NAPCP - CPCP Certification, CPCP
Exam Questions with Complete
Answers
What is a surcharge fee? - ANSWER-Also called a checkout fee. An additional fee
that a merchant adds to a consumer's bill when he or she uses a card for payment.
Paid by consumers to the merchant
What did the Durbin amendment do? - ANSWER-The Durbin amendment is part of
the 2010 Dodd-Frank law, which sharply lowered debit card interchange fees —
charges that stores pay banks when a customer makes a purchase using debit cards
What is the Durbin Amendment? - ANSWER-A federal measure called the Durbin
Amendment introduced limits on transaction fees collected when debit card
purchases are made. Passed in 2011.
Dodd-Frank Wall Street Reform and Consumer Protection Act - ANSWER-Dodd-
Frank was passed in 2010 in order to protect consumers from the unfair and
deceptive practices and products that led to the 2008 crisis; give regulators the tools
to ensure that no Wall Street firm grows too large, complex, or risky so as to threaten
the global economy; create transparency in previously opaque
President Obama's Wall Street reform law created an independent agency to set and
enforce clear, consistent rules for the financial marketplace. The Consumer Financial
Protection Bureau (CFPB) is setting clear rules of the road and will ensure that
financial firms are held to high standards.
How long is CPCP certification recognized? - ANSWER-3 years
After three years how do I maintain certification? - ANSWER-1. Retake CPCP exam
2. Meet alternative requirements that are in effect at the time to retain certification
Can certification be revoked and Why? - ANSWER-Yes.
Why?
1. Falsification of an application
2. Breach of existing ethical standards of professional practice
3. Misrepresentation of certification status
Can revocation be appealed and how? - ANSWER-Yes. Submit an appeal in writing
to the appeals committee of the PCPCC.
P-Card Program Implementation End-User Organizations - ANSWER-1. Support
from Senior Mgmt
2.Assemble a research team composed of Purchasing, A/P, IT, Audit, Finance, etc.
3. Organization should re-engineer its procure-to-pay processes to reap the greatest
benefits
,4. Develop a Business Case-illustrate the anticipated savings and benefits, outline
potential challenges, risks and mitigating controls, identify the required resources,
propose a recommendation
5. Develop a P-Card Model-creating program goals & metrics, identify targeted
transactions, define program roles & responsibilities, document program
requirements(IT and interfaces to the GL), design the control environment
6. Evaluate overall purchasing activities to determine how and when to use p-cards
7. Determine the best procure-to-pay process for different expense/purchase types
8. Create a pilot program to test the p-card model. Provides the foundation from
which to build a long-term program, revealing gaps and issues that must be
addressed prior to full program rollout.
9. Internal Communication Strategy
10 Dedicated resource to manage and support the program
Supplier P-Card Acceptance Implementation - ANSWER-Re-engineer processes to
maximize the benefits of card acceptance
1. Gain an understanding of the p-card process and its opportunities
2. Select an acquiring partner with expertise in business-to-business (B2B)
payments
3.Implement appropriate processes and technology
4. Work with customers to establish standard policies and procedures
Who implemented the 1st commercial card payment system? - ANSWER-A group of
major airlines in 1937. Used primarily as a central billing approach for air travel.
Similar to ghost cards
Liability Waivers - ANSWER-Offered to mitigate the concerns with inappropriate card
usage caused the distribution of Corporate cards to increase. Waivers, typically joint-
and several-liability, evolved to the individual liability-individual pay option popular
today.
Who implemented the 1st p-card? - ANSWER-Late 80's a card was develop for the
Federal GSA for the purchase of non T & E items such as MRO and business
supplies. Introduced as central liability/central pay payment vehicles. This
distinguishes P-Cards from Commercial Cards.
What is the mission of NAPCP? - ANSWER-Membership based organization
committed to advancing Commercial and Payment professional and industry
practices worldwide.
Ghost Card - ANSWER-A variation on the purchasing card that does not involve the
use of an actual card. With this system, a card number is given to a specific vendor
and is then used for electronic purchasing and billing purposes. Also known as a
virtual card.
Corporate Card - ANSWER-Companies may provide their employees with corporate
cards for the payment of approved, business-related expenses, most often travel-
related (T & E).
,One Card - ANSWER-A single charge card that combines procurement
(goods/services) with travel and entertainment (T & E) and in some cases fleet
charges
Fleet Card - ANSWER-A card product used to pay for fuel, maintenance, repair and
related expenses on company vehicles
Prepaid Card - ANSWER-A debit-based card, allowing the user to pay now versus
later, as the card transaction amounts are deducted from a funded account, for
example a Payroll Card loaded with an employee's earned wages
Declining Balance Card - ANSWER-A card that typically does not require a pre-
funded account, a spending limit, and/or expiration date are established up-front,
giving it a specific "shelf life" to accommodate a specific project budge or spend
allowance; for example a meeting card.
