hacking tutorials 2023All About Hacking

How to Process E-Commerce Transactions in 11 Steps

How to Process E-Commerce Transactions in 11 Steps E-commerce transactions are much more vulnerable to fraud, customer disputes and chargebacks than card transactions.

There are several main reasons How to Process E-Commerce Transactions in 11 Steps:

for this, the most obvious of which is that neither the merchant can physically verify the validity of the card used for payment and the authenticity of the cardholder, nor can the customer physically check the product they are buying. .

Then there are the potential complications that can arise from the late delivery of a purchased product or the premature posting of a transaction to the cardholder’s account, which are usually not an issue with face-to-face payments How to Process E-Commerce Transactions in 11 Steps.

How to Process E-Commerce Transactions in 11 Steps
How to Process E-Commerce Transactions in 11 Steps 2023

It is unlikely that we will ever be able to reduce the risk of e-commerce to the level of brick-and-mortar stores, but we can certainly take measures to make it tolerable. Below are eleven specific best practices you should follow when accepting credit card payments on your website. Make them part of your sales process and you’ll see fewer chargebacks and fraudulent transactions.

11 steps to processing e-commerce transactions

1. Get the cardholder’s name, address and phone number. If the shipping address is different from the billing address, please call or email the customer to verify the order. Do not proceed with the transaction until you receive a satisfactory response from the customer How to Process E-Commerce Transactions in 11 Steps.

2. Collect card account information. Get your card number and brand. Most consumers, including criminals, do not know that the card brand can be determined by the card number, so a discrepancy here may indicate that the customer does not physically own the card. Also, get the card’s expiration date and security code – the CVC 2, CVV2 or CID number, which is located near the signature panel on the back of the card (or on the front for American Express cards). The security code is another tool used to ensure that the customer is in possession of the card.

3. Sign up for Verified by Visa and MasterCard SecureCode. These services are used to verify cardholders who have previously enrolled in the programs. Participating merchants are protected from certain fraud-related chargebacks, even if customers haven’t signed up.

4. Always use the Address Verification Service (AVS). AVS allows you to verify the billing address of the cardholder with the issuer. Fraudsters often do not know the correct billing address of the account.

5. Authorize each transaction. All e-commerce transactions must be approved by authorization.

6. Avoid using voice authorizations. These cannot be used as supporting evidence in re-billing.

7. Do not use forced permissions. A transaction that enters a merchant key after an authorization request is rejected is forced. Do not do this, nor should you repeatedly request authorization in the hope that you will eventually receive approval.

8. Submit within seven days of receiving authorization approval. If this is not possible, submit a new authorization request How to Process E-Commerce Transactions in 11 Steps.

How to Process E-Commerce Transactions in 11 Steps
How to Process E-Commerce Transactions in 11 Steps 2023

9. Inform your customer about the expected delivery date. If the purchased goods or services are not delivered to the cardholder at the time of the transaction, inform your customer of the delivery method and (expected) date. If the delivery is delayed, inform the customer immediately and indicate a new delivery date How to Process E-Commerce Transactions in 11 Steps.

10. Save transactions after shipping or product delivery. In a card-not-present environment, the transaction date is the date the product was shipped, not the date payment was received. Make a deposit within three days of the date of shipment (transaction) How to Process E-Commerce Transactions in 11 Steps.

11. Use the original authorization number for your deposit and refund transactions. This eliminates the possibility of entering refunds for sales transactions for which authorization approval was not received and which should not have been processed. This is a great fraud prevention measure.


This is a very short list and many more can be added. However, if you stick to just these eleven best practices, you’ll be in good shape and have far fewer chargebacks, customer disputes, and fraudulent transactions to deal with.

As you gain experience and your business grows, it’s a good idea to start building an internal negative file, setting up speed limits and controls, implementing fraud screening and other risk management best practices.

Image credit: Giornaletropolitano.it.

An online transaction is a payment method where the transfer of funds or money occurs online through electronic funds transfer. The Online Transaction Process (OLTP) is secure and password protected. The three steps in an online transaction are registration, order entry and payment. Let’s learn more about the various stages of an online transaction in more detail How to Process E-Commerce Transactions in 11 Steps.

