Answer the following: Explain in brief the steps involved in online transactions.

Answer the following:
Explain in brief the steps involved in online transactions.

ANSWER:

The following are the various steps involved in online transactions:

i. Registration - The purchaser first needs to create an account on the shopping website. The account can be created by filling in required details like name, e-mail id and contact number. The process is known as registration.

ii. Placing an Order - After opening an account, the buyer can start browsing through the listed products, go through other customers’ reviews and compare products. The buyer may scan various items according to his or her preferences and put them in the shopping cart. The buyer can then place the final  order and proceed towards the payment window.

iii. Payment Mechanism - In this step, the buyer chooses his/her preferred mode of payment. The following are the different payment modes generally available on a trading website:

a. Cash on Delivery (CoD) - Here, the payment is made in cash at the time of the delivery of the product.

b. Cheque - The user makes the payment through a cheque. When the cheque is realised, the goods selected are delivered by the seller.

c. Net Banking - The user makes an electronic payment to the bank account of the online vendor through the internet.

d. Credit or Debit Card - The user can also use a credit or debit card (also known as plastic money) to make an online payment. The payment so made is linked to the bank account of the user.

e. Digital cash or e-cash - This type of currency has no physical existence. It is a system of purchasing cash in relatively small amounts and storing it in the computer system. The consumer can spend the cash when making electronic purchases over the internet.