NAPCP - CPCP Certification Exam Questions and Answers Latest Update 2025
End-users are - 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 - Answers
the primary roles that manage a P-Card program within an end-users organization.
Cardholders are - Answers those who initiate P-Card transactions on behalf of their employer, the end-
user organization.
Suppliers are - Answers those who accept P-Cards as payment for goods and services.
Issuers are - 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" - Answers False: Many financial institutions are issuers. USBANK and JP Morgan Chase
are examples.
Merchant acquirers are - 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? - Answers Merchant acquirers
What is also known as card providers? - Answers Issuers
What is a purchasing card? - Answers It is a type of commercial credit card used by organizations for the
payment of goods and services.
Why were P-Cards created? - 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 - Answers c. convenience fee
,Networks are - 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? - Answers Visa, MasterCard, and American Express
What are also known as associations? - Answers Networks
Processors are - 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 - 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 - 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 - Answers e. Issuers
Corporate liability or organization liability are terms for ______________________________. - Answers
Liability for payment.
,Who neither owes the card issuer nor makes payments?
a. Cardholders
b. Suppliers
c. End-users
d. P-Card manager - Answers a. Cardholders
Each month, individual cardholder statements should show a ___________________ balance.
a. full
b. zero
c. 1/2 of month total - Answers b. zero
Does the organization carry a balance month to month? - 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 - Answers c. Bank
To minimize the risk of fraud and misuse, what can the end-user organization do? List 4 items. - 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? - Answers a. Traditional P-Card (plastic or non-
plastic)
b. Department Card
c. Ghost Card/Ghost Account
, What is a department card? - 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? - 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? - Answers The cards are issued to individual employees to pay for a variety
of expenses with multiple suppliers.
What is interchange? - 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? - 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 ___________ ___________. - Answers issuer; merchant
acquirer
How many data capture levels are there? - Answers 3 (I, II, III)
Who choses the data capture levels transmitted to the end-user? - Answers Suppliers
Describe the different Data Capture Levels. - 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 - Answers b. Under $1000
c. Small purchases
e. Office supplies, repairs, and MRO goods
Which countries have the most established P-Card markets? - Answers United States and Canada
End-users are - 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 - Answers
the primary roles that manage a P-Card program within an end-users organization.
Cardholders are - Answers those who initiate P-Card transactions on behalf of their employer, the end-
user organization.
Suppliers are - Answers those who accept P-Cards as payment for goods and services.
Issuers are - 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" - Answers False: Many financial institutions are issuers. USBANK and JP Morgan Chase
are examples.
Merchant acquirers are - 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? - Answers Merchant acquirers
What is also known as card providers? - Answers Issuers
What is a purchasing card? - Answers It is a type of commercial credit card used by organizations for the
payment of goods and services.
Why were P-Cards created? - 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 - Answers c. convenience fee
,Networks are - 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? - Answers Visa, MasterCard, and American Express
What are also known as associations? - Answers Networks
Processors are - 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 - 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 - 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 - Answers e. Issuers
Corporate liability or organization liability are terms for ______________________________. - Answers
Liability for payment.
,Who neither owes the card issuer nor makes payments?
a. Cardholders
b. Suppliers
c. End-users
d. P-Card manager - Answers a. Cardholders
Each month, individual cardholder statements should show a ___________________ balance.
a. full
b. zero
c. 1/2 of month total - Answers b. zero
Does the organization carry a balance month to month? - 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 - Answers c. Bank
To minimize the risk of fraud and misuse, what can the end-user organization do? List 4 items. - 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? - Answers a. Traditional P-Card (plastic or non-
plastic)
b. Department Card
c. Ghost Card/Ghost Account
, What is a department card? - 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? - 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? - Answers The cards are issued to individual employees to pay for a variety
of expenses with multiple suppliers.
What is interchange? - 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? - 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 ___________ ___________. - Answers issuer; merchant
acquirer
How many data capture levels are there? - Answers 3 (I, II, III)
Who choses the data capture levels transmitted to the end-user? - Answers Suppliers
Describe the different Data Capture Levels. - 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 - Answers b. Under $1000
c. Small purchases
e. Office supplies, repairs, and MRO goods
Which countries have the most established P-Card markets? - Answers United States and Canada
