CPP CPP Card Networks & Interchange 2

Question 1

What is a chargeback in card payment processing?

Accepted Answer

A forced transaction reversal initiated by the issuing bank on behalf of the cardholder

Answer

A chargeback is a forced reversal of a card transaction initiated by the issuing bank, typically when a cardholder disputes a charge.

Question 2

What is the typical timeframe a cardholder has to dispute a transaction and initiate a chargeback under Visa rules?

Accepted Answer

120 days from transaction date

Answer

Under Visa rules, cardholders generally have up to 120 days from the transaction date (or expected delivery date for goods) to file a dispute.

Question 3

What is an Issuer in the card payment ecosystem?

Accepted Answer

The bank or financial institution that provides payment cards to consumers

Answer

An Issuer (issuing bank) is the financial institution that provides payment cards to consumers and extends credit or manages funds on their behalf.

Question 4

What is EMV technology and what problem does it primarily solve?

Accepted Answer

Chip-and-PIN card technology that reduces counterfeit card fraud at point of sale

Answer

EMV (Europay, Mastercard, Visa) chip technology generates a unique transaction code for each purchase, making counterfeit card fraud at the point of sale much more difficult.

Question 5

What is the liability shift associated with EMV chip card adoption?

Accepted Answer

Liability for counterfeit card fraud shifts to the party that has not adopted EMV technology

Answer

The EMV liability shift means that if a chip card is used at a non-chip terminal, liability for counterfeit fraud shifts from the issuer to the merchant/acquirer.

CPP - Certified Payment Professional Practice Test

CPP - Certified Payment Professional Practice Test

CPP CPP Card Networks & Interchange 2