Information security plays an essential role during internet communication in today's era of technology. It is enormously important for people committing e-transactions like online shopping, money transfer etc. There are various methods that provide a means for secure commerce and payment to private communications and protecting passwords. Cryptography and steganography are such methods. The principle of cryptography is to manipulate the information so that unintended receiver will not be able to understand however the principle of steganography is to mask the very presence of communication; it hides the existence of message.