NAPCP - CPCP Certification || 100% Verified Answers.
End-users are correct answers the companies, government agencies, universities/colleges, etc
that provide P-Cards to their employees.
P-Card program managers(PM), program administrator(PA), and/or site coordinator (SC) are
correct answers the primary roles that manage a P-Card program within an end-users
organization.
Cardholders are correct answers those who initiate P-Card transactions on behalf of their
employer, the end-user organization.
Suppliers are correct answers those who accept P-Cards as payment for goods and services.
Issuers are correct answers those who work directly with end-users to implement and grow
programs, issue cards, and invoice posted P-Card transactions.
True or False:
The issuer uses the services of the networks and processors to faciliate card issuance, authorize
transactions, and provide date. Many financial institutions are not issuers. Issuers are sometimes
called card "providers" correct answers False: Many financial institutions are issuers. USBANK
and JP Morgan Chase are examples.
Merchant acquirers are correct answers those who enroll suppliers in the card acceptance process
and implement equipment and software solutions related to this purpose. They facilitate payment
flow including payment to suppliers.
What is also known as a supplier's bank? correct answers Merchant acquirers
What is also known as card providers? correct answers Issuers
What is a purchasing card? correct answers It is a type of commercial credit card used by
organizations for the payment of goods and services.
Why were P-Cards created? correct answers A financial re-engineering tool to streamline
accounts payable processes, typically replacing paper checks as the payment method for low-
value transactions.
Which is not a benefit of using the P-Card?
a. procure in a timely manner
b. take advantage of supplier discounts
c. convenience fee
d. reduce transaction costs
e. track expenses correct answers c. convenience fee
,Networks are correct answers used to facilitate the movement of transactional data between the
issuer and the merchant acquirer and set the rules pertaining to suppliers' card acceptance.
What organizations would be considered a network? correct answers Visa, MasterCard, and
American Express
What are also known as associations? correct answers Networks
Processors are correct answers those who provide various services to card issuers and merchants
acquirers, which may include card production, statement printing, authorization and data
delivery.
What is Procure-to-Pay Process?
a. Pay for what you buy online or in-person; obtain a receipt
b. Suppliers fulfill cardholder orders, charge a card when shipped, receive packing list with
product; no invoice received
c. Suppliers fulfill cardholder order, charge card, ships product; invoice received
d. Suppliers send invoice, charge card, fulfill order, ship product; packing list received correct
answers b. Suppliers fulfill cardholder orders, charge a card when shipped, receive packing list
with product; no invoice received
Benefit for using the Procure-to-Pay process:
a. supplier receive payment within 2-3 days versus 30+ days
b. receive a payment voucher guaranteeing payment
c. cardholders have their product before they have to pay
d. The process eliminates all paperwork correct answers a. supplier receive payment within 2-3
days versus 30+ days
Who provides an invoice (central bill) to the end-user organization reflecting the total of each
P0Card account plus a grand total of what is owed for the cycle?
a. Suppliers
b. Processors
c. Networks
d. Merchant acquirers
e. Issuers correct answers e. Issuers
Corporate liability or organization liability are terms for ______________________________.
correct answers Liability for payment.
Who neither owes the card issuer nor makes payments?
a. Cardholders
b. Suppliers
c. End-users
d. P-Card manager correct answers a. Cardholders
Each month, individual cardholder statements should show a ___________________ balance.
,a. full
b. zero
c. 1/2 of month total correct answers b. zero
Does the organization carry a balance month to month? correct answers No
The P-Card Billing Process includes the following entries but one:
a. Cardholder
b. End-User Organization
c. Bank
d. Card Issuer
e. General Ledger correct answers c. Bank
To minimize the risk of fraud and misuse, what can the end-user organization do? List 4 items.
correct answers a. Dictate policies and procedures related to card usage
b. transaction documentation
c. variety of controls
d. spend and velocity limits
What are the 3 types of purchasing card account types? correct answers a. Traditional P-Card
(plastic or non-plastic)
b. Department Card
c. Ghost Card/Ghost Account
What is a department card? correct answers It is not a common card any more due to
accountability can be difficult and merchant cannot authenticate the cardholder. It was created to
increase purchasing flexibility while restricting the number of cards issued.
What is a ghost card? correct answers A card account issued to a specific supplier or supplier
type. Generally the card's account number is not know by the employees. It is common for
mulitple employees to use the card.
What is a traditional P-Card? correct answers The cards are issued to individual employees to
pay for a variety of expenses with multiple suppliers.
What is interchange? correct answers It is a fee paid to a card issuer by the merchant acquirer.
The rates are decided by VISA and MasterCard. The factors for these rates are card type,
merchant type, transaction amount, etc.
