Question 1

A _____ handles chargebacks and any other reconciliation items.

Accepted Answer

A)  front-end processor 
B)  back-end processor 
C)  clearing house 
D)  payment gateway

Question 2

_____ allows for contactless data transmission over short distances and can also be used if a smartphone is equipped with a chip similar to  those that have been used on payment cards for a number of years.

Accepted Answer

The answer of _____ allows for contactless data transmission over short...

Question 3

When a bank buys accounts from another bank, it performs a series of procedures called _____, which include checking the new customers' credit histories and banking records.

Accepted Answer

The answer of When a bank buys accounts from another...

Question 4

Charge cards involve lines of credit and accumulate interest charges.

Accepted Answer

A) True 
 B)False

Question 5

Credit card issuers charge interest on any unpaid balance.

Accepted Answer

A) True 
 B)False

Question 6

_____ are cards that hold value that can be recharged by inserting them into the appropriate machines, inserting currency into the machine, and withdrawing the card; the card's strip stores the increased cash value.

Accepted Answer

The answer of _____ are cards that hold value that...

Question 7

_____ are responsible for evaluating their customers' credit standings and establishing appropriate individual credit limits.

Accepted Answer

The answer of _____ are responsible for evaluating their customers'...

Question 8

To process payment cards for Internet transactions, an online merchant must set up a(n) _____ with an acquiring bank.

Accepted Answer

The answer of To process payment cards for Internet transactions,...

Question 9

A _____ obtains authorization for a payment card transaction by sending the transaction's details to the interchange network and storing a record of the approval or denial.

Accepted Answer

A)  back-end processor 
B)  front-end processor 
C)  server-side digital wallet 
D)  client-side digital wallet

Question 10

For merchants, payment cards provide fraud protection.

Accepted Answer

A) True 
 B)False

Question 11

In the context of fees deducted by acquiring banks, _____ are charged at rates which depend on the merchant's industry.

Accepted Answer

A)  acquirer fees 
B)  interchange fees 
C)  chargeback fees 
D)  interest fees

Question 12

The Check Clearing for the 21st Century Act permits banks to eliminate the movement of physical checks entirely.

Accepted Answer

A) True 
 B)False

Question 13

_____ can be accomplished by purchasing goods or services with ill-gotten electronic cash and selling them for physical cash on the open market.

Accepted Answer

The answer of _____ can be accomplished by purchasing goods...

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

A _____ is a stored-value card with an embedded microchip that can store information.

Accepted Answer

A)  credit card 
B)  debit card 
C)  charge card 
D)  smart card

Question 16

The use of mobile telephone carriers as a micropayment system has been held back by the mobile carriers' substantial charges for providing the service.

Accepted Answer

A) True 
 B)False

Question 17

In phishing, the collection of information is done by _____.

Accepted Answer

The answer of In phishing, the collection of information is...

Question 18

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

Accepted Answer

A)  double spending 
B)  micropayments 
C)  money laundering 
D)  chargebacks

Question 19

A two-part lock provides anonymous security but signals when someone is attempting to double spend cash.

Accepted Answer

A) True 
 B)False

Question 20

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 _____.

Accepted Answer

A)  click-through 
B)  chargeback 
C)  dispute 
D)  recharge

Exam 11: Payment Systems for Electronic Commerce

A _____ handles chargebacks and any other reconciliation items.

_____ allows for contactless data transmission over short distances and can also be used if a smartphone is equipped with a chip similar to those that have been used on payment cards for a number of years.

When a bank buys accounts from another bank, it performs a series of procedures called _____, which include checking the new customers' credit histories and banking records.

Charge cards involve lines of credit and accumulate interest charges.

Credit card issuers charge interest on any unpaid balance.

_____ are cards that hold value that can be recharged by inserting them into the appropriate machines, inserting currency into the machine, and withdrawing the card; the card's strip stores the increased cash value.

_____ are responsible for evaluating their customers' credit standings and establishing appropriate individual credit limits.

To process payment cards for Internet transactions, an online merchant must set up a(n) _____ with an acquiring bank.

A _____ obtains authorization for a payment card transaction by sending the transaction's details to the interchange network and storing a record of the approval or denial.

For merchants, payment cards provide fraud protection.

In the context of fees deducted by acquiring banks, _____ are charged at rates which depend on the merchant's industry.

The Check Clearing for the 21st Century Act permits banks to eliminate the movement of physical checks entirely.

_____ can be accomplished by purchasing goods or services with ill-gotten electronic cash and selling them for physical cash on the open market.

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

A _____ is a stored-value card with an embedded microchip that can store information.

The use of mobile telephone carriers as a micropayment system has been held back by the mobile carriers' substantial charges for providing the service.

In phishing, the collection of information is done by _____.

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

A two-part lock provides anonymous security but signals when someone is attempting to double spend cash.

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 _____.