telephone Order (MOTO) - typically take the customer's credit card
information over the phone, by mail or through the Internet. They then manually
process the transaction by keying it into either a credit card machine or through
a virtual terminal such as Authorize.net.
• Face to Face (mobile) - this type of merchant is typically on the go, such as a
vendor at a trade show. Instead of investing a lot of money into a wireless
solution that allows you to swipe a credit card, you can use a service like touch
tone that allows you to take the information in person, but key it in over the
phone.
• Because there is a higher rate of fraud over the internet
than at brick and mortar stores, the fees is higher in
internet merchant account.
• Many bank don’t offer an Internet merchant account to
a first time online entrepreneur.
• So new e-business owners get their merchant account
through an ISO
• ISO(independent Service Organization) are middleman
who work with banks.
• The ISO’s are more tolerant of risk
• So fees is also high of ISO.
Fees for Merchant Account
• Whether you get your merchant account from a bank or
an ISO’s you will face an array of fees.
• Setup fees
• Monthly Fees
• Per-transaction Fees
• Termination fees:- when you terminate your
account before time.
• Extra fees.
Role of Merchant Account in
Electronic Transaction

• Order Placed
• Authorization Request
• Authorization Response
• Order fulfilled
• Settlement request
• Settlement Deposited
Payments on Internet

• Most of online purchases are paid for by a credit card.
• Merchants like credit card payments because an instant
authorization guarantees that the card is valid .
• Credit card information submitted by the customer is
sent to the bank which has issued the credit card to
verify.
• If the transaction is approved, the merchant notifies the
customer that the order has been placed.
• The actual transfer of money from the credit card bank
to the merchant may happen in a few hours, or even in
a few days.
• Merchants who accept credit card payments pay fee
(between 1 and 7 percent of the card charge) for each
card charge.
• In addition, in some cases merchants pay authorization
fee for each credit card authorization attempt, as well
as other fees related to credit card processing
Technical issues in credit card
payment
• Quick check for typos. Since the merchant may be
charged for each credit card authorization,
• it is convenient to check that the credit card number
makes sense before sending it to the issuing bank to
authorize.
• There is an easy algorithm to verify a credit card
number: the last digit of the credit card number is
computed from the other digits using a simple
procedure.
• The algorithm is public, and therefore can be used only
to catch typos and disallow random data, but not to
check the validity of a credit card number.
• In online transactions the user is usually asked to
provide additional information, such as their address
and phone number, and the card's billing address,
• in a telephone transaction an this information can be
easily mistyped.
• Another way of verifying a card number is to ask the
user to provide the additional digits on the card (the
digits which do not appear on the magnetic strip or on a
carbon paper when the print of the card is taken).
• However, online customers may be reluctant to provide
this information because of fear of merchant's fraud
• Protecting card numbers in transmission. Since information
transmitted in an online transaction .The most common way of
doing it is to encrypt data in transmission. This is done via SSL.
• However, many online businesses do not use SSL when
transmitting credit card numbers and other customer information,
or do not make SSL the default for such transmissions.
• Protecting card numbers on the merchant's site. In practice,
the dealing with credit card numbers is not the transmission, but
the storage.
• Security experts agree that storing credit card numbers at the
merchant's site is a risky practice, and should be avoided.
• Protecting from merchant fraud The other side of
protecting a merchant from a customer's fraud is
protection of a customer against a merchant's fraud.
• If the merchant knows enough of the customer's credit
card information to be able to authorize a transaction,
then the merchant (including many of the merchant's
employees) know enough to be able to use the credit
card themselves.
• An online customer has to be careful not to be a victim
of a merchant's fraud.
Credit Cards
• The most expensive ePayment mechanism
• Currently the most convenient method
• Advantage: allows credit
• People can buy more than they can afford
• Disadvantages:
• doesn’t work for small amounts (too
expensive)
• doesn’t work for large amounts (too
expensive)

20-751 ECOMMERCE TECHNOLOGY
SUMMER 2002
COPYRIGHT © 2002 MICHAEL I. SHAMOS
Electronic Payment Systems
• Electronic payment systems are non-credit-card online
payment systems.
• The goal of their development is to create analogs of checks
and cash on the Internet, i.e. to implement all or some of the
following features:
• Protecting customers from merchant's fraud by keeping
credit card numbers unknown to merchants.
• Allowing people without credit cards to engage in online
transactions.
• Protecting confidentiality of customers.
Below we look at examples of online payment systems.
Most of these products are no longer used,
but the ideas developed by their authors are used in other products.