1 Recommended video
2 Online transactions
2.1 Browse more topics in Evolving Ways of Doing Business
3 stages of online transaction
4 steps involved in an online transaction
4.1 1] Registration
4.2 2] Order entry
4.3 3] Payment
5 solved examples for you
Recommended video
Classification of business
The basics of starting a business
previous arrow next arrow

Online transactions
Online transactions
Online transaction processing (OLTP) are information systems that facilitate and manage transaction-oriented applications, typically for data transaction processing and search. So online transaction is done using internet. This is not possible without a proper internet connection.

Online transactions occur when the buying and selling process takes place over the Internet. When a consumer buys a product or service online, they pay for it through an online transaction. Let’s learn more about it How to Process E-Commerce Transactions in 11 Steps.

Browse more topics in Evolving Ways of Doing Business
Advantages and limitations of e-Business
Online transaction phase
There are three stages of online transactions

Pre-purchase/Sale: In this stage, the product or service is advertised online with some details for customers How to Process E-Commerce Transactions in 11 Steps.
Buy/Sell: When a customer likes a certain product or service, they buy it and pay online
Delivery stage: This is the final stage where the purchased goods are delivered to the consumer.
Steps involved in an online transaction How to Process E-Commerce Transactions in 11 Steps
The following steps comprise an online transaction:

1] Registration
A consumer must register online at a specific website in order to purchase a specific good or service.
The customer’s email id, name, address and other details are stored and safe on the website.
For security reasons, the buyer’s “Account” and his “Shopping Cart” are password protected.
2] Order entry
When a customer likes a product or service, they add it to their ‘shopping cart’.
The shopping cart contains records of all items selected by the buyer for purchase, i.e
the number of units or quantity you wish to purchase of the selected item and the price for each
The buyer then proceeds to the payment option after selecting all products How to Process E-Commerce Transactions in 11 Steps.
3] Payment
The buyer then has to choose a payment method, he has different payment options. These payment sites are secured with a very high level of encryption, so the personal financial information you enter (bank/card details) will remain completely safe. Some of the ways you can make this payment are:

Cash on delivery: The cash on delivery option allows the buyer to pay when they receive the product. Here you pay at the door. The customer can pay in cash, debit or credit card.
Check: In this type of payment, the buyer sends the seller a check and the seller sends the product after the check is cleared.
Net Banking Transfer: Here the payment is transferred from the buyer’s account to the seller’s account electronically, i.e. via the Internet. After receiving payment by the seller, the seller ships the goods to the buyer.
Credit or Debit Card: The buyer must send their debit or credit card details to the seller and a specific amount will be deducted from their account How to Process E-Commerce Transactions in 11 Steps.
Digital Cash: Digital cash is a form of electronic currency that exists only in cyberspace and has no real physical properties. Here, the money in the buyer’s bank account is transferred to a code that is stored on a microchip, smart card or on the hard drive of their computer. When he makes a purchase, he has to mention this particular code on the website and then the transaction is properly processed How to Process E-Commerce Transactions in 11 Steps.
A solved example for you

Q: What is e-commerce?

it is about using a computer network
refers to the idea of ​​extracting business intelligence
both a and c
it involves buying and selling goods and services
Sol. The correct answer is option “D”. Electronic commerce is the purchase and sale of goods and services or the transfer of funds or data via an electronic network, primarily the Internet How to Process E-Commerce Transactions in 11 Steps.

Question: In which of the following are personal digital assistants (PDAs) used to buy and sell goods and services?

All of the above
Sol. The correct answer is option “B”. M-commerce (Mobile Commerce) is the buying and selling of goods and services through wireless handheld devices such as mobile phones and personal digital assistants (PDAs) How to Process E-Commerce Transactions in 11 Steps.

Online transaction is when we buy any goods online and pay for those goods online. Everything is safe in online transactions. In this case, it is done through an OTP confirmation sent to your phone, which is very well secured. There is no paperwork to do when transacting online How to Process E-Commerce Transactions in 11 Steps.

There are three stages of online transaction i.e. first – registration, second – placing order and third – online payment. This online transaction is completed by combining all three stages. Online transactions are used to buy or sell any item on an online platform like Flipkart, Amazon or eBay etc How to Process E-Commerce Transactions in 11 Steps.

Stages of Online Transactions:

There are three phases of online transactions –

Before buying/selling- At this stage, the company advertises the product, through advertising it informs about some important things so that the customer can learn about the product. These ads are made so that the customer who is attracted to the ad is ready to buy the product How to Process E-Commerce Transactions in 11 Steps.

