E-commerce transactions are on the rise.

According to a most recent research, consumers are more and more prone to make purchases from e-commerce companies located in countries other than their own. As a result, more companies and consumers are concerned about process of online payments and security involved with such transactions. Over the past decade the payments landscape all over the world has changed dramatically. From the speed, efficiency and effective payments to the explosive growth of the internet and online communities, companies can now manage domestic payments seamlessly through a secure online platform that is tied to a sophisticated workflow and approval engine.

*Does most of the e-commerce business conduct international transactions?

Yes most of the e-commerce business conducts international transactions. Now a days international business is on a boom in the e-commerce industry. People from one corner of the world order products that are delivered to their home. These transactions are done by e-banking.

*How do they protect themselves from repudiation? Measures for nonrepudiation.

Assurance the sender of data is provided with proof of delivery and the recipient is provided with proof of the sender's identity, so neither can later deny having processed the data." Non-repudiation implies that one party of a transaction cannot deny having received a transaction nor can the other party deny having sent a transaction. Non-repudiation is a major issue in credit card transactions, on-line auctions and various business contracts. The best way to secure confidential applications such as credit card transactions is to use a convertible authenticated encryption (CAE) scheme simultaneously satisfying the properties of authenticity, confidentiality and non-repudiation. It allows the user to ensure that the message has been sent and received by the correct person. For example: Electronic commerce uses technology such as digital signatures to establish authenticity and non-repudiation.

*How do exchange and shipping changes impact online purchases?

Exchange rate effect the online shopping in a way that for instance a person goes on E-bay and selects a product for purchase. The price displayed there is $20. He orders that product the other day and the exchange rate gets high. Previously he was getting it for PKR 1,700, but now he is getting it for PKR 2,000. So of course he will be disappointed and there is a possibility that he might not purchase it. Now the shipping in some regions are high as compared to the others. Sometimes shipping of a product is greater than its price. So obviously a customer will think twice before purchasing it.

*What would be the difficulties to the business if you were an international customer or a local customer?
For companies, conducing e-commerce in a foreign country means additional considerations such as foreign tax codes, international shipping, authenticity and cultural differences, all of which have to be taken into account. A customer in Russia who buys a product on eBay, for example, will be faced with much higher shipping costs that a US customer. Russian Import tax and tariffs can further raise the price for a customer who lives in Moscow versus one who lives in Boston. From the security point of view, it is harder for a company like eBay to verify the authenticity of a customer living abroad, who may want to use a method of payment less recognized in the US. Since international e-commerce involves several international financial institutions, it is more likely in such transactions that payment gets entangled on the way from buyer to seller, which can, in turn, lead to more frequent repudiation incidents. One way in which e-commerce companies try to mitigate the difficulties involved in international transactions is to establish local presence by starting a website and opening an office in a specific country. For example, in November of 2007 eBay launched a full-scale version of its site in Malaysia. Within seven months the site it had 1.3 million visitors per month and already in June of 2008, eBay was able to capture 75% of all e-commerce transactions conduced in Malaysia. Hence, although challenges are surely involved in conducting international e-commerce, example of eBay shows that success can be achieved benefiting both, foreign companies and consumers.