Question

Online transactions are vulnerable to the following types of transaction risk, explain.

Answer 1

Online transactions are vulnerable to the following types of transaction risk:

1. Seller denies that the customer ever placed the order or the customer denies that he ever placed the order. This may be referred to as 'default on order taking/ giving.'

2. The intended delivery does not take place, goods, are delivered at the wrong address, or goods other than ordered may be delivered. This may be regarded as 'default on delivery'.

3. Seller does not get the payment for the goods supplied whereas the customer claims that the payment was made. This may be referred to as 'default on payment'.