APRP Payment Systems & Technology

Question 1

What is a payment gateway?

Accepted Answer

A technology service that authorizes and processes payment transactions between merchants and acquiring banks

Answer

A payment gateway securely transmits transaction data from the merchant to the payment processor, handles authorization requests, and returns approval or decline responses in real-time.

Question 2

What is the difference between card-present and card-not-present transactions?

Accepted Answer

Card-present involves the physical card at the point of sale; card-not-present is remote (online, phone) without the physical card

Answer

Card-present transactions (in-store chip/swipe/tap) have lower fraud rates because the physical card is verified. Card-not-present transactions (online/phone) have higher risk because identity verification is harder.

Question 3

What is 3D Secure (3DS) authentication?

Accepted Answer

An additional authentication layer for online card payments requiring cardholder verification through their issuing bank

Answer

3D Secure adds an authentication step during online checkout where the cardholder verifies their identity through their issuing bank (via password, biometric, or one-time code), reducing CNP fraud.

Question 4

What is real-time payments (RTP) and how does it differ from traditional payment processing?

Accepted Answer

Payments that are initiated, cleared, and settled within seconds, available 24/7/365

Answer

Real-time payments are processed end-to-end within seconds, providing immediate funds availability, unlike traditional ACH or card payments that may take hours or days to settle.

Question 5

What is open banking and its implications for payment security?

Accepted Answer

A framework allowing third-party access to banking data through APIs, requiring strong authentication and security controls

Answer

Open banking allows authorized third parties to access banking data and initiate payments through secure APIs, requiring robust authentication (Strong Customer Authentication) and data protection measures.

APRP - Accredited Payments Risk Professional Practice Test

APRP - Accredited Payments Risk Professional Practice Test

APRP Payment Systems & Technology