ETA CPP Study Guide 2024 with Complete Solutions

ETA CPP Study Guide 2024 with Complete Solutions NABU, APF and FANF - 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 - 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