PRESENTED BY:

How Online Transaction is Affecting Business

Environment

Name Roll No Reg No1. Esmatullah Amin B-33 113124332. Muzamil Haqmal B-34 113125393. Faiz Rahman B-35 113121584. Abdullah Mohammadi B-36 11312188

Contents

Introduction The Environmental Impacts of Online

Transaction How online transaction affect business

environment Types of online transaction Advantages of online transaction How E commerce reduce the cost of online

transaction Ideas and Suggestions Conclusion

Introduction

Globalization and Internet have transformed many aspects of our life, Now all we need is a proper computer and an Internet Connection and literally there are not a lot of things we can’t do. And this includes the online financial transaction culture brought about by e-commerce website.

Online transaction processing increasingly requires support for transactions that span a network and may include more than one company. For this reason, new online transaction processing software uses client/server processing and brokering software that allows transactions to run on different computer platforms in a network.

The technology has been used in a variety of industries, ranging from banking, airlines, mail order, supermarkets to manufacturing. Applications include electronic-banking, order processing, employee time clock systems, E-commerce, and E-trading.

The Environmental Impacts of Online Transaction

Reduced Carbon Footprint.o Although an online transaction will still use up some degree of

energy, this amount can be significantly reduced. Less Need for Product Presentation.o In a traditional retail environment, a significant amount of paper

and ink is used to create flashy signs to draw in shopper interest. A New Lease on Life for Used Goods.o Websites like eBay have allowed millions of consumers to sell

their old clothes, books, and housewares rather than just throwing them into the bin. This has created a longer lifespan for consumer goods, cutting back a bit on the amount of new products that must be continuously purchased only to be tossed aside after a short period of use.

How online transaction affect business environment

Round-the-clock Transaction: No more geographical boundaries! Online transaction allows

enterprises to do businesses anytime, anywhere. Time difference is no longer a hindrance in making deals with foreign businesses.

Increase Speed: Transacting online saves businesses lots of time. With just a few

clicks, you are able to place an order of raw materials you want even if your supplier is overseas.

Less Fees to Pay: Obviously, using the net to do your business transaction lets you

save money. Imagine before, if you need to meet a client, you will have to set a meeting place. This means you must shell out some bucks for the gas, food and the meeting place itself. On the contrary, online transaction eliminates all those fees.

Types of online transaction

1) Authorization:• Authorization, also referred to as Pre-authorization hold, Card

authorization, Authorization Hold Auth, or Preauth, is the request to hold funds before the transaction is settled.

2) Settle:• A Settle transaction also known as a Capture is the finalization

of the authorization process where the funds are settled. 3) Void:• A Void transaction informs the processor’s gateway that we do

not wish to move on and settle the funds.4) Refund: Also known as a Credit or credit return is the return of funds

to the cardholder from the merchant account after the transaction was completed and settled.

Advantages of online transaction

Easy and best solution for online shoppers. These systems are most efficient and have excellent

response times. Very easy to use; as simple as fill a form and the rest

will be taken care of by the web and database servers. Online banking is completely based on online

transaction processing systems. Credit cards are also well-handled by these systems. We can access anything on the web and choose to buy

it because all financial transactions methods are supported by these systems.

How E commerce reduce the cost of online transaction

A. Accuracy: Electronic selling nearly eliminates processing errors that run rampant with human processors. This translates into less wasted time solving order and invoice problems.

B. Brick And Mortar: The money received for every transaction will pay for the item; it will also contribute to the salesperson & salary, credit card fees, lease on storefront, electricity, telephone, heating/cooling, taxes, displays, repairs and maintenance to the building.

C. Inventory: With a brick and mortar store, we will have to maintain an inventory. This will entail purchasing, receiving, unpacking, displaying, storing extras and selling as quickly as possible.

D. Other Reduced Costs: An e Commerce business is able to reduce labor and other costs in many areas, including: document preparation, reconciliation, mail preparation, telephone calling, data entry, overtime and supervision expenses.

Ideas And Suggestions

When millions and millions of requests occur there should be a proper way to handle.

Databases store all user data and account information, which should not be hacked, otherwise it could lead to financial and personal problems (thefting).

In case of hardware failures of the online transaction processing systems, visitors of website get in trouble and their online transactions get effected in order to tackle the situation high level of technology must be used.

Electricity problem must be ensured, i.e. if there is shortage in electric supply additional backup facilities like generators and related hardware should not be used.

Online transaction processing should not involves a lot of staff to work in groups to maintain inventory.

These online transaction systems must not impose processing costs on the buyers and sellers.

These systems should have efficient methods of transferring products to buyers by themselves.

Conclusion

Online Transaction Processing has two key benefits: simplicity and efficiency. Reduced paper trails and the faster, more accurate forecasts for revenues and expenses are both examples of how makes things simpler for businesses.

As e-commerce and real-time transactions become an increasingly important part of the modern business model, businesses are becoming more dependent on online transaction systems. For example, financial investment industry relies on online transaction processing systems to manage millions of transactions and update database records instantly and accurately.

Furthermore, online transaction systems must be able to scale quickly and smoothly to handle larger data and user volumes, more complex calculations, and higher peak loads.