ETA CPP ACTUAL FINALS ANSWERS AND
QUESTIONS SET A+
✔✔Broadband - ✔✔Evolving digital technologies that provide consumers a signal-
switched facility offering integrated access to voice, high‐speed data service, video‐
demand services, and interactive delivery services. (Source: Federal Communications
Commission)
✔✔Browser - ✔✔The Web browser, the tool (program) that allows users to surf the
World Wide Web. The most popular browsers are Netscape Navigator and Microsoft
Internet Explorer.
✔✔BSP - ✔✔See Bankcard Service Provider, Bill Service Provider.
✔✔"Bug" - ✔✔See Marks.
✔✔Bulk Data - ✔✔The technical specifications for mainframe‐to‐ mainframe computer
transmission of files between a financial institution and the Federal Reserve Bank.
✔✔Bulletin Board System (BBS) - ✔✔A dial‐up electronic message system for reading
and posting messages or downloading files.
✔✔Bundled Fees - ✔✔The pricing scenario that includes all transaction processing fees
as well as interchange reimbursement fees. Typically referred to as the discount rate, it
can be expressed as a percentage plus a per‐item fee. Also called bundled pricing and
bundled fees.
✔✔Bureau of Economic Analysis (BEA) - ✔✔The U.S. Department of Commerce
bureau that analyzes and produces reports on the Gross Domestic Product and
✔✔personal consumption expenditures. - ✔✔
✔✔Burn Rate - ✔✔The rate at which a company—typically a start‐up company—
consumes its capital. Also called run rate.
,✔✔Business Card - ✔✔A bank card issued to companies for use by company
employees. The liability for the abuse of the card typically rests with the company, not
with the employee. Also called corporate card.
✔✔Business Card - ✔✔Introduced in 1985 to meet the needs of the small business
market in the United States, the MasterCard Business Card program offers the ability to
extend payments and separate business expenses from personal expenses. All card
companies offer business card programs.
✔✔Business Day - ✔✔A calendar day other than a Saturday, Sunday, or federal
holiday.
✔✔Business Identification (BID) - ✔✔A unique number used by Visa to identify an
acquirer or processor.
✔✔Business-to-Business - ✔✔See B2B
✔✔Business-to-Consumer - ✔✔See B2C.
✔✔Business Process Management (BPM) - ✔✔The process of automating payment
disputes and investigations.
✔✔Bust-Out Card Fraud - ✔✔Collusive merchants, ISOs or agents, and cardholders
who perpetrate fraud against credit cards. The merchant is usually an existing business
and works with an ISO or agent to procure terminals and a merchant account. The
merchant establishes a number of new businesses and obtains more terminals and
merchant numbers from the ISO or agent. Cardholders charge various amounts,
exhausting the credit limit, but with different merchant numbers. The cardholder pays
the balance in full and then redoes the process of charging to the limit. The check
bounces within two days, and the group has two cycles of credit line charges that the
issuing bank cannot collect.
✔✔Bust-Out Merchants - ✔✔Merchants who perpetrate bust‐out card fraud.
✔✔Buyer - ✔✔A business customer, or payer.
✔✔Buyer Direct - ✔✔EIPP (electronic invoice presentment and payment) model
connecting one buyer to many sellers. Sellers post their invoice data to the buyer's site.
✔✔Buyers' Guide Service - ✔✔A service of MasterCard, included in some card
programs, that offers the cardholder discounts on special catalogue merchandise.
,✔✔Buy Rate - ✔✔The price at which an ISO can buy services. A sponsor quotes a buy
rate to an ISO, which then can mark up the price and sell the service or product at its
own rate. The difference between the buy rate and the sales price quoted by the ISO is
income to the ISO.
✔✔CA - ✔✔See Certification Authority.
