Online shopping has become the way of life nowadays. Ironically, the unforeseen COVID-19 pandemic augmented the popularity of e-commerce platforms like wildfire!
With the new normal set in, people do not think much before transacting online while purchasing products and services. Many a time a boon for frauds, the overconfident attitude leads to silly, but dearly, mistakes.
Exploiting the loopholes, the online swindlers use phishing, hacking, malware attack, email scams, and luring messages to trap users. The lazy or ignorant individuals fall prey to their tricks and lose money. There are systems to retrieve the money back if reported to the authority in time. A majority of people are not aware of that as well.
A basic understanding of Online Transaction Processing (OLTP) is necessary prior to indulge in shopping from e-commerce websites. Further, you must be cautious whilst transferring money to the merchant account. Re-assure that you are paying the money to an authorized vendor.
Never, do the mistake of sharing your date of birth, account details, or debit/credit card CVV with anyone. You may have to submit the credit/ debit card number, date of validity of the card, and CVV during online transactions. Comply with this only after confirming the credibility of the seller.
OLTP has three steps. We would be looking into those and other details in the succeeding sections.
What is an Online Transaction? What are the Steps Involved?
Online transaction is the process of transferring money to the firm or organization that offers you a particular product or service. Transferring of cost of a product while purchasing a product from an e-commerce platform, as well as, paying school fees online are online transactions. Presently, you can pay for anything, any service, online.
You might be transferring the money to an individual, private firm, or government agency through online transactions. The facility has become so popular that you can pay the electricity bill, water bill, telephone bill, cable TV charges, and payment for the internet, and so on through online transactions.
Steps involved in an online transaction are:
Selection of Product or Service – This is the initial stage, wherein you will be selecting the product or service you want. For example, if you are buying a product you will add it to your cart. Or else you may select the service you want including buying FASTAG and paying the electricity bill. This may be through a website, mobile app, or Wallets like PhonePe or Paytm.
Placing the Order – You would place the order, enter the card details in the specific slot and share the CVV. Alternatively, you can choose the pay using Wallet or net banking. You would receive OTP for the transaction for card payments. The transaction would be completed only after putting the OTP and clicking submit. For mobile wallets, you will have to approve the transaction in the app.
Approval of Transaction – The process would be completed only if the entered OTP is correct or post approving the transaction in the Wallet after entering the UPI pin. You will receive the confirmation message regarding the order after the successful completion of the transaction.
What are the Money Transaction Methods During an Online Purchase?
The eCommerce websites offer a variety of options for paying for the product or service. Cash on delivery (COD) was the most commonly chosen payment option earlier. With the intrusion of digital technology into human lives and the wide popularity of smartphones, online payment has become the most opted method.
The payment options during online shopping are:
Cash on Delivery (COD) – Perhaps the safest payment method, we would recommend COD for aged people and those individuals who do not have much idea about online transactions. You would be paying for the product when it is delivered.
Net Banking – You can transfer the payment by logging into your net banking account. This was the widely chosen option before the Wallets became popular. After selecting “net banking”, you would be prompted to select the bank. On clicking the bank icon, you would be taken to the website of the subject bank to log in to your account and transfer the fund.
Credit/ Debit Card – The usage of credit and debit cards also have reduced with the arrival of Wallets. You will have to enter the credit card number, valid thru date, and CVV in the assigned rows (The card number would be sufficient to confirm the service provider, like Visa, Maestro, or Master Card). Subsequently, you will receive an SMS with the OTP for completing the transaction. The specific amount would be deducted only after submitting the correct OTP.
Mobile Wallet – You can click on the UPI or mobile wallet option to pay through the mobile wallets including Google Pay, PhonePe, and Paytm. Post the selection, you will have to authorize the transaction in the mobile app after entering the UPI PIN. This has to be completed within the specified time limit (03 to 05 minutes normally).
Digital Cash – Digital cash is virtual money that has been gaining popularity in the previous couple of years. The fund in your account would be converted into a code and would be saved on a microchip, smart card, or computer. The subject code is used for transferring money to the service provider or the seller’s account.
Online transactions have reduced human efforts phenomenally. People can shop for goods online and pay instantly. The elevated competition among e-commerce solutions has made been beneficial for the customer. For that, he or she can get the products and services at competitive prices.
We would suggest you practice caution whilst online transactions. With the growth of e-commerce industries and widespread usage of online transactions, frauds try out new methods to fool people and swindle money.
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