E-Commerce: Advantages and Challenges

Mohammed Ahmed Mohammed, Mohammed Emad Abdul

Abstract
This research includes electronic trade subject that is used in the world these days
for most trade deals, thus it leads to quick development in international trade business
for earning money and time. The massive development in earnings has led to great
competition; while the world has benefited from this type of trade while it still under
development daily. On the contrary, the third world nations did not enter this field of
trade only from a narrow way in spite of its benefits and challenges. In this research,
we have stopped on the benefits and risks to put electronic trade on balance and
encourage entering and using this field for servicing nations and individuals.
Keywords: E-Commerce, Electronic Trade and Servicing Nations.
1. Introduction
After the development that took place at the end of the last century of globalization,
which has its pros and cons, it is a positive development of electronic commerce,
which brought speed in the marketing of products. In fact, this trade has its economic
effects that the world is witnessing today and is benefiting them greatly and always
developing it in its service and serving the world. The talk now is where the world
has come from all this development, which continues to develop this trade, which
the world should benefit from this technology and spread it more so as not to There
is a very narrow scope for third world countries, but in return this step is not enough

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because we need to encourage. Technology these third world countries, especially
the Arab countries to take advantage of them in making advanced world in the use
of this trade and the level of development of the international economy and the Arab
and open field door wider to be a real springboard to build state institutions based on
most of the world's technology used and utilized.
2. Research Problem
E-commerce is one of the most prominent financial institutions in the contemporary
advanced economic systems and in addition to its important role in the economy, it
is the mirror of that economy, which reflects on its situation at every moment.
The importance of the role of electronic commerce came as a result of the
development of economic, political and social conditions of developed countries.
Thus, it is one of the signs of progress in various fields, especially in the economic
field. Recognizing the importance of the process of economic transformation, and
the significant role in mobilizing the financial resources necessary for the process of
economic development, the countries that have converted to the free market system
and the developing countries have adopted this trade.
Thus, it spread discrimination in order to strive and be able to play a role similar to
the role and performance of its role in the economy and in the mobilization of
resources and the use of mechanisms and tools of modern and advanced investment.
In light of the economic, social and political realities of their countries, and in the
light of the acquisition of electronic commerce on financial activity in this sector and
domination of the world of finance and business because of its huge financial and
material capabilities are difficult to keep up.

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3. Research Objective
The research aims to look at the application of electronic commerce now used in the
developed world and the possibility of its generalization after it has developed and
has become a prominent and important role in finding a fast and easy way to reach
the economic activity of the state in addition to traditional trade.
4. The Importance of Research
This research is gaining importance through the evolving role that electronic
commerce has received in the global economy as a whole. E-commerce continued to
evolve in its role at the global level and we are aware of the status of this development
in the global markets to a level of influence for other countries that do not have this
service.
5. Research Hypothesis
In spite of all the development in electronic commerce and services of this trade at
the international level, there is a wide range of disadvantages of this trade and the
possibility of its application to the economy in the third world fully.
First: The Definition of Electronic Commerce
The concept of e-commerce refers to the marketing of products through the
international network and the evaluation of all electronic programs without going to
the company or the store. In addition, e-commerce includes all communications
between different companies at the local and international level, which makes the
process of trade easy and simple as it increases the size (Sadat Academy for
Administrative Sciences, 1999, 25).
The World Trade Organization (WTO) has defined electronic commerce as “an
integrated set of transaction processes, linkages, distribution, marketing and sale of

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products and services by electronic means and methods” (National Bank of Egypt,
1999, 10).
The Arab Investment Guarantee Corporation also defined e-commerce as trade
conducted using the technologies provided by the imminent wealth of information
and communication through the electronic exchange of data that exceeds the time
and place and covers many sectors, and establishes new rules for the processes of
sale, registration and delivery (Shaheen, 2000, 62).
Second: Types of Electronic Commerce
E-commerce is divided into two main sections:
a. Business to Business (B 2 B) Business to Business: Dealing in this field is
limited to companies, their employees and their big customers, who by secret
words and addresses of the company is not announced or published.
b. Business to Consumer (B2C): This difference is called e-marketing or e-
retail.
Third: The Basics of Electronic Commerce
1. Infrastructure: The structure of communications through electronic data
construction with the expansion of the provision and use of the international
network, as well as the provision of the use of electronic payment cards and
other means that facilitate the contract transactions electronically.
2. The System of Control and Administrative Payment Operations: The
system of payment operations through the international network of the most
important pillars of the growth and spread of electronic commerce. As it helps
electronic messages and plastic money (electronic payment cards) in securing
the deal, as this system maintains the confidentiality of dealing and rights and
obligations all parties working together.