What is the merchant discount? correct answers It is a fee that a supplier pays to its merchant
acquirer. It includes interchange plus additional clearing and settling fees. American Express
uses this discount.
American Express function as an _________ and ___________ ___________. correct answers
issuer; merchant acquirer
, How many data capture levels are there? correct answers 3 (I, II, III)
Who choses the data capture levels transmitted to the end-user? correct answers Suppliers
Describe the different Data Capture Levels. correct answers Level I - basic; date, supplier, trans
amount
Level II - basic + tax amount, customer defined code, supplier postal code & state
Level III - Level I & II info + ship from/to postal codes, freight amount, line item detail
Originally, P-Cards were payment for what kinds of transactions? Select all that apply.
a. Under $10,000
b. Under $1000
c. Small purchases
d. Technology items
e. Office supplies, repairs, and MRO goods correct answers b. Under $1000
c. Small purchases
e. Office supplies, repairs, and MRO goods
Which countries have the most established P-Card markets? correct answers United States and
Canada
What is a Corporate (Travel) Card? correct answers These cards are used to pay for employee
travel and entertainment (T&E) expenses. Involves a plastic card which typically have
personal/employee liability for the payment of monthly expeditures paid directly to the issuer. It
is common the employee submits an expense report to their organization for reimbursement.
What is a Fleet Card? correct answers Specialized cards used to capture fleet-related expenses
(fuel, maintenance, repairs, etc.). These cards provide the capability of capturing POS data such
as mileage for tracking scheduled maintenance. The organization carries the liability.
What is the One Card? correct answers This is a hybrid card issued to the employee for more
than 1 category of expenses (i.e. office supplies and travel). Typically the card has
organization/corporate liability versus employee.
What is a Prepaid Card? correct answers This is a debit-based card allowing users to "pay now".
These Store Value Cards can be reloadable or non-reloadable(i.e. gift cards). Commonly used to
pay employees who do not have a bank account and unable to have direct deposit. Also used to
distribute funds like unemployment benefits.
What is a Declining Balance Card? correct answers Like a P-Card, this does not require a pre-
funded account. This card has an established spending limit and/or expiration date. This card is
also known as the Controlled Value Card. The limit does not refresh. It usually has an associated
budget or spend allowance. Good for business meetings or relocation expenses.
What are Convenience Checks? correct answers Resemble a common check account but settle
against a P-Card, becoming part of the organization's central bill from the issuer.
End-users are correct answers the companies, government agencies, universities/colleges, etc
that provide P-Cards to their employees.
P-Card program managers(PM), program administrator(PA), and/or site coordinator (SC) are
correct answers the primary roles that manage a P-Card program within an end-users
organization.
Cardholders are correct answers those who initiate P-Card transactions on behalf of their
employer, the end-user organization.
Suppliers are correct answers those who accept P-Cards as payment for goods and services.
Issuers are correct answers those who work directly with end-users to implement and grow
programs, issue cards, and invoice posted P-Card transactions.
True or False:
The issuer uses the services of the networks and processors to faciliate card issuance, authorize
transactions, and provide date. Many financial institutions are not issuers. Issuers are sometimes
called card "providers" correct answers False: Many financial institutions are issuers. USBANK
and JP Morgan Chase are examples.
Merchant acquirers are correct answers those who enroll suppliers in the card acceptance process
and implement equipment and software solutions related to this purpose. They facilitate payment
flow including payment to suppliers.
What is also known as a supplier's bank? correct answers Merchant acquirers
What is also known as card providers? correct answers Issuers
What is a purchasing card? correct answers It is a type of commercial credit card used by
organizations for the payment of goods and services.
Why were P-Cards created? correct answers A financial re-engineering tool to streamline
accounts payable processes, typically replacing paper checks as the payment method for low-
value transactions.
Which is not a benefit of using the P-Card?
a. procure in a timely manner
b. take advantage of supplier discounts
c. convenience fee
d. reduce transaction costs
e. track expenses correct answers c. convenience fee
,Networks are correct answers used to facilitate the movement of transactional data between the
issuer and the merchant acquirer and set the rules pertaining to suppliers' card acceptance.
What organizations would be considered a network? correct answers Visa, MasterCard, and
American Express
What are also known as associations? correct answers Networks
Processors are correct answers those who provide various services to card issuers and merchants
acquirers, which may include card production, statement printing, authorization and data
delivery.