Virtual Pin
• Virtual PIN, started in 1994 by a company called First Virtual
Holding, was a system for making credit card payments over the
Internet without exposing the credit card number to the
merchant.
• . It required no special software for a customer to make a
purchase.
• To enroll, a customer gives their credit card information and their
e-mail address to the First Virtual (this was done by phone).
• After the credit card information has been verified, the customer
receives their PIN by e-mail.
The procedure for purchasing an item using Virtual PIN is as follows:
• The customer gives the merchant their Virtual PIN.
• The merchant sends the Virtual PIN and the amount of transaction
to First Virtual.
• First Virtual sends an e-mail to the customer asking to confirm the
purchase.
• The customer answered "Yes", "No", or "Fraud".
• If the answer is "Yes", the merchant is informed that the charge
has been accepted. If "No", the charge is declined. If the answer is
"Fraud", the charge is investigated.
• Even though no encryption was involved, anybody could
not use a virtual PIN without being able to intercept and
answer the e-mail message to confirm the purchase.
• Unlike credit cards which carry the customer's name,
Virtual PIN provided a customer's anonymity from the
merchant.
• The e-mail confirmation of the transaction served as a
protection against merchant's fraud.
• Unfortunately, while the system has been created for all
kinds of online business, the main use of Virtual PIN at
the time was for buying and selling pornography.
• . Virtual PIN tried to disassociate itself from this market.
• Eventually the company abandoned the Virtual PIN and
became specialized in sending promotional e-mail.
DigiCash (or E-cash)

• DigiCash (also known as E-cash) is an electronic payment
system developed by Dr. David Chaum.
• The system was based on digital tokens called digital coins..
• The customer needs to download and install a software
called electronic wallet.
• To obtain DigiCash, the customer uses the electronic wallet
to create digital coins.
• The coins are sent to the bank to sign. When the coins are
signed, the equivalent amount of money is withdrawn from
the customer's account.
• When the customer wants to make a purchase, he/she
sends signed digital coins to the merchant.
• The merchant verifies the bank's signature and deposits
the coins to the bank, where they are credited to the
merchant's account.
• The DigiCash (or E-cash), produced by the company
DigiCash BV based in Amsterdam, has never created a
market.
• The company eventually declared bankruptcy.
• However, the algorithms used in DigiCash are
considered fundamental in development of digital
CyberCash/CyberCoin

• CyberCash is a system that allows customers to pay by
a credit card without revealing the credit card number
to the merchant.
• To achieve this, a credit card number is sent to the
merchant in an encrypted form.
• To enroll, a customer installs a software called
CyberCash wallet on their computer.
• At the time of the instalment the wallet generated a pair
of a public and a private key
• A purchase was conducted the following way:
• When the purchase was initiated, the CyberCash wallet displayed
the amount, the merchant's name, and other information.
• After the customer approved the transaction, an encrypted
payment order was sent to the merchant.
• The merchant could decrypt some of the information in the order,
such as the product list, the address, etc., but not the other (such
as the credit card information).
• The merchant's software would add its own payment information
to the order, digitally sign it, and then send it to the CyberCash
gateway.
• The CyberCash gateway would decrypt the information.
• The order would be checked for duplicate requests. The gateway
would verify that the customer's and the merchant's order information
match (i.e. no fraud was committed on either side).
• Then it would perform the money transfer and send the approval
message to the merchant.
• The main point of this scheme was to prevent merchant's fraud.
However, CyberCash and CyberCoin were not able to find the market.
• The main reasons for the failure were the large size of customer's
software and
• The fact that very few merchants would accept CyberCash payment.
The company was eventually bought by VeriSign.
PayPal

• PayPal is an electronic payment system which can transfer
money between its accounts.
• In order to use PayPal, one has to obtain a PayPal account,
which is associated either with the customer's credit card or
with their regular bank account.
• The validity of a checking account is checked as follows: the
customer gives PayPal their account number, PayPal makes
two small-amount (less than $1) deposits to the account.
• If the customer is able to tell PayPal the value of these
deposits, then the customer is assumed to be a legitimate
user of the account.
• In order for the person to retrieve the money, they must
have a PayPal account.
• To avoid fraud, PayPal sends an e-mail message to both
the initiator and the recipient of the transaction.
• PayPal is used to settle online auctions, such as eBay
auctions.
• The ease of use and the fact that no credit card is
required to use it makes PayPal increasingly popular.
• With PayPal, you can send money to anyone with an email address.

