APRP Payment Systems 3

Question 1

What is the role of a 'payment facilitator' (PayFac) in the merchant acquiring ecosystem?

Accepted Answer

It sponsors merchants under its own master merchant account, handling onboarding and settlement

Answer

A PayFac aggregates sub-merchants under its master merchant account, enabling faster onboarding and taking on liability for those merchants.

Question 2

Which concept describes the practice of using a single transaction to offset obligations between multiple counterparties, reducing gross settlement to a net amount?

Accepted Answer

Multilateral netting

Answer

Multilateral netting consolidates obligations among multiple parties so only net positions are settled, reducing liquidity needs and credit exposure.

Question 3

What distinguishes a 'closed-loop' payment system from an 'open-loop' payment system?

Accepted Answer

Closed-loop systems are usable only within a specific merchant or network; open-loop systems are accepted broadly

Answer

Closed-loop systems (e.g., Starbucks gift cards) are accepted only within a defined network, while open-loop systems (e.g., Visa) are accepted across many merchants.

Question 4

In the context of card networks, what is a 'floor limit'?

Accepted Answer

A transaction value threshold below which offline authorization may be accepted without real-time approval

Answer

A floor limit allows merchants to accept transactions up to a specified amount without seeking online authorization, used historically in environments with limited connectivity.

Question 5

Which NACHA rule category addresses the requirements that originators must obtain proper consumer authorization before initiating ACH debit entries?

Accepted Answer

Authorization Requirements

Answer

NACHA's Authorization Requirements rules mandate that originators obtain written or verifiable authorization from consumers before pulling funds via ACH debit.

APRP - Accredited Payments Risk Professional Practice Test

APRP - Accredited Payments Risk Professional Practice Test

APRP Payment Systems 3