APRP Chargebacks & Dispute Resolution 5

Question 1

A merchant enrolled in Visa's Dispute Monitoring Program (VDMP) fails to reduce chargebacks within the remediation period. What is the MOST likely consequence?

Accepted Answer

Visa may impose fines and ultimately disqualify the merchant from accepting Visa cards

Answer

Merchants who remain non-compliant in Visa's monitoring programs face escalating fines and potential disqualification from accepting Visa payments.

Question 2

Which party bears liability for a card-present EMV chip transaction where the merchant has a chip-capable terminal and the issuer has issued a chip card, but fraud still occurs?

Accepted Answer

The issuer

Answer

When both the merchant and issuer have chip capabilities, the issuer bears fraud liability because the chip technology should have prevented the fraud.

Question 3

A subscription merchant wants to reduce 'cardholder does not recognize' chargebacks. Which tactic is MOST effective?

Accepted Answer

Using a recognizable billing descriptor that includes the brand name and contact information

Answer

A clear, recognizable billing descriptor directly on the card statement is the most effective way to prevent cardholders from disputing transactions they don't recognize.

Question 4

Under Mastercard's rules, what happens when a chargeback is submitted but the original transaction was processed with a CVV2 mismatch that the merchant ignored?

Accepted Answer

The merchant loses chargeback rights and cannot represent the transaction

Answer

Ignoring a CVV2 mismatch shifts fraud liability to the merchant and eliminates their ability to represent chargebacks for card-not-present fraud.

Question 5

What is the PRIMARY purpose of a 'retrieval request' in the traditional chargeback process?

Accepted Answer

To obtain a copy of the transaction documentation before initiating a formal chargeback

Answer

A retrieval request (now largely replaced by automated processes) was a formal request from the issuer to the acquirer for a copy of the transaction record to investigate a cardholder dispute.

APRP - Accredited Payments Risk Professional Practice Test

APRP - Accredited Payments Risk Professional Practice Test

APRP Chargebacks & Dispute Resolution 5