CES Payment Processing & Security 3

Question 1

What is friendly fraud in ecommerce?

Accepted Answer

When a legitimate customer files a false chargeback after receiving goods

Answer

Friendly fraud occurs when a customer makes a legitimate purchase, receives the goods or services, but then disputes the charge with their bank claiming fraud.

Question 2

What does EMV stand for in the context of payment card technology?

Accepted Answer

Europay, Mastercard, and Visa

Answer

EMV stands for Europay, Mastercard, and Visa — the global standard for chip-and-PIN payment cards that provide stronger security than magnetic stripes.

Question 3

Which type of payment fraud involves a criminal using stolen card information to make unauthorized purchases online?

Accepted Answer

Card-not-present (CNP) fraud

Answer

Card-not-present (CNP) fraud is the most common type of ecommerce fraud, where stolen card details are used for online purchases without the physical card.

Question 4

What is a payment processor's role in an ecommerce transaction?

Accepted Answer

It handles the technical transfer of transaction data between the merchant, card networks, and banks

Answer

The payment processor manages the technical aspects of transmitting transaction data between the merchant's bank, the card network, and the customer's issuing bank.

Question 5

What is interchange fee in ecommerce payment processing?

Accepted Answer

A fee paid by the merchant's bank to the customer's card-issuing bank per transaction

Answer

Interchange fees are paid by the acquiring bank to the issuing bank for each card transaction and are typically the largest component of overall payment processing costs.

CES - Certified Ecommerce Specialist Practice Test

CES - Certified Ecommerce Specialist Practice Test

CES Payment Processing & Security 3