ETA CPP Study Guide - Complete Solutions (Answered)

ETA CPP Study Guide - Complete Solutions (Answered) What data elements are required for a merchant's commercial card transactions to qualify for Level 1, Level 2 and Level 3 Interchange programs? Item #, date and AVS Info What types of transactions and which banks were regulated by the Durbin amendment to the Dodd-Frank Wall Street Reform and Consumer Protection Act? Debit card transactions from large issuing banks What typically constitutes a small ticket transaction? Swiped sales under $15.00 What does EIRF transaction type mean? Electronic transactions captured and settled within 2 days of authorization. What is the Interchange rate charged for transactions that clear for EIRF? 2.30% + $.10 What does surcharge/ bill back mean on a merchant's statement? Mid and Non-Qualified fees On a merchant statement, how would you determine if the merchant is being billed on Interchange Plus, tiered pricing or a bundled rate program? Look at the discount rates section. How can a merchant's charge per authorization be determined when the amount appearing on the statement is the total for all authorizations? Authorization fees divided by number of transactions for each card type How would a $79 annual fee get converted into basis points (bps), for a merchant that processes $10,000 a month in sales volume? Divide 79 by 12 and divide by monthly sales Which of the following is a benefit to pricing a merchant on an Interchange Plus program verses a tiered rate program? Full cost disclosure What is tiered pricing? Interchange rates grouped into major categories for simpler pricing Which one of the following businesses would use a "Micros" terminal? Restaurant What is host capture? Authorized transactions that are captured on approval and settled on processors system. What is terminal capture? Transactions are approved by processor, then captured in memory of the terminal for batch settlement. What is a payment gateway? A web-based virtual terminal that connects to major processors for browser based and e-commerce transactions. What purpose does a payment gateway serve for a merchant? To process transactions originating from a website or shopping cart. What is the correct term for a number used to identify the merchant during processing of daily transactions, rejects, adjustments, chargebacks, and end-of-month processing fees? Merchant Identification Number What is the most efficient way for a merchant to process other than via a phone line? IP or Ethernet What is the best method to communicate with a merchant? Email Which one of the following relationships is NOT important to the success of retaining a merchant account? Mail Carrier Service Which of the following is NOT an important component of a merchant processing statement? Money Saving Tips Which of the following methods of processing uses a secure web server that provides an interface for merchant websites and shopping carts that requires real-time transaction processing? Internet Solutions Which of the following peripheral devices reads pocket-sized cards with embedded integrated circuits that can process and store data, and communicate with a terminal via radio waves? Contactless Reader What term best describes the accumulation of captured credit card transactions in the merchant's terminal or POS system awaiting settlement? Batch Which of the following entities typically initiates a chargeback? Cardholder What type of questions should you ask a merchant to have them provide a detailed explanation of their business objectives and needs for credit/ debit card processing? What payment types and ancillary services are needed? What is the one "key" question to ask, when considering the impact of a potential payments solution for a merchant that has 90% face-to-face transactions, and 10% MOTO transactions with one stand-alone dial terminal currently in place? How many face-to-face credit card transactions do you process per hour? Which of the following is part of the process for training/educating a merchant on the use of a terminal? Test the terminal and provide merchant with technical support number for the machine issued. What is the first step that leads into the discussion of payment mechanisms, ancillary solutions required by the merchant, and any additional data exchange as part of the payment process or apart from the payment process? Determine merchant's need or desire to accept primary payment brands. What does "No Line" message mean when displayed on the POS /Card Processing device? No dial tone detected A chip card performs which of the following functions? Utilizes an algorithm to send to the issuer instead of track data End-to-End encryption is best described as: Card data encrypted within the terminal environment and remaining encrypted all the way to the processor's host or card brand Tokenization is best described as: Providing a merchant or system with a value that corresponds to card data for use in transaction processing How many tracks of data are encoded on a standard credit card? 2 Which of the following statements is true as it related to a Gateway Provider? They must support all card types and brands. Which of the following merchant types would be placed under permitted? (Some merchant types could fit under more than one category) Lingerie Sales Which of the following merchant types would be placed under Restricted? (Some merchant types could fit under more than one category) Nutraceuticals According to the Mastercard and Visa rules, which of the following types of merchants would be required to be registered in the high risk category? Drug Stores & Pharmacies What is the purpose of AVS? To assist in the verification of the cardholder both on and offline. Which of the following IS NOT a card present best practice? Ignore the card expiration date.