Tiered pricing and cost plus (often 

referred to as interchange plus)

A business license, 

fictitious business name filing (DBA), seller’s permit, and articles of incorporation or tax privilege license

The process of issuing approval codes for check acceptance for merchants. With Check guarantee, if 

a check is returned to a merchant for any reason and they followed the proper acceptance procedures, they are automatically credited for the ‘bad’ check and collection efforts are pursued directly with the check writer. While this process is better than regular check verification, the cost is higher.

The process of issuing verification codes for check acceptance for merchants. With Check verification, 

if a check is returned to a merchant, they are typically not reimbursed by the processor. Collection efforts will be made on behalf of the merchant at an additional cost, however there is no ‘guarantee’ of payment on uncollected items. Therefore, this service is less expensive than Check guarantee.

• Illegal prescription drugs
• Illegal tobacco sales
• Deceptive marketing practices
• Counterfeit and copyright infringing merchandise
• Child pornography
• Illicit websites depicting violence and extreme sexual violence
• Bestiality

•  Direct Marketing – Inbound Teleservices Merchant (adult content)
• Direct Marketing – Outbound Telemarketing Merchant 
• Direct Marketing – Travel-Related Arrangement Services 
• Betting, including lottery Tickets, Casino gaming, Off-Track Betting and Race Tracks
• Drugs, Drug Proprietaries and Druggist Sundries 
• Drug Stores and Pharmacies

Key items to monitor against fraudulent processing:

• Average ticket
• Monthly volume
• large dollar or excessive credits
• Chargebacks
• Percentage keyed vs. swiped
• Repeat or excessive authorizations
• Merchant information changes 
• Maximum ticket

• financial strength of the business 
• future delivery
• Pin debit transactions
• data security

Use of Verified by Visa or MasterCard Secure Code to authenticate the user at the time of the transaction

shifts the liability for most disputes directly to the _____.

Laundering –The merchant was engaged in laundering activity. laundering means that a merchant presented (to its acquirer) transaction records that were not valid transactions for sales of goods or services between that merchant and a bona fide card 

holder.

Bankruptcy/liquidation/insolvency –The merchant was unable, or is likely to become unable, to discharge its financial 

obligations.

 If, in each of two consecutive calendar months, the merchant exceeds the predetermined rations. This designation is maintained until the merchant is below the predetermined ratio for a set 

period of time.

Sets the rules that all acquiring banks must comply within their efforts to monitor the chargeback performance of their merchants and to determine when a merchant has exceeded or is likely to exceed 

monthly chargeback thresholds.

Street address and 5-digit ZIP code both match

(VS, MC, AX, DS)

Street address matches, but both 5-digit and 9-digit ZIP Code do not match

(VS, MC, AX, DS)

Street address does not match, but 9-digit ZIP code matches

(MC, DS)

Street address does not match, but 5-digit ZIP code matches

(VS, MC, AX, DS)

Street address, 5-digit ZIP code, and 9-digit ZIP code all do not match

(VS, MC, AX, DS)

Address information unavailable. Returned if non-US. 

AvS is not available or if the AVS in a U.S. bank is not functioning properly.

(VS, MC, AX, DS)

Retry - Issuer’s System Unavailable or Timed Out.

(VS, MC, AX)

AVS data is invalid

(VS)

U.S. issuing bank does not support AVS

(VS, MC, AX)

What is the hardest objection for a sales professional to overcome?

• Price
• Contract Term
• The objections you never hear
• objections you dont know the answer to

This entity recieves the interchange:

• Merchant
• Bank
• Acquirer
• Network or Association

The following best describes a retrieval request

• The preliminary request for transaction clarification prompted by the card holder from the issuer.
• A Step within the chargeback process.
•  When a disputed transacation is resolved and funds are deposited in the consumers account.
• The action the card issuer forwards to the Acquirer. 

Which of the following is part of the process for training/educating a merchant on the use of a terminal?

This number is required for a merchant to accept EBT transactions;

In the United States, which organization is responsible for creation and administration of the merchant contract?

A. The card brands

B. The acquiring bank

C. The ISO

D. The sales agent

What type of agreement makes an entity liable for the entity's own obligations and signifies that the lender can lay claim to the borrower's assets in case of default?  

A. Merchant Agreement

B. Personal Guarentee Agreement

C. Sales Partner Agreement

D. Acquirer Agreement.

The following party is responsible for the chargeback if the merchant cannot produce a receipt;  

• Acquirer
• Card Issuer
• Card Brand
• Consumer

Acquirer

What is the correct term for a number used to identify the merchant during processing of daily transactions, rejects, adjustments, chargebacks, and end of month processing fees?  

A. Terminal Identification Number

B. Automated Clearing House Number

C. Merchant Identification Number

D. Demand Deposit Account Number

What is the most efficient way for a merchant to process other than via a phone line?  

A. A laptop

B. Ip Or ethernet

C. Fax

D. Voice Authorization

B. Ip Or ethernet

What ultimately determines pricing for a merchant’s credit card transaction?  

a. Batch timeliness

b. Card brand (Visa/MC/Discover)

c. Card swiped or key-entered?

d. All of the above

What is the role of the back end processor?  

