APRP Payment Systems & Technology 4

Question 1

Which element of an EMV chip transaction makes it specifically resistant to counterfeit card fraud?

Accepted Answer

A dynamic cryptogram generated per transaction

Answer

The EMV chip generates a unique cryptogram for each transaction using keys that cannot be cloned, making stolen chip data useless for creating counterfeit cards.

Question 2

In the context of ACH risk management, what does 'Unauthorized Return Rate' measure?

Accepted Answer

Rate of entries returned with return codes R05, R07, R10, R29, or R51

Answer

NACHA's unauthorized return rate tracks consumer claims of unauthorized ACH debits (specific return codes) and ODFIs must keep this below 0.5%.

Question 3

A customer initiates a $500 wire transfer through online banking. The bank's system flags it for additional review because the beneficiary country is on the FATF grey list. This is an example of:

Accepted Answer

Transaction monitoring with geopolitical risk controls

Answer

Transaction monitoring systems apply risk rules based on counterparty country risk, flagging transfers to FATF-listed jurisdictions for enhanced scrutiny.

Question 4

Which 3-D Secure version introduced frictionless authentication flows and risk-based authentication to reduce consumer abandonment?

Accepted Answer

3DS 2.0 (EMV 3DS)

Answer

EMV 3DS (v2.x) allows issuers to perform risk-based authentication using rich data, enabling frictionless approval for low-risk transactions without a consumer challenge.

Question 5

What distinguishes a 'push payment' from a 'pull payment' in modern payment systems?

Accepted Answer

Push payments are initiated by the payer; pull payments are initiated by the payee

Answer

In a push payment, the sender initiates and controls the transfer (e.g., Zelle, wire); in a pull payment, the payee requests funds from the payer's account (e.g., ACH debit, card charge).

APRP - Accredited Payments Risk Professional Practice Test

APRP - Accredited Payments Risk Professional Practice Test

APRP Payment Systems & Technology 4