CEC Payment Processing & Security 3

Question 1

Which EMV technology feature is most effective at preventing counterfeit card fraud at card-present terminals?

Accepted Answer

Dynamic cryptogram generated per transaction

Answer

EMV chips generate a unique cryptogram for each transaction, making it virtually impossible to create a usable counterfeit card even if the data is captured.

Question 2

What is the role of an acquirer (acquiring bank) in the payment processing chain?

Accepted Answer

Processes transactions on behalf of merchants and settles funds

Answer

The acquiring bank maintains the merchant's account, processes transactions through card networks, and deposits settlement funds into the merchant's account.

Question 3

A customer's card is declined with response code 'Do Not Honor.' What should an ecommerce merchant do?

Accepted Answer

Prompt the customer to use an alternative payment method

Answer

A 'Do Not Honor' decline is a soft decline from the issuing bank; the merchant should prompt the customer to contact their bank or use a different card.

Question 4

Which of the following best describes 'strong customer authentication' (SCA) under PSD2 regulations?

Accepted Answer

Verification using at least two of: something you know, have, or are

Answer

SCA under PSD2 requires at least two independent authentication factors from the categories of knowledge, possession, and inherence to verify the customer's identity.

Question 5

What is 'velocity checking' in the context of ecommerce fraud prevention?

Accepted Answer

Monitoring the frequency of transactions from a single source within a time window

Answer

Velocity checking flags suspicious patterns by counting how many transactions originate from the same card, IP, device, or email within a defined timeframe.

(CEC) Certified Ecommerce Consultant Practice Test

(CEC) Certified Ecommerce Consultant Practice Test

CEC Payment Processing & Security 3