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

Visa Inc. establishes the network rules, interchange fee schedules, and operating regulations that all Visa participants must follow.

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

Interchange is the fee the acquiring bank pays to the issuing bank per transaction, compensating the issuer for credit risk and funding costs.

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

The honor-all-cards rule requires merchants who accept one Visa (or Mastercard) product to accept all valid Visa (or Mastercard) cards presented by customers.

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

Interchange plus (cost-plus) pricing passes the exact interchange cost through to the merchant with a transparent, fixed processor margin added on top.

Question 5

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

Accepted Answer

10 Series

Answer

Mastercard organizes chargeback reason codes into series, with the 10 series covering fraud-related disputes such as 10.1 (EMV liability shift) and 10.4 (other fraud).

CPP - Certified Payment Professional Practice Test

CPP - Certified Payment Professional Practice Test

CPP CPP Payment Networks & Card Scheme Rules