This topic contains a solution. Click here to go to the answer

Author Question: In one or two paragraphs, explain what a payment processor does and identify the types of online ... (Read 93 times)

Jkov05

  • Hero Member
  • *****
  • Posts: 556
In one or two paragraphs, explain what a payment processor does and identify the types of online businesses that might use its services.

Question 2

Write a paragraph or two in which you explain how an online merchant can use a card verification number (CVN) to reduce the risk of entering into a fraudulent credit card transaction with a customer.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

juliaf

  • Sr. Member
  • ****
  • Posts: 344
Answer to Question 1

Processing payment card transactions that might be from a debit card or a credit card, that might need open loop or closed loop processing, or that might even involve the ACH directly is a complex task. Large online businesses have entire departments of highly skilled employees who build and maintain the systems needed to accomplish this work. Mid-sized online businesses often purchase software (separately or as part of an electronic commerce software package) that handles the processing, but they must hire skilled employees to manage the system.
Small online businesses often do not have the resources to manage this function in-house, even with purchased software. They generally rely on a service provider either to assist them in processing payment card transactions or to handle the entire function for them. These service providers are called payment processing service providers or payment processors and are usually grouped into two general types, front-end processors and back-end processors.

Answer to Question 2

A CVN is a three- or four-digit number that is printed on the credit card, but is not encoded in the cards magnetic strip. Having a CVN establishes that the purchaser has the card (or has seen the card) and is more likely not to be using a stolen card number.





 

Did you know?

Asthma is the most common chronic childhood disease in the world. Most children who develop asthma have symptoms before they are 5 years old.

Did you know?

Barbituric acid, the base material of barbiturates, was first synthesized in 1863 by Adolph von Bayer. His company later went on to synthesize aspirin for the first time, and Bayer aspirin is still a popular brand today.

Did you know?

Walt Disney helped combat malaria by making an animated film in 1943 called The Winged Scourge. This short film starred the seven dwarfs and taught children that mosquitos transmit malaria, which is a very bad disease. It advocated the killing of mosquitos to stop the disease.

Did you know?

As many as 20% of Americans have been infected by the fungus known as Histoplasmosis. While most people are asymptomatic or only have slight symptoms, infection can progress to a rapid and potentially fatal superinfection.

Did you know?

Amphetamine poisoning can cause intravascular coagulation, circulatory collapse, rhabdomyolysis, ischemic colitis, acute psychosis, hyperthermia, respiratory distress syndrome, and pericarditis.

For a complete list of videos, visit our video library