Chapter 6

Question 1

E Cash

Answer 1

Make payment through/using internet
substitute for traditional $$

Question 2

E Wallet

Answer 2

store user info + ecash

Question 3

Payment

Answer 3

Customer Starts Payment:
purchase using a credit or debit card.
swipe or insert the card into the card reader at the store.

Card Reader and System Gateway:
Card reader sends the card details to a system gateway.
gateway communicates with the customer’s bank via the card network to process the payment.

Vendor’s Bank (Acquiring Bank):
receive payment request from the system gateway.
contacts to check if the payment is valid and if the customer has enough $$.

Customer’s Bank (Issuing Bank):
checks the payment details, verifies the customer’s account, and ensures everything is okay (e.g., fraud checks).
If everything checks out, the bank approves the payment and deducts the money from the customer’s account.

Transfer of Funds:
After approval, the customer’s bank sends the payment to the vendor’s bank.
The vendor’s bank then adds the payment to the vendor’s account.

Completion of Transaction:
The vendor is informed that the payment is successful and the money has been received.
The customer gets a receipt or notification that the payment went through successfully.

Question 4

Cash Card

Answer 4

• linked to a bank account or preloaded with money.
• general purchases & withdrawals
• no repayment (uses available funds)

Question 5

Credit Card

Answer 5

• borrow money from the bank up to a set limit
• pay in full / make min payments and carry a balance.
• interest – if don’t pay in full
• Visa, Mastercard, AMEX

Question 6

Store Value Card

Answer 6

• preloaded (Value is stored electronically)
• specific uses (transport, gift cards)
• no repayment (fixed balance)

Question 7

Charge Card

Answer 7

• dont have credit limit –> Spending is based on financial history.
• full amount is due monthly.
• no interest
• AMEX Platinum, some corporate/business cards