Payments 4.x – Final Assessment in T-factor (Tfactor)

Payments 4.x – Final Assessment Questions & Answers by increasing T-factor Rating / iEvolve points….

The following are the multiple choices Payments 4.x – Final Assessment Questions & Answers – increasing T-factor Rating / iEvolve points.

Payments 4.x – Final Assessment to increase T-factor Rating / iEvolve points

What was the primary factor that drove retailers to upgrade their point-of-sale hardware ?

• The adoption of Near Field Communication (NFC) technology
• The associated increase in security
• The introduction of contactless point-of-sale terminals
• The adoption of EMV chip technology

What type of transactions is 3-D Secure 2.0 designed to protect ?

• Cash transactions
• On-site transactions
• Card-not-present (CNP) transactions
• ATM transactions

Which type of payment is associated with digital wallets and mobile payments ?

• E-money
• Credit card
• Check
• Cash

What is the most significant effect of advancements in biometric technology on consumer perceptions of payment processing security issues ?

• Consumers perceive payment processing as more secure overall.
• E-commerce, in-app, mobile wallet, and MOTO payment methods are no longer supported.
• Biometric screening technologies are seen as more user-friendly and secure than other identity verification techniques.
• Consumers are less likely to use biometric technology for payment processing.

What is causing the acceleration of digital payments adoption by customers ?

• The rising popularity of direct debits
• The COVID-19 pandemic
• A decrease in the number of physical retail locations.
• A lack of trust in traditional banks.

What is Digital ID used for in the wired world of 2022 ?

• To protect against online scams
• To ensure a frictionless customer experience
• To remote identification and authentication
• To provide access to digital content

How do Peer-to-Peer (P2P) apps like Venmo and Cash App allow two parties to complete a transaction ?

• Almost instantly without the need for account information
• With a physical credit card for in-person transactions
• By entering numbers when making purchases online
• They do not require any information

What is FedNow ?

• A government- to-citizen (G2C) transaction technology.
• A peer- to-peer (P2P) transaction technology.
• A real-time payment and settlement service for individuals and businesses.
• A B2B transaction technology.

What is the RTP network introduced by The Clearing House in 2017 ?

• An immediate fund disbursement and settlement system.
• A platform for banks and other financial institutions which enables them to develop and offer cutting-edge goods and services.
• A way for federally insured depository institutions to clear and settle payments in real time.
• A way to enhance the speed of conventional ACH payments.

What has become more sophisticated due to the popularity of contactless payments ?

• Payment software
• Unattended retail terminals
• EMV technology
• Large retailers

What are the payment types that can be made using the Federal Reserve Bank’s new FedNow real-time payment and settlement service ?

• Cash payments
• B2B, B2C, C2B, P2P, G2C, and A2A
• Check payments
• Credit card payments

What is the RTP network used for ?

• Developing and offering goods and services to clients.
• Enhancing the speed of conventional payments.
• Clearing and settling payments in real time.
• Allowing federally insured depository institutions to access the network.

What is a major reason for the increasing acceptance of contactless payments ?

• Increased health risks at the checkout
• Speed and convenience
• Increase in global pandemic
• To avoid physical contact

What happens to the interchange charge after it is deducted ?

• The interchange charge is forwarded by the acquiring bank to the cardholder’s issuing bank.
• The funds are transferred to the cardholder’s issuing bank.
• The interchange charge is transmitted to the credit card network for settlement.
• The funds are transmitted from the issuing bank to the merchant’s acquiring bank.

Why do customers prefer the pairing of big tech and banking ?

• It offers better interest rates for customers.
• It helps them save time and money while giving them a sense of control over their finances.
• It provides higher security for financial transactions.
• It makes the process of making payments simpler.

What information is required when making a peer-to-peer transaction ?

• Credit card information
• Account numbers
• A name, email address, or phone number.
• Payment processor details

What needs to be done to provide a frictionless customer experience in the Payments 4.X era ?

• Increase the processing time of payments.
• Add more steps to the authentication process.
• Implement stricter ID requirements
• Overhaul the authentication process

The interchange fee is taken out before the funds are transmitted to the merchant’s acquiring bank ?

• The interchange fee is taken out from the acquiring bank
• The interchange fee is not applicable in this situation
• Yes
• No, the interchange fee is taken out afterwards

Which payments instrument mix is becoming more popular among customers ?

• Instant and e-money payments
• Cash, checks, direct debits, and credit transfers
• Traditional credit cards
• None of the above

Which of the following can be used to make payments for purchases ?

• Smart speakers
• Wristbands
• Smartwatches
• Smartphones

What is capture in the context of the agreement process ?

• A Process by which the payment processor sends information to the acquiring bank.
• The process by which customers pay for goods and services they have purchased.
• The process by which the merchant starts the transfer of money to their account.

What is 3-D Secure 2.0 ?

• An encryption method for digital payments.
• An authentication process for online purchases.
• A security protocol that adds an extra layer of security to card-not-present (CNP) transactions.
• A system that verifies customer’s identity.

What technology are almost all POS terminals using today ?

• Sophisticated software
• Unattended retail terminals
• EMV technology
• Contactless payments

What is the impact of mergers and acquisitions on the payments sector ?

• It limits payment options.
• It reduces the impact of payment technology businesses.
• It contributes to the continued evolution of the payments sector.
• None of the above

What happens if the credit card transaction is approved by the issuing bank ?

• The payment processor sends approval to the buying bank.
• The credit card network forwards the transaction to the cardholder’s bank for approval.
• The merchant’s terminal prints a receipt for the customer to sign.
• The issuing bank assigns an authorization code and holds the funds.

Who sends the approval to the merchant’s payment processor after the transaction has been approved by the issuing bank ?

• The merchant’s terminal
• The buying bank
• The cardholder’s bank
• The credit card network

What is the process called when the cardholder’s bank approves or denies a transaction based on the availability of funds and the status of the cardholder’s account ?

• Authentication
• Authorization
• Validation
• Verification

What is driving the development of payment propositions that are specifically tailored to customers ?

• A lack of interest in traditional payment options.
• The increasing influence of banks.
• Government regulations
• The rising propensity of retail customers to share their data with non-banks.

With what type of organizations are payment technology businesses combining to adapt to the newest client and merchant demands ?

• Existing banking institutions
• Healthcare institutions
• Non-profit organizations
• Educational institutions

Which of the following is true about fintech ?

• Accessibility of fintech is currently unavailable.
• Fintech has attained mass adoption.
• Apple, Amazon, and other tech giants are unable to meet demand.
• Traditional financial institutions are better able to meet demand than tech giants.

The above multiple choices is only for Payments 4.x – Final Assessment Questions & Answers – increasing T-factor Rating / iEvolve points