✔✔Call Center - ✔✔A functional area within an organization or an outsourced, separate
facility that exists solely to answer inbound or place outbound telephone calls. Usually
refers to a sophisticated voice operations center that provides a full range of high‐
volume inbound or outbound call‐handling services, including customer support,
operator services, directory assistance, multilingual customer support, credit services,
card services, inbound and outbound telemarketing, interactive voice response, and
Web‐based services.
✔✔Call-Me - ✔✔A response to an acquirer's authorization request, generated by the
issuer or through stand‐in processing, that requires the merchant to contact the issuer
directly.
✔✔Call Report - ✔✔A report completed to document a sales call.
✔✔Campus Card - ✔✔A multipurpose card issued by a university or school. Each
student uses this instrument as an ID card, meal ticket, library card, dormitory entry
card, classroom attendance card, and general payment card. The card can be a smart
card, contactless, magnetic stripe card, or a combination. Also called multi‐card or
universal card.
✔✔Cancellation - ✔✔An electronic message sent by the merchant, the acquirer, or the
processor to nullify a previously transmitted transaction request or response.
✔✔Cancellation Code - ✔✔Also called cancellation number. The code that a lodging or
car rental merchant gives to a cardholder. The cancellation code proves that the
cardholder did, in fact, cancel a reservation. It is used in the dispute process.
✔✔CAP - ✔✔See Central Affiliated Property.
✔✔Capture - ✔✔Stage three of the seven stages of processing, which involves
converting the authorization amount into a billable transaction record within a batch. A
transaction cannot be captured unless it has been authorized. Rules also state that the
merchant should not send the transaction to be cleared until goods or services have
been shipped or provided to the consumer. The front‐end processor aggregates the
merchant batches by BIN, matches authorization data to settlement data, and sends the
transaction to the back‐end processor for clearing and settlement. The front‐end
processor may also send the independent card company transactions (AMEX, Discover,
, Diners, and JCB) directly to the card companies depending on the relationship with the
acquirer.
✔✔Capture Date - ✔✔The date on which an acquirer processor processes a transaction
for settlement and clearing.
✔✔Capture Method - ✔✔The method by which transactions are captured at the point‐
of‐sale. The options are terminal or host capture.
✔✔Card - ✔✔Any valid plastic card issued by a card company or other card‐issuing
organization that is presented as payment for goods and services or to obtain cash
advances.
✔✔Card-Absent Environment - ✔✔An environment in which a transaction is completed
under both of the following conditions: the cardholder is not present and the card is not
present. Transactions in this environment include deferred payments, electronic
commerce, mail order and phone order, and recurring transactions. They do not include
face‐to‐face transactions where the card is present.
✔✔Card Acceptance - ✔✔A merchant's agreement to accept plastic cards as a form of
payment.
✔✔Card Acceptance Agreements - ✔✔The term used by American Express to mean
the merchant contract.
✔✔Card Activation - ✔✔To activate a credit card for usage, the cardholder typically
calls a number indicated on a sticker on the mailed plastic card and verifies some
account information or calls from the home phone number where the activation is
automatic. To activate a debit card, the cardholder can also use the card in an ATM
before utilizing the card in a POS. A prepaid or gift card typically is activated when the
card is purchased at the point‐of‐sale. If the prepaid card is provided in the mail or via
an employer, then the card will require a phone call to the issuer for activation.
✔✔Card Approved Vendor - ✔✔An entity certified by card companies to produce
payment plastic cards with logos/brands/flags imprinted on the card within the card
companies' specified guidelines.
✔✔Card Association - ✔✔Visa is a member‐based organization formed to manage the
rules, regulations, and process of interchanging plastic card transactions. Their
membership consists of issuers, which are responsible for the management and
issuance of plastic debit, prepaid and credit cards. MasterCard was an Association until
2006 when they changed the company structure and became a public company. Visa
plans to combine Visa Canada, Visa International and Visa USA into a single private
stock company, Visa Inc. late in 2007. Visa Europe will remain a membership
association and will become a licensee of, and own a minority interest in, Visa Inc.