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 3. Providing the Necessary Protection of Information: There must be
confidence and safety of consumers to deal with websites as the ease of setting
up a website on the Internet can raise many concerns among customers and the
protection and security of information from piracy in the creation of using
credit cards in the field of Settlements, bill payments and more.
Fourth: The Rules of Electronic Commerce
There are a set of policies and principles that facilitate the principles of electronic
commerce are as follows:
1. The Need to Assign Leadership to the Private Sector:
In spite of the government's role in financing the international network at the
outset, the subsequent expansion was mainly driven by the private sector. In
order for e-commerce to flourish, leadership must continue to be entrusted to
the sector Governed by market principles.
2. No Government Restrictions:
The government should not put unnecessary restrictions on electronic
commerce and therefore the parties should have the ability to enter into
agreements for the sale and purchase of goods and services through the
international network with the least participation or intervention by the
government.
3. When Government Participation is Necessary:
In the case of state intervention, the aim should be to support and achieve a
legal environment for advanced trade with the development of methods of
trade so that it is easy, consistent and non-contradictory in regulating
commercial transactions by protecting the consumer and the seller and when

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 government intervention is necessary to facilitate electronic commerce so that
the aim of it Ensuring fair competition, protecting intellectual property and
privacy, preventing fraud, adopting transparency and supporting business
transactions.
4. The Need to Facilitate Electronic Commerce on the International
Network:
The international network is a global basis, emerges as a global marketplace,
and therefore must govern the legal system on which business transactions on
the international network consistent principles at the local and global levels
that will lead to predictable results regardless of where the seller and buyer
reside (Al-Sadat Academy for Administrative Sciences, 199, 26).
Fifth: The Advantages of Electronic Commerce
E-commerce provides many advantages and facilities for business transactions and
allows consumers who prefer to rely on marketing many advantages, and companies
that adopt them as a marketing tool to achieve net profits and increase the volume of
sales. For example, low Dell sales in computers more than $ 7 million per day Cisco's
low sales in the computer industry also reached $ 1 billion at the end of last year
(Shaheen, 2000, 17).
E-commerce has proved its importance and has achieved many advantages including:
1. Easier Entrance to Markets and Increase Competitiveness: -
Owning a company to a website means that the company's business and
products become available to millions of people from different parts of the
world and it works there are enormous prospects for starting and entering its
products without adhering to the limits of time and place, and the large and
small size of the company in terms of capital is no longer a criterion for its
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 ability Access to markets and provide the wishes of consumers, many
companies that have entered the world of electronic commerce, which did not
exist before, are now able to compete with the largest companies.
2. Low Cost and Time Saving
Reducing business costs is one of the advantages of e-commerce achieved
since the cost of setting up a website is much lower than the cost of opening
several points by selling and designing an advertising campaign
(www.c4arab.com).
In addition, the design of a web site can reach the largest number of consumers,
which cannot be achieved by traditional marketing methods and even if we
look at the costs of updating the site and follow-up, it is considerably lower
compared to what can be spent on the printing of investment advertising.
In terms of time, e-commerce allows the company to be available 24 hours
without any holiday. Two minutes at most and costs 15 US cents (Shaheen,
2000, 17).
3. Easy Access to Information:
The information in the world of trade has become a digital nature that can be
stored and circulated by computers and retrieve it effortlessly, as e-commerce
makes it easy and easy to communicate company information to dealers with
them, and it becomes possible through the international network to inform
customers of all the developments that occur with regard to New products,
payment methods and delivery of goods, so that customers and all dealers with
the company are aware of the changes that occur in the market.