• Interfaces with front end processor.
• Clearing and Settlement of transactions.
• Creation of Merchant ACH
• All of the above

• All of the above

When a merchant processes a mail order/telephone order or e-commerce transaction, what action should be implemented to combat fraud?  

A. Contact the cardholder’s processing provider and ask for validation of transaction, and then force the transaction through the machine with the approval code provided.

B. Fax the purchase receipt printed at the terminal to the cardholder and have him/her approve, sign, and fax the information back to the merchant. Deliver the products to the address provided by the cardholder.

C. Obtain a signed authorization from the cardholder stating that he/she permits the transaction. Process the transaction normally and deliver to address listed by cardholder.

D. Obtain authorization form with cardholder information, address, and security code verification completed at terminal level and deliver the product to the same matching address with a shipping company who provides tracking and proof of delivery

Which of the following are the standard types of merchant accounts?  

A. Retail, Moto, Internet gambling

B. Retail, Moto, Ecommerce

C. Retail, Restaurant, MOTO, Supermarket, Lodging

D. None of the above

C. Retail, Restaurant, MOTO, Supermarket, Lodging

What is the check guarentee conversion limit allowed by NACHA?  

• 25k
• 100k
• 35k
• 5k

Which of the following peripheral devices would be the best to sell your merchant with a terminal?  

A. Check Reader

B. Pin Pad

C. Laptop

D. Mobile Device

B. Pin Pad

Which of the following are the most typical months to have updates in the interchange rates?  

• April and September
• May and August
• January and October
• April and October

Which of the below time frames is typical for your merchant to recieve their funds from their check guarantee deposits?  

A. 24 hours

B.24-48 Hours

C. 48-72 Hours

D. After 72 hours

C. 48-72 Hours

How many requirements are included in the data security standard for PCI compliance?  

A. 4

B. 8

C. 10

D. 12

Which of the folllowing peripheral devices reads pocket-sized cards with embedded integrated curcuits that can process and store data, and communicate with terminal via radio waves?  

A. Landline Terminal

 B. Pin Pad

C. Contactless Reader

D. Check reader

C. Contactless Reader

What types of questions should the payments professional ask during the information gathering phase to better qualify and or understand a merchant’s payment needs?  

 A. Ask the merchant about current payment services offered, business type,demographics, client base, pain points and overall inefficiencies.

B. Ask the merchant for credit card statements and begin to calculate the savings the merchant would receive if switching providers.

C. Ask the merchant what type of equipment they have and offer a low cost or free terminal option.

D. Interview the merchant’s employees to determine which services would allow them to better perform their jobs.

The following party sets the interchange rates;  

• Card issuers
• Networks or Associations
• Merchants
• Aquirer

A merchant has never accepted credit cards before and will be operating a retail bricks and morter location. The best solution for them would be;  

A. Virtual terminal

B. A POS terminal with a Pin Pad

C. Dial Pay

D. An imprinter

B. A POS terminal with a Pin Pad

Which entity typically intiates a chargeback?  

A. Acquirer

B. Card Issuer

C. Card Holder

D. Merchant Bank

C. Card Holder

The best known card brands are;  

A. Vantiv and First Data

B. Capital One, Chase, and Bank of America

C. Visa, masterCard, AmEx, and Discover

D. ISO's

One of your merchants calls you and lets you know that are not going to fill out their annual SAQ because they are using dial pay. The BEST action would be to;  

A. Agree with them and let them know they dont have to fill this out.

B. Call the police

C. Let them know that they still must comply and fill out the survey because they accept cards regardless of the fact they use dial pay.

D. tell them to contact the Risk department

C. Let them know that they still must comply and fill out the survey because they accept cards regardless of the fact they use dial pay.

What factors will contribute to helping a Payments Professional to determine what the optimal product solution will be?  

a. Years in business

b. Products or services they are selling

c. How cards are accepted (face-to-face, MOTO), number of transactions, ability to pass level 2 or 3 data

d. Number of employees

c. How cards are accepted (face-to-face, MOTO), number of transactions, ability to pass level 2 or 3 data

A merchant contacts its sales rep because the merchant received a Chargeback notification letter from their Processor and wants clarification and direction. How should the a payments professional advise the merchant to proceed?  

a. Ignore the letter but contact the consumer directly and attempt to work it out w/ the consumer directly

b. Call the Card Issuer and demand a reversal

c. File a claim w/ the local Small Claims Court

d. Call the processor/acquirer listed on the letter and ask for further information

A merchant mentions he wants to run credit card transactions under a false or another business name to avoid showing income for a particular business. A payment professional should?  

a. Thank the merchant for their time and report the merchant to the Security Department at the corporate office

b. Go ahead and sign the agreement and board it as usual

c. Explain to the customer that this is illegal and call the police from the appointment

a. Thank the merchant for their time and report the merchant to the Security Department at the corporate office