Question 2: Elaborate the steps involved in on-line trading.
Answer:
The steps that are involved in online trading are as follows :
(a) Registration, (b) Placing an order and (c)Payment mechanism.
(a) Registration : Before oding online shopping we have to register with the online vendor by filling up registration form. Registration means an account that is formed with the online vendor. Password is necessary to be filled otherwise one can use our name and can put in the trouble.
(b) Placing an Order : Items can be added in the shopping cart. Shopping cart is a online record of what we pick up from the store while processing the online store. After selecting what we want to pay, we can checkout and choose our payment method options.
(c) Payment Mechanism : This could be done in many ways :
1. Cash on Delivery : Payment for the goods, ordered on online may be made in cash at the time of delivery.
2. Cheque : Online vendor may arrange for the pickup of the cheque from the customer’s end.
3. Non-Banking Transfer : In this, buyer may transfer the amount for the agreed price of transaction to the account of the online vendor who may then proceed to arrange for the delivery of goods.
4. Creditor Debit Cards : It means as plastic money. Credit cards allows its holder to make purchase on it. The amount due from the card holder to the online seller is assumed by the card issuing bank. Buyer account is debited. Debit cards allows its holder to make purchases through it to the extent of the amount lying in the corresponding account. The movement of transaction is made, the amount which is due as payment is deducted electronically or automatically from the card.
5. Digital cash : This is a form of electronic currency which exists only in cyber space. This type of currency has the actual physical properties, but offers the ability to use real currency in the electronic format.
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