Exam

Name___________________________________

1.
The barrier to selling books online, either hardcopy or electronic, is technical and not fnancial.
Answer:
True

False
Dif: 2
Type: TF
Page Ref: 549
AACSB:
Objective:

2.
In the online world, virtually every attempt to disintermediate cash and credit cards has failed.
Answer:

True
False
Dif: 2
Type: TF
Page Ref: 549
AACSB:
Objective:

3.
The overwhelming majority of B2C purchases are paid for by smart cards.
Answer:
True

False
Dif: 2
Type: TF
Page Ref: 550
AACSB:
Objective:

4.
E-payment systems that require the payer to install specialized security software have proven more likely to succeed.
Answer:
True

False
Dif: 3
Type: TF
Page Ref: 551
AACSB:
Objective:

5.
The success of an e-payment method depends on its interoperability with existing enterprise systems and applications.
Answer:

True
False
Dif: 2
Type: TF
Page Ref: 551
AACSB:
Objective:

6.
To succeed, special e-payment methods, such as e-cash, have to maintain anonymity.
Answer:

True
False
Dif: 2
Type: TF
Page Ref: 551
AACSB:
Objective:

7.
E-payment methods that can address the lower or higher end of the price continuum are unlikely to be widely accepted
because of cost and security issues.
Answer:
True

False
Dif: 2
Type: TF
Page Ref: 551
AACSB:
Objective:

8.
In the settlement process, the systems must determine whether a buyer's card is active and whether the cardholder has
sufcient funds available for the purchase.
Answer:
True

False
Dif: 2
Type: TF
Page Ref: 552
AACSB:
Objective:

9.
The processing of card payments has two major phases: identifcation and settlement.
Answer:
True

False
Dif: 2
Type: TF
Page Ref: 552
AACSB:
Objective:

10.
Credit cards, charge cards, and debit cards are three forms of online payment cards.
Answer:

True
False
Dif: 1
Type: TF
Page Ref: 552
AACSB:
Objective:

11.
For a given type of payment card and processing system, the processes and participants are essentially the same for ofine
(card present) and online (card not present) purchases.
Answer:

True
False
Dif: 2
Type: TF
Page Ref: 553
AACSB:
Objective:

12.
In the online world, merchants are not held liable for fraudulent transactions.
Answer:
True

False
Dif: 2
Type: TF
Page Ref: 554
AACSB:
Objective:

13.
Recent surveys by CyberSource indicate that fraudulent card transactions are a growing problem for online merchants in
spite of their increasing eforts to combat fraud despite improved anti-fraud measures.
Answer:

True
False
Dif: 2
Type: TF
Page Ref: 554
AACSB:
Objective:

14.
Because of their visibility and large sales volumes, larger frms are more susceptible to fraud than medium-sized frms.
Answer:
True

False
Dif: 2
Type: TF
Page Ref: 555
AACSB:
Objective:

15.
One problem with the Address Verifcation System (AVS) for fraud prevention is the number of false positives, meaning
that the merchant rejects a valid order. One reason for these rejects is simply that cardholders make mistakes in inputting
their addresses or zip codes.
Answer:

True
False
Dif: 2
Type: TF
Page Ref: 555
AACSB:
Objective:

16.
Card verifcation number (CVN) methods are useless against a fraudster who possesses the stolen credit cards.
Answer:

True
False
Dif: 2
Type: TF
Page Ref: 555
AACSB:
Objective:

17.
Over 80 percent of all merchants use the manual review method, which relies on staf to manually review suspicious
orders.
Answer:
True

False
Dif: 2
Type: TF
Page Ref: 555
AACSB:
Objective:

18.
Thirty-eight percent of all merchants use negative lists, which are fles that include a customer's information and the
status of that customer. A customer's transaction is matched against these fles and fagged if the customer is a known
problem.
Answer:

True
False
Dif: 2
Type: TF
Page Ref: 556
AACSB:
Objective:

19.
Technically speaking, a smart card reader is actually a read/write device. The primary purpose of the smart card reader is
to act as a mediator between the card and the host system that stores application data and processes transactions.
Answer:

True
False
Dif: 2
Type: TF
Page Ref: 557
AACSB:
Objective:

20.
Contact and proximity are two types of smart card readers.
Answer:

True
False
Dif: 2
Type: TF
Page Ref: 557
AACSB:
Objective:

