CEC Payment Processing & Security 4

Question 1

Which payment method type typically has the lowest dispute rate in ecommerce transactions?

Accepted Answer

ACH bank transfers

Answer

ACH transfers have very low dispute rates because they are bank-to-bank transactions with strict identity verification and limited chargeback rights compared to credit cards.

Question 2

What is the function of the Card Verification Value 2 (CVV2) in card-not-present transactions?

Accepted Answer

It proves the customer physically has the card since it is not stored in the magnetic stripe

Answer

CVV2 is not stored on the magnetic stripe or chip, so requiring it in CNP transactions helps confirm the customer has the physical card.

Question 3

A merchant enables '3D Secure 2.0' for their checkout. Which outcome is most likely for low-risk transactions?

Accepted Answer

Low-risk transactions will be frictionlessly authenticated using shared data

Answer

3DS 2.0 supports frictionless flow, where rich contextual data is shared with the issuer to authenticate low-risk transactions without presenting a challenge to the user.

Question 4

What is 'friendly fraud' in the context of ecommerce chargebacks?

Accepted Answer

A chargeback filed by a cardholder who legitimately received the goods but claims otherwise

Answer

Friendly fraud occurs when a legitimate cardholder deliberately disputes a valid charge—claiming non-receipt or unauthorized use—to obtain a refund while keeping the merchandise.

Question 5

Which PCI DSS requirement specifically governs the use of firewalls to protect cardholder data?

Accepted Answer

Requirement 1: Install and maintain network security controls

Answer

PCI DSS Requirement 1 mandates installing and maintaining network security controls, including firewalls, to protect the cardholder data environment.

(CEC) Certified Ecommerce Consultant Practice Test

(CEC) Certified Ecommerce Consultant Practice Test

CEC Payment Processing & Security 4