Merchant trust is the most studied form of trust in online exchanges, whereas system-based trust has largely been neglected (Grabner-Krauter and Kalusha, 2003). E-trust is expected to affect customers’ willingness to purchase online (Reichheld and Schefter, 2000), but empirical evidence is lacking. A study by Kim and Prabhakar (2000) found that e-trust had a significant effect on the usage of internet banking, whereas trust in the bank itself had no effect. Therefore, with respect to the effect of e-trust on customer loyalty