This document discusses internet-based transactions. It outlines the traditional transaction process compared to internet transactions, including differences in identity verification, immediacy, value assessment and privacy. It describes the parties involved in internet transactions and the typical 10-step process. Key protocols that support internet transactions are also reviewed. Issues addressed include information accuracy, privacy, security, liability, signatures and jurisdiction. Challenges involve identification, anonymity, system failures, and taxation across borders. The document concludes that payment security and an international tribunal are needed to resolve internet transaction disputes.