Question:

a) (i) Describe the entire process of credit card processing, identifying the different steps and parties involved.

(ii) What are the roles of the acquiring bank and the issuing bank in the credit card payment system?

b) (i) Outline the main differences between a credit card and a charge card.

(ii) What is money laundering and how is money laundered?

c) (i) E-money or e-cash is a generic name given to the concept of currency which is digitally signed by an issuing institution through a private encryption key and is transmitted to an individual. Explain how e-money works?

(ii) What are the advantages of using e-money over a credit card?