Payment Systems & Technology 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 Payment Systems & Technology flashcards as text
In a card transaction, which entity is responsible for performing fraud scoring and making the authorization decision on behalf of the card issuer?
Answer: Payment processor / issuer authorization system
The issuer or its processor runs real-time fraud models and decides to approve, decline, or refer each authorization request.
What does the term 'interchange' refer to in card payment economics?
Answer: The fee the acquirer pays to the issuer for each card transaction
Interchange is the fee the merchant's acquiring bank pays to the cardholder's issuing bank, representing the largest component of card acceptance cost.
Which clearing file format is used by the Federal Reserve's FedACH service to exchange batch payment instructions between financial institutions?
Answer: NACHA CCD/PPD flat file
FedACH uses the NACHA-defined fixed-length flat file format, where CCD (corporate credit/debit) and PPD (prearranged payment/deposit) are common SEC codes.
A fraudster calls a bank pretending to be a customer and convinces the agent to change the account's registered phone number. This attack best exemplifies:
Answer: Vishing with social engineering
Vishing (voice phishing) combined with social engineering manipulates human agents to make unauthorized account changes without technical compromise.
Under Regulation E, a consumer must report an unauthorized EFT within how many business days to limit liability to $50?
Answer: 2 business days
Regulation E limits consumer liability to $50 if the unauthorized transfer is reported within 2 business days of learning of the loss or theft.
What is the primary function of a payment gateway in an e-commerce transaction?
Answer: Securely transmit transaction data between the merchant and the payment processor
A payment gateway encrypts and routes the authorization request from the merchant's website to the acquiring bank's payment processor.
Which fraud type involves a legitimate business processing fraudulent transactions on behalf of unknown third-party fraudsters?
Answer: Factoring (merchant laundering)
Factoring occurs when a merchant runs transactions for another party through its own merchant account, violating card network rules and enabling fraud or money laundering.