Business Card - ANSWER-A credit card targeted for smaller businesses in lieu of a
p-card, commonly used for a variety of expense types (ex. goods, services, travel,
etc.). Organization maybe allowed to carry a balance
Electronic Payables - ANSWER-Electronic payment, generally involving a supplier
invoice (electronic or paper) and end-user approval process, followed by a behind-
the-scenes payment to the supplier through the card network; these solutions are
also known as electronic accounts payable, automated payables, e-payables, push
payments, straight-through payments, buyer-initiated payments, single-use accounts
and electronic invoice presentment and payment
Convenience Checks - ANSWER-A payment tool with characteristics resembling
those of a common checking account, but they settle against a P-Card account.
Level 1 Data - ANSWER-Standard-
1. Date
2. Supplier Name
3. Transaction Amount
Level 2 Data - ANSWER-Variable-
1. Date
2. Supplier Name
3. Transaction Amount
4. Sales Tax
5. Customer Defined Code
Level 3 Data - ANSWER-Detailed Data-
1. Date
2. Supplier Name
3. Transaction Amount
4. Sales Tax
5. Customer Defined Code
6. Line Item Detail
, Issuers - ANSWER-Work directly with end-users to implement and grow programs,
issue cards and invoice posted P-Card Transactions. Uses the services of the
networks and processors to facilitate card issuance, authorize transactions and
provide data. Banks are issuers
Networks aka Associations - ANSWER-Facilitates the movement of transactional
data between the issuer and merchant acquirer and set the rules pertaining to card
acceptance by suppliers. Organizations in this role include Visa, Mastercard, and
Am. Express. Am. Express also assumes the role as issuer and merchant acquirer.
Processors - ANSWER-Provide various services to card issuers and merchant
acquirers, which may include card production, statement printing, authorization and
data delivery
Are balances carried with P-Cards? - ANSWER-No, the balance is paid in full each
month
Who assumes liability with a P-card program? - ANSWER-The end-users
organization assumes liability and makes payment.
End-users are - ANSWER-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 - ANSWER-the primary roles that manage a P-Card program within an end-
users organization.
Cardholders are - ANSWER-those who initiate P-Card transactions on behalf of their
employer, the end-user organization.
Suppliers are - ANSWER-those who accept P-Cards as payment for goods and
services.
Issuers are - ANSWER-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" - ANSWER-False: Many
financial institutions are issuers. USBANK and JP Morgan Chase are examples.
Merchant acquirers are - ANSWER-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? - ANSWER-Merchant acquirers
What is also known as card providers? - ANSWER-Issuers
Exam Questions with Complete
Answers
What is a surcharge fee? - ANSWER-Also called a checkout fee. An additional fee
that a merchant adds to a consumer's bill when he or she uses a card for payment.
Paid by consumers to the merchant
What did the Durbin amendment do? - ANSWER-The Durbin amendment is part of
the 2010 Dodd-Frank law, which sharply lowered debit card interchange fees —
charges that stores pay banks when a customer makes a purchase using debit cards
What is the Durbin Amendment? - ANSWER-A federal measure called the Durbin
Amendment introduced limits on transaction fees collected when debit card
purchases are made. Passed in 2011.
Dodd-Frank Wall Street Reform and Consumer Protection Act - ANSWER-Dodd-
Frank was passed in 2010 in order to protect consumers from the unfair and
deceptive practices and products that led to the 2008 crisis; give regulators the tools
to ensure that no Wall Street firm grows too large, complex, or risky so as to threaten
the global economy; create transparency in previously opaque
President Obama's Wall Street reform law created an independent agency to set and
enforce clear, consistent rules for the financial marketplace. The Consumer Financial
Protection Bureau (CFPB) is setting clear rules of the road and will ensure that
financial firms are held to high standards.
How long is CPCP certification recognized? - ANSWER-3 years
After three years how do I maintain certification? - ANSWER-1. Retake CPCP exam
2. Meet alternative requirements that are in effect at the time to retain certification
Can certification be revoked and Why? - ANSWER-Yes.
Why?
1. Falsification of an application
2. Breach of existing ethical standards of professional practice
3. Misrepresentation of certification status
Can revocation be appealed and how? - ANSWER-Yes. Submit an appeal in writing
to the appeals committee of the PCPCC.
P-Card Program Implementation End-User Organizations - ANSWER-1. Support
from Senior Mgmt
2.Assemble a research team composed of Purchasing, A/P, IT, Audit, Finance, etc.
3. Organization should re-engineer its procure-to-pay processes to reap the greatest
benefits
,4. Develop a Business Case-illustrate the anticipated savings and benefits, outline
potential challenges, risks and mitigating controls, identify the required resources,
propose a recommendation
5. Develop a P-Card Model-creating program goals & metrics, identify targeted
transactions, define program roles & responsibilities, document program
requirements(IT and interfaces to the GL), design the control environment
6. Evaluate overall purchasing activities to determine how and when to use p-cards
7. Determine the best procure-to-pay process for different expense/purchase types
8. Create a pilot program to test the p-card model. Provides the foundation from
which to build a long-term program, revealing gaps and issues that must be
addressed prior to full program rollout.
