CEC Payment Processing & Security 2

Question 1

What does the term 'chargeback ratio' refer to in ecommerce payment processing?

Accepted Answer

The percentage of transactions disputed by cardholders relative to total transactions

Answer

Chargeback ratio is the number of chargebacks divided by total transactions, and card networks penalize merchants who exceed thresholds (typically 1%).

Question 2

Which tokenization method replaces a customer's stored payment card data with a non-sensitive placeholder?

Accepted Answer

Network tokenization

Answer

Network tokenization, offered by card networks like Visa and Mastercard, replaces the PAN with a network-issued token that is tied to a specific merchant or device.

Question 3

An ecommerce merchant processes $500,000/month in card-not-present transactions. Which PCI DSS merchant level applies?

Accepted Answer

Level 2

Answer

PCI DSS Level 2 applies to merchants processing 1 million to 6 million card-not-present transactions annually, which equates to roughly $83K–$500K+ per month in volume context.

Question 4

What is the primary purpose of a payment facilitator (PayFac) model in ecommerce?

Accepted Answer

To allow sub-merchants to accept payments under a master merchant account

Answer

A PayFac sponsors sub-merchants under its own master merchant account, enabling faster onboarding without each business needing its own acquiring bank relationship.

Question 5

Which fraud prevention technique uses behavioral data like typing speed and mouse movement to verify identity?

Accepted Answer

Behavioral biometrics

Answer

Behavioral biometrics analyzes how users interact with devices—typing cadence, mouse patterns—to passively verify identity without friction.

(CEC) Certified Ecommerce Consultant Practice Test

(CEC) Certified Ecommerce Consultant Practice Test

CEC Payment Processing & Security 2