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 4. Greater Interaction With Consumers:
The company's presence on the international network allows us to benefit from
the feedback feed (feedback) which allows to identify consumers' tastes and
desires, and thus adapt their products to these needs, where the phrase (contact
us) important on the relevant site an opportunity for customers to express their
views regarding the company's products (www.islasm.com).
Sixth: Modern Electronic Payment Methods:
Electronic payment methods are divided into two sections:
A. Non-credit cards are those cards which do not allow the holder to obtain credit
and are divided into:
1. Civil Card:
These are cards that depend on the existence of actual balances to work with
the bank in the form of current accounts to meet the expected withdrawals of
the cardholder work, where he is allowed to pay his budget and is withdrawn
at the bank directly opposite to credit cards, the work transfers the money
belonging to the seller when using this card.
2. ATMs:
It was known in the 1970s as an alternative to exchange staff in banking
branches, to reduce the number of transactions within the bank, but in the
1980s after attention to reduce costs and then seek to achieve a competitive
advantage In the nineties technological developments led to the establishment
of small ATM stations with low cost (Research Center Finance and
Exchange, 1999, 79).
We find in these devices that the banks have benefited from these machines
in electronic cash management as follows: -
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 • Reducing the volume of network transactions for each employee in the
bank.
• Low volume of cash required for operations.
• Reduce the outgoing and incoming network processing costs.
• Avoid delays during which networks delay each communication to the
other party.
3. Prepaid Cards:
This card is based on fixing a specific amount so that the card can be entered
in that amount to be gradually reduced the amount of the card whenever used,
such as circulation cards, calling cards, and public transport cards.
B. Credit Cards: These are the cards that allow the holder to obtain credit (loan).
It is divided into the following:
1. Renewable Credit Cards:
These cards came into existence in the late nineties in the United States
through two famous cards (VISA) and Master Card (Master Card) and this
type is issued by banks within certain amounts, in this type of cardholder is
the choice between the full payment of the value of the card bill during the
period of benefit or In the above mentioned operations, we update the first
loan to the cardholder, so it is called a revolving credit card. It is characterized
by saving both the time and effort of the cardholder and increasing the
revenues of the bank specified for it. Services or benefits this card is not
issued until after a good study of the customer's position and some banks
resort to demanding the customer to show the amount of money he keeps
subject to the operations of the card. This type is called secured credit cards.
The card (Bakhti, 2002, 137).

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 2. Non-Renewable Credit Cards:
These non-renewable cards differ in that the payment must be made in full by
the customer to the bank during the month in which the draw was made (ie
the credit period in this case does not exceed one month) (Radwan, 1999, 47).
Seventh: Electronic Financial Transfers System
1. Definition of the System:
Electronique funds transfert is known as the process of granting authority to
a particular bank that electronically transfers debit and credit funds from one
bank branch to another bank branch, as the transfer is done electronically via
telephone, computers and modems instead of using paperwork (www.itep.
com).
This system is a very important part of the fundamentals of modern banking
that work through the international network, and this area permits clean
electronic ways to transfer money or transactions through a bank branch to
another bank branch, in addition to the transfer of information in these
transfers to the accounts of customers, The electronic money transfer system
is highly secure, easy to use and reliable.
2. Electronic Money Transfer:
The electronic transfer process is carried out by the customer signing a model
for the benefit of the beneficiary (the merchant) and this form can deduct the
amount imposed by the customer according to a specific time (daily, weekly
or monthly). With Realtors their job is to give a specific programming role to
conversions. (www.newsofcd.com).

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Eighth: Positive and Negative Features of Credit Cards
1. Positive Features:
a. For its Holders:
The owner of the credit card by obtaining financing without paying any
money between 25-55% and this facilitates him by taking advantage and work
of the credit card and not to use the cash in a cash manner and to stay away
from its risks.
b. For Customer:
Most international malls and Arab countries use this feature because this leads
to high sales with the commission paid by these malls to banks approved card,
but the high number of units sold easily repay the costs of this method, while
these malls reach sales through the sale of forward and get The amount of
sales immediately if the number of units sold at the end of the month by
proving the work of banks to the nearest bank, also enable these malls to take
advantage of the difference between currency rates and discount rates if the
customer wants to sell goods not cash and use bills of exchange at another
time Make cash value, the agent bears the credit defect when using cards in
sale in case of refusal to pay the holders are discharged, knowing that the
bank is to bear this risk.
c. For the Bank:
• This method is a publicity to the bank.
• This method gives huge amounts to the bank.
• Make the cardholder a permanent customer of the bank.
• Forcing the international malls to open an account in the bank because the
customer must transfer the money to his account and this raises the liquidity

