Transaction Security and Payment Infrastructure
Thus far, you have a business plan, you have mapped software and hardware issues, and
you have considered security. Now it is time to focus on the payment process in an ecommerce setting.
The approach based on credit card use, the implementation of (SSL)Secure Socket Layers
, and common HTML forms is common. This solution is fairly secure and simple, because it eliminates the need to install special software on a client's computer. Except for a digital certificate for the SSL session, this approach does not require special procedures or software, such as payment gateways. Unfortunately, this method requires manual validation and order processing. This method is less secure than other approaches because it allows many parties to view sensitive client information, such as credit card information, once the e-commerce company receives the information. Another approach uses automated processing applications (such as Net.Commerce and Site Server E-Commerce Edition) in combination with transaction models such as SSL, Secure Electronic Transactions 
(SET), and digital cash
These systems require more work. However, this approach is much more secure and convenient because it automates validation and order processing.
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Successor Technologies for executing commerce Transactions
Yes, there have been several successor technologies for executing e-commerce transactions since the dot.com era. Payment gateways are still widely used today, but they have been joined by a variety of other payment processing solutions, including:
- Mobile wallets: Mobile wallets like Apple Pay, Google Pay, and Samsung Pay allow users to make payments online and in-store using their smartphones. Mobile wallets are becoming increasingly popular, as they offer a convenient and secure way to pay.
- Digital wallets: Digital wallets like PayPal and Venmo allow users to send and receive money online and through mobile apps. Digital wallets can also be used to make payments on e-commerce websites.
- Buy now, pay later (BNPL) services: BNPL services like Affirm, Klarna, and Afterpay allow shoppers to purchase items online and pay for them in installments over time. BNPL services are becoming increasingly popular, as they offer a flexible way to pay for purchases.
- Cryptocurrency: Cryptocurrency is a digital or virtual currency that uses cryptography for security. Cryptocurrency can be used to make payments online and in-store, although it is not yet as widely accepted as traditional payment methods.
In addition to these new payment processing solutions, there have also been a number of other innovations in e-commerce transactions, such as:
- One-click checkout: One-click checkout allows shoppers to complete their purchases with a single click. This is made possible by storing the shopper's payment and shipping information.
- Social commerce: Social commerce is the use of social media platforms for e-commerce transactions. Shoppers can now browse and purchase products directly from social media platforms like Instagram and Facebook.
- Voice commerce: Voice commerce is the use of voice assistants to make e-commerce purchases. Shoppers can now order products and services simply by speaking to their voice assistants.
These are just a few of the successor technologies that are being used to execute e-commerce transactions today. As technology continues to evolve, we can expect to see even more innovative ways to shop and pay online.
It is important to note that payment gateways are still widely used today, and they are likely to remain an important part of the e-commerce ecosystem for many years to come. However, the new payment processing solutions and innovations that have emerged in recent years are providing shoppers and merchants with more choices and flexibility.
By the end of this module, you will be able to:
- Outline the considerations of a secure transaction
- Explain the issues involved in choosing a payment method
- Design your Web site for secure transactions and payments
- Describe protocols used to secure transactions, including SSL and SET
- Establish secure transactions through the use of digital certificates
The next lesson discusses the methods used and requirements for processing payments online.
Secure Sockets Layer (SSL):
An encryption method enabled by digital certificates.
Secure Electronic Transaction (SET):
A method of information exchange that allows businesses and clients an extra level of protection while conducting business.
The use of proprietary software to convert "real" money into information easily transferred over a public network.