QUESTIONS SET A+
✔✔Broadband - ✔✔Evolving digital technologies that provide consumers a signal-
switched facility offering integrated access to voice, high‐speed data service, video‐
demand services, and interactive delivery services. (Source: Federal Communications
Commission)
✔✔Browser - ✔✔The Web browser, the tool (program) that allows users to surf the
World Wide Web. The most popular browsers are Netscape Navigator and Microsoft
Internet Explorer.
✔✔BSP - ✔✔See Bankcard Service Provider, Bill Service Provider.
✔✔"Bug" - ✔✔See Marks.
✔✔Bulk Data - ✔✔The technical specifications for mainframe‐to‐ mainframe computer
transmission of files between a financial institution and the Federal Reserve Bank.
✔✔Bulletin Board System (BBS) - ✔✔A dial‐up electronic message system for reading
and posting messages or downloading files.
✔✔Bundled Fees - ✔✔The pricing scenario that includes all transaction processing fees
as well as interchange reimbursement fees. Typically referred to as the discount rate, it
can be expressed as a percentage plus a per‐item fee. Also called bundled pricing and
bundled fees.
✔✔Bureau of Economic Analysis (BEA) - ✔✔The U.S. Department of Commerce
bureau that analyzes and produces reports on the Gross Domestic Product and
✔✔personal consumption expenditures. - ✔✔
✔✔Burn Rate - ✔✔The rate at which a company—typically a start‐up company—
consumes its capital. Also called run rate.
,✔✔Business Card - ✔✔A bank card issued to companies for use by company
employees. The liability for the abuse of the card typically rests with the company, not
with the employee. Also called corporate card.
✔✔Business Card - ✔✔Introduced in 1985 to meet the needs of the small business
market in the United States, the MasterCard Business Card program offers the ability to
extend payments and separate business expenses from personal expenses. All card
companies offer business card programs.
✔✔Business Day - ✔✔A calendar day other than a Saturday, Sunday, or federal
holiday.
✔✔Business Identification (BID) - ✔✔A unique number used by Visa to identify an
acquirer or processor.
✔✔Business-to-Business - ✔✔See B2B
✔✔Business-to-Consumer - ✔✔See B2C.
✔✔Business Process Management (BPM) - ✔✔The process of automating payment
disputes and investigations.
✔✔Bust-Out Card Fraud - ✔✔Collusive merchants, ISOs or agents, and cardholders
who perpetrate fraud against credit cards. The merchant is usually an existing business
and works with an ISO or agent to procure terminals and a merchant account. The
merchant establishes a number of new businesses and obtains more terminals and
merchant numbers from the ISO or agent. Cardholders charge various amounts,
exhausting the credit limit, but with different merchant numbers. The cardholder pays
the balance in full and then redoes the process of charging to the limit. The check
bounces within two days, and the group has two cycles of credit line charges that the
issuing bank cannot collect.
✔✔Bust-Out Merchants - ✔✔Merchants who perpetrate bust‐out card fraud.
✔✔Buyer - ✔✔A business customer, or payer.
✔✔Buyer Direct - ✔✔EIPP (electronic invoice presentment and payment) model
connecting one buyer to many sellers. Sellers post their invoice data to the buyer's site.
✔✔Buyers' Guide Service - ✔✔A service of MasterCard, included in some card
programs, that offers the cardholder discounts on special catalogue merchandise.
,✔✔Buy Rate - ✔✔The price at which an ISO can buy services. A sponsor quotes a buy
rate to an ISO, which then can mark up the price and sell the service or product at its
own rate. The difference between the buy rate and the sales price quoted by the ISO is
income to the ISO.
✔✔CA - ✔✔See Certification Authority.
