APRP Chargebacks & Dispute Resolution

Question 1

Under Visa's dispute resolution framework, what is the maximum timeframe a cardholder typically has to initiate a chargeback after the transaction processing date?

Accepted Answer

120 days

Answer

Visa generally allows cardholders up to 120 days from the transaction processing date (or expected delivery date) to initiate a dispute.

Question 2

Which chargeback reason code category covers 'Cardholder Does Not Recognize' a transaction under Mastercard's reason code framework?

Accepted Answer

Fraud

Answer

Mastercard categorizes 'Cardholder Does Not Recognize' under the Fraud reason code family (4849/4863), as it implies potential unauthorized use.

Question 3

What is 'representment' in the chargeback process?

Accepted Answer

The merchant resubmitting a transaction to recover funds after a chargeback

Answer

Representment is the process by which a merchant (through their acquirer) submits compelling evidence to reverse a chargeback and recover the disputed funds.

Question 4

Which party is primarily responsible for monitoring a merchant's chargeback ratio under card network rules?

Accepted Answer

The acquiring bank

Answer

The acquiring bank (acquirer) is responsible for monitoring merchant chargeback ratios and ensuring merchants comply with card network thresholds.

Question 5

A merchant's Visa chargeback ratio exceeds 1% for two consecutive months. Under Visa's Dispute Monitoring Program (VDMP), which tier does this most likely trigger?

Accepted Answer

Standard threshold

Answer

Under VDMP, a chargeback ratio above 1% (with 100+ chargebacks) triggers the Standard threshold, which initiates enhanced monitoring and potential fines.

APRP - Accredited Payments Risk Professional Practice Test

APRP - Accredited Payments Risk Professional Practice Test

APRP Chargebacks & Dispute Resolution