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 of the bank and in this way the money is paid out and return again as
deposits.
2. Negative Features:
a. Inaccuracy due to some mistakes by employees in dealing with invoices and
with repeated mistakes lose confidence between the bank and the customer.
b. Theft, loss or use of credit cards by third parties.
c. The bank's high costs of distributing and printing cards and granting interest-
free loans for 55 days.
d. The risk of liquidity on the bank in case of excessive use of the card by the
dealers. In case the dues are not paid on time.
e. Competition by commercial banks and financial institutions because in any
business there is competition and multiple banks that are exposed to credit
card services and improve the risk of competition among commercial banks.
Ninth: The Success Elements of the Credit Card
The credit card has success and continuity elements must be considered by the
Commercial Bank as follows:
1. The large number of dealers: - The greater the number of dealers, the chances
of success and continuity of this system is more appropriate because the
adoption of this system is expensive and must cover costs by increasing the
number of dealers.
2. Accuracy in the selection of dealers: - Is to ensure the reputation of each
customer, whenever the investigations are accurate and real decision in
granting the card to the customer well whether acceptance or rejection.
3. The multiplicity of shops participating in the system and accuracy in the
selection because the number of dealers is very large and therefore must be the

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 number of shops and diversification, especially stores with a good reputation
and with goods and services that have a wide variety of consumption.
4. Availability of a supervisory system capable of avoiding the increase of bad
debts. During the period of repayment, the doubtful debts are not effective and
the bank continuously applies the debts and thus prevents the bank from
having a precise control and accounting system.
5. Provide a high degree of banking awareness to give information on the use of
credit card. (Mahmoud, 2003, 68--70)
Tenth: The Advantages and Risks of Electronic Commerce
1. Advantages of E-commerce:
The latest technological development witnessed by the world as the twenty-first
century entered the information revolution called the Third Industrial Revolution
after the agricultural wave and the care that humanity experienced in its long
history, as this information revolution is expected to lead to the establishment of
a new economy called the information economy (Information Economics) The
quality, structure, mechanisms and theories of the traditional economy, studies
conducted by the Economic Cooperation Organization (ECO) predict that this
new economy (information economy) will dominate about 80% of the total
activity in the coming years (Tawil, 2001, 22).
You will now sum up the benefits of electronic commerce via the Internet at the
business level once, the level of individuals (consumers) again and the national
level a third time.

