APRP Risk Assessment & Mitigation

Question 1

What is a payment risk assessment?

Accepted Answer

A systematic evaluation of threats, vulnerabilities, and potential impacts to the payment system and its stakeholders

Answer

Payment risk assessment identifies and evaluates threats (fraud, cyber attacks, operational failures), assesses vulnerabilities in systems and processes, and quantifies potential financial and reputational impacts.

Question 2

What is a chargeback and how does it impact merchants?

Accepted Answer

A transaction reversal initiated by the cardholder's bank, resulting in the merchant losing the sale amount plus fees

Answer

Chargebacks reverse transactions, with merchants losing the sale revenue, goods/services, and paying chargeback fees. Excessive chargebacks can result in higher processing rates or account termination.

Question 3

What is the role of velocity checking in payment risk management?

Accepted Answer

Monitoring the frequency and speed of transactions to detect unusual patterns that may indicate fraud

Answer

Velocity checks monitor transaction frequency, amount, and timing patterns to identify potential fraud — such as multiple rapid transactions on the same card or from the same IP address.

Question 4

What is the purpose of a fraud investigation?

Accepted Answer

To determine whether a suspected fraudulent transaction is confirmed fraud, gather evidence, and prevent future occurrences

Answer

Fraud investigations verify whether fraud occurred, identify perpetrators, document evidence for potential prosecution, recover losses where possible, and identify system improvements to prevent recurrence.

Question 5

What is cyber insurance for payment companies?

Accepted Answer

Insurance coverage protecting against financial losses from cyber attacks, data breaches, and system failures

Answer

Cyber insurance covers financial losses from data breaches (notification costs, legal fees, regulatory fines), business interruption from cyber attacks, and third-party liability for compromised customer data.

APRP - Accredited Payments Risk Professional Practice Test

APRP - Accredited Payments Risk Professional Practice Test

APRP Risk Assessment & Mitigation