In the 21st century the ambit of commerce has expanded on to include electronic commerce popularly known as e-commerce. In this era, E-commerce has become more of a necessity than a boon. Today, almost every aspect of our lives involve e-commerce. With the increase in the use of information technology, surprisingly India has come up to becoming one of the prime clients of e-commerce from both the ends, the business providers as well as the costumers. Electronic commerce draws on technologies such as mobile commerce, electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems, and automated data systems. As these are web based applications efficiency matters a lot for this application. Transaction in e-commerce faces the problems such as database exploits, log data mining and sniffing attacks which can be resolved by using different security measure. Hence security is important issue and challenge in current e-commerce applications.