ETA CPP Exam with All Correct & 100% Verified
Answers |Actual Complete Exam |Already Graded A+
(Just Released)
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.
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 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 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.
Interchange Plus ✔Correct 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 ✔Correct Answer-Tiered pricing gets its name from the fact that there are multiple tiers set
up to determine the price associated with the transaction.
Sales Volume ✔Correct Answer-The quantity or number of goods sold or services sold in the
normal operations of a company in a specified period.
Transaction Counts ✔Correct Answer-the total number of transactions that are processed within a
merchant account.
Average Ticket ✔Correct Answer-Average ticket is a metric that provides details on the average
amount of sales by a given customer. It is used by a range of businesses when analyzing business
performance and sales activity.
,Authorization Fees ✔Correct Answer-The amount of money that is charged directly to an
individual merchant account each time communication is made between credit card processing
software (when the sale transaction is processed online, etc.) or point of sale (POS) terminal (when
the sale transaction is processed physically in person) and the authorizing network.
Effective rate ✔Correct Answer-The effective rate of a credit card processing statement is the total
processing fees divided by total sales volume.
Batches ✔Correct Answer-Batch credit card processing is the practice of a merchant processing all
of its authorized credit card transactions for the day after the close of business or at a time
determined by the credit card processor.
Chargeback Activity ✔Correct Answer-A chargeback is a transaction reversal meant to serve as a
form of consumer protection from fraudulent activity committed by both merchants and individuals.
PCI Compliance ✔Correct Answer-The Payment Card Industry Data Security Standard (PCI DSS) is a
set of security standards designed to ensure that ALL companies that accept, process, store or
transmit credit card information maintain a secure environment.
Internet Gateways ✔Correct Answer-a merchant service provided by an e-commerce application
service provider that authorizes credit card or direct payments processing for e-businesses, online
retailers, bricks and clicks, or traditional brick and mortar. The payment gateway may be provided by
a bank to its customers, but can be provided by a specialized financial service provider as a separate
service, such as a payment service provider.
Virtual Terminals ✔Correct Answer-the web version of a physical credit card terminal or Point-of-
Sale (POS) machine
Dial-up POS System ✔Correct Answer-Uses a dial-up connection to process payments
Gift and/or Loyalty cards ✔Correct Answer-Loyalty programs are structured marketing strategies
designed by merchants to encourage customers to continue to shop at or use the services of
businesses associated with each program.
Check conversion ✔Correct Answer-Check conversion is a reformatting service offered by banking
merchants. Check conversion allows banks to convert paper checks into electronic ones and then
send them to the appropriate receiving bank. The electronic check is forwarded on via the
automated clearing house (ACH).
Cash advances ✔Correct Answer-A cash advance allows you to use your credit card to get a short-
term cash loan at a bank or ATM. Unlike a cash withdrawal from a bank account, a cash advance has
to be paid back — just like anything else you put on your credit card. Think of it as using your credit
card to "buy" cash rather than goods or services.
ACH ✔Correct Answer-Automated Clearing House (ACH) is an electronic network for financial
transactions in the United States. ACH processes large volumes of credit and debit transactions in
batches.
The following information must be provided on the merchant application: ✔Correct Answer--
business name (DBA)
- physical location address
, - business telephone number
- Tax Identification Number (TIN)
- Employer Identification Number (EIN)
- Contact information
- Cardholder Storage
- Copy of the merchant's voided check or bank letter with account name, account number and
routing number
- A bank contact name and phone
Retail ✔Correct Answer-the selling of goods directly to the customer; face-to-face transaction
Restaurant ✔Correct Answer-an eating establishment where food and drink are being sold to
customers
Mail Order/Telephone Order (MOTO) or Internet ✔Correct Answer-the selling of goods online;
non-face-to-face transaction (ANY Card Not Present environment)
Supermarket ✔Correct Answer-large self-service retail store selling food and household goods
Lodging ✔Correct Answer-sleeping accommodations, furnished rooms to rent for the night
Landline terminal ✔Correct Answer-the card is swiped through a magnetic strip on the terminal,
which connects to the processor's computer.
Dial UP Terminal ✔Correct Answer-A terminal that can read the track data on a magnetic stripe
and communicate transaction information to the frontend platform and receives authorization
instructions via the merchant's phone line usually by dialing a toll free number.
IP Terminal ✔Correct Answer-does the same thing as a dial terminal except that the terminal
communicates transaction information to the frontend platform and receives authorization
instructions by utilizing the merchant's connection to the internet.
EMV Terminal ✔Correct Answer-has the ability to take cardholder data from a chip embedded
within the card and communicate transaction information to the frontend platform and receives
authorization instructions by utilizing the merchant's phone line or Inter- net connection.
Wireless terminal ✔Correct Answer-provides the ideal solution for businesses seeking the most
effective way to complete credit card transactions off-site. Most wireless credit card terminals
support credit and debit transactions and are equipped with an internal PIN pad. Wireless terminals
can be used on the countertop or in a mobile environment.
Sale ✔Correct Answer-for a sale, swipe the customer card or manually enter the credit card
number, input sale amount, then press enter. The terminal will then transmit information through
the network for approval, and a merchant receipt will be printed.
Mobile solution ✔Correct Answer-allows a merchant to accept credit cards using a cell phone with
or without a card swipe mechanism.
Internet solution ✔Correct Answer-a processing method using a secure web server that provides
an interface for merchant websites and shopping carts that require real-time transaction processing.
