ETA CPP FINAL EXAM QUESTIONS AND
COMPLETE ANSWERS |ALREADY
GRADED A+| 2025/2026 UPDATE |
GUARANTEE TO PASS!!
< RECENT VERSION >
1. Maximum ticket - ANSWER ✔ risk systems must monitor the
average ticket and a maximum ticket. Transactions above the
maximum ticket may be an indicator of misinformation during the
application process, a change in the merchant product, cardholder
fraud, a bust-out scheme, or perhaps collusion and should be
reviewed and possible investigated.
2. Average ticket of the merchant - ANSWER ✔ if the application
shows a $30 average ticket and you see an average ticket of $400, you
should investigate to ensure they are selling what the application
stated. Alternately, it could be a fraudulent cardholder transaction.
3. Monthly volume - ANSWER ✔ applications typically request the
average monthly volume and a peak season volume. Sales beyond
these volumes may indicate risk problems or may warrant
adjustments in account set up to off set merchant growth. Larger than
expected volumes in the first month may be an indicator that the
, merchant has past sales they are trying to process, a bust-out scheme,
or that the application was erroneous or false. The volume should also
be balanced against similar merchants. Larger volumes than similar
merchants may be an indicator of risk and should be investigated.
4. Large dollar or excessive credits - ANSWER ✔ monitoring credits is
a good way to gauge the satisfaction of your merchant's customer
with the products and/or services sold. Excessive credits may indicate
money problems at your merchant. Large dollar credits may be an
indicator of a merchant utilizing the card schemes to layer money
amongst their various accounts. It is required that all credits have an
offsetting sale. Credits without an offsetting sale may be an indicator
of employee theft, merchant system hack, or a fraudulent merchant.
Frequent credits for large amounts may be an indicator of money
laundering.
5. Chargeback monitoring - ANSWER ✔ if your merchant is receiving a
lot of chargebacks, you should quickly evaluate the reason codes
behind the chargebacks and question the merchant's practices.
Increased chargebacks may mean your merchant's business is in
financial distress, is experiencing supplier issues, or has gone rogue
and is committing fraud, potentially against the consumer. This is
especially the case if the chargebacks are for unauthorized charges,
services not received, or duplicate transactions.
6. Percentage keyed vs. swiped - ANSWER ✔ monitoring the
percentage of swiped transactions vs. keyed transactions is a simple
, way to tell whether your merchant has shifted from retail to MOTO
(mail or telephone order) or internet. If you see more keyed
transactions than indicated and subsequently approved on the
application, you should talk with your merchant to understand why
transactions are being keyed. Increased key-entered transactions may
also be an indicator of factoring or money laundering where the cards
are not present.
7. Repeat or excessive authorizations - ANSWER ✔ evaluate
authorization logs to help determine whether your merchant has
software problems that cause repeated authorizations or whether your
merchant is being targeted by a fraudster seeking to find good card
numbers. Monitoring excessive authorizations is also a way to help
your merchant avoid brand fees associated with non-settled
transactions.
8. Merchant information changes - ANSWER ✔ another area to monitor
is when merchants change checking accounts, contact information, or
websites. It is important to understand why the changes are being
made, how often, who is authorizing the changes, and what impact
the changes might have on the business.
9. Financial strength of the business - ANSWER ✔ Periodically
checking the financial health of your merchant and watching trends in
processing volume can help protect against unexpected financial loss.
If the merchant is struggling to cover their costs of goods it is
possible owed fees may be returned as NSF (non-sufficient funds).
, 10. Future delivery - ANSWER ✔ The risk with transactions
dependent on the future delivery of goods and services is that the
chargeback period may be quite lengthy. Examples include household
furniture and/or appliances, membership dues, home renovation/
remodeling, or service contracts. If the merchant goes out of business
prior to delivery or completion of services and is not capable of
covering the returns/chargebacks, the acquirer will absorb loss.
11. PIN debit transactions - ANSWER ✔ The regulations for PIN debit
and the PIN debit network rules allow for cardholder disputes in
certain instances. You should be aware of these regulations and
understand the potential impact on your business.
12. Data security - ANSWER ✔ With the increase in merchants using
point of sale systems (not just a terminal) comes an increase in the
likeli- hood that you will experience a data breach at a retail
merchant. Diligence should be used in ensuring software and
hardware in use is PCI compliant and that your merchant follows
proper procedures and guidelines for protecting cardholder data.
13. EMV Chip Card - ANSWER ✔ If a consumer presents a chip card
and the merchant is not able to accept the card AND the consumer
claims fraud, the liability is now held by the merchant. This is a new
risk not previously faced by card present merchants. The details of
this shift are below.
