ETA CPP STUDY GUIDE EXAM 2024/2025 | ACCURATE
EXAM VERSIONS WITH CURRENTLY TESTING
QUESTIONS AND FREQUENTLY TESTED QUESTIONS
WITH ACCURATE ANSWERS AND A STUDY GUIDE
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).
Entrepreneur - <<ANSWER>>The person who assumes the financial risk of the
initiation, operation, and management of a business or undertaking. He/she is primarily
a financial and/or professional risk taker.
Entry - <<ANSWER>>An electronic item representing the transfer of funds in the ACH
Network.
Enveloping - <<ANSWER>>A process by which documents of the same type or
purpose are grouped together, bound, and sent to the same destination in an electronic
envelope. Enveloping is accomplished with an electronic data interchange management
software function.
EOM - <<ANSWER>>Abbreviation for end‐of‐month.
e-P3 - <<ANSWER>>MasterCard purchasing card program that integrates payment
processing with remittance processing.
EPP - <<ANSWER>>See Encrypting PIN Pad.
EPS - <<ANSWER>>See Express Payment Service.
ePurse - <<ANSWER>>See Electronic Purse.
,Equal Credit Opportunity Act (ECOA) - <<ANSWER>>The federal law enacted in 1974
that requires that all U.S. financial institutions make credit available equally to all
creditworthy customers regardless of age, marital status, race, color, religion, or
national origin. Also called Regulation B.
Equity - <<ANSWER>>Value when business debts are subtracted from the business
current market value. For example, if debts amount to $100,000, but the business could
sell for $300,000, then the business has $200,000 in equity. The residual value of a
business or property beyond any mortgage thereon and liability therein.
Equity Interests - <<ANSWER>>A relationship structure among some ISOs/MSPs and
their sponsors in which the ISO/MSP has negotiated an equity interest in the portfolio.
Some of the terms include: right of first refusal to sell the portfolio, division of equity in
monthly revenue and sales process, and some form of portfolio valuation.
ERP - <<ANSWER>>See Enterprise Resource Program.
Error Resolution Process - <<ANSWER>>Procedures required under Regulation E for
resolving a consumer's allegation that entries were improperly charged to his/her
account.
ESA (External Sales Agent) - <<ANSWER>>The American Express program that
allows an independent sales organization to sell the acceptance of American Express
cards to merchants. American Express pays the agent an agreed‐upon fixed fee for
each approved application and allows the sales entity to retain amounts over the set
discount rate as an inducement to sell and to reimburse the agent for the cost of sales.
Escheatment - <<ANSWER>>The process of turning over unclaimed or abandoned
funds or property to a state authority.
Escrow - <<ANSWER>>A kind of holding pen for money that is released after a specific
event has occurred. Some acquirers have ISOs or merchants put money into an escrow
account, which is supervised by a neutral third party such as a financial institution. The
financial institution (called the "escrow agent") releases the money to the ISO or
merchant only after the ISO or merchant has carried out certain agreed‐upon tasks,
such as completion of work or performance of a service.
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.
Interchange Plus - <<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 - <<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 - <<ANSWER>>The quantity or number of goods sold or services sold in
the normal operations of a company in a specified period.
Transaction Counts - <<ANSWER>>the total number of transactions that are processed
within a merchant account.
Average Ticket - <<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.
EXAM VERSIONS WITH CURRENTLY TESTING
QUESTIONS AND FREQUENTLY TESTED QUESTIONS
WITH ACCURATE ANSWERS AND A STUDY GUIDE
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).
Entrepreneur - <<ANSWER>>The person who assumes the financial risk of the
initiation, operation, and management of a business or undertaking. He/she is primarily
a financial and/or professional risk taker.
Entry - <<ANSWER>>An electronic item representing the transfer of funds in the ACH
Network.
Enveloping - <<ANSWER>>A process by which documents of the same type or
purpose are grouped together, bound, and sent to the same destination in an electronic
envelope. Enveloping is accomplished with an electronic data interchange management
software function.
EOM - <<ANSWER>>Abbreviation for end‐of‐month.
e-P3 - <<ANSWER>>MasterCard purchasing card program that integrates payment
processing with remittance processing.
EPP - <<ANSWER>>See Encrypting PIN Pad.
EPS - <<ANSWER>>See Express Payment Service.
ePurse - <<ANSWER>>See Electronic Purse.
,Equal Credit Opportunity Act (ECOA) - <<ANSWER>>The federal law enacted in 1974
that requires that all U.S. financial institutions make credit available equally to all
creditworthy customers regardless of age, marital status, race, color, religion, or
national origin. Also called Regulation B.
Equity - <<ANSWER>>Value when business debts are subtracted from the business
current market value. For example, if debts amount to $100,000, but the business could
sell for $300,000, then the business has $200,000 in equity. The residual value of a
business or property beyond any mortgage thereon and liability therein.
Equity Interests - <<ANSWER>>A relationship structure among some ISOs/MSPs and
their sponsors in which the ISO/MSP has negotiated an equity interest in the portfolio.
Some of the terms include: right of first refusal to sell the portfolio, division of equity in
monthly revenue and sales process, and some form of portfolio valuation.
ERP - <<ANSWER>>See Enterprise Resource Program.
Error Resolution Process - <<ANSWER>>Procedures required under Regulation E for
resolving a consumer's allegation that entries were improperly charged to his/her
account.
ESA (External Sales Agent) - <<ANSWER>>The American Express program that
allows an independent sales organization to sell the acceptance of American Express
cards to merchants. American Express pays the agent an agreed‐upon fixed fee for
each approved application and allows the sales entity to retain amounts over the set
discount rate as an inducement to sell and to reimburse the agent for the cost of sales.
Escheatment - <<ANSWER>>The process of turning over unclaimed or abandoned
funds or property to a state authority.
Escrow - <<ANSWER>>A kind of holding pen for money that is released after a specific
event has occurred. Some acquirers have ISOs or merchants put money into an escrow
account, which is supervised by a neutral third party such as a financial institution. The
financial institution (called the "escrow agent") releases the money to the ISO or
merchant only after the ISO or merchant has carried out certain agreed‐upon tasks,
such as completion of work or performance of a service.
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.
Interchange Plus - <<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 - <<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 - <<ANSWER>>The quantity or number of goods sold or services sold in
the normal operations of a company in a specified period.
Transaction Counts - <<ANSWER>>the total number of transactions that are processed
within a merchant account.
Average Ticket - <<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.
