2. E-commerce (electronic commerce or EC) is the buying and
selling of goods and services, or the transmitting of funds or
data, over an electronic network, primarily the Internet.
E-commerce is conducted using a variety of applications,
such as email, fax, online catalogs and shopping carts,
Electronic Data Interchange (EDI), File Transfer Protocol,
and Web services.
The companies should implement the secret sock layer
technologies for security and privacy of users and
transactions
E-Commerce
3. E-commerce is a reasonably capital-intensive business.
Since most firms are new, vendors are unwilling to commit
credit, epically to smaller firms, and many demand advance
payment terms.
Due to the high number of SKUs and higher margins in long-
tail items, the working capital is blocked significantly
A strong MIS system is required to undertake any analysis to
improve business profitability, for which a real-time
bookkeeping system needs to be maintained for better
working capital management for each day.
E-Commerce
5. EDI (Electronic Data Interchange)
• EDI documents can flow straight through to the appropriate application on the
receiver’s computer (e.g., the Order Management System) and processing can
begin immediately.
• The most common documents exchanged via EDI are purchase orders, invoices
and advance ship notice
• When two businesses decide to exchange EDI documents, they must agree on
the specific EDI standard and version and typically use EDI translator
• EDI standards in use today, including ANSI, EDIFACT, TRADACOMS and
ebXML.
6. Financial Electronic Data
Interchange(FEDI)
FEDI includes electronic formats for invoices,
payment initiation, and remittance information
processed through a financial institution or
communications intermediary.
With FEDI, you initiate payment instructions with
your bank, which in turn automatically transmits
payments to AT&T. It is a bank-to-bank
transaction.
The benefits are
Improved productivity
lower error rates
Reduced cycle time
Improved cash forecasting
One stop payments
7. It is a transaction that takes place over a computerized network, either
among accounts at the same bank or to different accounts at separate
financial institutions.
Transactions are processed by the bank through the Automated
Clearing House (ACH) network, the secure transfer system that
connects all U.S. financial institutions
It is used for both credit transfers, such as payroll payments, and for
debit transfers, such as mortgage payments.
The benefits of EFT include reduced administrative costs, increased
efficiency, simplified bookkeeping, and greater security.
Electronic Funds Transfer (EFT)
8. SWIFT payments are a type of international transfer sent via the SWIFT
international payment network.
It is a messaging network that financial institutions use to securely transmit
information and instructions through a standardized system of codes.
Your bank will likely charge a fee to make a SWIFT transfer to Transfer
Wise.
When the money is in transit, correspondent banks in between may deduct
a handling fee.
Swift transfer was generally used by Banks, Brokerage Institutes and
Trading Houses, Securities Dealers, Asset Management Companies,
Exchanges, Corporate Business Houses
The services offered by SWIFT are business intelligence, Messaging,
Connectivity, and Software Solutions
SWIFT(Society for Worldwide Interbank
Financial Telecommunications)
10. The primary clearing house in the U.S. for large banking
transactions. CHIPS settles over 250,000 of trades per day, valued
in excess of $1 trillion
CHIPS and the Fed wire funds service used by the Federal
Reserve Bank combine to constitute the primary network in the
U.S. for both domestic and foreign large transactions denominated
in U.S. dollars
CHIPS acts as a netting engine, where payments between parties
are netted against each other instead of the full dollar value of both
trades being sent.
CHIPS(Clearing House Interbank Payments
System)