This document discusses the components and functions of electronic commerce systems. It defines e-commerce as selling products or services over the internet, also known as e-business. Merchants that perform e-commerce are called e-tailers. Their websites are called cyberstores, which are online stores where customers can view and purchase goods. Cyberstores have three main components: the storefront website, a shopping cart application, and a payment gateway system. The payment gateway processes credit card payments and acts as an intermediary between the storefront and banks. The document provides details on how customer payment information is communicated securely between systems to complete online transactions.

1. CHAPTER 1
ELECTRONIC COMMERCE
LESSON 1
SYSTEM COMPONENTS
AND FUNCTIONS

2. E-COMMERCE (ELECTRONIC
COMMERCE)
• IS THE ACT OF SELLING
PRODUCTS OR SERVICES
OVER THE INTERNET.
• IT IS ALSO KNOWN AS
E-BUSINESS

3. E-TAILERS
• REFER TO MERCHANTS
PERFORMING E-COMMERCE.
• MERCHANTS – SOMEONE WHO
BUYS AND SELLS GOODS.

4. CYBERSTORE
• THEIR WEBSITES
• THE ONLINE STORE WHERE
WE CAN VIEW AND PURCHASE
PRODUCTS OR GOODS.

5. 3 COMPONENTS OF A
CYBERSTORE
1. STOREFRONT
2. SHOPPING CART
3. PAYMENT GATEWAY

6. 1. STOREFRONT
•THE WEBSITE THAT LISTS
THEIR PRODUCTS AND
THEIR DETAILS.
•SHOW ADDITIONAL DETAILS
•ORGANIZED - CATEGORY

7. 2. SHOPPING CART
•A web application that is
incorporated into the storefront
that allows customers to put
items in the “shopping basket.”
• Add to Cart Button
• Grocery cart symbol
• Cart Contents

8. 3. PAYMENT GATEWAY
•A system that processes credit
card payments made by
customers.
•It serves as the middleman
between the Storefront and the
banks.

9. 3. PAYMENT GATEWAY
The following details are
required when paying using a
credit card.
•Credit Card Owner
•Credit Card Number
•Credit Card Code
•Credit Card Expiration Date

10. The illustration below shows how the
transaction is communicated to the different
servers over the Internet.
CYBERSTORE
PAYMENT
GATEWAY
MERCHANT
BANK
CREDIT CARD
ISSUER
CC information is
sent to PG.
PG contacts the MB and
requests that the transaction be
made.
-MB is the bank of the owner
holds an acct.
MB initiates a credit
card transaction to
the user.
Transaction will be validated and
sends info. back to MB. The MB
updates the e-tailers acct.and
send info.to the PG. The PG
sends confirmation to the CS
and user is informed.

11. PAYMENT RESULT
•Prints the page for reference.
•Details will be shown

12. Performance Task
•Create a PowerPoint
presentation showing the
diagram on page 5 and 11.
•Explain each diagram.

13. Rubrics
Exemplary - 40-50 points
• All of the following requirements were accomplished
• Showed minimal/least assistance
Acceptable - 26-40 points
• Most of the following requirements were accomplished
• Showed more - slight assistance
Developing - 0-25 points
• Some of the following requirements were
accomplished
• Showed less - slight assistance