In a digital era where virtually every aspect of society embraces technological advancements, the advent of the Fourth Industrial Revolution is conspicuously exemplified by the mere click of a mouse, facilitating transactions through service-oriented websites. Consequently, e- transactions have emerged as an indispensable facet of contemporary commerce. Such transactions can be conducted among governmental bodies, organizations, and individuals, engendering a transformative impact on administrative frameworks, propelling socio-economic development, fostering scientific and technological applications, streamlining bureaucratic processes, promoting international economic integration, and ensuring national security and defense. Profoundly empowered by the pervasive reach of the internet, individuals and entities are now endowed with the ability to engage in transactions swiftly and accurately, thereby ushering in a novel electronic medium for societal interactions. In a world unbounded by physical constraints, the exigency to swiftly adapt to this digital milieu has emerged as an imperative challenge of paramount significance.
What is an E-transaction?
Unrestricted by geographical limitations and temporal disparities, e-transactions have the capability to be conducted by any individual or organization equipped with internet-connected devices. In accordance with Section 6, Article 4 of the Law on E-transactions of 2005, an e-transaction means a transaction implemented by electronic means, devoid of the necessity for direct face-to-face interactions as customary in traditional transactions. As an integral facet of technological progress, e-transactions materialize in the form of data messages, either accompanied or unaccompanied by e-signatures.
Analogous to the provisions governing civil transactions, e-transactions can assume either a unilateral or multilateral nature. Illustrative instances encompass the digital dissemination of procurement solicitations by enterprises, the establishment of financial and operational reports by individuals or organizations for archival purposes, as well as the exchange of electronic correspondences, the execution of contracts via online platforms, and the facilitation of discussions and meetings through digital mediums. Within the realm of commerce, e- transactions currently reign supreme due to the manifold conveniences they afford.
Common Types of E-transactions:
At present, the landscape of e-transactions encompasses a wide array of domains, ranging from public administration to commercial activities and labor relations. Among these, the most prevalent forms of e-transaction manifest in administrative procedures and civil transactions.
E-transactions within administrative procedures. As stipulated in Article 39, the types of E- transactions within the administrative procedures of state agencies include: E-Transactions within a state agency; E-Transactions among different state agencies; E-Transactions between state agencies and other agencies, organizations, and individuals. Through the utilization of electronic means, organizations and individuals can seamlessly undertake either the entirety or select steps of administrative procedures via online public services. This streamlined approach not only enables significant savings in terms of time, costs, and exertions for both parties and the competent authorities but also obviates the need for citizens to disclose or resubmit data already managed by the administering agency. As the state agencies are ready to share and contribute to the efficient realization of administrative reform objectives promptly.
E-transactions within civil transactions. The pervasive adoption of e-transaction is observable across an array of civil transactions, encompassing domains such as commercial activities, banking and finance, securities, and intellectual property rights. Among these, electronic transactions in commerce are the most prevalent. By connecting to the internet, individuals and businesses can establish online websites or participate in electronic commerce platforms to conduct commercial transactions. Engaging in electronic commerce provides individuals and businesses with opportunities to compete in terms of cost-effectiveness and easily increase market share without significant additional costs. Moreover, in the banking and securities sectors, electronic transactions involve using software or websites provided by businesses to execute money transfers, bill payments, place transaction orders, and more.
Advantages Associated With The Adoption Of E-transactions
- For individuals who are currently utilizing e-transactions, the advantages they offer are evident and substantial. E-Transactions provide broad accessibility, eliminating geographical, temporal, and spatial barriers. This is one of the foremost benefits of e-transactions. By conducting transactions through internet-based operations, convenience and swiftness are achieved, irrespective of the physical separation between parties in terms of time and space.
- The remarkable advantages of E-transactions lie in their speed, convenience, efficiency, and cost-effectiveness. They minimize the time required for processing administrative procedures and contract negotiations. Therefore, individuals, businesses, and organizations need not wait or travel to fulfill transactions. Consequently, significant savings in time, resources, and effort are attained. This outstanding benefit of e-contracts enables businesses to enhance opportunities for collaboration with companies and organizations worldwide in a swift manner.
- E-transactions also contribute to enhancing the productivity of public service delivery. By reforming administrative workflows and optimizing personnel arrangements, government agencies can streamline their operations, making them more efficient and convenient. The reduction in processing time for administrative procedures facilitates improved service delivery productivity. Furthermore, the exchange of information during the process of resolving tasks between state officials and citizens is supported through detailed instructions and transparent online administrative procedures. Citizens can easily and quickly access relevant information and monitor the status of their respective files via websites.
- Efficient and expedient electronic payment transactions are facilitated with safety and effectiveness. With suitable and modern security tools in place, digital platforms ensure the safety of users during payment processes. In the fields of business and banking, the primary advantage of electronic transactions lies in their ability to facilitate swift payments. When consumers make cash payments, they need to calculate the exact amount and handle the change, which is returned to them. Conversely, E-transactions are significantly faster, allowing users to easily perform international online payments, including instant currency exchange at a lower cost. E-transactions are also safer than traditional transactions.
- Safety, security, and transparency are fundamental attributes of e-transactions. All operations conducted in electronic transactions are stored within the E-transaction system, allowing for transaction history to be recorded. Additionally, e – transactions leave behind online footprints, which can be tracked using banking security systems. This enables security experts to easily detect fraudulent activities.
Principles for Conducting e-transactions.
When engaging in e-transactions, specific principles are established for each field, as stipulated in the 2005 Law on E-Transactions. These principles apply to various sectors, including finance, banking, advertising, customs, commerce, insurance, securities, and more. Regardless of the field, there are general principles to be adhered to when conducting electronic transactions, as prescribed in Article 5 of the 2005 Law on E- Transactions:
- To voluntarily select electronic means for transactions.
- To mutually agree on the selection of type of technology for e-transactions.
- No technology shall be considered the sole one in e-transactions.
- To ensure equality and security in e-transactions.
- To protect lawful rights and interests of agencies, organizations, individuals, interests of the State and public interests.
- The e-transactions of state agencies must comply with the principles stipulated in Article 40 of the Law on E-Transactions. E-transactions of state agencies must comply with the provisions of this Law and relevant provisions of law. A state agency shall, within the ambit of its tasks and powers, take the initiative in carrying out a part or all of transactions within itself or with other state agencies by electronic means. Based on socio-economic development conditions and specific circumstances, state agencies shall determine a rational roadmap for the use of electronic means in the transaction types stipulated in Article 39 of the Law on E-transactions.
Article 49 of the 2005 Law on E-transactions provides the following provisions:
- Agencies, organizations, and individuals shall have the right to select modes of transaction with state agencies if such state agencies concurrently accept transactions both in traditional forms and by electronic means, unless otherwise provided for by law.
- When conducting E-transactions, state agencies must specify the following: Formats and forms of data messages; Types of electronic signature, certification of E-signatures, for transactions requiring e-signatures or certification of e-signatures; Processes to ensure the integrity, security, and confidentiality of E-transactions.
- The provision of public services by state agencies in electronic forms shall be based on the agencies’ respective regulations which, however, must not be contrary to the provisions of this Law and relevant provisions of law.
E-transactions represent a significant and practical breakthrough, an essential element for development and integration. Adapting to and utilizing electronic transactions are indispensable for progress. Further in-depth understanding will be explored in upcoming articles.
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