Exam 11: Payment Systems for Electronic Commerce

A _____ stores information on a customer's computer.

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

Magnetic strip cards can send and receive information.

Using digital cash provides an audit trail.

What are the disadvantages of using paper checks?

Prepaid cards sold with the intention that they be given as presents are called _____.

Near field communication chips embedded in mobile phones are called Osaifu-Keitai in Japan, which translates approximately to _____.

American Express and Discover Card are examples of open loop systems.

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

A(n)  _____, also called a stored-value card, can store more than 100 times the amount of information that a magnetic strip plastic card can store.

A disadvantage of using paper checks is the delay that occurs between the time that a person writes a check and the time that check clears the person's bank.

A _____ can be used as a hardware-based digital wallet.

Digital cash can be easily traced back to its origin.

_____ is a technique used by criminals to convert money that they have obtained illegally into cash that they can spend without having it identified as the proceeds of an illegal activity.

A _____ requires no download time or installation on a user's computer.

_____ is a general term that describes any value storage and exchange system created by a private entity that does not use paper documents or coins and that can serve as a substitute for government-issued physical currency.

Processing a payment card transaction online involves two general processes. Describe these processes.

Payment cards with disposable numbers are known as _____.

A front-end processor handles chargebacks and any other reconciliation items through the interchange network and the acquiring and issuing banks.

What is the difference between a credit card and a charge card?