Exam 11: Payment Systems for Electronic Commerce

Fewer than 5 percent of all credit card transactions are completed online, but those transactions are responsible for about 50 percent of the total dollar amount of credit card fraud.

____ is a key element in a phishing attack.

When the e-mails used in a phishing expedition are carefully designed to target a particular person or organization, the exploit is called ____________________ phishing.

Online cash storage is similar to money kept in a wallet.

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

Online and telephone purchases are often called card not valid transactions.

The Internet has opened new opportunities for organized crime in their traditional types of criminal activities and in new areas such as generating spam, phishing, and identity theft.

Describe the basic structure of a phishing attack.

The average consumers who engage in online payment transactions are easy prey for expert criminals.

Sending bills and receiving payments over the Internet can drop the transaction cost to an average of 50 cents per bill.

An important characteristic of electronic cash is that it must be traceable back to the person who spent it.

The use of electronic cash requires no additional distribution method or human oversight.

With a smart card, credit theft is much more difficult because the key to unlock the encrypted information is a(n)____________________.

A(n)____ digital wallet stores a consumer's information on his/her own computer.

To process payment cards for Internet transactions, an online merchant must set up a(n)____________________.

When a cardholder successfully contests a charge, the acquiring bank must retrieve the money it placed in the merchant account in a process called a(n)____.

In the United States, the ____________________ advances the benefits of smart cards.

Electronic cash has been much more successful in the United States than it has been in Europe and Asia.

What payment method dominates online transactions today?

____________________ 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.