Banks offer different electronic payment methods... | Information and Communication Technology (9-1) 0983 | Paper 1 Mock 21 | Theory

Question 1 Report

Banks offer different electronic payment methods to their customers.

(a) Complete the table by describing each payment method and giving one advantage. [6]

(b) State two security risks of using electronic payment methods. [2]

Answer

Answer Details

(a) Electronic payment methods compared:

Payment method	Description	Advantage
Chip and PIN	The customer inserts their bank card into a reader, which reads the data from the chip. They then enter a four-digit PIN on a keypad to authorise the payment. [1]	More secure than a signature-based system because only the cardholder should know the PIN, making it harder for someone else to use a stolen card. [1]
Contactless	The customer holds their card or mobile device near a contactless reader, and the payment is processed wirelessly using near-field communication (NFC) without entering a PIN. [1]	Faster and more convenient than chip and PIN because no PIN entry is required, making it ideal for small, routine purchases. [1]
Online banking transfer	The customer logs into their bank account through a website or app and transfers money directly to another account by entering the recipient's details. [1]	Can be done from any location at any time without visiting a bank branch, offering flexibility and convenience. [1]

(b) Two security risks of electronic payment methods:

Card details could be stolen through skimming devices illegally attached to ATMs or payment terminals, which copy the card's data for fraudulent use. [1]
Phishing emails could trick users into revealing their online banking login credentials by directing them to a fake website that looks like their bank's real site. [1]

Banks offer different electronic payment methods to their customers. (a) Complete the table by describing each payment method and giving one advantage. [6] ...