APRP Chargebacks & Dispute Resolution 2

Question 1

In Mastercard's chargeback process, what is the typical timeframe for an acquirer to respond to a chargeback with representment documentation?

Accepted Answer

30 calendar days

Answer

15 calendar days

Answer

45 calendar days

Answer

60 calendar days

Question 2

Which Visa dispute reason code applies when a cardholder claims they did not receive the goods or services they paid for?

Accepted Answer

13.1 - Merchandise/Services Not Received

Answer

10.4 - Other Fraud

Answer

11.1 - Card Recovery Bulletin

Answer

13.3 - Not as Described or Defective

Question 3

What is the primary purpose of an arbitration chargeback in the card network dispute process?

Accepted Answer

To escalate an unresolved dispute to the card network for a binding decision

Answer

To allow the cardholder to request a second refund

Answer

To freeze all transactions between the merchant and acquirer

Answer

To automatically rule in favor of the issuing bank

Question 4

A merchant sells digital downloads and a cardholder files a chargeback claiming 'unauthorized transaction.' Which action is MOST effective for representment?

Accepted Answer

Submitting IP address logs, device fingerprint, and download activity matching the cardholder's account

Answer

Providing the product description from the website

Answer

Issuing a courtesy refund to avoid the chargeback fee

Answer

Requesting the card network to investigate the cardholder

Question 5

Which term describes the fee levied on a merchant's acquirer (and passed to the merchant) for each chargeback received?

Accepted Answer

Chargeback fee

Answer

Interchange fee

Answer

Dispute resolution fee

Answer

Assessment fee

Question 6

In the context of dispute resolution, what does 'liability shift' mean?

Accepted Answer

Fraud-related chargeback liability moves from the acquirer/merchant to the issuer when EMV chip technology is used

Answer

The merchant transfers chargeback responsibility to its payment processor

Answer

The cardholder assumes responsibility for disputed transactions after 180 days

Answer

The card network absorbs fraud losses above a defined threshold

Question 7

What is the recommended first step a payments risk professional should take when analyzing an unexpected spike in a merchant's chargeback rate?

Accepted Answer

Categorize chargebacks by reason code to identify the root cause

Answer

Immediately terminate the merchant account

Answer

Report the merchant to the card network

Answer

Increase the merchant's reserve requirement without investigation