ETA CPP CORRECT EXAMS ANSWERS AND
QUESTIONS SET A+
✔✔Client-Server - ✔✔Any hardware‐software combination that generally adheres to
client‐server architecture, regardless of the type of application.
✔✔Client-Server Architecture - ✔✔Any network ‐based software system that uses client
software to request a specific service, and the corresponding server software to provide
the service from another computer on the network
✔✔Close Batch - ✔✔The end‐of‐day or end‐of‐shift process in which the merchant
balances and submits transactions for clearing and settlement. This process occurs on
a terminal‐based capture system. On a host‐based capture system the host
automatically generates the process at a predetermined time of day.
✔✔Closed-Loop - ✔✔A system using a prepaid card within a boundary or a select
group of merchants or at one particular merchant, such as mall cards that can only be
used in the issuing shopping mall, major retailers such as Best Buy and Home Depot
and campus cards that can only be used on the issuing campus. This type of program
uses a proprietary network.
✔✔Closed System - ✔✔A payment card system in which one organization both issues
cards and acquires merchants. American Express and closed loop gift cards are
examples of closed systems.
✔✔CMIA - ✔✔See Cash Management Improvement Act.
✔✔CNP - ✔✔See Card Not Present.
✔✔Co-Branded Cards - ✔✔A customized branded card product for a specific retailer or
service provider, such as General Motors, that wishes to solicit its customers.
✔✔Code "10" - ✔✔A call made by a sales associate to the merchantʹs voice
authorization center when the appearance of a card or the actions of a cardholder
,suggest the possibility of fraud. The term ʺCode 10ʺ is used so calls can be made
without arousing suspicion while the cardholder is present. Specially trained operators
then provide assistance to point‐of‐sale staff on how to handle the transaction.
✔✔Code-Division Multiple Access - ✔✔See CDMA
✔✔Code of Ethics - ✔✔See Ethics Statement.
✔✔Code of Federal Regulations (CFR) - ✔✔The compiled administrative procedures by
which federal agencies administer the laws passed by the U.S. Congress.
✔✔COGS - ✔✔See Cost of Goods Sold.
✔✔Cohabitation - ✔✔The ability of multiple technologies to reside on the same card
and not interfere with each other. An example is a magnetic stripe card with a chip
embedded.
✔✔Cold Call - ✔✔A lead‐generation technique in which a salesperson calls on new
businesses either physically or by telephone.
✔✔Collateral - ✔✔Savings, bonds, insurance policies, jewelry, property, or other items
that are pledged to pay off a loan or other debt if payments are not made according to
agreed upon terms. Synonym: Security.
✔✔Collateral Material - ✔✔Printed, broadcast, or other communications regarding
marketing, including solicitations, promotional materials, advertisements, statements,
statement inserts, direct mail solicitations, brochures, and telemarketing operator
scripts.
✔✔Collected Funds - ✔✔Funds for which final payment has been received.
✔✔Collections - ✔✔A status or process by which borrowers or clients/customers have
defaulted on their debts. Many companies hire collection agencies that specialize in
recovering all or a portion of these debts for a fee. The fee sometimes includes a portion
of the recovered monies.
✔✔Combined Terminated Merchant File (CTMF) - ✔✔A database maintained by the
card companies that lists all merchants terminated for cause.
✔✔Combined Warning Bulletin - ✔✔The printed list of blocked numbers published
jointly by Visa U.S.A. and MasterCard International. This list was discontinued in April
1994.
,✔✔Commercial Card - ✔✔A credit or debit card issued to businesses and corporations
for travel and entertainment, fleet, business‐related expenses, and procurement.
✔✔Commercial Card Enhanced Data Transport - ✔✔A service that enables issuers to
provide their Visa Commercial card customers with optional enhanced reporting of
transaction information provided by merchants and acquirers.
✔✔Commercial Credit - ✔✔Short‐term credit that a seller gives to a buyer to pay for a
service or product.
✔✔Commercial Relationship - ✔✔An agreement between parties to do business
together for the purpose of EBPP/EIPP. It may or may not include a contract.
✔✔Commercially Reasonable Time Frame - ✔✔A period of time generally considered
acceptable for a process in a given industry, taking into consideration the circumstances
of the parties to the transaction. (Source: Billing.org)
✔✔Commission-Only Sales - ✔✔Sales personnel who are not employed by a company
but receive commissions instead of a salary when they effect a sale. These personnel
are also considered "1099" personnel because they are issued IRS Form 1099 as proof
of wages and for tax filing purposes.
✔✔Communications Processor Unit (CPU) - ✔✔A computer embedded in a
✔✔communications system. CPU is also an abbreviation for the central processing unit
of a computer. - ✔✔
✔✔Compliance - ✔✔A process for resolving disputes between card companies arising
from violations of the operating regulations and verification by the member that a
financial loss has occurred.
✔✔Compliance Filing - ✔✔A formal case filing (on a completed regulations/rules
violation form) submitted following an unsuccessful good‐faith attempt to resolve the
dispute.
✔✔Computer-Based Training (CBT) - ✔✔Lessons or classes designed for self-study
from computer programs.