Here’s how to send money:
• Log in to your PayPal account.
• Click Send Money.
• Enter the recipient’s email address and the amount you want to
send.
• Select Purchase or Personal, then choose the reason for the
payment.
• Click Continue.
• Review the amount, the payment method, and shipping address.

• Add a message (if you want to), then click Send Money.

Paypal will send the recipient an email to let them know that you sent them money. If they
don’t have a PayPal account, we explain how to sign up for one. PayPal members must confirm
their email address before the money will be credited to their PayPal account.
• When you send money, Paypal use your PayPal balance first. If you don’t have enough money
in your PayPal balance, paypal will use the payment method you select.
• PayPal acts as the middleman holder of money.
• How will the person who paid know that I got their payment?
• A notification of payment will go to the email address
PayPal Requirements

You need no special technology nor a business license to send/receive money
through Paypal. The only requirements are:

• a valid email address.
• a valid credit card or bank account
• When you open a PayPal account, you register an email address with PayPal
that you will use for all transactions through PayPal,
• Select a password, and provide your bank account information and credit card
information to be used as "funding sources" for PayPal transactions.
• PayPal will then make a "test" withdrawal of one cent from your bank account
to complete/confirm the link.
How does PayPal make money?

• As a middleman financial broker, PayPal makes its profit by charging a
percentage of the money it transfers for you.
 
• PayPal is Free for Buyers and for Sending Money to Someone Else.
Once a buyer sets up a Paypal account, then it costs nothing to send money to
a vendor. The funds are withdrawn from the user's credit card or bank account,
or both. PayPal does not charge buyers to send money.
 
• PayPal Commonly Charges Money from Receivers (Sellers) :PayPal will
only charge you to receive funds(money is received by the seller so paypal only
charge from seller not the buyer but for using paypal buyer
• If you are sending money to a friend or family member (someone who is not a
registered seller), you can opt to pay for the PayPal surcharge yourself.
Secure Electronic Transaction
• An application-layer security mechanism, consisting
of a set of protocols.
• Protect credit card transaction on the Internet.
• Companies involved:– MasterCard, Visa, IBM,
Microsoft, Netscape, RSA, CyberCash, NetBill
• Not an ordinary payment system.
• It has a complex technical specification
SET Business
Requirements
• Provide confidentiality of payment and
ordering information.
• Ensure the integrity of all transmitted data.
• Provide authentication that a cardholder is
a ultimate user of a credit card account
• Provide authentication that a merchant can
accept credit card transactions through its
relationship with a financial institution
Secure Electronic Transaction (SET): Protocol

• Confidentiality: All messages are encrypted
• Trust: All parties must have digital certificates
• Privacy: information made available only
when and where necessary
• Developed by Visa and MasterCard
• Designed to protect credit card transactions
Micro-Payment Protocol: Millicent

• Millicent payment protocol is designed for low-amount
transactions over the Internet.

• Support low-cost, secured transactions (less than one
cent)

• Use non-expensive symmetric crytographic algorithms

• Use scrip as digital cash for customers to make
purchases from vendors.

• Business market: electronic publishing, software and
game industries.

Jerry Gao Ph.D. 5/2000
Micro-Payment Protocol: MilliCent

MilliCent protocols use a form of electronic currency
called Scrip to connect three involved parties:

• Vendors,

• Customers,

• and Brokers.

• Scrip is vendor specific.

Jerry Gao Ph.D. 5/2000
A Millicent broker:

--> medicate between vendors and customers to simplify the tasks they
perform.

--> aggregate micro-payments

--> sell vendor Scrip to customers

--> handle the real money in the Millicent system.

--> buy and produce large chunks of vendor Scrips (for licensed vendors)
• Vendors: --> are merchants selling low-value services or
information to customers.

• Customers: --> buy broker Scrip with real money from
selected brokers.

• use the vendor Scrips to make purchases.
Micro-Payment Protocol: MilliCent

Customer Dealer

3
1. Customer sends broker-scripts.
Internet
1 2. Customer gets dealer-script.
2
3. Customer send dealer-scripts.

