Internet‐based EDI trust and security

While the term “electronic commerce” was a buzzword in the early 1990s, it has fast become an essential business tool as we approach the next century. In traditional EDI many of these transactions already occur electronically, but require prior arrangements and dedicated lines or VANs. The resulting costs and lead times of the VANs create entry barriers to widespread small business participation, hindering expansion of EDI beyond large organisations and their major trading partners. Conversely, more organisations are using or considering using the Internet for electronic commerce and EDI. The Internet‐based EDI is viable and is becoming an essential element of value‐added‐network services. The downside is that Internet EDI lacks security and does not guarantee delivery. The potential for fraud and deception is far greater. The ability to tap into information around the clock from almost anywhere in the world is perceived as a benefit of electronic commerce. Misconceptions must be overcome before it can be deemed suitable for electronic commerce. Commonly expressed concerns include reliability, security, scalability, ease of use and payment.