ETA CPP Study Guide Exam Questions
and Answers Graded A+
NABU, APF and FANF - Correct answer-MasterCard implemented a new fee, the
Network Access and Brand Usage fee (NABU). And following right on the heels
of the MasterCard announcement, on July 1, 2009 Visa implemented their U.S.
Acquirer Processing Fee (APF).
Card brand dues and assessments - Correct 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 - Correct 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.
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,Authorization fee - Correct 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 - Correct 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 - Correct answer-clearing denotes all activities from
the time a commitment is made for a transaction until it is settled.
Chargeback and representment fees - Correct answer-In short, a chargeback is a
reversal of funds transferred.
Statement or reporting fees - Correct answer-Fees that are charged for receiving
statements or reports.
Rewards Cards - Correct 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 - Correct answer-A card not present transaction
(CNP, MO/TO, Mail Order / Telephone Order, MOTOEC) is a payment card
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,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) - Correct answer-a specific type of restaurant
that serves fast food cuisine and has minimal table service.
Emerging Markets - Correct answer-countries in the process of rapid growth &
industrialization
Level 1 Data - Correct 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 - Correct 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 - Correct 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
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, amount, net/gross indicator, tax rate applied, tax type applied, debit or credit
indicator and alternate tax identifier.
Discount Rate (Credit/Debit) - Correct 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 - Correct 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 - Correct answer-A charge added to the usual cost
Billback - Correct answer-Billback or bill back is an accounting service and/or
suite of software that is used for cost recovery.
ERR Rates - Correct 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.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 4
and Answers Graded A+
NABU, APF and FANF - Correct answer-MasterCard implemented a new fee, the
Network Access and Brand Usage fee (NABU). And following right on the heels
of the MasterCard announcement, on July 1, 2009 Visa implemented their U.S.
Acquirer Processing Fee (APF).
Card brand dues and assessments - Correct 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 - Correct 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.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
,Authorization fee - Correct 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 - Correct 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 - Correct answer-clearing denotes all activities from
the time a commitment is made for a transaction until it is settled.
Chargeback and representment fees - Correct answer-In short, a chargeback is a
reversal of funds transferred.
Statement or reporting fees - Correct answer-Fees that are charged for receiving
statements or reports.
Rewards Cards - Correct 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 - Correct answer-A card not present transaction
(CNP, MO/TO, Mail Order / Telephone Order, MOTOEC) is a payment card
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
,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) - Correct answer-a specific type of restaurant
that serves fast food cuisine and has minimal table service.
Emerging Markets - Correct answer-countries in the process of rapid growth &
industrialization
Level 1 Data - Correct 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 - Correct 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 - Correct 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
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
, amount, net/gross indicator, tax rate applied, tax type applied, debit or credit
indicator and alternate tax identifier.
Discount Rate (Credit/Debit) - Correct 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 - Correct 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 - Correct answer-A charge added to the usual cost
Billback - Correct answer-Billback or bill back is an accounting service and/or
suite of software that is used for cost recovery.
ERR Rates - Correct 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.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 4
