Current e-commerce industry is being dominated globally by some key players like Amazon, Alibaba, Ebay etc. Besides these giants there are many Medium and small scale merchants who operate their e-commerce sites within their own geographical boundaries. These players, with their presence, have been catering customers in best possible way; however e-commerce is notoriously vulnerable to a long list of risks. E-commerce merchants often spend equal amount of time and resources dealing with risk management issues as they are on serving their customers. In addition to traditional risks there are Transactional and Data risks involved in e-commerce. Culprits are always in search of way to evade the e-merchant’s data protection mechanisms and steal the stored information. Also the chances of fraud likely to be high in e-commerce transactions since e-merchants cannot verify the legitimacy of the card or the card holder or the transaction as all this information is in the hands of a third party.