Broker

Jerry Gao Ph.D. 5/2000
Topic: Micro-Payment Protocols and Systems

Micro-Payment Protocol: MilliCent

Customer make
purchases with vendor
Scrips
Customer Vendor

Vendor sell low-value
information and
services
Broker sell vendor Brokers buy/produce
Scrip large chunks of
Broker “vendor Scrip” for
licensed vendors
Basic Operation of E-cash
system Customer Bank VBS (Merchant)
 Send the blinded coins to the
bank
 Generate the blinded coins  Debit the account and sign
the blinded coins
 Return the signed blinded coins
 Unblind the coins

 Pay by the coins

 Check the validity of the
coins and whether they have  Deposit the coins
been spent and credit the
account accordingly

 Confirm the deposit

Ship goods or perform the service
Basic Operation of Millicent
Protocol Broker Merchant
Customer

 Buy the scrips of different
vendors

 Send the aggregated scrips

 Pay by the scrips  Check for the
validity of the scrips
and whether they
have been spent from
 Confirm the payment the database
• Brokers take care of account management, billing,
connection maintenance, and establishing accounts with
vendors.
• Scrip is digital cash that is only valid for a specific
vendor.
Scrip has following features:
• • it has value only at a specific vendor;
• • it can be spent only once;
• The vendor locally validates the scrip to prevent customer
fraud, such as double spending.
Millicent protocol
• Millicent is a lightweight and secure protocol for electronic commerce
over the Internet.
• It is designed to support purchases costing less than a cent.
• It is based on decentralized validation of electronic cash at the vendor's
server without any additional communication, expensive encryption, or
off-line processing.
• The key innovations of Millicent are its use of brokers and of scrip.
• Brokers take care of account management, billing, connection
maintenance, and establishing accounts with vendors.
• Scrip is digital cash that is only valid for a specific vendor.
• The vendor locally validates the scrip to prevent customer fraud, such as
double spending.
Website vs Webportal

• • A Webportal is also a type of website but it differs in content and
services from a typical website that provides only specialized
information.
• A website is a general term for any collection of pages on the same
domain or sub-domain.
• A web portal is generally used for a 'gateway' site or set of pages - ie,
they are principally links signposting other sites.
• A web portal is the entrance (gate) to the Web. One can enter the web
from many different portals (gates) and either dive into the portal inner
web or move to other portals in the web. Yahoo is an good example for
web portal.
• It's also important to note that a "Web Portal" is also a website. 
SET protocol

• With the SET protocol, a transaction has three players:
•  the customer,
• the merchant and
• the merchant's bank.
• Not only are orders and card numbers sent from the
customer to the merchant over the Internet, but also
the authorization request sent from the merchant to
merchant's credit card bank is sent over the Internet.
Ecash
• E-cash is cash in an electronic form which is usually
stored on a smart card
• or in software, known as a digital wallet(software
require for ecash on your computer is called
digital wallet). It is basically money that is
represented, held and exchanged in electronic form, and
is used for transactions over the Internet.
• The user first must have an ecash software program
• and an ecash bank account from which ecash can be
withdrawn or deposited.
• The user downloads electronic money from his bank
account using special software .
• and stores the E-cash on his local hard drive.
• To pay the E-cash user goes through the software to pay
the desired amount from the E-cash "wallet" to the
merchants local hard drive ("wallet") after passing the
transaction through an E-cash bank for authenticity
verification.
• E-cash off-line, all that is necessary is smart card
technology. The money is loaded onto the smartcard.
What is a search engine?

• A web search engine is a software system that is designed to search for information on the
World Wide Web.

• The search results are generally presented in a line of results often referred to as
search engine results pages (SERPs).

• The information may be a mix of web pages, images, and other types of files. Some search engines
also mine data available in databases or open directories.

• Unlike web directories, which are maintained only by human editors, search engines also maintain
real-time information by running an algorithm on a web crawler.

• A Web search engine is a special web site that catalogs other web sites and has search
capability; it is an Internet tool that lets users quickly and simply find the answers to
questions or information on topics or keywords.

SEARCH ENGINE (2)

What is a Keyword?

