CES Payment Processing & Security 1 — Questions and Answers
Question 1: What does PCI DSS stand for in the context of ecommerce payment security?
- Payment Card Industry Data Security Standard (Correct answer)
- Private Customer Information Data Safety System
- Protected Commerce Industry Digital Security Standard
- Payment Compliance Internet Data Security System
Correct answer: Payment Card Industry Data Security Standard
PCI DSS stands for Payment Card Industry Data Security Standard, a set of security standards designed to protect card information during and after financial transactions.
Question 2: Which PCI DSS compliance level applies to merchants processing more than 6 million card transactions per year?
- Level 1 (Correct answer)
- Level 2
- Level 3
- Level 4
Correct answer: Level 1
PCI DSS Level 1 applies to merchants processing over 6 million card transactions annually and requires an annual on-site audit by a Qualified Security Assessor.
Question 3: What is tokenization in ecommerce payment processing?
- Replacing sensitive card data with a non-sensitive placeholder value (Correct answer)
- Encrypting the entire checkout page with SSL
- Splitting payments across multiple processors
- Converting foreign currencies at checkout
Correct answer: Replacing sensitive card data with a non-sensitive placeholder value
Tokenization replaces sensitive payment card data with a unique identifier (token) that has no exploitable value if intercepted.
Question 4: Which fraud prevention tool analyzes the physical location of a customer's IP address against their billing address?
- Geolocation verification (Correct answer)
- CVV matching
- 3D Secure
- Address tokenization
Correct answer: Geolocation verification
Geolocation verification cross-references a customer's IP address location with their stated billing address to flag potentially fraudulent orders.
Question 5: What is a chargeback in ecommerce?
- A reversal of a payment initiated by the cardholder's bank (Correct answer)
- A fee charged by the payment gateway for processing
- A refund issued directly by the merchant
- A penalty for exceeding monthly transaction limits
Correct answer: A reversal of a payment initiated by the cardholder's bank
A chargeback occurs when a cardholder disputes a transaction and their bank forcibly reverses the charge, often resulting in a fee for the merchant.
Question 6: Which authentication protocol adds an extra layer of security during online card transactions by redirecting customers to their bank for verification?
- 3D Secure (Correct answer)
- SSL/TLS
- OAuth 2.0
- HMAC
Correct answer: 3D Secure
3D Secure (e.g., Visa Secure, Mastercard Identity Check) redirects the cardholder to their issuing bank for an additional authentication step during checkout.
CES Payment Processing & Security 1
What does PCI DSS stand for in the context of ecommerce payment security?