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ETA CPP Study Guide (Complete)
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ETA CPP Study Guide (Complete)
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ETA CPP Study Guide (Complete)NABU, APF and FANF - -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 - -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 - -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 - -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 - -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 - -clearing denotes all activities from the time
a commitment is made for a transaction until it is settled.
-Chargeback and representment fees - -In short, a chargeback is a reversal
of funds transferred.
-Statement or reporting fees - -Fees that are charged for receiving
statements or reports.
-Rewards Cards - -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 - -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) - -a specific type of restaurant that serves
fast food cuisine and has minimal table service.
-Emerging Markets - -countries in the process of rapid growth &
industrialization
-Level 1 Data - -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 - -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 - -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) - -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 - -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 - -A charge added to the usual cost
-Billback - -Billback or bill back is an accounting service and/or suite of
software that is used for cost recovery.
-ERR Rates - -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 - -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 - -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 - -The quantity or number of goods sold or services sold in
the normal operations of a company in a specified period.
-Transaction Counts - -the total number of transactions that are processed
within a merchant account.
-Average Ticket - -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 - -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 - -The effective rate of a credit card processing statement is
the total processing fees divided by total sales volume.
-Batches - -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 - -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 - -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 - -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 - -the web version of a physical credit card terminal or
Point-of-Sale (POS) machine
-Dial-up POS System - -Uses a dial-up connection to process payments
-Gift and/or Loyalty cards - -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 - -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 - -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 - -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: -
-- 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 - -the selling of goods directly to the customer; face-to-face
transaction
-Restaurant - -an eating establishment where food and drink are being sold
to customers
-Mail Order/Telephone Order (MOTO) or Internet - -the selling of goods
online; non-face-to-face transaction (ANY Card Not Present environment)
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