E-Commerce During the last few years there has been an increase in online fraud of global scope and geometrically increasing proportions. Additionally, there are amateur fraud artists around the world who troll the Internet for credit card and financial information to use for fraudulent purposes. Thieves are reaping high rewards at the expense of both the target and the online retailer. Robinson (2013) agreed when he wrote "credit card fraud on the Internet has reached gigantic proportions, and the merchants providing goods and services over the net are suffering tremendous losses through chargebacks from the financial institutions who serve the targeted credit card holders. " Merchants who offer a product or service online have to take the risk of losing the cost of the product sold online, plus the added cost of chargeback fees, and they even face the possibility of having their merchant account terminated by the financial institutions serving them.

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Using an address verification system (AVS) would be helpful in this instance. AVS checks if the cardholder's address and zip code matches the information at the card-issuing bank. AVS only uses the zip code and numeric portion of the billing street address. Another option to help would be to use the card verification method (CVM). Card Verification Methods (VISA = CVV2, MasterCard = CVC2, and American Express = CID use a security code of 3 or 4 extra digits imprinted on the card, but not embedded or encrypted in the magnetic stripe. This verification code does not appear on credit card receipts. Depending on how much time this vendor has to complete each transaction, if possible the vendor should simply call the issuing authority for conformation.
Question 2

Many urban areas are switching to contactless smart cards to perform public transactions such as public transportation fees. While in a fair and just…