Study Guide
Table Of Contents
- PayPal Certified Developer Program Study Guide
- Contents
- List of Tables
- Online Payment Processing
- Internet Security and Fraud Prevention
- Why Every Business Should Be Concerned About Internet Fraud
- Liability for Internet Fraud
- Internet Fraud: What It Is and How It Happens
- Who Is at Risk for Online Fraud
- Reducing Exposure to Fraud
- What Banks and Card Associations Are Doing to Prevent Online Credit Card Fraud
- What PayPal Is Doing to Protect Your Business Against Fraud
- Disclosure and Compliance
- PayPal Fraud Protection Services
- Review Questions
- Getting Started With Account Setup
- API Credentials
- Name-Value Pair (NVP) API
- Express Checkout
- Direct Payment API
- Transactions
- Sandbox Testing
- Answers to Review Questions
- General Reference Information
- Glossary
- Index
PayPal Certified Developer Program Study Guide March 2008 143
A
Answers to Review Questions
Chapter 1
1. Indicate if each statement is True (T) or False (F).
T The most critical step in establishing an online store is ensuring that you can accept
customer payments for single or repeated transactions.
F Correct answer: According to Cybersource Corp., businesses lost nearly $2.8 billion
USD to online fraud in 2005, up from $2.8 billion USD in 2004.
T The payment processing network connects buyers, sellers, and banks to enable the
secure and reliable execution of online transactions.
T By providing affordable payment connections among merchants, customers, and
financial networks, PayPal’s solutions take advantage of the latest technical
resources to streamline transactions, while helping to prevent fraud.
2. Match each participant in the payment processing network to the role they perform.
Response Participant Role Performed
3 Merchant 1. The holder of the payment instrument.
1 Customer 2. A financial institution that provides credit card
services in concert with credit card associations such
as Visa and MasterCard.
6 Customer Issuing Bank 3. Someone who sells goods or services.
5 Acquiring Bank 4. A large data center that processes credit card
transactions and settles funds for merchants.
2 Credit Card Association 5. An institution that provides merchant accounts
required to enable online card authorization and
payment processing.
4 Processor 6. The institution providing the customer’s credit card.