Purchase / Sale – In this phase, when the customer is enticed to buy the product, he likes the product, then he buys the product and pays for the product online How to Process E-Commerce Transactions in 11 Steps.

Delivery phase – In this phase, the customer buys the final goods and receives the delivery.

teps involved in shopping online (online transaction):
Next steps related to online shopping (online transaction)

Registration: The first step is registration in online transactions. In this step customer has to register on website like Flipkart, Amazon. For registration, they have to provide their email ID, name, address and all other such details stored by the website and keep these details only safe at all times. After registering on the website, he has an account and a shopping cart, both of which are password protected How to Process E-Commerce Transactions in 11 Steps.

Order Entry: In this case, the customer puts any items he likes from his registered shopping site into the shopping cart. This shopping cart then keeps the details of all the saved items like how much money is there, how much is in the quantity, stores all the things with the shopping cart. Then whenever the customer needs to order these things, he can get all these things by paying online How to Process E-Commerce Transactions in 11 Steps.

Payment: Buyer will get many options for placing orders which are safe and secure, the payment options available here are very secure, they have high level encryption so that the buyer’s financial details cannot be leaked like his/her card number, bank number account, password, all these things could not be leaked. Below are some of the payment methods that the buyer can choose from.

Cash on delivery: With cash on delivery, the customer pays wherever they wish to have their product delivered to them. He can make the payment in any way, either by card or in cash How to Process E-Commerce Transactions in 11 Steps.

Cheque: In this step, after selecting the check option in the payment method, the payment is made by cheque. First, the customer must send a check to the seller, and when the seller cashes the check, they send the customer the goods they ordered How to Process E-Commerce Transactions in 11 Steps.

Net Banking Transfer: Payment in this step is from the buyer’s account. First, the buyer transfers money electronically to the seller’s account. When this money comes from the seller’s account, the seller will ship the product to the buyer’s address.

Credit or Debit Card: In this step, the buyer must tell the seller their credit or debit card details. When the buyer gives their details to the seller, the seller withdraws a specific amount of money from the buyer’s account. The confirmation message for the transaction goes through the OTP to the buyer and when the buyer enters this OTP, the specific amount is deducted from the buyer’s account How to Process E-Commerce Transactions in 11 Steps.


How to Process E-Commerce Transactions in 11 Steps
How to Process E-Commerce Transactions in 11 Steps 2023


Security and safety of e-business:

1. Transaction Risks: Common transaction risks of online stores are:-

Default Order – Let’s say you bought something online on the website and paid for it, but the seller can deny that you placed the order or paid for the order. The seller can refuse to deliver the goods in this way How to Process E-Commerce Transactions in 11 Steps.

Default on Delivery – It often happens that you placed an order and the product was shipped to someone else’s address instead of your address (which you provided).

Defaulter – Very often it happens that the same payment is not received by the seller, but by the customer who claims to have paid. To avoid this problem, the website provides cookies, which are like a personal ID or caller ID, which extract the customer’s name, address and previous purchase records How to Process E-Commerce Transactions in 11 Steps.

2. Data storage and transaction risk: When registering on the site, we share some personal information such as our name, our address, email ID, phone number. All this information is stored and stored in his data. This increases the likelihood that our personal data can be stolen by anyone and can expose us to a high risk How to Process E-Commerce Transactions in 11 Steps.

The risk associated with data storage is- Virus (vital information under siege)- Lots of computer viruses are deadly which can enter your computer in any way like through a flash drive, through an email ID or through a drive that you can access your computer. All data contained in it, all important information can be deleted. Because of this, you may have a lot of problems and may lose too much time.

Hacking – Hackers are unauthorized people. They can destroy all your data and they can also steal it, due to which there is a lot of damage to the website.

3. Intellectual Property and Privacy Risk: The information you provide on the website may be copied by other online sellers who may start sending you promotional messages and even hackers may impersonate customers. A fake website can be developed instead of the original website and takes money from customers in advance and does not deliver any product to customers.

Risks associated with online shopping

In addition to data storage, transaction and privacy risks, there are some other risks associated with online shopping. These are the following:

Customer Disputes

Online security issues

Credit card fraud

Problems associated with returning goods and their warranty

Logistical problems

Storage problems.



Leave a Reply

Your email address will not be published. Required fields are marked *