What is Procure-to-Pay Process?
a. Pay for what you buy online or in-person; obtain a receipt
b. Suppliers fulfill cardholder orders, charge a card when shipped, receive packing list with
product; no invoice received
c. Suppliers fulfill cardholder order, charge card, ships product; invoice received
d. Suppliers send invoice, charge card, fulfill order, ship product; packing list received correct
answers b. Suppliers fulfill cardholder orders, charge a card when shipped, receive packing list
with product; no invoice received
Benefit for using the Procure-to-Pay process:
a. supplier receive payment within 2-3 days versus 30+ days
b. receive a payment voucher guaranteeing payment
c. cardholders have their product before they have to pay
d. The process eliminates all paperwork correct answers a. supplier receive payment within 2-3
days versus 30+ days
Who provides an invoice (central bill) to the end-user organization reflecting the total of each
P0Card account plus a grand total of what is owed for the cycle?
a. Suppliers
b. Processors
c. Networks
d. Merchant acquirers
e. Issuers correct answers e. Issuers
Corporate liability or organization liability are terms for ______________________________.
correct answers Liability for payment.
Who neither owes the card issuer nor makes payments?
a. Cardholders
b. Suppliers
c. End-users
d. P-Card manager correct answers a. Cardholders
Each month, individual cardholder statements should show a ___________________ balance.
,a. full
b. zero
c. 1/2 of month total correct answers b. zero
Does the organization carry a balance month to month? correct answers No
The P-Card Billing Process includes the following entries but one:
a. Cardholder
b. End-User Organization
c. Bank
d. Card Issuer
e. General Ledger correct answers c. Bank
To minimize the risk of fraud and misuse, what can the end-user organization do? List 4 items.
correct answers a. Dictate policies and procedures related to card usage
b. transaction documentation
c. variety of controls
d. spend and velocity limits
What are the 3 types of purchasing card account types? correct answers a. Traditional P-Card
(plastic or non-plastic)
b. Department Card
c. Ghost Card/Ghost Account
What is a department card? correct answers It is not a common card any more due to
accountability can be difficult and merchant cannot authenticate the cardholder. It was created to
increase purchasing flexibility while restricting the number of cards issued.
What is a ghost card? correct answers A card account issued to a specific supplier or supplier
type. Generally the card's account number is not know by the employees. It is common for
mulitple employees to use the card.
What is a traditional P-Card? correct answers The cards are issued to individual employees to
pay for a variety of expenses with multiple suppliers.
What is interchange? correct answers It is a fee paid to a card issuer by the merchant acquirer.
The rates are decided by VISA and MasterCard. The factors for these rates are card type,
merchant type, transaction amount, etc.
What is the merchant discount? correct answers It is a fee that a supplier pays to its merchant
acquirer. It includes interchange plus additional clearing and settling fees. American Express
uses this discount.
American Express function as an _________ and ___________ ___________. correct answers
issuer; merchant acquirer
, How many data capture levels are there? correct answers 3 (I, II, III)
Who choses the data capture levels transmitted to the end-user? correct answers Suppliers
Describe the different Data Capture Levels. correct answers Level I - basic; date, supplier, trans
amount
Level II - basic + tax amount, customer defined code, supplier postal code & state
Level III - Level I & II info + ship from/to postal codes, freight amount, line item detail
Originally, P-Cards were payment for what kinds of transactions? Select all that apply.
a. Under $10,000
b. Under $1000
c. Small purchases
d. Technology items
e. Office supplies, repairs, and MRO goods correct answers b. Under $1000
c. Small purchases
e. Office supplies, repairs, and MRO goods
Which countries have the most established P-Card markets? correct answers United States and
Canada
What is a Corporate (Travel) Card? correct answers These cards are used to pay for employee
travel and entertainment (T&E) expenses. Involves a plastic card which typically have
personal/employee liability for the payment of monthly expeditures paid directly to the issuer. It
is common the employee submits an expense report to their organization for reimbursement.
What is a Fleet Card? correct answers Specialized cards used to capture fleet-related expenses
(fuel, maintenance, repairs, etc.). These cards provide the capability of capturing POS data such
as mileage for tracking scheduled maintenance. The organization carries the liability.
What is the One Card? correct answers This is a hybrid card issued to the employee for more
than 1 category of expenses (i.e. office supplies and travel). Typically the card has
organization/corporate liability versus employee.
What is a Prepaid Card? correct answers This is a debit-based card allowing users to "pay now".
These Store Value Cards can be reloadable or non-reloadable(i.e. gift cards). Commonly used to
pay employees who do not have a bank account and unable to have direct deposit. Also used to
distribute funds like unemployment benefits.
What is a Declining Balance Card? correct answers Like a P-Card, this does not require a pre-
funded account. This card has an established spending limit and/or expiration date. This card is
also known as the Controlled Value Card. The limit does not refresh. It usually has an associated
budget or spend allowance. Good for business meetings or relocation expenses.
What are Convenience Checks? correct answers Resemble a common check account but settle
against a P-Card, becoming part of the organization's central bill from the issuer.
