When users select a country from the dropdown list, the expectation is that the state/province field will update to match the appropriate states/provinces for the selected country. But that isn't the case. When opening the state/province dropdown, every state option is presented, regardless of the country selected.
This is confusing for users, looks unprofessional on the part of the organization, and leads to incorrect data entry and errors. There is no reason the States / Provinces / etc. table needs to be directly editable by database administrators; it could simply be part of a central database that has the correct data for each country. This is something that has been integrated by many other industry leading payment processors.