INTERNET TRADING AND PAYMENT MECHANISM: LEGAL ISSUES IN CYBERSPACE (Pages 110-121) by Dr. S. Kandasamy in THE INTERNATIONAL MANAGER / ISSN: 2348-9413 (Online); 2348-9405 (Print)

Internet Trading or E-Commerce is conducting trade, making transaction through Internet – It is a revolution in commercial practice – It covers any form of business or administrative transaction or information exchange that is executed using any information and communication technology. Main instruments of e-commerce are Telephone, Fax, TV, Electronic Payment Systems, Electronic Data Interface and Internet – There are different categories of E-Commerce – Credit Cards, Debit Cards, Visa, Master Cards are used as tools for payment. E-Cash and Electronic Wallet are used as system of online payment – Digital Card, Smart Card, Digital Cheques are also used – Digital signature also plays an important role in payment systems – Information Technology Act and Negotiable Instrument Act promotes online payment systems. Issues of online contract also arise in E-Commerce transactions – It has legal recognition – Necessary changes have been made in appropriate Acts – But still there are issues emerging out of online contracts. At present, electronic transaction has its own limitation – But beneficiaries from various sectors are increasing – With further improvement in the transaction system, Internet Trading would become a powerful mode of commercial transactionspayment systems – Information Technology Act and Negotiable Instrument Act promotes online payment systems. Issues of online contract also arise in E-Commerce transactions – It has legal recognition – Necessary changes have been made in appropriate Acts – But still there are issues emerging out of online contracts. At present, electronic transaction has its own limitation – But beneficiaries from various sectors are increasing – With further improvement in the transaction system, Internet Trading would become a powerful mode of commercial transactionsKeywords: Internet Trading, E-Commerce, Information Technology, E-Cash, E-Wallet, E-Cheque, Digital Signature, Electronic Data Interface, Smart Card.