Keywords are words or phrases entered by people looking for webs
sites via search engines.
Keywords are words or phrases that describe your topic. These are the
words the search engine uses to find what it thinks are sites that match
what you're looking for
The more specific a keyword, the more specific the results will be.
What is a Spider?
• Web search engines and some other sites
use Web crawling or spidering software to
update their web content or indexes of
others sites' web content.
• To find information on the hundreds of
millions of Web pages that exist, a search
engine employs special software robots,
called spiders, to build lists of the words
found on Web sites.
• When a spider is building its lists, the
process is called Web crawling.
• Indexing is a process where our server crawls through your
website, fetches every page that it can find and stores a list of
keywords that are found on your site in our database.
• These keywords are then used to find pages on your site when a
user perform search operations.
• Indexing:-A list of keywords associated with a record or
document, used especially as an aid in searching for information.
• The spider for the AltaVista search engine and its Web site is
called Scooter
• The purpose of storing an index is to optimize speed
and performance in finding relevant documents for a
search query.
• Without an index, the search engine would scan every
document in the corpus, which would require
considerable time and computing power.
• For example, while an index of 10,000 documents can
be queried within milliseconds, a sequential scan of
every word in 10,000 large documents could take hours.
SEARCH ENGINE/ DIRECTORY
What is the difference between a search engine and a directory?
A search engine uses automated 'spiders' or 'robots' to catalog
websites.
A directory uses people to go through a web site and catalog the web
site.

A search engine is a service that is reviewed by an automated search
engine spider in order to rank your website.

A directory is a service that is reviewed manually by individuals who
look at the sites for content and subject matter and ranks them
accordingly.
How do search engine works
• Using a search engine is pretty simple.
• Just type in the data to be searched in the space
provided at the search engine’s current page and click
search.
• The result will be displayed with information
corresponding to the search in the form of clickable
URL(Uniform resource locator) also called web
address.
• s leading to the page seek.
Popular search engine
• Google(Google Bot )
• Alta vista(scooter)
• Lycos
• Hot Bot(use slurp)
• Excite(use spider and indexer)
• Magellan.
• Web Crawler(use Webbet that creates a daily index of keywords from the
documents allover the web)
• Yahoo(Yahoo! Slurp is a web crawler based on search engine technology Yahoo!
acquired when it purchased Inktomi. Slurp was the web crawler for Yahoo! Search
until Yahoo! contracted with Microsoft to use bingbot instead.
Google
• Google(use robot named googlebot which collects
documents from the web to build a searchable index for
the Google Search engine.
• Googlebot will follow HREF or SRC tags to find pages
and images that are associated with any given site
Altavista
• Created by Digital electronic Corporation
• It use spider called Scooter
• It support full Boolean, phrase, and case sensitive
search
• It has two modes of search types called simple and
advance
Hot Bot
• This engine retrieves and indexes Web documents using
a robot called slurp.
• It offer simple keyword as well as Boolean.
• It is most suitable for searching specific words or
phrases.
• Hot bot is primarily used for fine-tuning your search.
Web crawler
• Crawle creates a daily index of keywords from the
documents allover the web).
• It has a web robot called a webbet for indexing.
• It has another option called use of the web backwards,
which allows you to enter an URL, and get a list of all
the sites which link directly to it.
Excite
• It uses a spider and indexer for the full text of
documents.
• The spider retrieves only web and usenet newsgroup
documents.
• user can submit url for indexing.
• It consists of about 50 million URL.
• It is full featured search engine.
• You can use Boolean operator And, not and or.
Lycos
• It contains 66 million pages in its database.
• It’s robot uses heuristics to navigate the web and build
a searchable indes.
• It index titles, heading and subheading of html.
• It also offer a lot of contents like news. Site review etc.
Magellan
• It has more than 40,000 reviewed sites including newsgroups.
• It index websites, ftp and gophel servers and usenet news.
• It offers you two way to find the site you are looking for, choosing from categories or a keyword search.
• Usenet is a collection of user-submitted notes or messages on various subjects that are posted to servers on
a worldwide network
• Usenet news works by the reader first firing up a Usenet news program, which in today's GUI world will highly likely be
something like Netscape Messenger or Microsoft's Outlook Express.
• software posts this article to the Usenet server. The article contains a list of newsgroups into which it is to be posted. Once it
is accepted by the server, it becomes available for other users to read and respond to. The article is automatically expired
or deleted by the server from its internal archives based on expiry policies set in its software; the author of the article
usually can do little or nothing to control the expiry of her articles.
• Usenet and the Internet
• Usenet is a service on the Internet, as are Email, FTP or the WWW. However, it has a different communication structure.
With Email, two persons communicate privately, just as they would on phone or with regular mail. WWW has a classical
vendor-consumer structure: there is one active information vendor who offers on its (public or non-public) website
information or services which can be used by passive consumers.
• In contrast, Usenet is public and egalitarian. There is no asymmetry between vendors and consumers. Every participant in
Usenet is both reader and contributor. In this respect, Usenet, more than the other services, is what the Internet is really
about.
• In keeping with this spirit of equality and free communication, the software which sustains Usenet is is mostly free software.
• Usenet is a worldwide discussion system distributed
mainly (but not exclusively) over the Internet (its
formation actually predates the Internet). It consists of
thousands of publicly accessible so-called newsgroups
each of which deals with a specific topic. Everyone can
post messages (or news articles, as they are called) to
any of these groups and read what others have posted.
Everyone even can - observing certain rules - create a
new newsgroup dealing with a new topic.
• The Usenet is a huge worldwide collection of discussion
groups.
How Google processes a query
SET YOUR SEARCH
• The major search engines let you select whether to search
for the exact phrase you typed, all the words in the phrase
but not necessarily together, any of the words in a phrase,
and so on.).
• A few search engines do not give you such options.
• In this case, you can define the search yourself by adding
one or more words or symbols to your search topic.
• You can define your search using Boolean operators.
Boolean operator
• AND To search for two (or more) terms on the same page: Type the word AND between the
terms. (Example: sea AND kayak) Or put a plus sign right before the second term.
(Example: sea +kayak.)

