eCommerce - Beyond The Basic

For businesses that want to move beyond basic e-commerce, there are a number of things to keep in mind. The security of business transactions includes authenticating, controlling access to resources such as Web pages for registered or selected users, encrypting communications, and in general, ensuring the privacy and effectiveness of transactions.

SSL: Among the most widely-used security technologies is the Secure Sockets Layer (SSL), which is built into both of the leading Web browsers. SSL is a commonly-used protocol for managing the security of a message transmission on the Internet.

Transaction Processor: a company which receives data from website programs, that offer online purchasing, and performs the following service for the owner of that website:

a. verifies the identity of the purchaser;
b. verifies that the purchaser's account is active, valid and that funds are available;
c. assuming ID is valid and funds are available, purchase amount is "set aside" (frozen);
d. purchaser is informed of outcome - transaction approved or not;
e. approved purchases are then sent to a "Settlement Processor".

Settlement Processor: a company which is authorized by the banking networks to transfer funds from a purchaser's account to a merchant's account, after a Transaction Processor has verified the purchasing action.

Payment Gateway: software that allows merchants to sell securely from their Web sites, enabling customers to purchase products or services online with their choice of credit card or electronic check.