E-Commerce Issues and Challenges

Transcription

1 E-Commerce Issues and Challenges James J. Corbin Cable and Wireless (West Indies) Ltd 1

2 Agenda h What is e-commerce h How does credit card processing works In the real world In cyber space h Requirements for going online h The Legal Issues h E-Commerce Law in the Caribbean h Questions 2

3 What is E-Commerce? h Business transactions that occurs on the Web and via the Internet Business to Consumer (B2C) Buying groceries from the supermarket Business to Business (B2B) Hotels buying supplies from manufacturers Consumer to Consumer (C2C) Auctions Business transactions via cell phones m-commerce 3

4 e-commerce worldwide market (US$ B) Source: International Data Corp 4

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7 Why Business Go Online? h Another Sales Channel with low entry barriers h Incremental cost of selling additional goods is negligible h Availability of products and services 24*7*365 h Global Reach 7

8 Credit Card Processing h The Real world h The virtual world 8

9 POS payments with credit cards Merchant Shop POS Terminal Third Party Processor Bank Visa Master Card 9

10 Accepting credit cards on the Internet Web Site Virtual POS Third Party Processor Bank Visa Master Card 10

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12 Flow of Hard good Transactions A Digital Offer is a just a Query String URL Name Peter Sheppard Soft and Cuddly, Address 1 The Strand who could ask for London, a SW1 better 1DF and more Awaiting Shipment traditional gift. Item Price Qty Total Teddy 25: :00 VAT Buy 4:37 Me 25 Total 29:37 Paymt Card Shipped Web Contains all the information about the item Commerce that is needed to process the order :- Unique Id Bear1 Description Soft-fur Teddy Bear Price Customer Currency GBP Tax rate 17.5% Weight 1.25Kg etc. Settle Auth All protected by a Message Authentication Code (MAC). Created using a secret key and the MD5 Algorithm ac1c7b489d400e4a98a6e9c8b9851a37 Digital Receipt Payment Authorizer Web Site 12

13 Key Steps to e-business h Web Site Development h Hosting For Web Site h Payment Gateway (Virtual POS) h Internet Bank Account h Fulfillment h Legal Environment 13

14 Security Issues h Secure Socket Layer (SSL) Encryption technique h Secure Electronic Transaction (SET) pioneered by VISA and MasterCard 14

15 Security Issues h Secure Socket Layer (SSL) Encryption technique h Secure Electronic Transaction (SET) pioneered by VISA and MasterCard 15

16 Legal Issues h Domain Registration h IPR h Privacy h Digital Signatures 16

17 Legal Issues h h h Existing laws and regulations that may hinder e-commerce must be reviewed and revised or eliminated to reflect the needs of the new electronic age UN Commission on International Trade Law has created a model law International e-commerce policy by country 17

18 Electronic Transaction Act h Bermuda h Cayman h Barbados h Bahamas h Others will follow 18

19 Bermuda h Most advanced e-commerce enabled country All Banks will accept credit cards via the Internet Clearing House FEDS Three payment gateways ( Virtual POS) Offshore Web Hosting Centers Two Telecommunications Carriers Multiple cable paths to Internet Back Bone 19

20 Bermuda Electronic Transactions Act h Electronic Records Information required by law can be sent or delivered by electronic means. Where the law requires a signature, an electronic record meets that requirement if the method of identifying the signatory meets certain requirements h Communication of electronic records transactions conducted in electronic form do not affect their validity Process for acknowledgement of receipt of electronic records 20

21 Electronic Transactions Act h Electronic signatures Minister recognise certificates and certification service providers in any other jurisdiction, to be treated as equivalent to accredited certificates issued in Bermuda h Encryption Minister can make regulations relating to the use, import and export of encryption programs h Data Protection Objective is to create a regime consistent with the European Unions s - safe harbour - principles for the transfer of personal data outside the European Union 21

22 Electronic Transactions Act h E-Commerce Service Providers Not liable for content of electronic records if Service Provider has no actual knowledge or is not aware of the facts that would objectively indicate a likelihood of civil or criminal liability in respect of material carried on the network. h Defines Process Intermediaries must follow if they become aware of facts or circumstances that give rise to civil or criminal liability in respect of information on their networks. h E-Commerce Advisory Board Guide Minister on the exercise of Ministerial functions 22

23 Current Status h Banks are getting on the Act Barclays Bank of Nova Scotia Others in pipeline h Web development teams h Web Hosting h Many sites Using USA banks Using Caribbean banks h Governments see e-commerce as providing future economic growth h Many Projects are in the pipeline 23

24 Questions?? 24