Ecommerce Payment Methods

What are some common digital payment security measures used in ecommerce?

• Firewall protection, biometric authentication, password sharing

• Encryption, tokenization, multi-factor authentication, fraud detection algorithms, SSL certificates

Explain the concept of tokenization in digital payments.

• Tokenization is a method used to track the location of a payment transaction.

• Tokenization in digital payments involves replacing sensitive card information with a unique token to enhance security and protect cardholder data.

• Tokenization is the process of converting physical cash into digital currency.

• Tokenization involves sharing card information openly on digital platforms.

What is the difference between 3D Secure and non-3D Secure transactions?

• 3D Secure transactions have an additional authentication step, while non-3D Secure transactions do not.

• 3D Secure transactions are processed faster than non-3D Secure transactions.

• 3D Secure transactions are only available for online purchases, while non-3D Secure transactions can be used in-store.

• 3D Secure transactions have lower fees than non-3D Secure transactions.

Name three popular digital payment methods used in ecommerce.

• Cash App

• Stripe

• Venmo

• PayPal, Apple Pay, Google Pay

How does a digital wallet work as a payment method?

• A digital wallet randomly generates payment information for each transaction

• A digital wallet requires manual input of payment details for every purchase

• A digital wallet securely stores payment information and encrypts it for transactions, offering convenience and security.

• A digital wallet physically stores cash and credit cards for transactions

Discuss the advantages and disadvantages of using credit cards for online payments.

• Guaranteed protection against identity theft

• Advantages: Convenience, security features, rewards programs, ability to build credit history. Disadvantages: Risk of overspending, high-interest rates, potential for identity theft, fees.

• No risk of overspending

• Low-interest rates

What role does encryption play in securing online transactions?

• Encryption slows down online transactions and should be avoided.

• Encryption encodes sensitive information to prevent unauthorized access during transmission.

• Encryption decodes sensitive information to make it easier to access during transmission.

• Encryption has no impact on securing online transactions.

Explain the process of a bank transfer as a payment method in ecommerce.

• The customer initiates a transfer from their bank account to the seller's bank account, providing necessary details such as account number, bank name, and amount.

• The seller sends a payment request to the customer's email address

• The customer physically delivers cash to the seller's address

• The bank automatically deducts the payment from the customer's account without authorization

What are the key features of a payment gateway in ecommerce?

• Social media integration

• Secure transaction processing, multiple payment method support, shopping cart integration, fraud prevention, real-time monitoring

• Customizable email templates

• Fast delivery options

How can biometric authentication enhance the security of digital payments?

• Biometric authentication makes digital payments less secure by introducing vulnerabilities.

• Biometric authentication has no impact on the security of digital payments.

• Biometric authentication complicates the digital payment process without adding any security benefits.

• Biometric authentication enhances the security of digital payments by providing a more secure and convenient way to verify the user's identity.