• OR To search for either of two (or more) terms on the same page: Type the word OR
between the terms. (Example: kayak OR canoe)

• AND NOT To search for pages that include the first term and not the second : Type the
words AND NOT between the terms. (Example: kayak AND NOT whitewater) Or put a
minus sign right before the second term. (Example: kayak -whitewater.)
• "" To search for an exact phrase: Enclose the phrase in quotation marks. (Example: "sea
kayak rental")
• * To search for various forms of a word: Add an asterisk to the end of the word. (Example:
kayak* This returns pages with the words kayak, kayaks, kayaked, kayaking, and so on.)
I-Way
Information Superhighway (I-
Way)
• Any successful E-Commerce application will require the
I-way infrastructure
• In the same way that regular commerce needs the
interstate highway network to carry goods from point to
point.
• In commerce to carry goods highway is required in the
same way in E-commerce Iway is required for sending
data in digital form
• You must travel across this highway, whether you are an
organization
purchasing supplies or a consumer ordering a movie on
• I-way will be a mesh of interconnected data highways of many forms
• Telephone wires, cable TV wire
• Radio-based wireless-cellular & satellite.
• In the electronic ‘highway system’ multimedia content is stores in
the form of electronic documents, these are often digitized
• I-way is a high-capacity, interactive electronic pipeline used to
transfer content in case of e-commerce.
• I-way can transfer any type of context like, text, graphics, audio,
video.
• In other words, multimedia contents are easily transported through
I-way.
I-Way
• Information Superhighway:-
• The global information and communications network
that includes
• The Internet
• Telephone networks,
• cable television networks,
• and satellite communication networks.
• the concept of a worldwide network of computers
capable of transferring all types of digital information at
high speed
• information superhighway - an extensive electronic network
(such as the internet) used for the rapid transfer of sound and video
and graphics in digital form.
• Any successful E-commerce application will require the I-Way
infrastructure in the same way that regular commerce needs the
interstate highway network to carry goods from point to point.
• A integration of computers, communications networks, and
communication software forms the Information Superhighway (I-
Way).
• The I-Way will be a mesh of interconnected data highways of many
forms: telephone wires, cable TV wires, radio-based wireless-
cellular and satellite
Components of I-way:
• I-way can transfer any type of context like, text,
graphics, audio, video. In other words, multimedia
contents are easily transported through I-way.

• 1:- Consumer access equipment.
• 2:- Local on-ramps
• 3:-Global information distribution networks.
1. Consumer Access Equipment
• It is often ignored component of I-way but represent
critical category.
• This segment of I-way includes hardware and
software vendors who provide physical devices such
as computer software platforms such as browsers and
operating system.
Ramps
• The providers of access ramps can be differentiated into
four categories
• Telecom based ,
• Cable tv based,
• wireless based &
• computer based.
• Online information services. The backbone access
provides links and uses e-commerce application
providers
Global Information Distribution
Networks:
• The development of new communication
technologies and continued employment of fiber
optic facilities has resulted in higher transmission
speeds at significantly low cost.
• The end result is a seamless web called the I-way
of communication network,
• . The two major technologies under pinning high
speed global information distribution networks are
• a) long distance networks
• b) satellite networks.
Long distance network:

