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
Online Payment Processing
Review Questions
1
18 March 2008 PayPal Certified Developer Program Study Guide
Review Questions
Answers to review questions are in Appendix A, “Answers to Review Questions.”
1. Indicate if each statement is True (T) or False (F).
_____ The most critical step in establishing an online store is ensuring that you can accept
customer payments for single or repeated transactions.
_____ According to Cybersource Corp., businesses lost nearly $2.8 billion USD to online
fraud in 2005, down from $3.0 billion USD in 2004.
_____ The payment processing network connects buyers, sellers, and banks to enable the
secure and reliable execution of online transactions.
_____ 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
Merchant 1. The holder of the payment instrument.
Customer 2. A financial institution that provides credit card
services in concert with credit card associations such
as Visa and MasterCard.
Customer Issuing Bank 3. Someone who sells goods or services.
Acquiring Bank 4. A large data center that processes credit card
transactions and settles funds for merchants.
Credit Card Association 5. An institution that provides merchant accounts
required to enable online card authorization and
payment processing.
Processor 6. The institution providing the customer’s credit card.