Answers |Actual Complete Exam |Already Graded A+
(Just Released)
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.
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 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 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.
Interchange Plus ✔Correct 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 ✔Correct Answer-Tiered pricing gets its name from the fact that there are multiple tiers set
up to determine the price associated with the transaction.
Sales Volume ✔Correct Answer-The quantity or number of goods sold or services sold in the
normal operations of a company in a specified period.
Transaction Counts ✔Correct Answer-the total number of transactions that are processed within a
merchant account.
Average Ticket ✔Correct Answer-Average ticket is a metric that provides details on the average
amount of sales by a given customer. It is used by a range of businesses when analyzing business
performance and sales activity.
,Authorization Fees ✔Correct Answer-The amount of money that is charged directly to an
individual merchant account each time communication is made between credit card processing
software (when the sale transaction is processed online, etc.) or point of sale (POS) terminal (when
the sale transaction is processed physically in person) and the authorizing network.
Effective rate ✔Correct Answer-The effective rate of a credit card processing statement is the total
processing fees divided by total sales volume.
Batches ✔Correct Answer-Batch credit card processing is the practice of a merchant processing all
of its authorized credit card transactions for the day after the close of business or at a time
determined by the credit card processor.
Chargeback Activity ✔Correct Answer-A chargeback is a transaction reversal meant to serve as a
form of consumer protection from fraudulent activity committed by both merchants and individuals.
PCI Compliance ✔Correct Answer-The Payment Card Industry Data Security Standard (PCI DSS) is a
set of security standards designed to ensure that ALL companies that accept, process, store or
transmit credit card information maintain a secure environment.
Internet Gateways ✔Correct Answer-a merchant service provided by an e-commerce application
service provider that authorizes credit card or direct payments processing for e-businesses, online
retailers, bricks and clicks, or traditional brick and mortar. The payment gateway may be provided by
a bank to its customers, but can be provided by a specialized financial service provider as a separate
service, such as a payment service provider.
Virtual Terminals ✔Correct Answer-the web version of a physical credit card terminal or Point-of-
Sale (POS) machine
Dial-up POS System ✔Correct Answer-Uses a dial-up connection to process payments
Gift and/or Loyalty cards ✔Correct Answer-Loyalty programs are structured marketing strategies
designed by merchants to encourage customers to continue to shop at or use the services of
businesses associated with each program.
Check conversion ✔Correct Answer-Check conversion is a reformatting service offered by banking
merchants. Check conversion allows banks to convert paper checks into electronic ones and then
send them to the appropriate receiving bank. The electronic check is forwarded on via the
automated clearing house (ACH).
Cash advances ✔Correct Answer-A cash advance allows you to use your credit card to get a short-
term cash loan at a bank or ATM. Unlike a cash withdrawal from a bank account, a cash advance has
to be paid back — just like anything else you put on your credit card. Think of it as using your credit
card to "buy" cash rather than goods or services.
ACH ✔Correct Answer-Automated Clearing House (ACH) is an electronic network for financial
transactions in the United States. ACH processes large volumes of credit and debit transactions in
batches.
The following information must be provided on the merchant application: ✔Correct Answer--
business name (DBA)
- physical location address
, - business telephone number
- Tax Identification Number (TIN)
- Employer Identification Number (EIN)
- Contact information
- Cardholder Storage
- Copy of the merchant's voided check or bank letter with account name, account number and
routing number
- A bank contact name and phone
Retail ✔Correct Answer-the selling of goods directly to the customer; face-to-face transaction
Restaurant ✔Correct Answer-an eating establishment where food and drink are being sold to
customers
Mail Order/Telephone Order (MOTO) or Internet ✔Correct Answer-the selling of goods online;
non-face-to-face transaction (ANY Card Not Present environment)
Supermarket ✔Correct Answer-large self-service retail store selling food and household goods
Lodging ✔Correct Answer-sleeping accommodations, furnished rooms to rent for the night
Landline terminal ✔Correct Answer-the card is swiped through a magnetic strip on the terminal,
which connects to the processor's computer.
Dial UP Terminal ✔Correct Answer-A terminal that can read the track data on a magnetic stripe
and communicate transaction information to the frontend platform and receives authorization
instructions via the merchant's phone line usually by dialing a toll free number.
IP Terminal ✔Correct Answer-does the same thing as a dial terminal except that the terminal
communicates transaction information to the frontend platform and receives authorization
instructions by utilizing the merchant's connection to the internet.
EMV Terminal ✔Correct Answer-has the ability to take cardholder data from a chip embedded
within the card and communicate transaction information to the frontend platform and receives
authorization instructions by utilizing the merchant's phone line or Inter- net connection.
Wireless terminal ✔Correct Answer-provides the ideal solution for businesses seeking the most
effective way to complete credit card transactions off-site. Most wireless credit card terminals
support credit and debit transactions and are equipped with an internal PIN pad. Wireless terminals
can be used on the countertop or in a mobile environment.
Sale ✔Correct Answer-for a sale, swipe the customer card or manually enter the credit card
number, input sale amount, then press enter. The terminal will then transmit information through
the network for approval, and a merchant receipt will be printed.
Mobile solution ✔Correct Answer-allows a merchant to accept credit cards using a cell phone with
or without a card swipe mechanism.
Internet solution ✔Correct Answer-a processing method using a secure web server that provides
an interface for merchant websites and shopping carts that require real-time transaction processing.
