Alternative Payment Methods a viable alternative to Cash & Cards

Alternative Payment Methods (or ‘APM’s’) are no longer considered as ‘alternatives. Consumers are attracted to the concept of choice as they feel like they have more control and power over their spending. It’s a way for consumers to purchase goods or services without traditional payment methods like cash or cards and include prepaid cards, e-wallets, bank transfers, and payment instalment options (i.e, buy now, pay later). So answer these 30 Questions to find out how much you really know about Alternative Payment Methods
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1. Which country is the leading Mobile Payments market by value?

USA

India

China

Australia

2. What is Apple’s mobile Payment platform called?

iPay

iMoney

Apple Pay

Bank of Apple

3. When a customer purchases an item via an online website using Android Pay, the responsibility for authentication lies with…

Android

The Online Website

The card issuer

The Merchant Acquirer

4. which of the following statements can be used to describe “man-in-the-middle” attacks?

A type of fraud that most often targets mobile payment systems

When hackers intercept financial information as it gets transmitted wirelessly, often for later use by fraudsters

possible when using a wireless network at a coffee shop your credit card, data is intercepted and used.

All of the Above

5. The pseudonym used by the author of the famous Bitcoin whitepaper is ____________?

Shigeru Miyamoto

Satoshi Nakamoto

Takuma Sato

Yukiya Arashiro

6. What role does the ‘Token Service’ play in Payment Tokenisation?

The Token service is responsible for trasnmitting the Tokens across an NFC interface

The Token Service is that entity or software responsible for creating, managing and detokenizing the Token PANs into Real PANs

The Token Service is named after the Token role it plays in the overall transaction

None of the above

7. Regulatory ____________ in countries like Singapore, UK and elswhere provide a ‘safe space’ where companies can test new FinTech services, in a controlled regulatory environment

Playgrounds

Sandcastles

Sandboxes

SeaWorlds

8. What has ‘Libra’ got to do with payments?

It’s Amazon’s online payment blog

It’s the name given to the decentralised digital currency consortium, led by Facebook

It’s a mobile app for online shopping that allows you to pay without using a card

It’s a means to purchase illegal goods and services, online and stands for “liberty”

9. Which statement(s) best describe a Payment Gateway Service Provider?

An entity that connects the online shop and other market participants such as banks or credit card acquirers

An online equivalent of a physical point of sale terminal

An e-commerce application service provider service that authorizes payments for e-businesses online retailers AND traditional brick and mortar businesses.

All of the above

10. What does the term API mean, when used in software development?

Application Programming Interface

Any Program Instructor

Area Police Instructor

All Policy Interface

11. Which statement(s) apply to online shopping carts, used by e-commerce websites?

Amazon created the first online shopping cart in 1997

Geoff Bezos, the founder of Amazon, owns patents on several key elements of the standard e-commerce payments process

Shopping carts allows online buyers to select items from an online store, prior to payment

A and C

12. Which statement best describes an e-Payment?

A method for purchasing goods and services, online or over the internet, without having to use a physical card or cash

A method using cloud-based software systems (such as Google) to process all your financial transactions

The proprietory method patented by Amazon to process payments through its online gateway

A method for paying bills, using a mobile phone or a QR code

13. Credit or debit card transactions in which the merchant does not handle the physical card are called

Card-not-Processed (CNP) transactions

Card-not-present (CNP) transactions

Could-not-pay (CNP) Transactions

Credit-not-possible (CNP) Transactions

14. What are the most important factors that a Merchant Acquirer should consider when setting up an online payment system?

