Failure or Success of E-Business? Term Paper

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What are some of the financial issues that are unique to online monetary transactions?

Safety and security are two primary concerns for consumers buying online, as it is inconvenient to use checks or wire cash online. Using PayPal is one option, but most consumers chose to pay through their credit cards and want some assurance that their numbers are not accessible to illegitimate third parties. Similarly, consumers who access their bank accounts online want to make sure that they and they alone can see the records, and there are some controls to verify their identity.

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Other concerns for sites like eBay, where sellers are individuals and not reputable corporations, include the fact that the buyers may want to return their merchandise and cancel payment if the goods do not match the product description. (This is the reason for eBay's 'rating' of user reliability). Sellers from all websites want assurance that the credit cards consumers use to purchase goods are legitimate. Finally, in international exchanges, some method of currency conversion, if buyers and sellers do not share a common currency, must be in place.

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