CPP CPP Payment Networks & Card Scheme Rules

Question 1

Which organization sets the rules and interchange fees for Visa transactions in the United States?

Accepted Answer

Visa Inc.

Answer

The Federal Reserve

Answer

NACHA

Answer

The Card Issuer

Question 2

What is interchange in the context of card payments?

Accepted Answer

A fee paid by the merchant's bank to the cardholder's issuing bank

Answer

A fee charged by the payment network to the cardholder

Answer

A penalty assessed for chargebacks

Answer

A monthly subscription fee for POS terminals

Question 3

What is a card scheme's 'honor all cards' rule?

Accepted Answer

Merchants must accept all valid cards of that brand regardless of product type

Answer

Issuers must approve all transactions under $25

Answer

Acquirers must settle all transactions within 24 hours

Answer

Cardholders must sign receipts for all purchases

Question 4

What does 'interchange plus' pricing mean for a merchant?

Accepted Answer

The merchant pays the actual interchange rate plus a fixed acquirer markup

Answer

The merchant pays a flat percentage regardless of card type

Answer

The merchant pays interchange only on debit cards

Answer

The merchant pays a tiered rate based on monthly volume

Question 5

A Mastercard chargeback reason code related to 'Fraud' falls under which dispute category?

Accepted Answer

10 Series

Answer

20 Series

Answer

40 Series

Answer

50 Series

Question 6

What is the primary purpose of a payment network's BIN (Bank Identification Number) range?

Accepted Answer

To identify the issuing institution and card product associated with a card

Answer

To encrypt cardholder data during transmission

Answer

To route transactions to the correct acquiring bank

Answer

To calculate the applicable interchange rate