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 First: The Benefits of Electronic Commerce at the Level of the Business
Sector
1. Expanding the Market:
E-commerce works to expand the domestic market as well as access to global
markets and the formation of new markets that were to be found in the
traditional trade because the practice of trade via the Internet makes products
of goods and services available to as many consumers as possible, and this
allows even small and medium enterprises to attend In the domestic and
international markets, this gives the consumer a greater opportunity to choose
from the products offered (Radwan, 1999, 41).
After effective entry into the domestic and international markets of businesses
is one of the direct benefits of e-commerce, which depends on the Internet, so
that any individual can become a trader on the Internet at very low costs.
In addition to access to global markets, companies that have proven e-
commerce emphasize the existence of other benefits and benefits of this trade,
such as reducing the times or periods of supply and shortening times of
production cycles and simplification of procurement processes and
procedures, in addition to low inventory because producers and consumers
become close to each other Through direct contact between them, without the
intervention of traditional intermediaries such as suppliers, exporters,
wholesale and retail trade.
2. Activating the Concept of Full Competition in the Market:
When e-commerce works to reduce the distances between producers and
consumers, which opens the door to the near electronic presence between the
seller and buyer, which leads to improve the level and quality of the product
through pre-sale and after-sales services, and provides information on the
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 nature of products and prices and products in the markets, as well as rapid
response to requests Market leading ultimately to improve the degree of
competitiveness in electronic markets.
The low costs of business operations and low barriers to entry in the market
would reduce some differences in commercial markets, and move economic
activities and access to be an economy based on full competition. (The Lakes,
2010, 56)
3. Decreasing the Costs of Commercial Processes:
The costs of the commercial deals represents by collecting information,
negotiation, medium fees, commission of sales, administrable procedures and
others all these consider a very important part in the production price. E-
commerce plays an important role in decreasing costs by improving the
information pump and increasing the cooperation between works beside
decreasing costs of searching for information related with buyers and sellers
in market, also the e-commerce enables institutions to coordinating their
strategies, incomes and skills in conforming a long relationships especially
those institutions or technological companies with heavy information via the
electronic nets which apply share in information, some researchers think that
the shapes of these nets that organized e-commerce will dominate in the
forthcoming future and become the organizing structure for all the social
communications between people (Hamad, 2003, 48-50).
4. Better Controlling of Store Administration:
E-commerce contribute in decreasing stores by using drawn processes in
importing administration system, when the process start to obtain the
commercial demand from the buyer and providing him with his demand by
suitable temporary manufacture, this help in decreasing the commercial circle
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 with a big degree where the product is charged directly from the factory to the
last buyer, and this appears clearly in the numerical productions, i.e, goods and
services which are delivered electronically, then the e-commerce become an
important device in store administration and it decreases costs of storing, so
this have an economic influence upon the entire level if we know that 10% of
annual quarter changeable in the production growth rates are because of the
investing changeable of the store.
If e-commerce aimed to decrease the store to the lowest limit, so it is expected
that decreasing in the effects of commercial circle resulting from changeable
of store is one of e-commerce effects. With the development of information
techniques and communication and information pumping in a better way we
expect decreasing in store effect upon the commercial circle to the lowest limit
or may be over (Radhwan, 1999, 41).
Second: The Benefits of Electronic Commerce at the Level of Consumers
1. Fast and Easy Shopping:
Where the consumer has a wider range of shopping online and around the clock
and any day he wants and any place on the surface of the earth, anyone with an
account and connected to the international network can become a global
consumer at home, and only deal with the buttons of the computer, And browse
open business websites on the Internet.
2. Multiple Options:
E-commerce offers many options for the consumer because there is no place to
access the products and shopping centers were not available near the consumer,
with the entry of the consumer searches through commercial sites in the
international network, while in the case of traditional marketing, the consumer

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 has only the products offered in the traditional markets , And is unable to search
in other markets because of the lack of information on other markets as well as
the high costs of research and access to the product.
3. Low Prices and Fast Access to the Product:
In light of the multiplicity and variety of products in commercial and electronic
sites, the consumer will search for the cheapest and best quality product by
comparing the prices and types of products easily and quickly, which ultimately
makes the consumer able to choose the best offers, while it is more difficult in
the case of traditional trade Because it requires visiting each geographical
location in order to compare the prices and types of products (www.J-bradford-
delong.net.).
In addition, the prices of products in electronic commerce are lower than those
in traditional trade due to the lower administrative costs used by producers,
which will reduce the prices of products displayed in commercial sites in the
international network, and the electronic consumer through the Internet is
characterized by rapid access to the product Who ordered and purchased it
electronically, especially if it is a service product or a product that can be
converted into digital products such as books, researches, magazines, computer
programs, audio and photographic materials, etc. After the completion of the
purchase process from the site, the non-digital products are obtained faster than
if ordered by traditional methods because the process of ordering and payments
and all information related to the order is done electronically, enabling the
product to send the order quickly and easily to the buyer, while it takes weeks
It may be months if traditionally ordered.

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 4. Quick and Easy Exchange of Information Between Consumers:
The international network provides the possibility to exchange information,
opinions and consumer experiences related to products and services through
electronic communities such as forums and others, which provides data and
information in the community on economic products, and raise the level of
consumer education and awareness of the consumer, while this may be
impossible or requires effort And more time in the world of electronic commerce.
Third: The Benefits of Electronic Commerce at the National Level
1. Supporting Foreign Trade:
E-commerce provides opportunities to increase export rates through easy
access to major consumption centers, the possibility of shopping for goods
and services globally at a specific cost and the ability to quickly conclude and
finalize business transactions, as well as the ability to analyze markets and
respond to changing consumer requirements.
The impact of electronic commerce is more pronounced in the services trade
between countries, which in turn leads to an increase in the degree of
economic openness in this area, where the services sector represents an
important proportion of about 60% of the total global production, however,
its volume does not exceed 20% of international trade This may be due to the
fact that many services require communication as well as geographical
proximity between consumers and producers.
But with the advent of modern information technology, e-commerce through
the international network has created the lost means of communication
between the consumer and the producer, thus contributing to the removal of
geographical obstacles to many services.