21.
Most contact cards are EPROM.
Answer:
True

False
Dif: 2
Type: TF
Page Ref: 557
AACSB:
Objective:

22.
In most cases, smart cards are more secure than credit cards and can be extended with other payment services. In the
retail arena, many of these services are aimed at those establishments where payments are usually made in cash and
speed and convenience are important.
Answer:

True
False
Dif: 2
Type: TF
Page Ref: 558
AACSB:
Objective:

23.
One beneft of smart cards versus standard cards is that they are more secure.
Answer:

True
False
Dif: 1
Type: TF
Page Ref: 558
AACSB:
Objective:

24.
Regardless of the vendor's point of view, there is substantial evidence that consumers are not willing to use their credit or
debit cards for micropayments under $5.
Answer:
True

False
Dif: 3
Type: TF
Page Ref: 561
AACSB:
Objective:

25.
With the stored value micropayment model, up-front payments are made to a debit account from which purchases are
deducted as they are made.
Answer:

True
False
Dif: 2
Type: TF
Page Ref: 562
AACSB:
Objective:

26.
An e-check is a legally valid electronic version or representation of a paper check.
Answer:

True
False
Dif: 1
Type: TF
Page Ref: 562
AACSB:
Objective:

27.
The Purchase Order Processing NACHA system does not require specialized readers for each checkout counter.
Answer:
True

False
Dif: 3
Type: TF
Page Ref: 563
AACSB:
Objective:

28.
E-checks cannot be used with in-person purchases.
Answer:
True

False
Dif: 2
Type: TF
Page Ref: 563
AACSB:
Objective:

29.
Mobile payment refers to payment transactions initiated or confrmed using a person's desktop computer.
Answer:
True

False
Dif: 2
Type: TF
Page Ref: 565
AACSB:
Objective:

30.
Mobile proximity payments involve a special mobile phone equipped with an integrated chip or smart card, a specialized
reader that recognizes the chip when the chip comes within a short distance of the reader, and a network for handling the
payment.
Answer:

True
False
Dif: 2
Type: TF
Page Ref: 566
AACSB:
Objective:

31.
The information divide is the gap between people with efective access to digital and information technology and those
without.
Answer:
True

False
Dif: 2
Type: TF
Page Ref: 567
AACSB:
Objective:

32.
Companies such as Walmart are likely to use the Seller Direct EIPP model.
Answer:
True

False
Dif: 2
Type: TF
Page Ref: 570
AACSB:
Objective:

33.
The consolidator EIPP model links one seller to many buyers.
Answer:
True

False
Dif: 2
Type: TF
Page Ref: 570
AACSB:
Objective:

34.
Cash Concentration or Disbursement (CCD) is a type of ACH entry for B2B transactions.
Answer:

True
False
Dif: 2
Type: TF
Page Ref: 571
AACSB:
Objective:

35.
With letters of credit, credit risk is reduced because payment is accessed via the credit worthiness of the issuing bank.
Answer:

True
False
Dif: 2
Type: TF
Page Ref: 572
AACSB:
Objective:

36.
Which statement about the payment revolution is true?
A)
Debit card use has been declining since 2003.
B)
Cards and electronic payments are taking the place of cash and checks.
C)
Approximately 20 percent of recurring bills are paid electronically.
D)
By 2015, the U.S. will be a cashless society.
Answer:
B
Dif: 1
Type: MC
Page Ref: 550
AACSB:
Objective:

37.
Which of the following is a peer-to-peer encrypted digital currency created in 2009 by Satoshi Nakamoto?
A)
PayPal
B)
DotCoin
C)
Kindle
D)
Bitcoin
Answer:
D
Dif: 3
Type: MC
Page Ref: 551
AACSB:
Objective:

38.
Factors that come into play in determining whether a particular method of e-payment achieves critical mass include each
of the following except
A)
dependence.
B)
ease of use.
C)
regulations.
D)
divisibility.
Answer:
A
Dif: 3
Type: MC
Page Ref: 551-552
AACSB:
Objective:

39.
The process of determining whether a card is active and whether the customer has sufcient funds for the purchase is
called
A)
procurement.
B)
approval.
C)
settlement.
D)
authorization.
Answer:
D
Dif: 1
Type: MC
Page Ref: 552
AACSB: Use of information technology
Objective:

40.
An electronic card that contains information that can be used for payment purposes best describes
A)
host card.
B)
pocket card.
C)
funds card.
D)
payment card.
Answer:
D
Dif: 1
Type: MC
Page Ref: 552
AACSB:
Objective:

41.
Forms of payment cards include each of the following except
A)
credit cards.
B)
purchase cards.
C)
debit cards.
D)
charge cards.
Answer:
B
Dif: 1
Type: MC
Page Ref: 552
AACSB:
Objective:

42.
Which of the following is an example of a charge card?
A)
MasterCard
B)
Visa
C)
Diner's Club card
D)
EuroPay
Answer:
C
Dif: 2
Type: MC
Page Ref: 552
AACSB:
Objective:

43.
Basic confgurations for processing online payments include each of the following except
A)
contracting with an online cash checking company.
B)
using a POS operated by an acquirer.
C)
using a POS operated by a payment service provider.
D)
owning the payment software.
Answer:
A
Dif: 3
Type: MC
Page Ref: 553
AACSB:
Objective:

44.
A(n) ________ is a third-party service connecting a merchant's EC system to the appropriate acquiring bank or fnancial
institution.
A)
payment service provider (PSP)
B)
application service provider (ASP)
C)
credit service provider (CSP)
D)
Internet service provider (ISP)
Answer:
A
Dif: 2
Type: MC
Page Ref: 553
AACSB:
Objective:

45.
Which of the following participants in the online card payment process is the data center that processes card transactions
and settles funds to merchants?
A)
acquiring bank
B)
customer
C)
merchant
D)
processor
Answer:
D
Dif: 2
Type: MC
Page Ref: 554
AACSB:
Objective:

46.
Which of the following participants in the online card payment process is the fnancial institution that provides card
services to banks?
A)
credit card association
B)
acquiring bank
C)
processor
D)
issuing bank
Answer:
A
Dif: 2
Type: MC
Page Ref: 554
AACSB:
Objective:

47.
According to a CyberSource survey, online revenue losses due to fraud in 2010 were
A)
$2.7 billion.
B)
$150 million.
C)
$9 billion.
D)
$5.5 billion.
Answer:
A
Dif: 3
Type: MC
Page Ref: 554
AACSB:
Objective:

48.
________ ofer Internet Merchant Accounts, which are special accounts for credit card authorization and payment
processing.
A)
Payment processing services
B)
Acquiring banks
C)
Credit card associations
D)
Issuing banks
Answer:
B
Dif: 3
Type: MC
Page Ref: 554
AACSB: Use of information technology
Objective:

49.
Approximately 80 percent of merchants use the Address Verifcation System, which results in a number of ________,
meaning that the merchant may reject a valid order.
A)
false positives
B)
positive verifcations
C)
suspicious hits
D)
false negatives
Answer:
A
Dif: 3
Type: MC
Page Ref: 555
AACSB:
Objective:

50.
In 2010, the median number of fraud detection tools used by merchants was
A)
7.3.
B)
10.7.
C)
2.9.
D)
4.6.
Answer:
D
Dif: 3
Type: MC
Page Ref: 555
AACSB:
Objective:

51.
Key tools used in combating online fraud include
A)
address verifcation.
B)
manual reviews.
C)
negative lists.
D)
all of the above.
Answer:
D
Dif: 1
Type: MC
Page Ref: 555-556
AACSB:
Objective:

52.
Which of the following is an online fraud detection tool that matches a customer's transaction against a fle containing
customer information that is fagged if the customer is a known problem?
A)
boycott list
B)
negative list
C)
compliance list
D)
profle list
Answer:
B
Dif: 1
Type: MC
Page Ref: 556
AACSB:
Objective:

53.
An electronic card containing an embedded microchip that enables predefned operations or the addition, deletion, or
manipulation of information on the card best defnes
A)
secure card.
B)
smart card.
C)
EPROM card.
D)
pocket card.
Answer:
B
Dif: 1
Type: MC
Page Ref: 556
AACSB:
Objective:

54.
A special system that handles fle management, security, input/output, and command execution and provides an
application programming interface for a smart card best defnes
A)
mobile operating system.
B)
networking operating system.
C)
BIOS.
D)
smart card operating system.
Answer:
D
Dif: 1
Type: MC
Page Ref: 557
AACSB:
Objective:

55.
________ are used for applications in which the data must be processed very quickly (e.g., mass-transit applications, such
as paying bus or train fares) or when contact is difcult (e.g., security-entering mechanisms to buildings).
A)
RFID cards
B)
Contact cards
C)
Contactless cards
D)
EEPROM cards
Answer:
C
Dif: 2
Type: MC
Page Ref: 557
AACSB:
Objective:

56.
Which of the following activates and reads the contents of the chip on a smart card, usually passing the information on to
a host system?
A)
smart card reader
B)
cube reader
C)
transmit reader
D)
cloud reader
Answer:
A
Dif: 1
Type: MC
Page Ref: 557
AACSB:
Objective:

57.
A(n) ________ has two separate chips embedded in the card (contact and contactless), which eliminates the need to carry
multiple cards to support the various smart card readers and applications.
A)
dual-interface smart card
B)
hybrid smart card
C)
RFID card
D)
multi-debit card
Answer:
B
Dif: 2
Type: MC
Page Ref: 557
AACSB: Use of information technology
Objective:

58.
Smart cards that have erasable memory and are modifable best describe
A)
EPROM cards.
B)
contactless cards.
C)
EEPROM cards.
D)
contact cards.
Answer:
C
Dif: 2
Type: MC
Page Ref: 557
AACSB:
Objective:

59.
The largest demand for smart cards continues to come from
A)
Europe.
B)
South America.
C)
North America.
D)
the Asia-Pacifc region.
Answer:
D
Dif: 2
Type: MC
Page Ref: 557
AACSB:
Objective:

60.
If someone steals a smart card, the thief is usually out of luck, with the major exception of ________ used for retail
purchases.
A)
EPROM cards
B)
contactless cards
C)
contact cards
D)
EEPROM cards
Answer:
B
Dif: 2
Type: MC
Page Ref: 558
AACSB:
Objective:

61.
The overall implementation and use of contactless payment cards has been
A)
declining.
B)
steady.
C)
rapid.
D)
slow.
Answer:
D
Dif: 2
Type: MC
Page Ref: 558
AACSB:
Objective:

62.
Which of the following is the initiative where all EU banks agreed to use the same basic bank card standard, enabling the
use of credit and debit cards throughout the EU?
A)
SEPA
B)
EUMI
C)
EPROM
D)
MCI
Answer:
A
Dif: 2
Type: MC
Page Ref: 558
AACSB:
Objective:

63.
A ________ is a card that has monetary value loaded onto it and is usually rechargeable.
A)
contactless card
B)
contact card
C)
stored-value card
D)
closed loop card
Answer:
C
Dif: 2
Type: MC
Page Ref: 559
AACSB:
Objective:

64.
Single-purpose cards issued by a specifc merchant or merchant group that can only be used to make purchases from that
merchant or merchant group best describes
A)
dedicated cards.
B)
closed-loop cards.
C)
location-based cards.
D)
open-loop cards.
Answer:
B
Dif: 2
Type: MC
Page Ref: 559
AACSB:
Objective:

65.
Payroll cards, government beneft cards, and prepaid debit cards are examples of ________ cards.
A)
EEPROM
B)
closed-loop
C)
contactless
D)
open-loop
Answer:
D
Dif: 2
Type: MC
Page Ref: 560
AACSB:
Objective:

66.
Small online payments, typically under $10, are referred to as ________.
A)
e-minipayments
B)
contactless payments
C)
automated payments
D)
e-micropayments
Answer:
D
Dif: 2
Type: MC
Page Ref: 561
AACSB:
Objective:

67.
The basic micropayment model where micropayments are added to a monthly bill for existing services best describes
A)
stored value.
B)
direct payment.
C)
subscriptions.
D)
aggregation.
Answer:
B
Dif: 2
Type: MC
Page Ref: 561
AACSB:
Objective:

68.
Basic micropayment models include each of the following except
A)
stored value.
B)
subscriptions.
C)
wholesale.
D)
direct payment.
Answer:
C
Dif: 3
Type: MC
Page Ref: 561-562
AACSB:
Objective:

69.
Which of the following is the NACHA system where checks are collected at checkout counters and later converted into e-
checks?
A)
NOS
B)
EPROM
C)
BOC
D)
POP
Answer:
C
Dif: 3
Type: MC
Page Ref: 563
AACSB:
Objective:

70.
The nationwide batch-oriented electronic funds transfer system that provides for interbank clearing of electronic
payments for participating fnancial institutions is called the
A)
E-bill Presentment and Payment Network.
B)
Automated Clearing House Network.
C)
Receiving Depository Financial Institution.
D)
Federal Reserve System.
Answer:
B
Dif: 2
Type: MC
Page Ref: 564
AACSB: Use of information technology
Objective:

71.
E-check processing benefts include
A)
improving the efciency of the deposit process for merchants and fnancial institutions.
B)
speeding the checkout process for consumers.
C)
reducing the foat period and the number of checks that bounce because of insufcient funds.
D)
all of the above.
Answer:
D
Dif: 1
Type: MC
Page Ref: 565
AACSB:
Objective:

72.
Types of mobile payments include each of the following except
A)
mobile proximity payments.
B)
remote payments.
C)
EIPP payments.
D)
POS payments.
Answer:
C
Dif: 3
Type: MC
Page Ref: 565
AACSB:
Objective:

73.
The provision of fnancial services, in small amounts of money, to poor or low-income clients, including consumers and
the self-employed best describes
A)
low-risk mobile investments.
B)
peer-to-peer loans.
C)
microfnance.
D)
microloans.
Answer:
C
Dif: 2
Type: MC
Page Ref: 567
AACSB:
Objective:

74.
Unlike the physical supply chain, inefciencies characterize the fnancial supply chains of most companies. Factors that
create these inefciencies include each of the following except
A)
the time required to create, transfer, and process paper documentation.
B)
too much transparency in inventory and cash positions when goods are in the supply chain.
C)
disputes arising from inaccurate or missing data.
D)
the cost and errors associated with manual creation and reconciliation of documentation.
Answer:
B
Dif: 3
Type: MC
Page Ref: 569
AACSB: Use of information technology
Objective:

75.
Presenting and paying B2B invoices online best defnes
A)
ACH.
B)
EIPP.
C)
POP.
D)
NOC.
Answer:
B
Dif: 2
Type: MC
Page Ref: 569
AACSB:
Objective:

76.
EIPP models include each of the following except
A)
intermediate.
B)
consolidator.
C)
seller direct.
D)
buyer direct.
Answer:
A
Dif: 3
Type: MC
Page Ref: 570
AACSB:
Objective:

77.
Among the forms of online B2B payments, the use of ________ is second only to ACH in terms of frequency of use.
A)
EDI
B)
purchasing cards
C)
Fedwire, or wire transfer
D)
letters of credit
Answer:
C
Dif: 2
Type: MC
Page Ref: 571
AACSB: Use of information technology
Objective:

78.
Special-purpose payment cards issued to a company's employees to be used solely for purchasing nonstrategic materials
and services up to a preset dollar limit best defnes
A)
purchasing cards.
B)
desk cards.
C)
smart cards.
D)
mobile cards.
Answer:
A
Dif: 2
Type: MC
Page Ref: 571
AACSB:
Objective:

79.
In global trade, a ________ is a written agreement by a bank to pay the seller, on account of the buyer, a sum of money
upon presentation of certain documents.
A)
bank check
B)
letter of credit
C)
trade card payment
D)
micropayment
Answer:
B
Dif: 2
Type: MC
Page Ref: 571
AACSB: Use of information technology
Objective:

80.
For sellers the main beneft of a letter of credit (L/C) is
A)
greater customer loyalty.
B)
reduced risk because the bank assures the creditworthiness of the buyer.
C)
improved buyer satisfaction.
D)
reduced risk because the bank assumes the costs.
Answer:
B
Dif: 2
Type: MC
Page Ref: 572
AACSB: Use of information technology
Objective:

81.
Identify fve of the nine crucial factors that come into play in determining whether a particular method of e-payment
successfully achieves critical mass.
Answer:
Independence; interoperability and portability; security; anonymity; divisibility; ease of use; transaction fees; international
support; and regulations were mentioned in the textbook.
Dif: 2
Type: ES
Page Ref: 551-552
AACSB:
Objective:

82.
What costs do online merchants incur for fraudulent transactions?
Answer:
In the online world, merchants are held liable for fraudulent transactions. In addition to the lost merchandise and
shipping charges, merchants who accept fraudulent transactions can incur additional fees and penalties imposed by the
card associations. However, these are not the only costs. There also are the costs associated with combating fraudulent
transactions. These include the costs of tools and systems to review orders, the costs of manually reviewing orders, and
the revenue that is lost from rejecting orders that are valid.
Dif: 2
Type: ES
Page Ref: 554
AACSB:
Objective:

