3.3 Internet Services

Overview

Demonstrate knowledge and understanding of the following internet services and describe the advantages and disadvantages to both the customer and the vendor: – shopping (including the identification and use of

secure retail websites and encryption measures) – banking

Online Shopping

Advantages to the customer• Can shop from the comfort of

their own home• Can track orders• Sometimes more variety available

than in a shop• Comparison of prices• A wide variety of information

available on the product• Can shop 24/7• Can visit virtual shops

Disadvantages to the customer• Too much choice now available• Unsure of the reliability of

information• Unsure of quality until delivery• Could be hidden postal etc. costs• Worry about stealing credit card

details• Need a credit/debit card• A variety of currencies • Possibility of hacking into credit

card details

Online ShoppingAdvantages to the seller

• Wider customer base• Less overheads in terms of

storage space for goods or business premises, staffing

• Competitive marketing• Better communication with

the customer• Cheaper marketing

Disadvantages to the seller• Foreign language barriers• Worldwide distribution• Updating web site• Various foreign currencies• No personal contact with

customer• Needs monetary security

measures in place

Online Banking

Advantages to the customer• 24/7 banking• Can process transactions from

comfort of own house• Itemised statements as

required• Transfer of money between

accounts• Can only be done on computer

systems chosen by the customer

• Immediate stopping of bank cards

Disadvantages to the customer

• Bank charges• Not all transactions such as

withdrawing cash can be carried out

• Credit card details theft• Can only be carried out on

specified computers - those with the ‘key’ installed

Online BankingAdvantages to the bank

• Less overheads in terms of staff

• Customers can only work with the money showing in their account

• Customers can manage their own accounts

• Transactions are processed immediately

Disadvantages to the bank• Less control of the

customers’ transactions

How to identify a secure website

• Padlock symbol at the bottom of most browsers

• https displayed in the address bar

• Verisign

Methods of securing a website

• Use an Internet protocol called Secure Socket Layers (SSL)

• Encryption• Use the protocol Secure Electronic

Transaction (SET) which uses digital signatures

• Passwords

Passwords

• A unique user name which allows the user access to specified files.

Digital signature

• An electronic identification method that confirms that the user is who he/she says he/she is.

• Issued by a company to the customer.

Encryption

• A mathematical process which uses formula to scramble data.

• At the receiving end the user needs the decrypting key to unscramble the data.

Acronyms

• SET Secure Electronic Transaction• SSL Secure Socket Layer• https Hypertext Protocol Secure