e-Business Project - StrategyCarl Arrowsmith arrowsmitc@ne-worcs.ac.uk

Covering in this Unit

• Planning and Implementation

• Customer Expectations and Support

• Planning a web site

• Integrity of data

• Logistics / Supply Chain

• Metrics/assessment & Exit Strategy

• Protection of Business

• Future Developments

Aim of Today's Session

Look at online payment systems & the legal implications of trading online

Electronic Payment Systems

• A company needs to be paid for the purchase of goods.

• e-businesses require payment(s) to be made online

• Payment(s) are required in a secure and easy way.

Online payment systems

• Large businesses will receive payments directly

• SMEs will use an intermediary service– Can be via a web host to a bank or– Online payment system

• Pay Pal• World Pay• Payment Online

Charges

• Online payments are not free

• Direct transactions will have credit/debit card fee

• Online payment companies charge a percentage and/or fee

Security

• Payment and confidential details are sent in a secure way

• SSL (Secure Socket Layer)

• Certificate is required for each site

• Works by using a series of programs and encryption/decryption routines at server and web browser levels

Trust

• Business is conducted on basis of trust

• Risks are in place for both supplier and customer

• Consumers are wary of the “unknown”– New company– Unheard of company– Online transactions

What assurances can be made ?

• If you owned an online company how would you assure the customer ?

• Join trade scheme http://www.imrg.org/ISIS/

• Provide company details history, address and other contact details.

Consumer Assurances

• How can you assure your customers that payment will not be taken until product / service has been supplied ?

• Consumer trust

• Terms and conditions

Business Assurances• Businesses normally supply other businesses

on credit (i.e. B2B)• How can you assure suppliers they will be

paid?

• Trust• Show supplier the books and details of

company• Insurance schemes• Supply businesses will usually require pre-

payment to new customers until a good record is established

Data Protection act 1998

• Data fairly and lawfully processed• Processed for limited purposes• Adequate, relevant and not excessive• Accurate• Not kept longer than necessary• Processed in accordance with the data

subjects rights;• Secure• Not transferred to countries without adequate

protection

Consumer Protection (Distance Selling) Regulations 2000

• When buying via a distance (at home), internet, telephone, mail order there are additional legal rights.

– Receive clear information about the goods or services before deciding to buy

– The right to receive confirmation in a written form (Verbal is not enough)

– The right to cancel contracts within a seven day cooling off period – exceptions (P 42)

Terms & Conditions

• Sales of Goods Act 1979– Must be fair

• Unfair Terms in Consumer Contract Regulations 1999

• Must not be one sided (e.g a clause that says a supplier doesn’t have to deliver things in a reasonable time)

Continued…

• Consumer Protection act 1987

• Misleading Prices– A trader must display prices and inform the

consumer of VAT and delivery charges

• Trade Descriptions Act 1968– Misleading descriptions are unlawful

(e.g. the box says the product in blue but when opening the product is red)

Covered today

• Electronic Payment system

• Security

• Consumer Protection

• Terms and Conditions