Transaction risks

Online transactions are vulnerable to the following transaction risks:

• Default on order taking/giving: the seller denies that the customer ever placed the order, or the customer denies ever having placed it.
• Default on delivery: the intended delivery does not take place, goods are delivered to the wrong address, or goods other than those ordered are delivered.
• Default on payment: the seller does not receive payment for the goods supplied, while the customer claims that payment was made.

Thus, risk can arise for either the seller or the buyer on account of default in order taking/giving, delivery or payment. Such situations can be averted by:

• Identity and location/address verification at the time of registration, and obtaining authorisation for order confirmation and payment realisation.
• Using cookies to confirm that the customer has entered details correctly. Cookies are similar to the caller ID on a telephone, providing the seller (telemarketer) with information such as the consumer's name, address and previous purchase-payment record.
• For protection against anonymous sellers, it is advisable to shop from well-established shopping sites, which assure customers of the sellers' identities, locations and service records. Sites such as eBay even rate sellers, protect customers against default on delivery, and reimburse payments up to some extent. …