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 One benchmark study has shown that a 10% increase in the use of the
international network in foreign countries leads to growth of US exports and
imports of 1.7% and 1.1%, respectively (Freund and Weinhold, 2002, 236-
240).
2. Supporting the Economic Development:-
The middle and small projects represent a principle center in the economic
development. These projects suffer from the absence of the economic sources
which are necessary for reaching the international markets, e-commerce
considers one of devices which present to the small and middle projects the
ability of participating with international trade actively by presenting
decrease in marketing and announcement costs and by time and place saving
that help in developing the economic development, an economist refers that
decreasing in the costs of commercial trade via e-commerce between work
sectors can lead to a permanent increase in the production level in about 5%
of the advanced countries economics along the forthcoming years, what
means a decrease in growing the entire international production in ratio 0.25
yearly (Hamad, 2003, 444).
3. Employment Support:
E-commerce offers many opportunities for employment, as it allows the
establishment of small and medium enterprises for individuals and linking
them to global markets at the lowest investment costs, especially the services
trade in which electronic commerce is available to specialized individuals to
provide their services at the regional and global level without the need to
move, which opens the way for them to start in Entrepreneurship, on the other
hand, provides e-commerce career opportunities in many different fields
related to e-commerce applications such as specialists in the creation of e-

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 commerce sites, workers and management Yen technicians in electronic
stores, in addition to providing career opportunities in information and
communications that rely on e-commerce who networks and programs
necessary for e-commerce applications and other engineers sector
4. Supporting the Technological Sectors:
The spread of e-commerce at the national level allows the creation of an
environment and a favorable environment for the emergence of specialized
sectors in the information and communication technology, to support the
electronic infrastructure for the applications of commerce via the Internet.
With the development and growth of electronic commerce and widespread
use in commercial transactions, there are investment opportunities to direct
capital for investment in the development, improvement and modernization
of electronic infrastructure, and investment in services for the accompanying
sector of information and communication technology, which leads to the
creation or localization of advanced technological sectors that support the
national economy (World Trade Organization, 1998, 27).
Eleventh: Electronic Banking Services
1. Phone Bank:
With the development of banking services at the global level, banks have
established a service (telephone banking) to avoid crowding customers inquiries
about their accounts or some other services, where this service continues
throughout the day. These services can be summarized as:-
a. In the Midland ranks, this service is provided under the name (First Direct
Account) through which the bank's telephone calls are made through a
special secret number that enables the customer to withdraw or transfer funds
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 or order payment in favor of creditors such as paying the telephone or
electricity bill. You can inquire about all the information requested by the
client.
b. In Britain, this service was introduced in 1985, where it works by a screen
available at the client in his home has a direct contact with the bank enables
him to know all the information related to his account in terms of money
transfers or withdrawal of commercial papers or various other operations,
either in 1987 has been added service The use of telephone banking,
transferring money, paying obligations and conducting routine banking
operations to contract in various loan contracts using more sophisticated
techniques (Taha, 2000, 165).
2. Electronic Funds Transfer:
Many banks participate in a computer network that handles electronic trading
of millions of accounting entries for various credit and debit operations between
different banks. Various global banks.
The electronic funds transfer system aims to facilitate and accelerate payments
and settlements between banks to ensure better services to customers, and will
give banks a competitive advantage in global markets, as it will allow these
banks the possibility of immediate settlement of payment and receipt of funds
through their current accounts with central banks and provide immediate
payment For its customers, this system also includes settlement of payments
made through network payments, electronic system of stock trading, and
clearing networks.
3. Online Banking Systems With the Client:
A group of major international banks started to apply online banking systems
with their customers through the computer at home or in the office. Through

