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

Visa's Order Insight (VMPI) allows issuers and cardholders to access transaction details directly, enabling dispute deflection before a chargeback is formally filed.

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

Mastercard's Consumer Clarity and Visa's Order Insight both allow merchants to share transaction details with issuers to resolve cardholder confusion before it escalates to a chargeback.

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

Visa's VDMP requires BOTH a chargeback ratio above the threshold AND a minimum number of chargebacks (e.g., 100+) to trigger a monitoring program tier.

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

The chargeback-to-transaction ratio (or chargeback rate) is calculated by dividing monthly chargeback count by monthly transaction count and is the primary metric card networks use for monitoring.

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

Friendly fraud occurs when a cardholder files a chargeback on a legitimate transaction they authorized, effectively obtaining goods or services for free.

APRP - Accredited Payments Risk Professional Practice Test

APRP - Accredited Payments Risk Professional Practice Test

APRP Chargebacks & Dispute Resolution 3