ETA CPP Study Guide Questions with Correct Answers

ETA CPP Study Guide Questions with Correct Answers NABU, APF and FANF - ANSWER MasterCard implemented a new fee, the Network Access and Brand Usage fee (NABU). And following right on the heels of the MasterCard announcement, on July 1, 2009 Visa implemented their U.S. Acquirer Processing Fee (APF). Card brand dues and assessments - ANSWER In addition to Interchange, each card brand includes additional fees based on the transaction amount and per transaction. These fees are called dues and assessments and typically range from 0.105% - 0.45% on the transaction amount [ $0.0025 - $0.04.] Like interchange, assessments are exactly the same for all credit card processors and no processor can give you a lower rate or a better deal on assessments. AVS and switch fees - ANSWER The fee is charged when your business utilizes the Address Verification Service to check that the address provided by a cardholder matches the address on file with the credit card company. Authorization fee - ANSWER The voice authorization fee applies when you use a telephone dial-up service for transaction authorization. A fee is charged for each call that is made. Voice authorization is useful in the event your terminal or software malfunctions or your internet connection isn't working. Batch fee - ANSWER A fee that is charged when you settle your daily transactions (also known as the batch) with your credit card processor. If you have no credit card transactions to settle on a particular day, you are not charged this fee. Clearing and settlement fees - ANSWER clearing denotes all activities from the time a commitment is made for a transaction until it is settled. Chargeback and representment fees - ANSWER In short, a chargeback is a reversal of funds transferred. Statement or reporting fees - ANSWER Fees that are charged for receiving statements or reports. Rewards Cards - ANSWER A cashback reward program is an incentive program operated by credit card companies where a percentage of the amount spent is paid back to the card holder.