• Long distance connectivity is available through
cable ( coaxial ) or (fiber) owned by long distance
interchange carriers.
• Fibre optics have emerged as technology of choice
because it is capable of providing higher bandwidth
than satellite
• also it is immuned to electro magnetic interference.
• Long distance network infrastructure is now been
deployed under seas to carry international traffic.
Satellite network
• Satellite networks are accessible from any point on the
globe.
• Satellite networks can provide broadband digital
services including voice, data and video to many
points without the cost of wide installation.
• Wide range of services include broadcast radio, video
and overseas telephone links.
• Thus communication satellites are the crucial part of the
global communication and infrastructure
Commerce Server

• It is software that runs some of the main functions of an
online storefront such as
• Product display,
• Online ordering,
• and Inventory management.
• The software works in conjunction with online payment
systems to process payments.
• Commerce servers also manage and maintain
accounting and inventory data, also called back-
end data.

• A commerce server is a product intended for e-
commerce websites or e-commerce applications.
Microsoft Commerce Server

• Microsoft is one of the providers of commerce servers.

• Microsoft Commerce Server was first released in 2000

• and was used to create e-commerce systems.

• Microsoft Commerce Server ,It uses Microsoft's .NET
technology.
The main features of Microsoft Commerce Server include:

• Multichannel functionality
• What-you-see-is-what-you-get (WYSIWYG) editing
• Catalog, order and inventory management
• Management of ads and set rules for ads
• Data integration with third party systems
• 64-bit support
Commerce Server 2007
• Microsoft Commerce Server (CS) is a framework
(collection of e-commerce specific APIs) to build an e-
commerce site around.
• It offering faster and lower cost e-commerce Web site
design and deployments.
• Commerce Server 2007 provides a set of tools for the
Web site developer, the IT professional, and the
business user to help develop, deploy, and manage e-
commerce applications
Commerce Server Architecture
Customers
• Customers use their browser to access a Commerce
Server Web application.
• Customer use this server as follows:
• When purchasing or otherwise ordering products that
are browsed online, added to a basket, and ultimately
acquired by completing the check-out process. It is done
in commerce server os customer use this part of
commerce server. Another parts are used by many
different users like business users, developers and it
professtionals .
Business users
• Business users use the various smart client applications
provided with Commerce Server to manage the Data.
• They use Catalog Manager and catalog inventaory
Schema manager(tools available in commerce server)
to manage product catalogs .
• Business user also use Customer and Orders Manager
application to manage the orders that are placed and
the customers who place them.
The IT professionals
• They use Microsoft Operations Manager 2005 to monitor
both events that are logged by various Commerce
Server systems and to track performance using the
counters maintained by those systems.
• Commerce Server systems, such as the Profiles System
and the Orders System, maintain performance counters
and log events during operation.
• Microsoft Operations Manager 2005 is one of the
recommended ways in which this kind of information
can be monitored and acted upon to maintain Web
application performance
• IT professionals use Commerce Server Staging (CSS) to manage the
deployment of various Commerce Server resources, and related
resources, between different system environments.
• These resources include database information from SQL Server,
metabase information from Internet Information Services (IIS).
• Microsoft Management Console (MMC) snap-in is used to maintain a
wide variety of Commerce Server configuration information.
• Commerce Server uses SQL Server in several different capacities.
much of the functionality of the Data Warehouse and Analytics
feature of Commerce Server is actually provided by SQL Server.
For example:
•gov - Government agencies
•edu - Educational institutions
•org - Organizations (nonprofit)
•mil - Military
•com - commercial business
•net - Network organizations
•ca - Canada
•th - Thailand
Difference between HTTP and HTTPS
• HTTP, HTTPS
• The "S" in HTTPS indicates a secure site.
• If you visit a web site or web page, and look at the address in the web
browser.
• it will likely begin with the following: http://. This means that the web
site is talking to your browser using the regular 'unsecured' language.
• This is why you never ever enter your credit card number in an http
web site
• But if the web address begins with https://, your computer is talking
to the web site in a secure code that no one can see.
Difference Between the Internet
and the WWW?
• People commonly use the words "Internet" and "Web"
interchangeably.
• This usage is technically incorrect.
• The Internet is the large container.
• the Web is a part within the container.
• the Net is the restaurant.
• the Web is the most popular dish on the menu
• The World Wide Web, or "Web" for short, is a massive
collection of digital pages.
• the Web is based on hypertext transfer protocol.
• But another protocol you can use like ftp etc.
• Only http is www another is not.
