230315 Visa Debit Card Chargebacks: Rules, Rights & Challenges - CU

Question Title

* 1. Which of the following most accurately defines the Visa dispute resolution/chargeback process and rules?

A process to get money back from a merchant to give to 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 Visa

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

Question Title

* 2. Chargebacks resulting from cardholder dissatisfaction with a merchant require 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

All of the above

Only ‘B’ and ‘C’ above

Question Title

* 3. Using Visa terminology and related to a Collaboration Group reason, once an acquirer/merchant receives a dispute from the issuer, it may be able to file _______________ on the transaction with supporting evidence.

Pre-arbitration or a dispute response

A return or resubmission

A reposting or review case

A representment or mediation case

Question Title

* 4. Generally, which type of transaction would meet the conditions to submit a fraud-related Visa 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 signature and valid authorization

Cardholder key-entered the data and the eCommerce merchant did not use Visa Secure, but did obtain a valid authorization

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

Question Title

* 5. _______________ 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 chargebacks as quickly as possible after the cardholder disputes a transaction

Question Title

* 6. 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

The amount of the transaction

Question Title

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

All face-to-face transactions require a magnetic stripe swipe, chip read or imprint

A merchant can help reduce fraud by utilizing address verification, CVV2, 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

Question Title

* 8. _______________ is generally seen as the final step available to either side, issuer or acquirer/merchant, in the Visa dispute resolution process.

Arbitration

State or Federal court

Representment

Mediation

Question Title

* 9. Regarding the Allocation Group reasons, a merchant may proceed with pre-arbitration within _______________ of the dispute filing date in the Visa system.

120 days

90 days

45 days

30 days

Question Title

* 10. The Collaboration Group of Visa dispute conditions include

‘Declined authorization’ and ‘no authorization’

Dispute reasons related to a consumer’s dissatisfaction with merchandise or services and merchant processing errors

Dispute reasons used to resolve claims involving more than one Visa region

Dispute reasons related to a cardholder’s claim of fraud or unauthorized use of the card