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E-Commerce: Who Bears The Risk Of Fraud In A Banking Transaction

E-COMMERCE: WHO BEARS THE RISK OF FRAUD IN A BANKING TRANSACTION

ABSTRACT
Electronic Commerce has gradually taken over the role of brick and mortal bank branches in the processing of transactions. This has encouraged the use of eCommerce from the conventional elitist work and service tool to a day-to-day consumer-dependent tool. With most good things, there are always sore points. The advent of the high volume, high traffic electronic commerce space has created high risk which has become a live-in risk. The question today is who bears the risk?

INTRODUCTION
Definitions
eCommerce: This is a short form of Electronic Commerce. It is the buying and selling of goods and services on the Internet, especially the World Wide Web and other computer networks. In practice, this term and a newer term, e-business, are often used interchangeably. For online retail selling, the term e-tailing is sometimes used. Electronic commerce is generally considered to be the sales aspect of e-business. It also consists of the exchange of data to facilitate the financing and payment aspects of the business transactions.

The amount of trade conducted electronically has grown extraordinarily since the spread of the Internet. A wide variety of commerce is conducted in this way, spurring and drawing on innovations in electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems, and automated data collection systems. Modern electronic commerce typically uses the World Wide Web at least at some point in the transaction's lifecycle, although it can encompass a wider range of technologies such as e-mail as well.

A large percentage of electronic commerce is conducted entirely electronically for virtual items such as access to premium content on a website, but most electronic commerce involves the transportation of physical items in some way. Almost all big retailers have electronic...