Chargebacks & Dispute Resolution Flashcards
7 cards from real APRP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Chargebacks & Dispute Resolution flashcards as text
A merchant enrolled in Visa's Dispute Monitoring Program (VDMP) fails to reduce chargebacks within the remediation period. What is the MOST likely consequence?
Answer: Visa may impose fines and ultimately disqualify the merchant from accepting Visa cards
Merchants who remain non-compliant in Visa's monitoring programs face escalating fines and potential disqualification from accepting Visa payments.
Which party bears liability for a card-present EMV chip transaction where the merchant has a chip-capable terminal and the issuer has issued a chip card, but fraud still occurs?
Answer: The issuer
When both the merchant and issuer have chip capabilities, the issuer bears fraud liability because the chip technology should have prevented the fraud.
A subscription merchant wants to reduce 'cardholder does not recognize' chargebacks. Which tactic is MOST effective?
Answer: Using a recognizable billing descriptor that includes the brand name and contact information
A clear, recognizable billing descriptor directly on the card statement is the most effective way to prevent cardholders from disputing transactions they don't recognize.
Under Mastercard's rules, what happens when a chargeback is submitted but the original transaction was processed with a CVV2 mismatch that the merchant ignored?
Answer: The merchant loses chargeback rights and cannot represent the transaction
Ignoring a CVV2 mismatch shifts fraud liability to the merchant and eliminates their ability to represent chargebacks for card-not-present fraud.
What is the PRIMARY purpose of a 'retrieval request' in the traditional chargeback process?
Answer: To obtain a copy of the transaction documentation before initiating a formal chargeback
A retrieval request (now largely replaced by automated processes) was a formal request from the issuer to the acquirer for a copy of the transaction record to investigate a cardholder dispute.
A high-risk merchant processes mostly card-not-present transactions and wants to reduce friendly fraud chargebacks. Which tool provides the STRONGEST protection under Visa's rules?
Answer: Visa Secure (3-D Secure 2.0) with successful cardholder authentication
Successful 3-D Secure 2.0 authentication shifts chargeback liability for fraud disputes from the merchant to the issuer, providing the strongest protection available.
In arbitration between an issuer and acquirer over a chargeback dispute, who serves as the final decision-maker?
Answer: The card network (Visa or Mastercard)
The card network (Visa or Mastercard) serves as the final arbitrator in disputes between issuers and acquirers, with their ruling being binding on all parties.