Questions and Answers
What characterizes E-Money transactions?
Which option is a requirement for secure e-payments?
How is a user authenticated in e-payment systems?
What happens during an Electronic Fund Transfer (EFT) if the accounts are in different banks?
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Which principle ensures that information is only accessible by authorized users during transmission?
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What is the primary advantage of electronic payment systems over manual processing?
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What is the role of encryption in secure e-payments?
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What does non-repudiation in e-payments protect against?
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Which of the following is NOT a mode of electronic payment?
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What immediate action occurs after the amount is transferred to another account?
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In the credit card payment process, which entity pays on behalf of the customer initially?
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What is a key difference between debit cards and credit cards?
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Which component is associated with the merchant in a credit card transaction?
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What is the primary function of the microprocessor chip in a smart card?
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What distinguishes electronic fund transfer (EFT) from other electronic payment methods?
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Which card type deducts funds immediately from a bank account during a transaction?
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Study Notes
E-Commerce Overview
- E-Commerce involves electronic payment systems facilitating paperless monetary transactions.
- Electronic payments streamline business processes, reducing paperwork, transaction costs, and labor expenses.
- User-friendly and time-efficient electronic methods support organizations in expanding their market reach.
Modes of Electronic Payments
- Credit Card: Plastic card linked to an account; undergoes transactions without immediate payments from the user.
- Debit Card: Similar to credit cards but requires a bank account; funds are deducted immediately upon transaction completion.
- Smart Card: Contains a microprocessor to store personal and work-related information; offers added functionality beyond basic transactions.
- E-Money: Digital currency allowing online transfers between financial institutions without intermediaries, enhancing speed and efficiency.
- Electronic Fund Transfer (EFT): A process for transferring money between bank accounts; initiates via bank online services.
Credit Card System
- Cardholder: The customer using the credit card.
- Merchant: Seller who accepts credit card payments.
- Card Issuer Bank: Bank that issues the credit card to the customer.
- Acquirer Bank: Merchant's bank that accepts the credit card transaction.
- Card Brand: Networks like Visa or MasterCard that facilitate transactions.
Debit Card Features
- Requires a linked bank account for use.
- Instant deduction of funds from the user's bank account upon transaction.
Smart Card Attributes
- Resembles credit and debit cards but includes a microchip for additional data storage.
Electronic Fund Transfer Process
- Customers can transfer funds online to other bank accounts, regardless of whether they are in the same bank.
- Involves logging into a bank's website, registering the recipient's account, and requesting fund transfers.
Security Systems for E-Payments
- Confidentiality: Data should remain inaccessible to unauthorized parties; protection against interception is crucial.
- Integrity: Information must remain unaltered during transmission.
- Availability: Information needs to be retrievable within specified time frames.
- Authenticity: A system must authenticate users before access is granted.
- Non-Repudiation: Ensures that senders cannot deny having sent a message, and recipients cannot deny receiving it.
- Encryption: Information should be securely encrypted and accessible only to authorized users.
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Description
This quiz covers the fundamentals of e-commerce, focusing on electronic payment systems that facilitate paperless transactions. Learn about various modes of payment, including credit and debit cards, smart cards, e-money, and electronic fund transfers. Understand how these systems enhance business efficiency and market expansion.
