Exam 11: Payment Systems for Electronic Commerce

Many stores that accept credit cards require a minimum purchase amount of $50.

In an online storage system, the merchant must contact the consumer's bank to receive payment for a purchase.

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.

A(n)____________________ card can store about 100 times the amount of information that a magnetic strip plastic card can store.

Online stores have many of the same payment collection inefficiencies as their brick-and-mortar cousins.

Credit cards provide assurances for both the consumer and the merchant.

Hong Kong's transportation companies-subways, buses, railways, trams, and ferries-joined together and created a(n)____________________ called the Octopus that lets commuters use one card for all of their public transportation needs.

____________________ software runs transparently on a variety of hardware configurations and on different software systems.

____________________ strip cards are passive, that is, they cannot send or receive information, nor can they increment or decrement the value of cash stored on the card.

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

Internet payments for items costing from a few cents to approximately a dollar are called ____.

Some companies have begun to offer small payment and micropayment services through ____ telephone carriers.

Small purchases are not profitable for merchants that accept only credit cards for payment.

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' banks.

What are the disadvantages of using paper checks?

Electronic cash systems, though less popular than other payment methods, provide advantages and disadvantages that are unique to electronic cash.

The most important step that companies can take today to prevent phishing attacks is to update their prevention technology.

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

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

____________________ cash storage means that the consumer does not personally possess electronic cash.