Our members have been cautious to enter into unregulated e-commerce systems because of the risk of fraud. We must be sure that the systems are secure
Carlsbad, CA (PRWEB) August 23, 2007
A new amendment bill to be released in Kenya will make it possible for banks and businesses to handle transactions through the internet. Larger banks are also hoping to increase their number of merchant accounts once the electronic signature is legalized. Banks have been reluctant to release merchant accounts that would enable businesses to exchange agreements and payments online because laws have not made electronic signatures a legal commitment.
Electronic signatures are needed by both parties to indicate approval of a business transaction. The signature, once recognized, is used as an authentication system in e-commerce. Failure to recognize electronic signatures has created many problems in concluding transactions over the Internet. Although there are merchant account providers online, the enactment of the new law will change the way local businesses are run. Most are hoping to enter into e-commerce markets.
"Our members have been cautious to enter into unregulated e-commerce systems because of the risk of fraud. We must be sure that the systems are secure," Mr. John Wanyela, the Kenya Bankers Association executive director, said. He also stated that everything will change for e-commerce once the law is enacted.
Discussions are being held to compromise on how to legalize the signature. Arguments have been revolving that the law is faulted as there is room for abrupt changes in the acceptable form of electronic signatures, which has to be prescribed by the minister before a transaction can be concluded. There is still debate to develop a streamlined, efficient and secure way of how such signatures can be made and used securely.
To get more information on merchant accounts and legal signatures, visit http://www.a1-merchant-accounts.org.