You are the new Manager of Online Sales for Duckworthy Rain Gear ...

[robinn137]

You are the new Manager of Online Sales for Duckworthy Rain Gear (DRG), a company that sells waterproof apparel to outdoor enthusiasts and people who must work in inclement weather. As you review the online payment processing system, you notice that DRG does not ask its customers to provide a CVN (also known as a CVV, CVV2, CSC, and so on) when they enter their credit card information on the shopping cart page of the Web site. Your prior employer always collected CVNs because they reduced the chances that a card payment transaction was fraudulent. You ask Sally Montt, the lead Web programmer, why the company is not collecting CVNs. She tells you that your predecessor established a policy of not collecting them because he said that storing those numbers is prohibited. Using the Web Links for this exercise, your favorite search engine, or your library, evaluate the accuracy of your predecessors statement. If storing CVNs is prohibited, determine who is responsible for the prohibition. Summarize your findings in a memo to the President of DRG in which you make a recommendation for collecting or not collecting CVNs.

Question 2

Bonnie Carson has owned and managed her gift and card shop in the Central Shopping Mall for three years. She has a merchant account with her local bank to process payment card charges at her shop in the mall. Business at the mall store had been good, but Bonnie wanted to expand without paying higher rent for more floor space at the mall. A year ago, she opened an online store using a commerce service provider. Part of the monthly fee that the CSP charges covers the software needed to accept credit cards online. The CSP handles the payment processing, but the charges are much higher than those her bank charges to process the transactions for her shop in the mall. Bonnies online business is beginning to pick up and she wants to provide more payment options to her customers and is considering a payment processing service such as PayPal or Checkout by Amazon as an additional option. Identify at least three reasons Bonnie should use such a service and at least three reasons she should not. Prepare a report for Bonnie of about 200 words summarizing your findings.

[briezy]

Answer to Question 1

Sally Mont is correct  the PCI Security Standards Council prohibits the storage of CVNs. The idea is that someone with a stolen credit card is less likely to have this code and will therefore not be able to complete the transaction.

Answer to Question 2

Advantages of using PayPal include:

• Low cost


• Flexible and easy to Use


• Automatic payment tracking


• PayPal buyer protection


• Fraud Detection: PayPal claims to have one of the lowest loss rates in the online retail industry.


• Merchant Tools: PayPal has a number of automated tools to make your life easier including financial reporting and shipping calculation.

Disadvantages are minimal, but might include:

• The need to offer and maintain other payment options if customers do not want to use PayPal


• Initial set up of the PayPal account


• Extra upkeep with correspondence, passwords, etc.

[robinn137]

Great answer, keep it coming

[bassamabas]

Thanks for the timely response, appreciate it