charge authorizer Interview Questions and Answers

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Charge Authorizer Interview Questions and Answers

  1. What is a charge authorization?

    • Answer: A charge authorization is a process where a merchant verifies that a customer's payment card has sufficient funds and the card is not reported lost or stolen before processing a transaction.

  2. Explain the difference between authorization and settlement.

    • Answer: Authorization is the pre-approval of a transaction, verifying the card's validity. Settlement is the final transfer of funds from the customer's account to the merchant's account.

  3. What are the different types of charge authorizations?

    • Answer: Common types include online authorizations (e.g., via a payment gateway), phone authorizations (calling the card issuer), and manual authorizations (rarely used, involves direct communication with the card issuer).

  4. What is a declined authorization? What are the common reasons?

    • Answer: A declined authorization means the card issuer refused to approve the transaction. Reasons include insufficient funds, incorrect card information, card reported lost or stolen, suspected fraud, exceeding credit limit, or the card being expired.

  5. How do you handle a declined authorization?

    • Answer: Verify card details, check for errors, inform the customer politely, try alternative payment methods, and document the decline with reason codes.

  6. What are some common authorization response codes? What do they mean?

    • Answer: This varies by payment processor, but common codes might indicate approval, decline, insufficient funds, invalid card number, etc. The specific meaning should be found in the processor's documentation.

  7. What is a "card present" transaction? "Card not present"?

    • Answer: "Card present" means the physical card is swiped or inserted into a terminal. "Card not present" means the card details are entered manually, like online or over the phone.

  8. What security measures are involved in charge authorization?

    • Answer: Encryption of card details, adherence to PCI DSS standards, fraud detection systems, CVV2/CVC2 verification, address verification, and 3D Secure authentication (like Verified by Visa or Mastercard SecureCode).

  9. What is PCI DSS compliance? Why is it important?

    • Answer: PCI DSS (Payment Card Industry Data Security Standard) is a set of security standards designed to protect credit card information. It's crucial to prevent fraud and maintain customer trust.

  10. How do you handle a potential fraudulent transaction?

    • Answer: Decline the transaction, report it to the appropriate authorities (e.g., the card issuer and law enforcement), and follow company procedures for handling fraud.

  11. What is AVS (Address Verification System)?

    • Answer: AVS compares the billing address provided by the cardholder with the address on file with the card issuer to help prevent fraud.

  12. What is CVV2/CVC2?

    • Answer: CVV2 (Card Verification Value 2) or CVC2 (Card Verification Code 2) is a three- or four-digit security code printed on the back (or front for American Express) of credit and debit cards to verify card ownership.

  13. What are some common reasons for a "do not honor" response?

    • Answer: This generally indicates the card issuer will not honor the transaction due to various reasons, often related to the card's status (e.g., lost, stolen, expired) or insufficient funds.

  14. What is a chargeback? How do you prevent them?

    • Answer: A chargeback is when a customer disputes a transaction with their bank, resulting in the merchant losing the funds. Prevention involves clear and accurate transaction documentation, strong customer service, and complying with all relevant regulations.

  15. Explain the importance of accurate record-keeping in charge authorization.

    • Answer: Accurate records are essential for reconciling transactions, handling disputes (chargebacks), auditing, and complying with regulatory requirements.

  16. What is your experience with different payment gateways or processing systems?

    • Answer: (Candidate should list specific gateways like Stripe, PayPal, Authorize.Net, etc., and detail their experience with each.)

  17. How familiar are you with different card networks (Visa, Mastercard, American Express, Discover)?

    • Answer: (Candidate should demonstrate understanding of each network's rules and procedures.)

  18. Describe your experience with customer service in a payment processing environment.

    • Answer: (Candidate should detail their skills in handling customer inquiries, complaints, and resolving issues related to payment authorizations.)

  19. How do you handle high-pressure situations, such as a large volume of transactions during peak hours?

    • Answer: (Candidate should describe their ability to prioritize tasks, maintain composure, and work efficiently under pressure.)

  20. What are your strengths and weaknesses as a charge authorizer?

    • Answer: (Candidate should provide honest self-assessment, focusing on relevant skills and areas for improvement.)

  21. Why are you interested in this charge authorizer position?

    • Answer: (Candidate should explain their interest, highlighting relevant skills and career goals.)

  22. What are your salary expectations?

    • Answer: (Candidate should provide a realistic salary range based on research and experience.)

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