Ecommerce Ecommerce Payment & Security 1 — Questions and Answers
Question 1: Which payment card industry standard must US ecommerce merchants comply with to protect cardholder data?
- PCI DSS (Correct answer)
- GDPR
- HIPAA
- SOX
Correct answer: PCI DSS
PCI DSS (Payment Card Industry Data Security Standard) is the mandatory compliance framework for any merchant that stores, processes, or transmits cardholder data.
Question 2: What does SSL/TLS encryption protect in an ecommerce transaction?
- Data in transit between browser and server (Correct answer)
- Data stored in the database
- Email marketing campaigns
- Product inventory counts
Correct answer: Data in transit between browser and server
SSL/TLS encrypts data as it travels between the customer's browser and the web server, preventing interception by third parties.
Question 3: What is a payment gateway's primary function in ecommerce?
- Securely transmitting transaction data between the customer, merchant, and bank (Correct answer)
- Storing customer passwords
- Generating product recommendations
- Processing shipping labels
Correct answer: Securely transmitting transaction data between the customer, merchant, and bank
A payment gateway authorizes and securely routes transaction data between the shopper, the merchant's site, and the acquiring bank.
Question 4: Which fraud prevention tool analyzes hundreds of data points in real time to score the risk level of a transaction?
- Fraud scoring / machine learning model (Correct answer)
- SSL certificate
- CDN
- Shopping cart software
Correct answer: Fraud scoring / machine learning model
Real-time fraud scoring engines use machine learning to evaluate signals like IP address, device fingerprint, and purchase history to flag risky orders.
Question 5: What is 3D Secure (3DS) used for in online payments?
- Adding an extra authentication step to verify the cardholder's identity (Correct answer)
- Encrypting product images
- Processing refunds automatically
- Routing orders to warehouses
Correct answer: Adding an extra authentication step to verify the cardholder's identity
3D Secure adds an authentication layer — such as a one-time password — to verify the cardholder during checkout and reduce chargebacks.
Question 6: Which of the following best describes a chargeback in ecommerce?
- A reversal of a credit card transaction initiated by the customer's bank (Correct answer)
- A discount applied at checkout
- A refund issued directly by the merchant
- A tax collected on digital goods
Correct answer: A reversal of a credit card transaction initiated by the customer's bank
A chargeback occurs when a cardholder disputes a charge with their bank, which then forcibly reverses the transaction and debits the merchant.
Ecommerce Ecommerce Payment & Security 1
Which payment card industry standard must US ecommerce merchants comply with to protect cardholder data?