Payment Systems - Chapter 4

"A merchant presents 2 different batches of credit card transactions for processing, each batch has the same dollar value and number of transactions, but the fees are different. Which of the following explains why? " A. Use of a different terminal B. Goods or services sold C. Type of card accepted D. Time of batch closure

C. Type of card accepted

"A company has asked its marketing, payroll and sales teams to collaborate in finding a solution that could augment its customer base, reduce payroll cost and increase sales. The solution has to be market ready. Which of the following will serve all 3 purposes? " A. Ghost cards B. Smart cards C. PIN based cards D. Stored value card

D. Stored value card

"Making payments through electronic payments networks can be a part of a treasury management system s functionality, but it is subject to numerous constraints. Which of the following is a true statement of those constraints? " A. The process is easy for the payee but very intensive manually for the payor "B. Negotiation of trade terms is required, but float terms are excluded " "C. Remittance detail, whether a lot or a little, can be easily included with all payment forms " "D. Collecting payment-routing details, and populating these into the software, is a significant task"

"D. Collecting payment-routing details, and populating these into the software, is a significant task"

"Company XYZ is now required to make electronic payments by its suppliers. To prevent an increase in costs, the company should: " A. Negotiate a change in payment timing with its suppliers B. Institute a just-in-time inventory system C. Negotiate a change in cash disbursement with its concentration bank D. Institute a modified RSA system for its inventory

A. Negotiate a change in payment timing with its suppliers

A U.S. company has a secured committed line of credit of $5.5 million and has an available balance of $4 million. The company successfully transmitted a $5.5 million wire transfer instruction out to the bank via SWIFT. The bank contacted the company and informed it that the wire transfer would not be processed. What is the MOST LIKELY reason the bank gave the company? A. Wires exceeding $5 million cannot be transmitted using SWIFT B. The bank imposed a guidance line of credit on the account C. The company exceeded its balance requirement D. The bank refused funding on the company s discretionary line of credit

B. The bank imposed a guidance line of credit on the account