APRP Payment Systems & Technology 5

Question 1

Under Visa's dispute resolution framework, what is the term for a merchant's response that challenges a chargeback and provides evidence the original transaction was valid?

Accepted Answer

Representment

Answer

Representment is the process by which a merchant (through their acquirer) re-presents a transaction to rebut a cardholder's chargeback with supporting documentation.

Question 2

Which cryptographic technique is used in HSMs (Hardware Security Modules) to protect PIN blocks during ATM transactions?

Accepted Answer

Triple DES (3DES) with zone-key encryption

Answer

Triple DES with zone-key encryption has been the standard for encrypting PIN blocks as they traverse payment networks, though migration to AES is underway.

Question 3

A payment processor experiences a system outage and approves transactions using stored authorization rules without contacting the card issuer. This is called:

Accepted Answer

Stand-in processing

Answer

Stand-in processing allows the card network to approve transactions on behalf of an issuer using predefined parameters when the issuer's authorization system is unavailable.

Question 4

In open banking frameworks, what protocol standard is most commonly used to allow third-party providers to access bank account data with customer consent?

Accepted Answer

OAuth 2.0 with REST APIs

Answer

Open banking APIs typically use OAuth 2.0 for delegated authorization and REST/JSON for data exchange, as mandated by frameworks like PSD2 in Europe and the UK Open Banking Standard.

Question 5

What risk does 'transaction laundering' (undisclosed aggregation) pose that differs from standard merchant fraud?

Accepted Answer

It conceals the true nature of processed transactions, potentially including illegal goods or services

Answer

Transaction laundering hides the identity and nature of the actual merchant, enabling illegal businesses to process payments through a seemingly legitimate merchant account.

APRP - Accredited Payments Risk Professional Practice Test

APRP - Accredited Payments Risk Professional Practice Test

APRP Payment Systems & Technology 5