✔✔Concentrator - ✔✔1. In data transmission, a functional unit that permits a common
path to handle more data sources than there are channels currently available within the
path. A concentrator usually provides communication capability between many low‐
speed, usually asynchronous channels and one or more high‐speed, usually
synchronous channels. Usually different speeds, codes, and protocols can be
accommodated on the low‐speed side. 2. A device that connects a number of circuits,
, which are not all used at once, to a smaller group of circuits for economy. (Source:
Federal Communications Commission)
✔✔Concentrator - ✔✔A financial institution or third‐party service provider that a biller
retains to handle payment and/or remittance data.
✔✔Confidentiality - ✔✔The guarantee that a message will be legible to no one other
than the intended recipient.
✔✔Confirmation - ✔✔The acquirer's electronic acknowledgment of the retrieval request.
✔✔Confirmation Number - ✔✔A number provided by a hotel, motel or auto rental to
verify a cardholderʹs guaranteed reservation or advance resort deposit.
✔✔Confirmed Fraud Transaction - ✔✔A transaction, reported by an issuer to the card
companies, involving a card that was lost, stolen, never received, issued on a fraudulent
application, counterfeit, or used fraudulently.
✔✔Congestion - ✔✔Density of traffic when the load exceeds the capacity of a data
communication path. (Source: Federal Communications Commission)
✔✔Connection Endpoint (CE) - ✔✔A terminating device at one end of a layer
connection within a service access point. Within VisaNet (Visa's network), Visa Access
Point (VAP) serves as the connection endpoints. Within BankNet (MasterCard's
network), MasterCard Interface Processor (MIP) serves as the connection endpoints.
✔✔Consolidator - ✔✔A bill service provider that consolidates bills from multiple billers
or other bill service providers (BSPs) and delivers them for presentment to the customer
service provider (CSP). (Source: Billing.org).
✔✔Consumer - ✔✔A person not engaged in commercial transactions.
✔✔Consumer Cards - ✔✔The term used to identify all personal credit and debit cards.
✔✔Consumer Credit Protection Act - ✔✔See Regulation Z.
✔✔Consumer Fraud - ✔✔The commission of fraudulent acts by a consumer against a
merchant. Some examples include writing bad checks, closing an account or having no
account for checks, or intentional chargebacks.
✔✔Consumer-Operated Terminal (COT) - ✔✔A self‐service, usually a freestanding
device such as an ATM or kiosk where the consumer initiates and consummates a
transaction without the aid of a clerk. See also Cardholder‐ Activated Terminal.
QUESTIONS SET A+
✔✔Client-Server - ✔✔Any hardware‐software combination that generally adheres to
client‐server architecture, regardless of the type of application.
✔✔Client-Server Architecture - ✔✔Any network ‐based software system that uses client
software to request a specific service, and the corresponding server software to provide
the service from another computer on the network
✔✔Close Batch - ✔✔The end‐of‐day or end‐of‐shift process in which the merchant
balances and submits transactions for clearing and settlement. This process occurs on
a terminal‐based capture system. On a host‐based capture system the host
automatically generates the process at a predetermined time of day.
✔✔Closed-Loop - ✔✔A system using a prepaid card within a boundary or a select
group of merchants or at one particular merchant, such as mall cards that can only be
used in the issuing shopping mall, major retailers such as Best Buy and Home Depot
and campus cards that can only be used on the issuing campus. This type of program
uses a proprietary network.
✔✔Closed System - ✔✔A payment card system in which one organization both issues
cards and acquires merchants. American Express and closed loop gift cards are
examples of closed systems.
✔✔CMIA - ✔✔See Cash Management Improvement Act.
✔✔CNP - ✔✔See Card Not Present.
✔✔Co-Branded Cards - ✔✔A customized branded card product for a specific retailer or
service provider, such as General Motors, that wishes to solicit its customers.
✔✔Code "10" - ✔✔A call made by a sales associate to the merchantʹs voice
authorization center when the appearance of a card or the actions of a cardholder
,suggest the possibility of fraud. The term ʺCode 10ʺ is used so calls can be made
without arousing suspicion while the cardholder is present. Specially trained operators
then provide assistance to point‐of‐sale staff on how to handle the transaction.
✔✔Code-Division Multiple Access - ✔✔See CDMA
✔✔Code of Ethics - ✔✔See Ethics Statement.
✔✔Code of Federal Regulations (CFR) - ✔✔The compiled administrative procedures by
which federal agencies administer the laws passed by the U.S. Congress.
✔✔COGS - ✔✔See Cost of Goods Sold.
✔✔Cohabitation - ✔✔The ability of multiple technologies to reside on the same card
and not interfere with each other. An example is a magnetic stripe card with a chip
embedded.
✔✔Cold Call - ✔✔A lead‐generation technique in which a salesperson calls on new
businesses either physically or by telephone.
✔✔Collateral - ✔✔Savings, bonds, insurance policies, jewelry, property, or other items
that are pledged to pay off a loan or other debt if payments are not made according to
agreed upon terms. Synonym: Security.
