Study Guide

Answers to Review Questions
Chapter 1
A
144 March 2008 PayPal Certified Developer Program Study Guide
3. The following steps describe the payment authorization process. Indicate the correct order
of the steps by placing the step number to the left of each description.
4 Processor routes information to bank that issued customer’s credit card.
2 Merchant’s website receives customer information and sends it to payment
processing service.
7 Processing service sends results to merchant.
8 Merchant decides to accept or reject purchase.
1 Customer decides to purchase online and inputs credit card information.
6 Processor routes transaction results to payment processing service.
3 Processing service routes information to processor.
5 Issuing bank sends authorization (or declination) to processor.
4. The following steps describe the payment processing settlement process. Indicate the
correct order of the steps by placing the step number to the left of each description.
5 Acquiring bank credits merchant’s bank account.
1 Merchant informs the payment processing service to settle transactions.
3 Processor checks the information, and forwards settled transaction information to
the card association and card-issuing bank.
6 Issuing bank includes merchant’s charge on customer’s credit card account.
4 Transactions are settled to the card issuers and funds move between the acquiring
bank and issuing bank. Funds received for these transactions are sent to the
merchant’s bank account.
2 Payment processing service sends transactions to processor.
5. Finding a reliable, secure, and flexible payment processing solution is critical. What
features should a payment processing solution offer? (Select all that apply.)
X Backed by an established, trustworthy company
X Comply with Payment Card Industry (PCI) Data Security Standard
Store customer financial information in plain sight
X Authorize credit cards in real time
Based on a network that provides near real-time credit card transactions
X Scale rapidly and seamlessly as transaction volume increases
X Offer upgrade options to accommodate future growth
X Provide recurrent billing payment for service