83.
Defne address verifcation system. What is one disadvantage of the Address Verifcation System (AVS)?
Answer:
The address verifcation system detects fraud by comparing the address entered on a Web page with the address
information on fle with the cardholder's issuing bank. This method results in a number of false positives, meaning that
the merchant may reject a valid order. Also, cardholders often have new addresses or simply make mistakes in inputting
numeric street addresses or zip codes.
Dif: 2
Type: ES
Page Ref: 555
AACSB:
Objective:

84.
How do B2B electronic payments and billing systems difer from B2C electronic payments?
Answer:
B2B payments usually are much larger and signifcantly more complex than the payments made by individual consumers.
The dollar values often are in the hundreds of thousands, the purchases and payments involve multiple items and
shipments, and the exchanges are much more likely to engender disputes that require signifcant work to resolve. Simple
e-billing or EBPP systems lack the rigor and security to handle these B2B situations. B2B payments are part of a much
larger fnancial supply chain that includes procurement, contract administration, fulfllment, fnancing, insurance, credit
ratings, shipment validation, order matching, payment authorization, remittance matching, and general ledger
accounting.
Dif: 2
Type: ES
Page Ref: 569
AACSB:
Objective:

85.
Describe smart cards, stored-value cards, and e-checks.
Answer:
A smart card is an electronic card that contains an embedded microchip that enables predefned operations or the
addition, deletion, or manipulation of information on the card. A stored-value card is a card that has monetary value
loaded onto it and is usually rechargeable. An e-check is a legally valid electronic version or representation of a paper
check.
Dif: 2
Type: ES
Page Ref: 556, 559, 562
AACSB:
Objective:

1.
FALSE

2.
TRUE

3.
FALSE

4.
FALSE

5.
TRUE

6.
TRUE

7.
FALSE

8.
FALSE

9.
FALSE

10.
TRUE

11.
TRUE

12.
FALSE

13.
TRUE

14.
FALSE

15.
TRUE

16.
TRUE

17.
FALSE

18.
TRUE

19.
TRUE

20.
TRUE

21.
FALSE

22.
TRUE

23.
TRUE

24.
FALSE

25.
TRUE

26.
TRUE

27.
FALSE

28.
FALSE

29.
FALSE

30.
TRUE

31.
FALSE

32.
FALSE

33.
FALSE

34.
TRUE

35.
TRUE

36.
B

37.
D

38.
A

39.
D

40.
D

41.
B

42.
C

43.
A

44.
A

45.
D

46.
A

47.
A

48.
B

49.
A

50.
D

51.
D

52.
B

53.
B

54.
D

55.
C

56.
A

57.
B

58.
C

59.
D

60.
B

61.
D

62.
A

63.
C

64.
B

65.
D

66.
D

67.
B

68.
C

69.
C

70.
B

71.
D

72.
C

73.
C

74.
B

75.
B

76.
A

77.
C

78.
A

79.
B

80.
B

81.
Independence; interoperability and portability; security; anonymity; divisibility; ease of use; transaction fees; international
support; and regulations were mentioned in the textbook.

82.
In the online world, merchants are held liable for fraudulent transactions. In addition to the lost merchandise and
shipping charges, merchants who accept fraudulent transactions can incur additional fees and penalties imposed by the
card associations. However, these are not the only costs. There also are the costs associated with combating fraudulent
transactions. These include the costs of tools and systems to review orders, the costs of manually reviewing orders, and
the revenue that is lost from rejecting orders that are valid.

83.
The address verifcation system detects fraud by comparing the address entered on a Web page with the address
information on fle with the cardholder's issuing bank. This method results in a number of false positives, meaning that
the merchant may reject a valid order. Also, cardholders often have new addresses or simply make mistakes in inputting
numeric street addresses or zip codes.

84.
B2B payments usually are much larger and signifcantly more complex than the payments made by individual consumers.
The dollar values often are in the hundreds of thousands, the purchases and payments involve multiple items and
shipments, and the exchanges are much more likely to engender disputes that require signifcant work to resolve. Simple
e-billing or EBPP systems lack the rigor and security to handle these B2B situations. B2B payments are part of a much
larger fnancial supply chain that includes procurement, contract administration, fulfllment, fnancing, insurance, credit
ratings, shipment validation, order matching, payment authorization, remittance matching, and general ledger
accounting.

85.
A smart card is an electronic card that contains an embedded microchip that enables predefned operations or the
addition, deletion, or manipulation of information on the card. A stored-value card is a card that has monetary value
loaded onto it and is usually rechargeable. An e-check is a legally valid electronic version or representation of a paper
check.