✔✔Collateral Material - ✔✔Printed, broadcast, or other communications regarding
marketing, including solicitations, promotional materials, advertisements, statements,
statement inserts, direct mail solicitations, brochures, and telemarketing operator
scripts.
✔✔Collected Funds - ✔✔Funds for which final payment has been received.
✔✔Collections - ✔✔A status or process by which borrowers or clients/customers have
defaulted on their debts. Many companies hire collection agencies that specialize in
recovering all or a portion of these debts for a fee. The fee sometimes includes a portion
of the recovered monies.
✔✔Combined Terminated Merchant File (CTMF) - ✔✔A database maintained by the
card companies that lists all merchants terminated for cause.
✔✔Combined Warning Bulletin - ✔✔The printed list of blocked numbers published
jointly by Visa U.S.A. and MasterCard International. This list was discontinued in April
1994.
,✔✔Commercial Card - ✔✔A credit or debit card issued to businesses and corporations
for travel and entertainment, fleet, business‐related expenses, and procurement.
✔✔Commercial Card Enhanced Data Transport - ✔✔A service that enables issuers to
provide their Visa Commercial card customers with optional enhanced reporting of
transaction information provided by merchants and acquirers.
✔✔Commercial Credit - ✔✔Short‐term credit that a seller gives to a buyer to pay for a
service or product.
✔✔Commercial Relationship - ✔✔An agreement between parties to do business
together for the purpose of EBPP/EIPP. It may or may not include a contract.
✔✔Commercially Reasonable Time Frame - ✔✔A period of time generally considered
acceptable for a process in a given industry, taking into consideration the circumstances
of the parties to the transaction. (Source: Billing.org)
✔✔Commission-Only Sales - ✔✔Sales personnel who are not employed by a company
but receive commissions instead of a salary when they effect a sale. These personnel
are also considered "1099" personnel because they are issued IRS Form 1099 as proof
of wages and for tax filing purposes.
✔✔Communications Processor Unit (CPU) - ✔✔A computer embedded in a
✔✔communications system. CPU is also an abbreviation for the central processing unit
of a computer. - ✔✔
✔✔Compliance - ✔✔A process for resolving disputes between card companies arising
from violations of the operating regulations and verification by the member that a
financial loss has occurred.
✔✔Compliance Filing - ✔✔A formal case filing (on a completed regulations/rules
violation form) submitted following an unsuccessful good‐faith attempt to resolve the
dispute.
✔✔Computer-Based Training (CBT) - ✔✔Lessons or classes designed for self-study
from computer programs.
✔✔Concentrator - ✔✔1. In data transmission, a functional unit that permits a common
path to handle more data sources than there are channels currently available within the
path. A concentrator usually provides communication capability between many low‐
speed, usually asynchronous channels and one or more high‐speed, usually
synchronous channels. Usually different speeds, codes, and protocols can be
accommodated on the low‐speed side. 2. A device that connects a number of circuits,
, which are not all used at once, to a smaller group of circuits for economy. (Source:
Federal Communications Commission)
✔✔Concentrator - ✔✔A financial institution or third‐party service provider that a biller
retains to handle payment and/or remittance data.
✔✔Confidentiality - ✔✔The guarantee that a message will be legible to no one other
than the intended recipient.
✔✔Confirmation - ✔✔The acquirer's electronic acknowledgment of the retrieval request.
✔✔Confirmation Number - ✔✔A number provided by a hotel, motel or auto rental to
verify a cardholderʹs guaranteed reservation or advance resort deposit.
✔✔Confirmed Fraud Transaction - ✔✔A transaction, reported by an issuer to the card
companies, involving a card that was lost, stolen, never received, issued on a fraudulent
application, counterfeit, or used fraudulently.
✔✔Congestion - ✔✔Density of traffic when the load exceeds the capacity of a data
communication path. (Source: Federal Communications Commission)
✔✔Connection Endpoint (CE) - ✔✔A terminating device at one end of a layer
connection within a service access point. Within VisaNet (Visa's network), Visa Access
Point (VAP) serves as the connection endpoints. Within BankNet (MasterCard's
network), MasterCard Interface Processor (MIP) serves as the connection endpoints.
✔✔Consolidator - ✔✔A bill service provider that consolidates bills from multiple billers
or other bill service providers (BSPs) and delivers them for presentment to the customer
service provider (CSP). (Source: Billing.org).
✔✔Consumer - ✔✔A person not engaged in commercial transactions.
✔✔Consumer Cards - ✔✔The term used to identify all personal credit and debit cards.
✔✔Consumer Credit Protection Act - ✔✔See Regulation Z.
✔✔Consumer Fraud - ✔✔The commission of fraudulent acts by a consumer against a
merchant. Some examples include writing bad checks, closing an account or having no
account for checks, or intentional chargebacks.
✔✔Consumer-Operated Terminal (COT) - ✔✔A self‐service, usually a freestanding
device such as an ATM or kiosk where the consumer initiates and consummates a
transaction without the aid of a clerk. See also Cardholder‐ Activated Terminal.
