Louis Gouge

ITS 380

Chapter 5

Case Study Questions

1. Apple pay already has relationships with major credit card issuers and has the largest collection of credit card information databases. Apple pay has several levels of security to avoid the loss their customer information, and includes the fingerprint reader on the iPhone6 to ensure the mobile device can only be used by the owner. Even if the Near Field Communication (NFC) signal is received by a hacker the data intercepted cannot be used because it is encrypted by a 16 digit number that can only be used one time. Apple pay is friendlier to the merchants too because it only charges .15% per charge unlike the average 3% charge per transaction charged to the merchant using the technology. Apple pay also helps both merchant and consumer by using that .15% fee to provide insurance for the authenticity of the transaction.

2. The limitations of Apple pay is that it only works on Apple devices and merchants have to purchase the NFC enabled point of sale hardware.

3. Square has an advantage of using an app that can be used on almost any mobile device so a transaction can be made on a smartphone, tablet, even a laptop, and it can be used by anyone. PayPal can also be used with a mobile device similar to square, and the user can use it while on a mobile device browser. PayPal can also establish a Bluetooth connection when the customer enters the store and the merchant is accepting PayPal app payments. Their weaknesses can be failing to conform to government banking regulations and are exempt from following those.

4. I would suggest Apple allow even non-Apple users be allowed to make an iTunes account. Maybe charge those users a higher fee to take advantage of Apple’s conveniences and when these customers decide to purchase an Apple product give them free or reduced freemiums when they become part of the Apple family.


1. Being anonymous and being able to steal from a remote location instead of physically entering a building and using a weapon. Criminals can decive consumers by: stealing personal data and using it to make online purchases, credit card theft/fraud, spoofing, pharming, and phishing.

5. Client level, server level, and internet communications channels.

10. A very large number is generated by an encryption algorithm to generate two keys a private key and a public key. The owner keeps the private key while the public key is sent out to be used by the receiver of the packet. Both keys can be used to encrypt and decrypt messages.

15. The most important limitations are: poor security; there is not enough to authenticate the consumer or merchant. merchant risk; consumers can repudiate charges to cheat merchants out of the sale. administrative and transaction costs; the cost to setup and use point of sale terminals cost merchants up to 4% of every charge. Social equity can be discriminate towards the consumers that are unable to obtain a credit card for whatever reason and then they are unable to take advantage of the conveniences of online purchases.

20. Electronic Billing Presentation and Payment (EBPP) are two systems that use the online delivery and the payment of monthly bills. They are biller direct and consolidator. Both are used by utility, phone and credit card companies. The main difference is the way they are used by both. The biller direct develops their own system inhouse and can send out bills during each pay period to their customers. The consolidator model is a third party contracted by the parent company and can produce a lag time between the issuance of the bill and time of payment. It also inserts another entity between the customer and company making for higher fees.


3. Three certification authorities are:


            Comodo ranks the top on the list as the best SSL Provider to secure websites. It offers great security solutions to business that range from small to big. Comodo SSL offers 256-bit encryption which is trusted by all browsers. It also assures technical support from experts with a warranty that is worth $250,000. Comodo SSL provides unlimited server licenses.


            Symantec assures its customers trust when it comes to website security. It offers 256 bit encryption. It is bit expensive with the cost of its products are sometimes over $1,000 with $1.5 million warranty.


            GoDaddy is also famous, though they are well known for domain registration they are much famous for their SSL certificates that are available at a price ranging from $69.99 to $89.99. It also lets the customers to customize their needs. It also provides 24/7 technical Support.