APRP Chargebacks & Dispute Resolution 3

Question 1

Which chargeback prevention tool allows merchants to receive early notification of a potential dispute before it becomes a formal chargeback?

Accepted Answer

Visa's Order Insight (formerly Visa Merchant Purchase Inquiry)

Answer

3D Secure authentication

Answer

Mastercard's SecureCode

Answer

Address Verification Service (AVS)

Question 2

Mastercard's 'Consumer Clarity' program is analogous to which Visa service designed to reduce friendly fraud chargebacks?

Accepted Answer

Visa Order Insight

Answer

Visa Secure

Answer

Visa Resolve Online (VROL)

Answer

Visa Claims Resolution (VCR)

Question 3

A merchant's chargeback-to-transaction ratio is 0.8% but their raw chargeback count is 150 per month. Under Visa's VDMP, which condition is relevant?

Accepted Answer

Both the ratio threshold AND minimum chargeback count thresholds must be met to trigger monitoring

Answer

Only the ratio matters; the count is irrelevant

Answer

Only the count matters; the ratio is irrelevant

Answer

Neither threshold is met, so no monitoring applies

Question 4

Which metric is calculated by dividing the total number of chargebacks in a month by the total number of transactions processed in that same month?

Accepted Answer

Chargeback-to-transaction ratio

Answer

Fraud-to-sales ratio

Answer

Retrieval request ratio

Answer

Dispute resolution rate

Question 5

What is 'friendly fraud' in the context of chargebacks?

Accepted Answer

A cardholder intentionally disputing a legitimate transaction to obtain a refund without returning goods

Answer

A fraudster using stolen credentials who is known to the merchant

Answer

An issuer incorrectly processing a dispute in the merchant's favor

Answer

Collusion between a merchant and cardholder to defraud the card network

Question 6

Which of the following is a proactive strategy for reducing chargeback rates related to 'services not as described' disputes?

Accepted Answer

Ensuring product descriptions, images, and return policies are accurate and clearly communicated before purchase

Answer

Implementing velocity limits on card transactions

Answer

Blocking all international transactions

Answer

Requiring cardholders to sign a waiver before purchasing

Question 7

When a card network rules in favor of the issuer during formal arbitration, what financial consequence does the losing acquirer typically face?

Accepted Answer

The acquirer pays the chargeback amount plus arbitration fees charged by the card network

Answer

Only the original transaction amount is debited

Answer

The acquirer receives a credit for previously paid chargeback fees

Answer

The acquirer must issue a public statement about the dispute