Chapter 11 - Payment Systems For Electronic Commerce

Question 1

What payment method dominates online transactions today?

Answer 1

Credit and debit cards

Question 2

______ are also called electronic funds transfer at point of sale (EFTPOS) cards, especially outside the United States.

Answer 2

Debit cards

Question 3

A ______, offered by companies such as American Express, carried no spending limit, and the entire amount charged to the card is due at the end of the billing period.

Answer 3

Charge card

Question 4

A(n) ____ is a set of connections between banks that issue credit cards, the associations that own the credit cards (such as MasterCard or Visa), and merchants bank.

Answer 4

Interchange network

Question 5

A(n) _____ bank is a bank that does business with sellers that want to accept payment cards.

Answer 5

Acquiring

Question 6

______ fees are charged by an acquiring bank for providing payment card processing services.

Answer 6

Acquirer

Question 7

______ digital wallets remain on a server and thus require no download time or installation on a user’s computer.

Answer 7

Server-side

Question 8

A ______ is a store-value card that is a plastic card with an embedded microchip that can store information.

Answer 8

Smart-card

Question 9

Banks have been working for years to develop technologies that will help them reduce the ______, which is the delay that occurs between the time that a person writes a check and the time that check clears the person’s bank.

Answer 9

Float

Question 10

_____ is a criminal act in which the perpetrator gathers personal information about a victim and then uses that information to obtain credit.

Answer 10

Identity theft