As more and more personal information is digitized and transmitted through networks, the risk of misuse increases. However, few consumers understand encryption and must take on faith a merchant's assurances of payment security. Any on-line payment system must be secure, reliable, accurate and accessible. Purchasers need to be assured that their payment will not be intercepted by thieves, and that any financial information goes only to the intended, legitimate merchant. In a traditional retail transaction, consumers have a general idea of what to expect if an item is defective.
Many merchants offer refunds or exchanges, and many products come with a warranty.
More and more firms also provide a contact number and a complaints procedure for dissatisfied customers. When the vendor in an on-line transaction fails to deliver as promised, or goods arrive broken or defective, assigning liability and providing avenues for redress may be difficult. For transactions within one jurisdiction, ultimate redress is available through the court system. However,cross-border transactions reduce the feasibility of this option because it is not always clear which jurisdiction's laws apply. Even if it were clear, a consumer would need deep pockets to attempt to resolve an international dispute in court.