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Due to the popularity of internet and the growth of e-business, the world became very small. Everyday people are using internet as the medium of transaction of millions of dollars from one account to another. The web services are playing very crucial role in online transactions. That's why we have to think about the security of our entire transactions as well as web services. Web service transaction should be of major concern. Many technologies available which are providing web service facilities, for example java, .net etc. There are various options available to make web services secure. We can choose any options from protocols based, platform based or message based security. There are securities which can be IIS based, Asp.net based and SSL etc. Various threats to web services and e-business are also present. Threats like unauthorized access, alteration, disclosure of very important data, message reply etc. Anyone can hack the WSDL information and can get into downloadable files. While designing and developing the web services we have to think about code access security. In this .NET technology is being used for most of the examples. In this paper, the possibility of reducing the business cost through e-business is being explored.