ELECTRONIC COMMERCE
    Electronic commerce is sometimes known as 'e-commerce' and exploits the development of the Internet. This is the world wide network of computers which enables individuals and companies with computers to communicate with each other often using existing telephone lines. The 'World Wide Web' is the part of the Internet that incorporates images, videos and audio elements as well as text. Individuals and companies can use the Internet and World Wide Web to provide information about themselves and their products and can access such information from others at the touch of a few buttons. Electronic commerce simply describes using computers to do business - buying and selling goods and services or undertaking financial transactions.

 

Recent Rapid Growth
    Electronic commerce has been present for some years. However, it is beginning to develop rapidly as computers become more widely used by both individuals and companies. It is already possible to buy a very wide range of items over the Internet. Many commercial items are themselves suitable for trading over the Internet - such as computer software and recorded entertainment. On-line information includes research databases. Periodicals and some encyclopaedias are available as are consulting and similar services. Financial transactions and stock trading now take place electronically around the world and it is even possible to gamble using the Internet.
    To help guide the newcomer through the electronic commerce jargon, here is a glossary of the most common terms.

 

Glossary of Electronic Commerce Terms
ASI Automated Information Systems
Authentication Electronic identification verification of people and businesses.
DES Data Encryption Standard
Digital Cash Sometimes known as 'e-cash' or electronic cash.
Digital Signatures Electronic identification of the sender of a message or document.
E-cash Electronic cash.
E-mail Electronic mail, messages sent electronically.
EDI Electronic Data Interchange - transferring data in a standard format from one computer application to another either within a business or between businesses.
Electronic cash Electronic currency which may be used to make payment electronically.
Electronic coins Sometimes called electronic tokens, they represent an electronic system for making small payments.
EFT Electronic Funds Transfer, the transfer of funds and related information electronically.
Electronic purse (or wallet) Software that allows electronic money to be stored and payments to be made.
Electronic Signature The electronic version of a handwritten signature.
Encryption Changing data into a form which is more secure.
Home Page The reception page or main page of a Web site.
Modem A device for converting computer data into a form which can be transmitted over a telephone network. (Name derived from - MOdulator, DEModulator).
Online Storefront A traders Web site.
PAN Primary Account Number.
POS Point of Sale.
Protocol The rules relating to the transmission of electronic information.
SET Secure Electronic Transaction - a method of securing credit card transactions over the Internet.
Smart card Plastic card containing a microchip which can 'store' money. This can then be used as a means of payment with a device that can read the information on the card.
VAN Value Added Network - used to send data, often between companies.
Virtual wallet An electronic purse
Web page A document on the World Widw Web.
Web site A location on the World Wide Web containing information relating to a person or organisation.

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