E-Commerce Development Payment Processing 5

Question 1

What is the key advantage of using a payment orchestration layer in a multi-processor e-commerce setup?

Accepted Answer

It enables intelligent routing to optimize approval rates and costs across multiple PSPs

Answer

A payment orchestration layer routes transactions to the optimal processor based on approval rates, fees, and geography, improving overall payment performance.

Question 2

What is the purpose of the `idempotency-key` header in payment API requests?

Accepted Answer

To ensure a retried request does not create a duplicate transaction

Answer

An idempotency key is a unique value sent with a request so the API can detect and return the result of a prior identical request instead of processing it again.

Question 3

Which data format do most modern payment processor APIs use for request and response bodies?

Accepted Answer

JSON over REST

Answer

Modern payment APIs like Stripe, Braintree, and Adyen use JSON over RESTful HTTP endpoints as their primary communication format.

Question 4

What is 'network tokenization' in card payments and how does it differ from gateway tokenization?

Accepted Answer

Network tokenization is issued by Visa/Mastercard and works across processors; gateway tokenization is processor-specific

Answer

Network tokens are issued by card networks (Visa, Mastercard) and are portable across acquirers, while gateway tokens are specific to one payment processor.

Question 5

What does a 'dispute ratio' threshold violation by a merchant typically result in?

Accepted Answer

Placement in a card network's chargeback monitoring program with potential account termination

Answer

Visa and Mastercard monitor dispute ratios and place merchants exceeding thresholds in programs like VDMP or MATCH, which can lead to fines and account termination.

E-Commerce Development Practice Test

E-Commerce Development Practice Test

E-Commerce Development Payment Processing 5