Study Guide

PayPal Certified Developer Program Study Guide March 2008 19
Online Payment Processing
Review Questions
1
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.
_____ Processor routes information to bank that issued customer’s credit card.
_____ Merchant’s website receives customer information and sends it to payment
processing service.
_____ Processing service sends results to merchant.
_____ Merchant decides to accept or reject purchase.
_____ Customer decides to purchase online and inputs credit card information.
_____ Processor routes transaction results to payment processing service.
_____ Processing service routes information to processor.
_____ 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.
_____ Acquiring bank credits merchant’s bank account.
_____ Merchant informs the payment processing service to settle transactions.
_____ Processor checks the information, and forwards settled transaction information to
the card association and card-issuing bank.
_____ Issuing bank includes merchant’s charge on customer’s credit card account.
_____ 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.
_____ 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.)
_____ Backed by an established, trustworthy company
_____ Comply with Payment Card Industry (PCI) Data Security Standard
_____ Store customer financial information in plain sight
_____ Authorize credit cards in real time
_____ Based on a network that provides near real-time credit card transactions
_____ Scale rapidly and seamlessly as transaction volume increases
_____ Offer upgrade options to accommodate future growth
_____ Provide recurrent billing payment for service