COMPLETE ANSWERS |ALREADY
GRADED A+| 2025/2026 UPDATE |
GUARANTEE TO PASS!!
< RECENT VERSION >
1. Maximum ticket - ANSWER ✔ risk systems must monitor the
average ticket and a maximum ticket. Transactions above the
maximum ticket may be an indicator of misinformation during the
application process, a change in the merchant product, cardholder
fraud, a bust-out scheme, or perhaps collusion and should be
reviewed and possible investigated.
2. Average ticket of the merchant - ANSWER ✔ if the application
shows a $30 average ticket and you see an average ticket of $400, you
should investigate to ensure they are selling what the application
stated. Alternately, it could be a fraudulent cardholder transaction.
3. Monthly volume - ANSWER ✔ applications typically request the
average monthly volume and a peak season volume. Sales beyond
these volumes may indicate risk problems or may warrant
adjustments in account set up to off set merchant growth. Larger than
expected volumes in the first month may be an indicator that the
, merchant has past sales they are trying to process, a bust-out scheme,
or that the application was erroneous or false. The volume should also
be balanced against similar merchants. Larger volumes than similar
merchants may be an indicator of risk and should be investigated.
4. Large dollar or excessive credits - ANSWER ✔ monitoring credits is
a good way to gauge the satisfaction of your merchant's customer
with the products and/or services sold. Excessive credits may indicate
money problems at your merchant. Large dollar credits may be an
indicator of a merchant utilizing the card schemes to layer money
amongst their various accounts. It is required that all credits have an
offsetting sale. Credits without an offsetting sale may be an indicator
of employee theft, merchant system hack, or a fraudulent merchant.
Frequent credits for large amounts may be an indicator of money
laundering.
5. Chargeback monitoring - ANSWER ✔ if your merchant is receiving a
lot of chargebacks, you should quickly evaluate the reason codes
behind the chargebacks and question the merchant's practices.
Increased chargebacks may mean your merchant's business is in
financial distress, is experiencing supplier issues, or has gone rogue
and is committing fraud, potentially against the consumer. This is
especially the case if the chargebacks are for unauthorized charges,
services not received, or duplicate transactions.
6. Percentage keyed vs. swiped - ANSWER ✔ monitoring the
percentage of swiped transactions vs. keyed transactions is a simple
, way to tell whether your merchant has shifted from retail to MOTO
(mail or telephone order) or internet. If you see more keyed
transactions than indicated and subsequently approved on the
application, you should talk with your merchant to understand why
transactions are being keyed. Increased key-entered transactions may
also be an indicator of factoring or money laundering where the cards
are not present.
7. Repeat or excessive authorizations - ANSWER ✔ evaluate
authorization logs to help determine whether your merchant has
software problems that cause repeated authorizations or whether your
merchant is being targeted by a fraudster seeking to find good card
numbers. Monitoring excessive authorizations is also a way to help
your merchant avoid brand fees associated with non-settled
transactions.
8. Merchant information changes - ANSWER ✔ another area to monitor
is when merchants change checking accounts, contact information, or
websites. It is important to understand why the changes are being
made, how often, who is authorizing the changes, and what impact
the changes might have on the business.
9. Financial strength of the business - ANSWER ✔ Periodically
checking the financial health of your merchant and watching trends in
processing volume can help protect against unexpected financial loss.
If the merchant is struggling to cover their costs of goods it is
possible owed fees may be returned as NSF (non-sufficient funds).
, 10. Future delivery - ANSWER ✔ The risk with transactions
dependent on the future delivery of goods and services is that the
chargeback period may be quite lengthy. Examples include household
furniture and/or appliances, membership dues, home renovation/
remodeling, or service contracts. If the merchant goes out of business
prior to delivery or completion of services and is not capable of
covering the returns/chargebacks, the acquirer will absorb loss.
11. PIN debit transactions - ANSWER ✔ The regulations for PIN debit
and the PIN debit network rules allow for cardholder disputes in
certain instances. You should be aware of these regulations and
understand the potential impact on your business.
12. Data security - ANSWER ✔ With the increase in merchants using
point of sale systems (not just a terminal) comes an increase in the
likeli- hood that you will experience a data breach at a retail
merchant. Diligence should be used in ensuring software and
hardware in use is PCI compliant and that your merchant follows
proper procedures and guidelines for protecting cardholder data.
13. EMV Chip Card - ANSWER ✔ If a consumer presents a chip card
and the merchant is not able to accept the card AND the consumer
claims fraud, the liability is now held by the merchant. This is a new
risk not previously faced by card present merchants. The details of
this shift are below.
