Ch12 Electronic Commerce Payment Systems Test Bank Docx

Chapter 12

True/False

1. Paypal is a popular EC payment system.

A. True

B. False

2. A digital currency is a medium of payment that is electronically created, stored and used in EC.

A. True

B. False

3. Billpoint is eBay’s successful payment system.

A. True

B. False

4. A contact card will work if it is in the proximity of the card reader.

A. True

B. False

5. Micropayments are small payments made online, usually under $10.

A. True

B. False

Multiple Choice

1. Which of the following is not a characteristic of a workable EC payment system?

A. Independence

B. Interoperable

C. Portable

D. Indivisible

2. Which of the following is not a characteristic of a workable EC payment system?

A. Divisible

B. Easy to use

C. Unregulated

D. Low transaction fees

3. Which is not a virtual currency?

A. Bitcoin

B. EBT card

C. Linden dollar

4. _____ determines if a buyer’s card is sound.

A. Authorization

B. Authentication

C. Settlement

D. Chargeback

5. The company that provides electronic connections and transaction services is:

A. Merchant

B. Issuing bank

C. Acquiring bank

D. Payment service provider

6. What type of card reader is used on airplanes?

A. Stationary

B. Portable

C. Mobile

D. Image reader

7. A __________ is aplastic payment card that contains data in an embedded microchip.

A. Payment card

B. Credit card

C. Access card

D. Smart card

8. The micropayment model where many payments are accumulated and charged together is:

A. Aggregation

B. Direct payment

C. Stored value

D. Subscription

9. The micropayment model where many payments are billed at the end of a billing cycle is:

A. Aggregation

B. Direct payment

C. Stored value

D. Subscription

10. Which of the following is not a major software system used to handle e-check payments?

A. Fiserv

B. PayPal

C. Chase Paymentech

D. Authorize.net

11. _______ payments are used for making payments in stores or vending machines.

A. E-check

B. Mobile proximity

C. Mobile Remote

D. Bluetooth

12. _______ payments are used for making monthly payments or P2P payments.

A. E-check

B. Mobile proximity

C. Mobile Remote

D. Bluetooth

13. The MasterPass system aims to:

A. Eliminate mobile payments

B. Expand shopping with proximity payments

C. Reduce credit card use

D. All of these

14. The processing of e-checks in the US relies quite heavily on:

A. ACH

B. PayPal

C. RDFI

D. Mobile image readers

15. What type of card are issued by a merchant, and can only be used to make purchases from that merchant?

A. Credit Card

B. Contact card

C. Closed-loop card

D. Open-loop card

1. How are purchasing cards typically used?

2. Describe two advantages to mobile payments over other systems.

3. What are the requirements for a viable currency? Does Bitcoin meet these requirements?

4. How are fraudulent transactions detected?

5. Will BitCoin be a viable currency?