ICTM- Payment Gateways

What are some common security protocols used by payment gateways to ensure secure transactions?

• Base64 encoding

• TLS, SSL, PCI DSS compliance, tokenization, end-to-end encryption

• MD5 encryption

• SHA-1 hashing

Answer explanation

Payment gateways use TLS, SSL, PCI DSS compliance, tokenization, and end-to-end encryption to ensure secure transactions.

Explain how transaction fees are calculated by payment gateways.

• Transaction fees are calculated based on the number of emojis in the transaction description

• Transaction fees are calculated based on a percentage of the transaction amount and sometimes a fixed fee per transaction.

• Transaction fees are calculated based on the phase of the moon

• Transaction fees are calculated based on the weather forecast

Answer explanation

Transaction fees are calculated based on a percentage of the transaction amount and sometimes a fixed fee per transaction.

Describe the different user authentication methods employed by payment gateways.

• Pattern authentication

• SMS authentication

• Face recognition authentication

• Password authentication, two-factor authentication (2FA), biometric authentication, token-based authentication, OAuth

Answer explanation

The correct choice includes password authentication, two-factor authentication (2FA), biometric authentication, token-based authentication, and OAuth as user authentication methods employed by payment gateways.

How do payment gateways integrate with e-commerce platforms to facilitate online transactions?

• Through carrier pigeons delivering payment information

• By telepathically transferring payment details

• By sending physical checks in the mail

• Through APIs and secure data transmission

Answer explanation

Payment gateways integrate with e-commerce platforms through APIs and secure data transmission, not carrier pigeons, telepathy, or physical checks.

What is the role of a payment processor in the payment gateway ecosystem?

• Payment processors are responsible for customer service in the payment gateway ecosystem

• The role of a payment processor is to design the payment gateway interface

• The role of a payment processor in the payment gateway ecosystem is to securely transmit transaction data, verify details, process payments, and facilitate fund transfers.

• Payment processors handle marketing and promotional activities for the payment gateway

Answer explanation

The role of a payment processor in the payment gateway ecosystem is to securely transmit transaction data, verify details, process payments, and facilitate fund transfers.

Differentiate between a payment gateway and a payment processor.

• A payment gateway authorizes transactions, while a payment processor actually processes the transaction.

• A payment gateway processes transactions, while a payment processor authorizes transactions.

• A payment gateway is software-based, while a payment processor is hardware-based.

• A payment gateway encrypts data, while a payment processor decrypts data.

Answer explanation

A payment gateway authorizes transactions, while a payment processor actually processes the transaction.

How do payment gateways protect sensitive customer data during transactions?

• By using weak passwords for authentication

• By sharing data openly with third-party vendors

• By encrypting data, tokenizing information, and implementing strict security measures.

• By storing data in plain text format

Answer explanation

Payment gateways protect sensitive customer data during transactions by encrypting data, tokenizing information, and implementing strict security measures.

Explain the concept of 3D Secure authentication in the context of payment gateways.

• 3D Secure authentication is an additional security layer for online credit and debit card transactions, requiring the cardholder to enter a password or code to verify their identity.

• 3D Secure authentication is a feature that allows users to skip the verification step for faster transactions

• 3D Secure authentication involves sharing personal information on social media platforms

• 3D Secure authentication is only applicable to in-person transactions

Answer explanation

3D Secure authentication is an additional security layer for online credit and debit card transactions, requiring the cardholder to enter a password or code to verify their identity.

What factors should businesses consider when choosing a payment gateway for their e-commerce website?

• Color of the payment gateway

• Transaction fees, security features, integration options, customer support, and compatibility with e-commerce platform.

• Weather forecast for the day

• Number of social media followers

Answer explanation

Businesses should consider transaction fees, security features, integration options, customer support, and compatibility with e-commerce platform when choosing a payment gateway.

What is the significance of API integration for payment gateways?

• API integration for payment gateways causes system crashes

• API integration for payment gateways enables seamless communication between systems, secure transaction processing, enhanced user experience, and flexibility in payment options.

• API integration for payment gateways limits payment options

• API integration for payment gateways leads to increased transaction fees

Answer explanation

API integration for payment gateways enables seamless communication between systems, secure transaction processing, enhanced user experience, and flexibility in payment options.