ETA CPP BUNDLED EXAM STUDY
GUIDE WITH TESTED SOLUTIONS
⩥ 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.
⩥ Card Not Present transactions. Answer: A card not present transaction
(CNP, MO/TO, Mail Order / Telephone Order, MOTOEC) is a payment
card transaction made where the cardholder does not or cannot
physically present the card for a merchant's visual examination at the
time that an order is given and payment effected.
⩥ Quick Service Restaurants (QSR). Answer: a specific type of
restaurant that serves fast food cuisine and has minimal table service.
,⩥ Emerging Markets. Answer: countries in the process of rapid growth
& industrialization
⩥ Level 1 Data. Answer: Level I purchasing card data includes the same
information captured during a traditional credit card purchase
transaction. This includes: total purchase amount, date, merchant
category code and supplier/retailer name.
⩥ Level 2 Data. Answer: Level II purchasing card data includes the
same information captured at Level I, plus the following: sales tax
amount, customer's accounting code, merchant's tax ID number,
applicable minority - and women-owned business status and sales outlet
ZIP code.
⩥ Level 3 Data. Answer: Level III purchasing card data includes the
same information captured at Levels I and II, plus the following:
quantities, product codes, product descriptions, ship to ZIP, freight
amount, duty amount, order/ticket number, unit of measure, extended
item amount, discount indicator, discount amount, net/gross indicator,
tax rate applied, tax type applied, debit or credit indicator and alternate
tax identifier.
⩥ Discount Rate (Credit/Debit). Answer: The discount rate is the fee
paid by merchants to credit card processors as a fee associated with
accepting general-use credit cards (such as Visa, MasterCard, American
Express and Discover). Typically this fee runs between 1 percent and 3
percent, depending on the nature of the transaction.
, ⩥ Daily or monthly discount. Answer: With monthly discount, your
processor deducts fees from your account in one lump sum once a
month. With daily discount, your processor charges fees daily
throughout the month as well as at the end of the month.
⩥ Surcharge. Answer: A charge added to the usual cost
⩥ Billback. Answer: Billback or bill back is an accounting service
and/or suite of software that is used for cost recovery.
⩥ ERR Rates. Answer: Enhanced Rate Recovery Pricing. As a merchant
business with an ERR rate of 1.69% for your merchant account, you will
be charged 1.69% for any transaction that qualifies on The Interchange
Table at 1.69% or below.
⩥ Interchange Plus. Answer: Interchange Plus pricing gets its name
based on the fact that the rate charged for the transaction comes straight
from the Interchange table "plus" a surcharge amount.
⩥ Tiered. Answer: Tiered pricing gets its name from the fact that there
are multiple tiers set up to determine the price associated with the
transaction.
GUIDE WITH TESTED SOLUTIONS
⩥ 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.
⩥ Card Not Present transactions. Answer: A card not present transaction
(CNP, MO/TO, Mail Order / Telephone Order, MOTOEC) is a payment
card transaction made where the cardholder does not or cannot
physically present the card for a merchant's visual examination at the
time that an order is given and payment effected.
⩥ Quick Service Restaurants (QSR). Answer: a specific type of
restaurant that serves fast food cuisine and has minimal table service.
,⩥ Emerging Markets. Answer: countries in the process of rapid growth
& industrialization
⩥ Level 1 Data. Answer: Level I purchasing card data includes the same
information captured during a traditional credit card purchase
transaction. This includes: total purchase amount, date, merchant
category code and supplier/retailer name.
⩥ Level 2 Data. Answer: Level II purchasing card data includes the
same information captured at Level I, plus the following: sales tax
amount, customer's accounting code, merchant's tax ID number,
applicable minority - and women-owned business status and sales outlet
ZIP code.
⩥ Level 3 Data. Answer: Level III purchasing card data includes the
same information captured at Levels I and II, plus the following:
quantities, product codes, product descriptions, ship to ZIP, freight
amount, duty amount, order/ticket number, unit of measure, extended
item amount, discount indicator, discount amount, net/gross indicator,
tax rate applied, tax type applied, debit or credit indicator and alternate
tax identifier.
⩥ Discount Rate (Credit/Debit). Answer: The discount rate is the fee
paid by merchants to credit card processors as a fee associated with
accepting general-use credit cards (such as Visa, MasterCard, American
Express and Discover). Typically this fee runs between 1 percent and 3
percent, depending on the nature of the transaction.
, ⩥ Daily or monthly discount. Answer: With monthly discount, your
processor deducts fees from your account in one lump sum once a
month. With daily discount, your processor charges fees daily
throughout the month as well as at the end of the month.
⩥ Surcharge. Answer: A charge added to the usual cost
⩥ Billback. Answer: Billback or bill back is an accounting service
and/or suite of software that is used for cost recovery.
⩥ ERR Rates. Answer: Enhanced Rate Recovery Pricing. As a merchant
business with an ERR rate of 1.69% for your merchant account, you will
be charged 1.69% for any transaction that qualifies on The Interchange
Table at 1.69% or below.
⩥ Interchange Plus. Answer: Interchange Plus pricing gets its name
based on the fact that the rate charged for the transaction comes straight
from the Interchange table "plus" a surcharge amount.
⩥ Tiered. Answer: Tiered pricing gets its name from the fact that there
are multiple tiers set up to determine the price associated with the
transaction.