Payment and Delivery

Customer Experience

Trust & Security

All of the Above

15. Which statement best describes the difference between Stored-Value cards and Prepaid Cards?

Stored Value are issued in the name of individual account holders, while Prepaid cards are anonymous

Prepaid cards are issued in the name of individual account holders, while stored value cards are anonymous

Prepaid cards are not branded, while stored value cards are branded

The former requires KYC the latter doesn’t

16. What does the legislative requirement outlined in PSD2, in summary, require Banks to do

Grant tax authorities access to customer data to ensure tax compliance

Allow Fintechs and Social Media providers, such as FaceBook and Twitter, access to customer profiles

Grant qualified access by Third Parties to Bank API’s to provide automated access to customer transaction accounts

Force banks to share customers financial data, even when its not in the customers best interests

17. Which of the following are considered alternative payment methods?

Cash

e-Wallets

TT’s (Telegraphic Transfers)

CNP (Card-Not-Present) Acceptance

18. What is VCPS and what does it refer to?

Very Clean Payment Specification – An Open-Source Specification for paying without adequate funds using contactless technology on the market today

Virtual Contactless Payment Specification – Mastercard Specification for Conducting contactless Payments over the Visa Network

Visa Contactless Payment Specification – A Visa specification defining requirements for conducting a payment Transaction over a contactless interface

Visa Contactless Payment Specification – A Visa Specification for cardless ATM withdrawals, in line with globally interoperable contactless Visa payWave software

19. Which of the following is NOT an online payment method?

Cash

PayPal

Credit/Debit Card

Amazon Pay

20. Which of the following are examples of Wallets (Check all that Apply)

Apple Pay

Android Pay

Visa Checkout

MasterPass

21. Which of the following statements describe ‘NFC’? (Check all that apply.)

Near Field Communication. A short-range contactless proximity technology

Near Field Communication. The standards derived from the EMV standards to establish radio communication between an account data holding device (eg. card/mobile) and a payment device (eg. POS)

Near Field Communication. A method of initiating payments, triggered by touching together or bringing two NFC payment capable devices into close proximity, usually no more than a few centimeters.

Not Found Communication. An alert sent out by the user, when no signal is available on a Mobile Phone

22. What is a QR code?

The QR Stands for “Quick Response”

It’s an oblong vertical barcode of lines and numbers, that can be easily scanned for price information

It’s used today in conjunction with smartphone cameras to obtain coupons and make purchases

A and C

23. Which of the following is NOT a Digital Wallet?

Google Pay

Apple Pay

Netflix

PayPal

24. Which of the following is current NOT a valid method of making purchases via your mobile?

QR Codes

NFC

Photo-tagging

CNP (Card-Not-Present) Acceptance

25. ____________ is/are beginning to reshape the financial services landscape by introducing new ways to instantly communicate and share information among international payment service providers, banks, and financial technology (FinTech) companies

APIs

Bitcoins and cryptocurrencies

Chatbots

Virtual Reality

26. What are generally considered the main driver(s) behind electronic payment growth?

Massive growth in Internet and Online Retailing as well as consumer demand for new forms of online payment

Banking Regulations that provide the legal framework for providers to offer alternative payment methods

Innovative payment methods introduced by Banks, Non-Banks (eg FinTech’s) and Payment Companies

All of the Above

27. A common payment acceptance device is called a PoS terminal. What does ‘PoS’ stand for?

Present or Sales

Possibly or Sometimes

Payment or Sign

Point of Sale

28. What is the difference between a payment service provider and a payment processor?

Payment Service Providers offer services to accept payments. Payment Processors facilitate all or most of the transaction

Payment Processors offer services to accept payments. Payment Service Providers facilitate all or most of the transaction

Both A and B

Neither A or B

29. Blockchain, also known as distributed ledger technology (DLT), can act as a complete and irrevocable record of all international payment transactions, offering full traceability.

TRUE

FALSE

Neither True nor False

None of the Above

30. What role does a payment processor play in the processing and handing of transactions?

The payment processor processes transactions across a number of channels, for CardHolder Issuing Banks

A payment processor authorises payment instructions on behalf of participant card schemes

A payment processor processes the risk and compliance side of the transaction, on behalf of CardHolder Issuing Banks and Merchant Acquiring Banks

A payment processor may process transactions across multiple channels, for merchant acquiring banks