E-commerce Unit II

UNIT – II
1. What are the 3 types of electronic tokens?
· Cash or real-time
· Debit or prepaid
· Credit or postpaid
2. What are the properties of e-cash?
· E-cash must have a monetary value
· It must be interoperable
· It must be storable and retrievable
· It should not be easy to copy or tamper with while being exchanged
3. Write notes on electronic checks.
Electronic checks are another form of electronic tokens. They are designed
to accommodate the many individuals and entities that might prefer to pay on
credit or through some mechanism other than cash.
4. What are smart cards?
Smart cards are credit and debit cards and other card products enhanced
with microprocessors capable of holding more information than the traditional
magnetic stripe.
5. Mention the 2 types of smart cards.
· Relationship-based smart credit cards
· Electronic purses
6. What are the 3 basic categories of credit card payment on on-line networks?
· Payment using plain credit card details
· Payment using encrypted credit card details
· Payments using third-party verification
7. Mention some factors to be included for designing electronic payment
systems.
· Privacy
· Security
· Intuitive interface
· Database integration
· Brokers
· Pricing
· Standards
8. Define EDI.
Electronic Data Interchange (EDI) is the electronic transfer, from computer to
computer, commercial and administrative data using an agreed standard to
structure an EDI message.
9. Specify the 4 layers of EDI architecture.
· EDI semantic layer
· EDI standard layer
· EDI transport layer
· Physical layer
10. Mention the benefits for international trade.
· Reduced transaction expenditure
· Quicker movement of imported and exported goods
· Improved customer service through “track and trace” programs
· Faster customer clearance and reduced opportunities for corruption, a huge
problem in trade.
11. Give out the basic kit necessary for EDI implementation.
· Common EDI standards
· Translation software
· Trading partners
· Banks
· EDI value-added networks (VANs)
· Proprietary hardware and networking
12. What are the 2 major ED standards?
· ANSI X.12
· EDIFACT
13. Give the elements of an EDI message.
· Transaction set
· Data segments
· Data elements
14. Compare EDIFACT and X.12 Standards.
· Both are comprised of strings of data elements called segments.
· ANSI standards require each element to have a very specific name, such
as order date or invoice date. EDIFACT segments, in contrast, allow for
generic or multiuse elements, such as date.
15. Mention the layers of EDI software implementation.
· Business Application Layer
· Internal format conversion
· EDI Translator Layer
· EDI envelope for document messaging
16. Mention the 3 types of EDI access methods.
· Direct dial or modem to modem connection
· Limited third-party VANs
· Full-service third-party VANs
17. What are the factors involved in EDI implementation cost?
· The expected volume of electronic documents.
· Economics of the EDI translation software
· Implementation time
· Maintenance fees
· VAN charges
18. What are the 2 types of EDI envelopes used?
· X.435
· Internet EDI based on MIME
19. Define VAN.
A value-added network (VAN) is a communications network that typically
exchanges EDI messages among trading partners.
20. What are the factors that make the internet useful for EDI?
· Flat pricing
· Cheap access
· Common mail standards
· Security

16 Marks
1. Explain EDI Software Implementation.
· Diagram: How EDI works
· EDI Business application layer
· Diagram: The preparation process followed by the application s/w
· EDI Translator layer
· EDI Communications layer
2. Write notes on digital token-based electronic payment systems.
· E-cash & its properties
· E-cash in action
· Business issues
· Operational risk
· Legal issues
· E-checks with diagram
3. Explain the EDI applications in business.
· International trade and EDI
· Financial EDI
· Health care and insurance EDI
· Manufacturing/Retail procurement using EDI
· Business information, product design, and procurement
4. Define VAN. Explain it in detail.
· Definition
· VAN pricing structures
· VAN service providers
· VANs and the internet
5. Write notes on smart cards and electronic payment systems.
· Relationship-based smart cards
· Electronic purses and debit cards
· Smart card readers and smart phones
· Business issues and smart cards