Online Goods and Services
Running a business online
Benefits to businesses of running a business online:
QR Codes
Many businesses now include QR codes in the advertising for their products. To read a QR code, you use the an application on your phone that scans the QR code using the camera, the website is then automatically opened in your browser.
Online Shopping
Advantages of shopping online
Disadvantages of shopping online
Online customer rights
When shopping online you have the same rights to return items as if you had bought the items from a high street shop i.e. you can return an item within 30 days. However in a shop you are only entitled to a refund if the goods are faulty, not just because you change your mind. If you buy items online you can cancel any transaction and receive a full refund for any reason within 7 days.
Methods of payment:
Credit card – a card that lends you money up to a set limit. When you buy something it adds the cost of the purchase to your account and sends you a statement at the end of the month.
Debit card – does not lend you money but allows you to spend money that you already have in your bank account. The system transfers money between your account and that of the seller. Both credit and debit cards allow you to buy goods and services without using ‘real’ money.
Third-party payment systems – the best known is PayPal. You set up an online account and transfer credit into it from a ‘real’ bank account. You can then pay businesses online using your PayPal account. It is more secure as you do not have to give your card details to lots of different organisations and it is very helpful for small businesses who do not accept debit or credit card payments as anyone can accept a PayPal payment.
Gift vouchers and cards – most gift cards and vouchers that we get as birthday or Christmas presents can be used in online stores. They can also be spent in shops that have high street and online stores, e.g. HMV, Marks and Spencer.
Online banking
Advantages of online banking:
Drawbacks of online banking:
Running a business online
Benefits to businesses of running a business online:
- Market and sell products 24 hours a day 365 days a year
- Lower overheads
- Global marketplace – sell anywhere in the world
- Automated order and payment
- Search engines will direct visitors to website
QR Codes
Many businesses now include QR codes in the advertising for their products. To read a QR code, you use the an application on your phone that scans the QR code using the camera, the website is then automatically opened in your browser.
Online Shopping
Advantages of shopping online
- Availability: Shop all day, every day, online stores are always open
- Selection available: Far greater choice online than on the highstreet
- Compare prices: Compare the price of an item from one store with another one
- Convenience: No travelling involved – shop from home
Disadvantages of shopping online
- Delivery: Usually a cost involved and delay in the time taken to deliver an item
- Try before buying: Cannot see or try the product so it might not be suitable e.g. clothes might not fit
- Viewing on screen: Images online may give a different impression of a product
- Payment method: Most online shops only take debit or credit card meaning if you haven’t got one, you won’t be able to use them.
- Digital Access: Not everyone has the digital access or skills to be able to shop online
Online customer rights
When shopping online you have the same rights to return items as if you had bought the items from a high street shop i.e. you can return an item within 30 days. However in a shop you are only entitled to a refund if the goods are faulty, not just because you change your mind. If you buy items online you can cancel any transaction and receive a full refund for any reason within 7 days.
Methods of payment:
Credit card – a card that lends you money up to a set limit. When you buy something it adds the cost of the purchase to your account and sends you a statement at the end of the month.
Debit card – does not lend you money but allows you to spend money that you already have in your bank account. The system transfers money between your account and that of the seller. Both credit and debit cards allow you to buy goods and services without using ‘real’ money.
Third-party payment systems – the best known is PayPal. You set up an online account and transfer credit into it from a ‘real’ bank account. You can then pay businesses online using your PayPal account. It is more secure as you do not have to give your card details to lots of different organisations and it is very helpful for small businesses who do not accept debit or credit card payments as anyone can accept a PayPal payment.
Gift vouchers and cards – most gift cards and vouchers that we get as birthday or Christmas presents can be used in online stores. They can also be spent in shops that have high street and online stores, e.g. HMV, Marks and Spencer.
Online banking
Advantages of online banking:
- More efficient way to manage finances
- 24 hour access
- Make payments directly e.g. credit card bills
- No paper statements so more environmentally friendly
Drawbacks of online banking:
- More susceptible to fraud
- No access to cash
- Need an internet connection and suitable digital device
Online Fraud
Skimming: When your credit card or debit card details are stolen by someone who uses a card reader to read the data of the magnetic strip on your card. Can occur at an ATM or a retail outlet e.g a shop, garage or a restaurant.
When using an ATM you should check for any signs of tampering with the machine.
To reduce your risk of skimming at a retail outlet you should not let the card be taken out of your sight.
Bin raiders: Criminals who search through your bin for receipts containing financial details which they then use to commit fraud.
Spyware: spyware can be used to collect financial details off your computer, to reduce your risk you should:
use a firewall;
install operating system updates;
adjust browser security settings;
install anti-spyware protection;
not download from sites you do not trust.
Phishing
A form of internet fraud in which criminals lure people to a fake website in order to steal personal data
They send an email to people from the website that tells the customer to login to the website with their personal details
To spot a phishing email, you should look for:
Protecting your personal data
Who buys the information about someone’s online activity? Any firm supplying goods and services.
Why do they want it? For marketing purposes. They will be able to find out the interests of mobile phone users – what they have accessed, whether they download music, whether they play games, etc. They will be able to target people who appear interested in the goods and services they supply.
Is it an invasion of privacy? Yes: someone is tracking your movements without your knowledge. Do you want other people to know what you are interested in? Does it matter if other people know your interests? Could it be an advantage if businesses tell you of goods and services that may be of interest to you?
Electronic data is more easier to steal than paper based data because:
Skimming: When your credit card or debit card details are stolen by someone who uses a card reader to read the data of the magnetic strip on your card. Can occur at an ATM or a retail outlet e.g a shop, garage or a restaurant.
When using an ATM you should check for any signs of tampering with the machine.
To reduce your risk of skimming at a retail outlet you should not let the card be taken out of your sight.
Bin raiders: Criminals who search through your bin for receipts containing financial details which they then use to commit fraud.
Spyware: spyware can be used to collect financial details off your computer, to reduce your risk you should:
use a firewall;
install operating system updates;
adjust browser security settings;
install anti-spyware protection;
not download from sites you do not trust.
Phishing
A form of internet fraud in which criminals lure people to a fake website in order to steal personal data
They send an email to people from the website that tells the customer to login to the website with their personal details
To spot a phishing email, you should look for:
- Emails not addressed to a particular person
- Grammatical errors
- A sense of urgency e.g. contact us immediately
- Details – a reputable firm will never ask you to email bank details
Protecting your personal data
Who buys the information about someone’s online activity? Any firm supplying goods and services.
Why do they want it? For marketing purposes. They will be able to find out the interests of mobile phone users – what they have accessed, whether they download music, whether they play games, etc. They will be able to target people who appear interested in the goods and services they supply.
Is it an invasion of privacy? Yes: someone is tracking your movements without your knowledge. Do you want other people to know what you are interested in? Does it matter if other people know your interests? Could it be an advantage if businesses tell you of goods and services that may be of interest to you?
Electronic data is more easier to steal than paper based data because:
- easier to access than paper files
- can be accessed at a distance by hackers
- easier to change without leaving evidence
- easier to send to other people – by email; takes up less space – can store millions of records on a memory stick; easier to lose or steal.