APRP APRP Industry Standards 3

Question 1

Which industry standard governs the end-to-end encryption of payment card data from the point of interaction to the acquirer?

Accepted Answer

PCI P2PE

Answer

PCI Point-to-Point Encryption (P2PE) standard defines requirements for encrypting cardholder data from the point of interaction through decryption at a secure point, reducing PCI DSS scope for merchants.

Question 2

NACHA's WEB Debit Account Validation Rule requires originators to validate consumer accounts using which method before the first transaction?

Accepted Answer

A prenote or commercially reasonable external validation method

Answer

NACHA's WEB debit rule requires originators to use a prenote or a commercially reasonable fraud detection method to validate accounts before initiating the first debit.

Question 3

Under Mastercard's dispute resolution framework (MCDR), what replaced the traditional chargeback and arbitration process?

Accepted Answer

The Dispute Resolution Management (DRM) system

Answer

Mastercard's Dispute Resolution Management (DRM) system streamlined the process by consolidating dispute stages and automating routing decisions.

Question 4

Which regulatory framework requires US banks to file a Suspicious Activity Report (SAR) within 30 days of detecting a suspicious transaction?

Accepted Answer

Bank Secrecy Act (BSA)

Answer

The Bank Secrecy Act (BSA) and its implementing regulations require financial institutions to file SARs within 30 calendar days of initial detection of suspicious activity.

Question 5

In the context of ACH risk management, what is an 'unauthorized debit' under NACHA rules?

Accepted Answer

A debit initiated without a valid authorization from the account holder

Answer

An unauthorized debit under NACHA rules is one where the Originator did not obtain proper authorization from the Receiver before initiating the ACH entry.

APRP - Accredited Payments Risk Professional Practice Test

APRP - Accredited Payments Risk Professional Practice Test

APRP APRP Industry Standards 3