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1. How an Online Credit Card Transaction Works
2. Processed in much the same way that in-store purchases are
3. Major difference is that online merchants do not see or take impression of card, and no signature is available (CNP transactions)
4. Participants include consumer, merchant, clearinghouse, merchant bank (acquiring bank) and consumer’s card issuing bank


5. limitations
6. security: neither merchant nor consumer can be fully authenticated
7. cost: for merchants,
1. commission fees
8. social equity:
1. many people do not have access to credit cards (young adults, plus almost 100 million other adult americans who cannot afford cards or are considered poor risk)
9. source: Addison Wesley 2004