ONLINE TRANSACTION

An online transaction refers to the process of conducting financial or non-financial activities over the internet. This includes things like online shopping, banking, bill payments, and fund transfers, all facilitated through electronic means. These transactions utilize various digital payment methods and offer convenience and accessibility. 

Here's a more detailed breakdown:

What it involves:

• Electronic Funds Transfer:

  Online transactions involve moving money or other assets through digital channels, such as bank transfers, card payments, or digital wallets. 
E-commerce:
A significant aspect of online transactions is e-commerce, where goods and services are bought and sold over the internet. 
Various Activities:
Beyond buying and selling, online transactions encompass a wide range of activities like paying bills, transferring funds between accounts, donating to charities, and more. 

Key Characteristics:

Convenience and Accessibility:
Online transactions allow users to conduct financial activities from anywhere with an internet connection, eliminating the need for physical presence. 
Reduced Need for Physical Cash:
They minimize the reliance on cash, checks, and other traditional payment methods. 
Security Measures:
Online transactions employ various security protocols like encryption, authentication, and verification to safeguard user data and financial information. 
Efficiency:
Digital transactions streamline processes, making them faster and more efficient than traditional methods. 

Examples:

Buying clothes online:
Adding items to a virtual shopping cart and completing the purchase with a credit card. 
Paying utility bills:
Accessing your online banking portal and paying bills electronically. 
Transferring money to a friend:
Using a mobile banking app to send funds via UPI or other digital payment methods. 
Donating to a charity:
Contributing to a charitable organization through their website or a dedicated platform.