✔✔Call Center - ✔✔A functional area within an organization or an outsourced, separate
facility that exists solely to answer inbound or place outbound telephone calls. Usually
refers to a sophisticated voice operations center that provides a full range of high‐
volume inbound or outbound call‐handling services, including customer support,
operator services, directory assistance, multilingual customer support, credit services,
card services, inbound and outbound telemarketing, interactive voice response, and
Web‐based services.
✔✔Call-Me - ✔✔A response to an acquirer's authorization request, generated by the
issuer or through stand‐in processing, that requires the merchant to contact the issuer
directly.
✔✔Call Report - ✔✔A report completed to document a sales call.
✔✔Campus Card - ✔✔A multipurpose card issued by a university or school. Each
student uses this instrument as an ID card, meal ticket, library card, dormitory entry
card, classroom attendance card, and general payment card. The card can be a smart
card, contactless, magnetic stripe card, or a combination. Also called multi‐card or
universal card.
✔✔Cancellation - ✔✔An electronic message sent by the merchant, the acquirer, or the
processor to nullify a previously transmitted transaction request or response.
✔✔Cancellation Code - ✔✔Also called cancellation number. The code that a lodging or
car rental merchant gives to a cardholder. The cancellation code proves that the
cardholder did, in fact, cancel a reservation. It is used in the dispute process.
✔✔CAP - ✔✔See Central Affiliated Property.
✔✔Capture - ✔✔Stage three of the seven stages of processing, which involves
converting the authorization amount into a billable transaction record within a batch. A
transaction cannot be captured unless it has been authorized. Rules also state that the
merchant should not send the transaction to be cleared until goods or services have
been shipped or provided to the consumer. The front‐end processor aggregates the
merchant batches by BIN, matches authorization data to settlement data, and sends the
transaction to the back‐end processor for clearing and settlement. The front‐end
processor may also send the independent card company transactions (AMEX, Discover,
, Diners, and JCB) directly to the card companies depending on the relationship with the
acquirer.
✔✔Capture Date - ✔✔The date on which an acquirer processor processes a transaction
for settlement and clearing.
✔✔Capture Method - ✔✔The method by which transactions are captured at the point‐
of‐sale. The options are terminal or host capture.
✔✔Card - ✔✔Any valid plastic card issued by a card company or other card‐issuing
organization that is presented as payment for goods and services or to obtain cash
advances.
✔✔Card-Absent Environment - ✔✔An environment in which a transaction is completed
under both of the following conditions: the cardholder is not present and the card is not
present. Transactions in this environment include deferred payments, electronic
commerce, mail order and phone order, and recurring transactions. They do not include
face‐to‐face transactions where the card is present.
✔✔Card Acceptance - ✔✔A merchant's agreement to accept plastic cards as a form of
payment.
✔✔Card Acceptance Agreements - ✔✔The term used by American Express to mean
the merchant contract.
✔✔Card Activation - ✔✔To activate a credit card for usage, the cardholder typically
calls a number indicated on a sticker on the mailed plastic card and verifies some
account information or calls from the home phone number where the activation is
automatic. To activate a debit card, the cardholder can also use the card in an ATM
before utilizing the card in a POS. A prepaid or gift card typically is activated when the
card is purchased at the point‐of‐sale. If the prepaid card is provided in the mail or via
an employer, then the card will require a phone call to the issuer for activation.
✔✔Card Approved Vendor - ✔✔An entity certified by card companies to produce
payment plastic cards with logos/brands/flags imprinted on the card within the card
companies' specified guidelines.
✔✔Card Association - ✔✔Visa is a member‐based organization formed to manage the
rules, regulations, and process of interchanging plastic card transactions. Their
membership consists of issuers, which are responsible for the management and
issuance of plastic debit, prepaid and credit cards. MasterCard was an Association until
2006 when they changed the company structure and became a public company. Visa
plans to combine Visa Canada, Visa International and Visa USA into a single private
stock company, Visa Inc. late in 2007. Visa Europe will remain a membership
association and will become a licensee of, and own a minority interest in, Visa Inc.
