Choosing functions and features

Choosing functions and features

· Reliability
· Security
· Simplicity
· Acceptability

Consumers have come to rely on their credit and charge card companies not just to extend credit, but to extend protection against unscrupulous vendors(providing recourse when improper charges are made), thieves(minimizing liability when a card is lost or stolen), and the vicissitudes of daily life (offering protection plans which replace lost or stolen goods).

The security issue is one that will never go away. Even if the strongest possible encryption is used to send payment information, there are still many security holes. A security chain is only as strong as its weakest link, and companies engaging in this business can be exposed through any number of non-Internet attacks:

o The disgruntled employee with access to payment information
o Storage of payment information with insufficient security
o Improper disposal of printed material

Electronic commerce schemes must be simple to achieve widespread appeal. Consumers prefer to use a single, multipurpose credit card such as Visa or MasterCard rather than set up credit accounts with every different retailer they purchase from.

Electronic commerce schemes should offer widespread acceptability. A scheme that is accepted only by a few merchants will not be attractive to consumers who don’t do business with those merchants; a scheme that few consumers have chosen will be one that few merchants seek out.