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Another use is to establish Website trust. Creating customer communities that present user feedback reduce the customer's perception of risk. For example, eBay posts thee number of positive and negative customer evaluations of each person or store that offers an item at auction and also allows bidders to contact past customers by e-mail.

Should there be coalition of e-commerce businesses and trade associations?

It is necessary for -

Why e-commerce is slacking off in India?

International credit card players seemed to dominate the Indian market. Even though the card base is increasing, the penetration level is very low due to unfriendly government policies and negative press reports about credit card fraud. People in India are afraid to use their credit cards for larger amount purchases for fear of an income tax enquiry. Also, since India is a credit-averse society, the use of credit cards is not frequent. However, the direct debit payment method had helped to reduce the intermediary costs for merchants. This method allows a merchant to instruct his bank to collect varying amounts directly from customers' accounts. Currently, 15 Indian banks have implemented this core banking solution.

To have a lower interchange rate, India should have its own mode of payment card such as the American MasterCard and Visa, British Swiss Solo and Japanese Credit Bureau.

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* Contributed by: -
Pankaj Kumar & Sameer S. Saigaonkar,
Batch of 2006-2008,
National Institute of Industrial Engineering, Mumbai.