Online Transaction

An online transaction is a payment method where users pay using an electronic fund transfer. In legal terms, online transactions can include anything from credit card payments made over the internet to the electronic submission of tax forms.

The most common types of online transactions include business-to-business (B2B) actions, business-to--consumer (B2C) sales, and peer-to-peer (P2P) transactions between two individuals.

Multiple online payment providers like PayPal, Stripe, and so on enable businesses to add an online payment option directly onto their website. Services such as Venmo and Zelle serve as intermediaries that allow person-to-person transfers. Online transactions are not limited to payments, but the majority are, in fact, purchases using a credit card or an app.

Due to security measures such as passwords and firewalls, online transactions are generally considered at least as secure as offline payments.