CFP Digital Payments & Financial Services 2

Question 1

Which payment rail is most commonly used for real-time gross settlement (RTGS) of high-value interbank transactions in the US?

Accepted Answer

Fedwire

Answer

Fedwire Funds Service is the Federal Reserve's RTGS system used for large-value, time-critical interbank settlements in the US.

Question 2

A merchant notices higher chargeback rates on card-not-present transactions compared to card-present. What is the PRIMARY reason?

Accepted Answer

Absence of physical card verification and PIN

Answer

Card-not-present transactions lack physical authentication (chip, PIN, signature), making them more susceptible to fraud and disputed chargebacks.

Question 3

What does the term 'interchange fee' refer to in the card payment ecosystem?

Accepted Answer

Fee paid by the acquiring bank to the issuing bank per transaction

Answer

Interchange fees are paid by the merchant's acquiring bank to the cardholder's issuing bank for each transaction processed.

Question 4

Under Regulation E in the US, how many business days does a consumer have to report an unauthorized electronic fund transfer to limit liability to $50?

Accepted Answer

2 business days

Answer

Under Reg E, reporting within 2 business days of learning about the loss caps liability at $50; delays increase potential liability.

Question 5

Which ISO standard defines the message format used in most card payment and ATM networks globally?

Accepted Answer

ISO 8583

Answer

ISO 8583 is the international standard for financial transaction card-originated interchange messaging used by Visa, Mastercard, and ATM networks.

(CFP) Certified Fintech Practitioner Practice Test

(CFP) Certified Fintech Practitioner Practice Test

CFP Digital Payments & Financial Services 2