9. Internal Communication Strategy
10 Dedicated resource to manage and support the program
Supplier P-Card Acceptance Implementation - ANSWER-Re-engineer processes to
maximize the benefits of card acceptance
1. Gain an understanding of the p-card process and its opportunities
2. Select an acquiring partner with expertise in business-to-business (B2B)
payments
3.Implement appropriate processes and technology
4. Work with customers to establish standard policies and procedures
Who implemented the 1st commercial card payment system? - ANSWER-A group of
major airlines in 1937. Used primarily as a central billing approach for air travel.
Similar to ghost cards
Liability Waivers - ANSWER-Offered to mitigate the concerns with inappropriate card
usage caused the distribution of Corporate cards to increase. Waivers, typically joint-
and several-liability, evolved to the individual liability-individual pay option popular
today.
Who implemented the 1st p-card? - ANSWER-Late 80's a card was develop for the
Federal GSA for the purchase of non T & E items such as MRO and business
supplies. Introduced as central liability/central pay payment vehicles. This
distinguishes P-Cards from Commercial Cards.
What is the mission of NAPCP? - ANSWER-Membership based organization
committed to advancing Commercial and Payment professional and industry
practices worldwide.
Ghost Card - ANSWER-A variation on the purchasing card that does not involve the
use of an actual card. With this system, a card number is given to a specific vendor
and is then used for electronic purchasing and billing purposes. Also known as a
virtual card.
Corporate Card - ANSWER-Companies may provide their employees with corporate
cards for the payment of approved, business-related expenses, most often travel-
related (T & E).
,One Card - ANSWER-A single charge card that combines procurement
(goods/services) with travel and entertainment (T & E) and in some cases fleet
charges
Fleet Card - ANSWER-A card product used to pay for fuel, maintenance, repair and
related expenses on company vehicles
Prepaid Card - ANSWER-A debit-based card, allowing the user to pay now versus
later, as the card transaction amounts are deducted from a funded account, for
example a Payroll Card loaded with an employee's earned wages
Declining Balance Card - ANSWER-A card that typically does not require a pre-
funded account, a spending limit, and/or expiration date are established up-front,
giving it a specific "shelf life" to accommodate a specific project budge or spend
allowance; for example a meeting card.
Business Card - ANSWER-A credit card targeted for smaller businesses in lieu of a
p-card, commonly used for a variety of expense types (ex. goods, services, travel,
etc.). Organization maybe allowed to carry a balance
Electronic Payables - ANSWER-Electronic payment, generally involving a supplier
invoice (electronic or paper) and end-user approval process, followed by a behind-
the-scenes payment to the supplier through the card network; these solutions are
also known as electronic accounts payable, automated payables, e-payables, push
payments, straight-through payments, buyer-initiated payments, single-use accounts
and electronic invoice presentment and payment
Convenience Checks - ANSWER-A payment tool with characteristics resembling
those of a common checking account, but they settle against a P-Card account.
Level 1 Data - ANSWER-Standard-
1. Date
2. Supplier Name
3. Transaction Amount
Level 2 Data - ANSWER-Variable-
1. Date
2. Supplier Name
3. Transaction Amount
4. Sales Tax
5. Customer Defined Code
Level 3 Data - ANSWER-Detailed Data-
1. Date
2. Supplier Name
3. Transaction Amount
4. Sales Tax
5. Customer Defined Code
6. Line Item Detail
, Issuers - ANSWER-Work directly with end-users to implement and grow programs,
issue cards and invoice posted P-Card Transactions. Uses the services of the
networks and processors to facilitate card issuance, authorize transactions and
provide data. Banks are issuers
Networks aka Associations - ANSWER-Facilitates the movement of transactional
data between the issuer and merchant acquirer and set the rules pertaining to card
acceptance by suppliers. Organizations in this role include Visa, Mastercard, and
Am. Express. Am. Express also assumes the role as issuer and merchant acquirer.
Processors - ANSWER-Provide various services to card issuers and merchant
acquirers, which may include card production, statement printing, authorization and
data delivery
Are balances carried with P-Cards? - ANSWER-No, the balance is paid in full each
month
Who assumes liability with a P-card program? - ANSWER-The end-users
organization assumes liability and makes payment.
End-users are - ANSWER-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 - ANSWER-the primary roles that manage a P-Card program within an end-
users organization.
Cardholders are - ANSWER-those who initiate P-Card transactions on behalf of their
employer, the end-user organization.
Suppliers are - ANSWER-those who accept P-Cards as payment for goods and
services.
Issuers are - ANSWER-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" - ANSWER-False: Many
financial institutions are issuers. USBANK and JP Morgan Chase are examples.
Merchant acquirers are - ANSWER-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? - ANSWER-Merchant acquirers
What is also known as card providers? - ANSWER-Issuers
