Ecommerce Ecommerce Payments and Security 2

Question 1

Which payment method allows customers to buy now and pay in installments, often interest-free?

Accepted Answer

Buy Now Pay Later (BNPL)

Answer

BNPL services (e.g., Afterpay, Klarna, Affirm) split a purchase into installment payments, often with no interest if paid on time.

Question 2

What is tokenization in ecommerce payment processing?

Accepted Answer

Replacing sensitive card data with a randomly generated token for storage

Answer

Tokenization replaces actual card numbers with a unique, non-sensitive token, reducing risk if the merchant's database is breached.

Question 3

What is the CVV/CVC code on a credit card primarily used for?

Accepted Answer

To verify the physical card is present during card-not-present transactions

Answer

The CVV/CVC is a 3-4 digit security code that helps verify the customer physically possesses the card during online purchases.

Question 4

What does a merchant account do in the ecommerce payment flow?

Accepted Answer

Holds funds from card transactions before they are transferred to the merchant's bank

Answer

A merchant account is a specialized bank account that temporarily holds authorized transaction funds before settling to the business's bank.

Question 5

Which US regulation governs how ecommerce businesses must handle consumer financial data and privacy?

Accepted Answer

GLBA (Gramm-Leach-Bliley Act)

Answer

The GLBA requires financial institutions, including some ecommerce operators, to safeguard customers' private financial information.

Ecommerce Practice Test