CRCT - Certified Revenue Control Technician Transaction and Payment Processing Questions and Answers — Questions and Answers
Question 1: A retail merchant processes approximately 2 million credit card transactions annually. According to the Payment Card Industry Data Security Standard (PCI DSS), which of the following is the primary requirement for this merchant to validate their compliance?
- Completing an annual Report on Compliance (ROC) by a Qualified Security Assessor (QSA).
- Submitting to quarterly network scans by an Approved Scanning Vendor (ASV) only.
- Completing an annual Self-Assessment Questionnaire (SAQ). (Correct answer)
- Undergoing a mandatory on-site audit by the major card brands.
Correct answer: Completing an annual Self-Assessment Questionnaire (SAQ).
Merchants are categorized into levels based on their transaction volume. A merchant processing 1 to 6 million transactions annually is classified as a Level 2 merchant. The primary requirement for Level 2 merchants is to complete an annual Self-Assessment Questionnaire (SAQ) to self-evaluate their PCI DSS compliance. While quarterly scans and other measures are also required, the SAQ is the core validation method for this level.
Question 2: A customer service representative at a mid-sized company receives a call from a customer disputing a charge on their credit card statement, claiming they never received the merchandise. This initiates a chargeback process. What is the company's first course of action upon receiving the chargeback notification?
- Immediately issue a full refund to the customer to maintain good will.
- Contact the customer directly to offer a discount on a future purchase.
- Ignore the notification as these are typically resolved by the bank.
- Review the transaction details and gather evidence to dispute the chargeback if it's deemed legitimate. (Correct answer)
Correct answer: Review the transaction details and gather evidence to dispute the chargeback if it's deemed legitimate.
When a merchant receives a chargeback, the first step is to investigate the claim. This involves reviewing transaction records, shipping confirmations, and any communication with the customer. If the merchant has compelling evidence that the transaction was valid and the merchandise was delivered, they can dispute the chargeback. Immediately refunding without investigation can lead to unnecessary losses, especially in cases of 'friendly fraud'.
Question 3: To ensure strong internal controls over cash receipts and prevent fraud, which of the following practices is most effective?
- Assigning one trusted employee to handle all aspects of cash transactions, from receipt to deposit.
- Making bank deposits on a weekly basis to minimize trips to the bank.
- Segregating duties so that different individuals are responsible for receiving, recording, and reconciling cash. (Correct answer)
- Using a single-part receipt book to record all cash sales.
Correct answer: Segregating duties so that different individuals are responsible for receiving, recording, and reconciling cash.
Segregation of duties is a fundamental principle of internal control. By dividing the responsibilities for cash handling (receiving payments), record-keeping (applying payments), and reconciliation (comparing deposits to records), a company creates a system of checks and balances that significantly reduces the risk of fraud and error. Assigning all tasks to one person creates a significant opportunity for misappropriation.
Question 4: A revenue control technician is performing a daily reconciliation of credit card transactions. They notice that the total amount deposited into the company's bank account from the payment processor is less than the total sales recorded in the point-of-sale (POS) system for that day. Which of the following is the most likely reason for this discrepancy?
- An error in the POS system overstating the sales figures.
- The deduction of processing fees by the payment processor. (Correct answer)
- A delay in the settlement of funds from the processor to the bank.
- Unauthorized discounts given by a cashier.
Correct answer: The deduction of processing fees by the payment processor.
Payment processors charge fees for their services, which are typically deducted from the batch of transactions before the net amount is deposited into the merchant's account. This is a very common reason for differences between gross sales and net deposits during reconciliation. While the other options are possible, processing fees are an expected and regular part of the process.
Question 5: Which of the following describes 'Card-Not-Present' (CNP) fraud?
- An employee stealing cash from the register and covering it with fraudulent voids.
- A fraudster using a physical, counterfeit credit card at a retail store.
- A customer disputing a legitimate charge after receiving the goods or services.
- A criminal using stolen credit card information to make purchases online or over the phone. (Correct answer)
Correct answer: A criminal using stolen credit card information to make purchases online or over the phone.
Card-Not-Present (CNP) fraud occurs when a transaction is made without the physical card being present, such as in e-commerce or telephone orders. Criminals use stolen card numbers, expiration dates, and security codes to make unauthorized purchases.
Question 6: A company is implementing a new system for processing customer payments received by mail. To strengthen internal controls, they decide to use a lockbox system. How does a lockbox system improve control over cash receipts?
- It eliminates the need for daily bank deposits.
- It allows the accounts receivable clerk to have direct access to customer payments for faster processing.
- It directs customer payments to a post office box controlled by the bank, which reduces employee access to cash. (Correct answer)
- It automatically reconciles payments with customer invoices without human intervention.
Correct answer: It directs customer payments to a post office box controlled by the bank, which reduces employee access to cash.
A lockbox system is an internal control where customers mail their payments directly to a post office box that is managed by the company's bank. The bank then collects and deposits the payments directly into the company's account. This system significantly improves security by preventing company employees from having direct access to the cash and checks, thereby reducing the risk of theft or misappropriation.
CRCT - Certified Revenue Control Technician Transaction and Payment Processing Questions and Answers
A retail merchant processes approximately 2 million credit card transactions annually.
According to the Payment Card Industry Data Security Standard (PCI DSS), which of the following is the primary requirement for this merchant to validate their compliance?