230208 Mastercard Debit Card Chargebacks: Rules, Rights & Challenges - CB

Question Title

* 1. Which of the following most accurately defines the Mastercard dispute process and rules?

A process to get money back from a merchant and give it directly to a cardholder

The method of determining how much liability a cardholder has in a dispute situation

A means of potential recovery of funds for the card issuer paid by the acquirer/merchant, and following the rules prescribed by Mastercard

A process financial institutions use to collect payment from merchants who incorrectly handle transactions

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* 2. A Mastercard dispute (first chargeback) must generally be filed within what timeframes?

90 or 120 days of the transaction processing date

60 or 120 days of the authorization date

90 or 120 days of the authorization date

75 or 90 days of the transaction processing date

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* 3. A dispute resulting from a claim of defective merchandise requires which of the following:

Reporting the card as HOT prior to the chargeback submission

A documented good faith attempt by the cardholder to resolve the dispute directly with the merchant

A letter from the cardholder, or equivalent form, explaining the dispute details

Both ‘B’ and ‘C’ above

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* 4. Using Mastercard terminology, once an acquirer/merchant receives a chargeback/dispute from the issuer, it may be able to file _______________ of the transaction with supporting evidence.

Arbitration

A second presentment

A reversal

A return

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* 5. Generally, which type of transaction would meet the conditions to submit a fraud-related Mastercard dispute?

Merchant swiped the card and obtained a signature and valid authorization on a magnetic stripe only card

Merchant terminal read the chip and obtained a valid authorization

Cardholder key-entered the data via computer or mobile device, and the merchant obtained a valid authorization but does not support Mastercard SecureCode® or Identity Check

Merchant swiped the card and the PIN was authenticated with a valid authorization

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* 6. _______________ is considered a ‘best practice’ for dispute resolution within a financial institution.

Having written policies and procedures

Handling every dispute situation in exactly the same way

Immediately giving the cardholder his/her money back to avoid missing the applicable required deadline

Submitting a chargeback for every disputed transaction

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* 7. The ability to recover funds in a dispute situation varies mostly because of

The documentation a cardholder can provide

The dispute reason and the authorization data

The type of merchant at which the card was used

Both ‘a’ and ‘c’ above.

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* 8. Which of the following is untrue regarding a merchant’s authorization?

Evidence of card presence is needed to avoid chargebacks for face-to-face transactions

A merchant can help reduce fraud by utilizing address verification, CCV2, and other tools for card-not-present transactions

All face-to-face transactions require a cardholder signature or PIN

In the US authorization is required regardless of transaction amount

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* 9. _______________ is generally seen as the final step available within the Mastercard dispute cycle.

Issuer Pre-Arbitration or Acquirer Arbitration Case Filing

State or Federal court

Refund by the merchant/acquirer

Mediation

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* 10. A merchant’s second presentment must be accompanied by supporting documents called:

Evidentiary proof

Irrefutable evidence

Documents of record

Compelling evidence