Better technology needed for e-business

P.C. Naommy, The Jakarta Post, Jakarta

E-commerce businesspeople hope improved technology and a payment system will lure the public back to the cyber marketplace.

Deputy manager of Visa International Hariyanto Gunawan, however, said that customers must first make sure that the portal has a security system to protect credit cards from hackers.

"Today, people should enjoy the benefit of more convenience in carrying out e-commerce transactions because many reliable portals are providing standard security systems to ensure the privacy of their data," said Hariyanto over the weekend.

Many e-commerce portals now use standard security systems, such as Secure Socket Layer (SSL), which will protect the safety, privacy and reliability of payment data traveling over the Internet by scrambling and unscrambling information so that it can be read only by authorized parties.

However, a recent survey by Texas-based security company ClearCommerce (Clearcommerce.com) reported that about 20 percent of total transactions using credit cards from Indonesia were fraudulent.

This indicates that widespread fraud in electronic transactions has made both e-commerce entrepreneurs and buyers reluctant to use credit cards as a payment tool via the Internet.

Budiono Darsono, the owner of detik.com, said that the portal did not use credit cards for payment due to concern at poor data security via the Internet.

"Since our target is the domestic market, it is more convenient to use money transfers via banks," said Budiono.

Local portal detik.com, which was established in 1998, currently provides online ticketing services for its customers. During 2002, the portal managed to reap about Rp 100 million (about US$12,000) per month from the sale of tickets.

"From January through February this year alone, we have managed to reach a turnover of up to Rp 400 million from selling music concert tickets via the 'Net," Budiono added.

With a better online banking infrastructure, he felt optimistic that by April this year his portal would be able to turn over up to Rp 2 billion in online ticketing business.

Online shopping guidance

1. Look for an "s" after the "http" in the web page address or URL as an indicator that the web uses SSL.

2. Compare shops before buying online.

3. Protect your card details: never send payment information via e-mail because it might be read by outside parties.

4. Read the delivery and return policies of the online store.

5. Keep a record of your transactions by saving the online confirmation order.

6. Always look for privacy statements before ordering.