Assignment 3 Essay Example | Topics and Well Written Essays - 2000 words

Assignment 3 - Essay Example However, the mode of electronic commerce also brings and invites many kinds of problems both for the customers and vendors. Some of such problems faced by dot-com companies are listed under: Technical problems This is one of the significant problem faced on the part of both customers and vendors in making payment through online sites. The technical problems develop a kind of resistance among both customers and vendors in using e-commerce sites for purchasing goods and services. Some of the common technical problems faced by the customers and vendors relate to system failure, case of amount debited twice, late processing of payments, failure to provide notifications, etc. All these technical issues and problems have been faced by the companies in real sense. For instance, in the year 2012, around 12 million NatWest and Royal Bank of Scotland have faced the freezing issue of their salaried accounts. The technical fault and problem has resulted the computer system to freeze the salaried accounts unnecessarily (Bidgoli 20-25). This case of freezing of salaried accounts prevented the large customer base from making online payment through their salary accounts. Likewise, system failure and late processing of payments also prevents the customers from getting up-to-date balance and payment status. In some instances, it has also been noticed that customers are fined for late payment due to the system failure or any other technical difficulty. The technical problem relates to failure of the system to show updated payment status also creates difficulty for vendors in forwarding the request of debiting or crediting accounts. It is due to reason that vendors can direct the banking channels to debit or credit the customer account on the basis of latest updated information of their accounts. But, system failure and technical problems creates difficulty for the vendors in assessing and tracking updated status and proceeding payment accordingly. Difficulty related to payment pr oviders The wide popularity and emergence of large number of e-commerce sites have also increased proportion of payment providers simultaneously. The availability of large number of payment providers created difficulty for the vendors and customers in selecting appropriate and authentic payment provider. There are various cases demonstrating fraudulent payment done by service suppliers. The instances of fraudulent cases pose a question on the trust and authenticity of payment providers. The world of e-commerce has also witnessed the difficulty faced by the vendors and customers in cancelling the transaction and processing payment remittance. The cancellation of transaction by the mutual agreement of customers and vendors also made the issue unsolved for many days. It happens due to long time taken by the payment providers in forwarding the payment back to the customers. This practice of payment providers of forwarding payment with excessive delay spoiled the trust and authenticity o f online payment mechanism. It has also been identified that vendors and customers need to install multi-currency support system