• The Internet, not the Web, is also used for e-mail, which
relies on SMTP, instant messaging and FTP.
• So the Web is just a portion of the Internet
Characteristics of Domain Name
• Domain names are restricted to
• only the ASCII letters 'a' through 'z' (in a case-
insensitive manner).
• the digits '0' through '9‘.
• and the hyphen ('-').
Parts of a Domain Name
• Each domain name consists of two parts.
Top Level Domain -  A top-level domain (TLD) is the part of the
domain name located to the right of the dot. The most common
top-level domains are .COM, .NET, and .ORG. Some other
popular top-level domains are .BIZ, .INFO, .NAME and .IN etc.
• Second Level Domain - . The second-level domain name is the
part of the domain name located to the left of the dot. Steps-to-
make-your-own-website is the second-level domain name and
represents the organization or entity behind the internet.
Second Level Domain name must be registered with an Internet
Corporation for Assigned Names and Numbers (ICANN)-
accredited registrar.
Domain Name Level
• Top Level Domain -  A top-level domain (TLD) is the part of the
domain name located to the right of the dot. The most common
top-level domains are .COM, .NET, and .ORG. Some other
popular top-level domains are .BIZ, .INFO, .NAME and .IN etc.
• Generic top level maintained by IANA and country code top level
reserved for a country.
• Second Level Domain - . The second-level domain name is the
part of the domain name located to the left of the dot.
• Third level domain name:-which are written immediately to
the left of a second level Domain.
• Each level is separated by a dot or period symbol.
What is DNS?
• DNS is the acronym for Domain Name System.
• This system translates the number format of your IP
address to the word format.
• It is done because it is relatively easier to remember words
than numbers.
• it is easier to name an e-mail address as
service@sitesell.com than service@216.95.221.39.
• The Domain Name System (DNS) is a hierarchical
distributed naming system for computers, services, or any
resource connected to the Internet or a private network
Digital Certificate
• An attachment to an electronic message used for security
purposes
• It is trusted ID card in electronic form that binds a website’s public
encryption key to their identity for the purpose of public trust.
• The most common use of a digital certificate is to verify that a user
sending a message is who he or she claims to be, and to provide the
receiver with the means to encode a reply.
• An individual wishing to send an encrypted message applies for a
digital certificate from a Certificate Authority (CA).
• The CA issues an encrypted digital certificate containing the
applicant's public key and a variety of other identification
information.
• In the physical world, you protect your written
correspondence by putting it in an envelope before
posting. In the online world, sending an email message
is like sending a postcard.
• it is easy to intercept and read as it travels across the
Internet. Instead of risking disclosure of your private
email message,
• one option for safeguarding them is to use a digital
certificate
E-commerce
Architecture
Tier
• What is a "tier"?
• A "tier" can also be referred to as a "layer".
• n the software world Tiers/Layers should have some or
all of the following characteristics:
• Each tier/layer should be able to be constructed
separately, possibly by different teams of people with
different skills.
• Several tiers/layers should be able to be joined together
to make a whole "something".
• There must also be some sort of boundary between one
tier and another. You cannot take a single piece of cake,
chop it up into smaller units and call that a layer cake
because each unit is indistinguishable from the other
units.
• Each tier/layer should not be able to operate
independently without interaction with other
tiers/layers.
Three tier ecommerce architecture
Three tier ecommerce architecture
• Presentation logic - the user interface (UI) which
displays data to the user and accepts input from the
user. In a web application this is the part which receives
the HTTP request and returns the HTML response.
• Business logic - handles data validation, business
rules and task-specific behaviour.
• Data Access logic - communicates with the database
by constructing SQL queries and executing them via the
relevant API.
What is a Domain Name?

• New computer users often confuse domain names with universal
resource locators, or URLs, and Internet Protocol, or IP, addresses.
• The universal resource locator, or URL, is an entire set of directions, and
it contains extremely detailed information.
• The domain name is one of the pieces inside of a URL.
• An Internet Protocol, or IP, address is different than a domain name
• The IP address is an actual set of numerical instructions.
• domain name as a nickname for that code so that can remember easily.
• Ip could be 232.17.43.22, for example. However, humans cannot
understand or use that code.
• That why name given to numeric which is difficult to remember.
• For example, in the URL
http://www.pcwebopedia.com/index.html, the domain
name is pcwebopedia.com.
• Every domain name has a suffix that indicates which
top level domain (TLD) it belongs to. There are only a
limited number of such domains.
• Because the Internet is based on IP addresses, not
domain names, every Web server requires a
Domain Name System (DNS) server to translate domain
names into IP addresses