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8/8/2019 Understanding the Operation of an Online Business
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Unit 8 Business Online
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To be secure all online payments need to be:
` Private and confidential between the buyer and
the seller
` Authentic because both people are who theyclaim to be
` Conveyed intact and without any changes or
alterations during transmission
` Erased from the system after the process hasbeen completed.
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To achieve the above specific security standards mustbe used.
` SSL (Secure Sockets Layer) allows web browsers totransmit and receive information securely. Meaning
data is encrypted and scrambled every time thebrowser is used.
` Customer warned they are about to view informationover a secure server
` Locked padlock symbol and https on the address lineis visible.
` Customer can double-click the symbol to read thesecurity certificate.
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` Secure Electronic Transfer (SET)
` Used for credit card transactions.
` Credit card company authenticates the card via a
digital signature.` The credit card company will only pay the seller
when it has checked the sellers identity against
the digital certificate.
` Card number is encrypted and decrypted andnever made know to the seller only to the cards
issuing bank.
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` These can affect both the business and its customers` Once customer purchase online they become
immediate converts toonline shopping` Ensure you comply with the following
Donot misjudge the p
opularity
ofyour website.
The type
orquantity oforders received, the cost ofpackaging and
distribution and time taken for staff tofulfil online requests. Do not over stock, answer enquires quickly, fulfil orders
promptly, have appropriate staff Learn and understand all legal requirements of trading online
e.g. Cultural expectations, restrictions relating toforeignbuyers.
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` Order forms should be foolproofto minimisecustomer errors.
` Include returns policy that takes into accountlegal rights.
` ey information is entered before order isaccepted, therefore correct obvious errors beforeprocessing orders.
` Online customer are protected by the Sales of
Goods Act, the Supply ofGoods and Services Act1982 and the Sale and Supply ofGoods toConsumer Regulations 2002.
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` Businesses must comply with
` Data Protection Act 1998 Data must be accurate, secure and not kept for longer than is
necessary
Online businesses cannot put private information on its
website or disclose customer detail toother people.
Website must include a privacy policy which states how
information is to be used by the business
`
Privacy and Electro
nic Co
mmunicatio
ns Regulatio
ns Allows business to send email only to people who have given
consent.
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` Dos Attack A website is overwhelmed with data e.g. emails causing the site to crash. Hack mailers target sites when most vulnerable e.g. Christmas
` Hijacking a website Original site is duplicated causing a spoof version on the Internet which
customers use thinking they are dealing with the original organisation. Sometimes pages are poorly copied. Genuine links are replaced Hijackers try toobtain money by asking customers to enter bank account
and credit card informaton.
` Financial Fraud Hackers obtain data relating to bank account ofbusinesses
When payment to a business are made hackers will siphon offorredirect funds to a spoofsite and when customers are sent spoffemailasking them for personal details (phishing)
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` Website Updating Update regularly as incorrect orout-of-date information
can create problems
`
Liabilityfo
r wro
ngo
ro
ut-of
-date info
rmatio
n Comply with Trades Description Act and the E-
Commerce (EC Directive) Regulation 2002
Information on website must be clear and descriptions
must be accurate
` Language problem with global customer base Include disclaimers just in case ofconfusion from those
ordering from other countries
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` Hardware & Software Failures If the system develops a fault, internet access is lost until
fault is repaired.
Hardware malfunctions ensure you have back-up
servers to switch to
Software problems possible caused by corrupted
software, programming errors or a virus. Appropriate anti-
virus software and network security is vital.
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` Any business indeting to sell on a global basis has
to ensure that its products comply with the
relevant law and technical regulations that apply in
the co
untryof
sale.` Australia, EU, China and USA have different
standards than the UK.
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