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 this system, the client can perform most routine banking operations such as
transferring money from his account to other accounts. Account statement,
payment of various invoices, requests to stop the exchange and others, also
enables these systems to the customer to get the required services quickly as
these services are available at any time convenient to the customer, and this
system is characterized by the breadth of financial operations that can be made
available to customers (B. & Wiley, 1996, 236-237).
4. Internet Banking:
The Internet system based on the home bank is of great importance, both at the
bank level and at the level of customers who have access to the Internet lines, it
is underscored that the establishment of a line on the Internet is cheaper than
establishing a branch of the bank as many forms as follows: -
a. A simple form of electronic bulletins advertising them electronically.
b. Provide customers with information about their assets.
c. Provide customers with payment methods for bills of exchange drawn on
them electronically.
d. How to manage portfolios (stocks and bonds) for clients.
e. Ways of transferring money between different customer accounts.
The world is looking forward to the post-Internet stage, which is called the
information highway, they are as follow:
1. Notebooks computers are the smallest and most portable computers known today,
but soon there are computers in pocket size with color screens in the size of a
normal photo, called the PC or wallet (The Wallet PC) can display all messages,
letters and schedules Reading and sending e-mail, and to keep it safe and secure,
Pocket PC stores the secret codes used by the client to identify himself and will

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 be able to revoke these codes, which he chose easily to avoid piracy and theft of
operations.
2. The emergence of the so-called spatial navigation (Spatial Navigation), which
allows the customer to move to where the information is found by enabling him
to deal with a visual model of a real world or as if it were exactly.
3. The emergence of the so-called proxy on the rapid information network, which is
a refinery has taken the form of a personal capable of initiative where the task is
to help the client in the search for any information requested and quickly.
4. The emergence of a technology called Integrated Services Digital (Network)
(ISDN), where this technology transfers the image and data at a rate ranging from
64000 bits to 128000 bits per second, which means that it can accomplish
anything accomplished by the previous technology but at a speed of ten
Implications which confirm a revolution in communication, speed in performance
and time savings in a way that no one had imagined before (Egypt Research
Papers, 1998, 45).
Twelfth: The Risks of Electronic Commerce
In spite of the many advantages provided by electronic banking transactions, at the
same time, the risks have arisen as follows:
1. Organizational Risk:
Because the international network allows the provision of services from
anywhere in the world, there is a danger that banks are trying to evade
supervision and regulation, what is the case that regulators can do, in this case
can demand from banks that provide their services from far away through The
international network to obtain a license to do so, and the license and appropriate
means especially when the supervision is weak and when there is not enough
cooperation between the other licensed bank and the work of local supervision,
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 and the license is the rule as in America and in most of the European Union, Its
work outside the areas of jurisdiction and who wishes to provide electronic
banking services and receive deposits in those countries set up a licensed first
branch.
These procedures imposed by the laws and directives of central banks have risks
that may affect many services provided electronically, especially in developing
countries that have not yet reached the development of laws and legislation
related to this type of banking activity.
2. Legal Risks:
E-banking transactions result in a high degree of legal risks for banks, and
electronic services have facilitated money laundering operations, which is a
continuous and deliberate attempt to introduce illegal funds resulting from the
illegal hidden activities that are practiced through the so-called hidden economy.
Hamid, 2003, 234).
3. Operational Risk:
The reliance on technology in the provision of electronic banking services is a
threat to the security of the banking system and its presence, as the exposure of
the information network to any sabotage may affect the entire banking and
violates the secrecy of information relating to customers, in which case the
customer is often known about electronic banking transactions.
4. Reputation Risk:
The greater the bank's reliance on e-service delivery channels, the greater the
likelihood of reputational risk. If an electronic bank encounters problems that
cause customers to lose confidence in e-banking channels or any failure to
consider banks' failure to oversee the entire system, these problems can affect

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 Other depositors of electronic banking services, where banks supervisors have
developed internal guidelines for those conducting the examination, and many
bodies have distributed guidelines on the management of bank risk (Nsouli and
Schechter, 2002, 50).
Conclusions
1. E-commerce has many benefits and is present globally and is always evolving.
2. Electronic commerce benefits the state and the consumer through the
exploitation of time and effort.
3. There are risks and caveats can be avoided and this does not mean to stay away
from them and not to benefit from them.
4. There are countries so far that do not have this trade because of the risks
resulting from improper use.
Recommendations
1. Issue laws that allow this trade to operate in all state activities.
2. Through the development of this trade, the state is experimenting with issuing
a law that allows electronic commerce to work to benefit from it in a way that
contributes to raising the level of the economy.
3. Giving a wider role to the private sector in allowing it to introduce and use this
technology.
4. Control and supervise it to check on the progress of work and introduce
amendments to it to contribute to raising the efficiency of the work assigned to
it.

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