ETA Q'S
A payments professional believes that a prospective client with a large customer base would benefit from the use of a PCI-compliant credit card storage module. However, prior to offering the solution, the payments professional needs to identify the merchant's key pain points and goals. As part of the discovery process, which of the following questions would BEST elicit the merchant's need to implement the solution?
"How would the option of removing data from your system improve business risk and PCI compliance efforts?"
How many requirements are included in the data security standard for PCI compliance?
12
What is the interchange rate charged for transactions that clear for EIRF?
2.30% + $.10
How many tracks of data are encoded on a standard credit card?
3
Which of the following represents a balanced portfolio?
A portfolio that is not reliant on any one segment or a small set of merchants.
Which one of the following would use a Micros terminal?
A restaurant merchant
Which of the following method is NOT appropriate for contract execution?
A signed letter on letterhead, of acceptance from the owner
What is a gateway?
A web-based virtual terminal that connects to major processors for browser based and e-commerce transactions 1-connectivity too many processors in many in points 2-Common messaging format for easy communication 3-allows Merchants to change processors without difficulty 4-Value added products and services
Upon entering a merchant's store, a payments professional notices signs at the storefront as well as next to the register stating, "We impose a surcharge of 5% on the total amount on all credit card transactions, which is not greater than our cost of acceptance. We do not surcharge debit cards."
A*"Five percent is more than the maximum surcharge amount allowed of 4%."
Which information source is the MOST helpful when keeping up-to-date on merchant acceptability criteria?
Acquiring banks' credit policy requirements
Which of the following is not a part of the consultative sales approach?
Aggressive Telephone Calls
Excellent sales people best prepare for objections by doing which of the following?
Anticipating objections prior to the call
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?
Ask the merchant about current payment services offered, business type, demographics, client base, pain points and overall inefficiencies.
In addition to interchange fees, what transaction-related costs can a merchant most likely expect to pay when accepting credit and debit cards?
Assessment Fees
How can a merchant's charge per authorization be determined when the amount appearing on the statement is the total for all authorizations?
Authorization fees divided by number of transactions for each card type
Whatishostcapture?
Authorized transactions are captured on approval and settled on processors system
In addition to features and advantages, traditional product positioning includes which of the following?
Benefits
If a merchant's activity varies greatly from information listed on the merchant's application, how does a risk department determine whether a fraud problem may exist?
By contacting the merchant to query any change in products, services, or prices
A merchant is looking for software that can help manage customer data, customer interaction, sales, marketing, affiliate tracking, and advertising campaigns. Which type of solution should a payments professional recommend?
CRM system
Merchant A contacts its sales agent because the merchant received a dispute letter from the acquiring bank and wants clarification. How should the payments professional advise the merchant to proceed?
Call the processor/acquirer listed on the letter and ask for further information.
Beginning with the card swipe, which of the following represents the basic movement of a transaction authorization from a credit card terminal?
Card reader → communications network → front-end processor → card brand → issuer → card brand → front-end processor → merchant
Which entity typically initiates a chargeback?
Cardholder
Which of the following is a trigger that will place a merchant on a Card Brand Chargeback Monitoring Program?
Chargeback rates greater than 1.5%
Mag stripe only card swiped at the point of sale
Chip card not dipped and it is counterfeit fraud.
Which of the following is the LEAST effective method of developing a list of prospects?
Cold call on initial prospect of interest
How should a merchant react if a check that is over the approved check amount needs to be accepted?
Contact the check processor/merchant processor, and provide information about the transaction and the check amount needed to complete the sale.
Which of the following peripheral devices reads pocket-sized cards with embedded integrated circuits that can process and store data, and communicate with a terminal via radio waves?
Contactless reader
Which of the following are included in the file build parameters for a merchant?
Credit cards accepted, type of processing equipment, and any special conditions
Use of which resource would be MOST effective for developing and providing accurate monthly forecasting?
Customer relationship management software
During review of a potential e-commerce merchant's website, which of the following information MUST be present for approval of a merchant account?
Delivery policy, currency conversion, and export restrictions
Which of the following is NOT part of the ongoing sales support function?
Detailed technical knowledge
What is the 1st step that leads into the discussion of payment mechanisms, ancillary solutions required by the merchant, and any additional data exchange as part of the payment process or apart from the payment process?
Determine merchant need or desire to accept primary payment brands
In a blended pricing plan known as "bill back," a merchant has a target rate of CPS Retail and accepts Reward I transactions. In what category will the merchant get billed?
Difference in interchange
Which technique is MOST likely to increase a payments professional's success rates?
Disclose all the pricing and terms prior to contract execution
During the initial sales process, a payments professional realizes that the merchant is paying itemized cost for terminals, gift cards, and a rewards program. The merchant would like to lower rates but enjoys all ancillary products offered. Which is the BEST action for the payments professional to take?
Discuss the advantages of bundled packages
How would a $79 annual fee get converted into basis points (bps), for a merchant that processes $10,000 a month in sales volume?
Divide 79 by 12 and divide by monthly sales
What is the BEST way to calculate a merchant's effective rate?
Divide the total fees billed by the total monthly processing volume.
According to the Mastercard and Visa rules,which of the following types of merchants would be required to be registered in the high risk category?
Drug stores and pharmacies
What does EIRF stand for?
Electronic transaction captured and settled within 2 days of authorization
What is the best method to communicate with a merchant?
Merchants with chargeback problems tend to be:
Exhaustive of resources and causes additional exposure for acquirers
What should a payments professional collect from a merchant to submit with the merchant application for a public corporation?
Financials
Active listening is best supported by which of the following activities when on a sales call?
Follow up questions?
Which of the following is a benefit to pricing a merchant on an Interchange Plus program versus a tiered rate program?
Full Cost disclosure
Which of the following is a standard method to group prospective leads?
Geographic location
A merchant is processing under a retail account SIC/MCC code that was assigned during the application underwriting process, but the merchant has since switched the type of business and the method of transaction processing it provides to e-commerce. Which of the following repercussions might the merchant incur if this change is undocumented?
Greater interchange fees and higher chargeback ratios
Which of following could result if a merchant's chargebacks are out of compliance?
Higher chargeback fees, an account review, and possible termination
What is the MOST appropriate software application for a credit card terminal used by a retail merchant who wants an automatic batch at the end of a business day?
Host Capture
What is the one 'key' question to ask ,when considering the impact of a potential payments solution for a merchant that has 90% face-to-face transactions, and 10% MOTO transactions with one stand-alone dial terminal currently in place?
How many face-to-face credit card transactions do you process per hour?
What is the most effective way for a merchant to process other than via a phone line?
IP or ethernet processing
How does a payments professional determine the optimal product solution for a merchant?
Identify the merchant's needs and offer compatible products.
Which of the following IS NOT a card present best practice?
Ignore the card expiration date
What is tiered pricing?
Interchange rates grouped into major categories for simpler pricing
Which of the following methods of processing uses a secure web server that provides an interface for merchant websites and shopping carts that require real-time transaction processing?
Internet solutions
What data elements are required for a merchant's commercial card transactions to qualify for Level 1, Level 2 and Level 3 Interchange programs?
Item#, date and AVS info
What is needed to properly troubleshoot potential installation or operation issues a merchant might be having?
Knowledge of types of terminals and POS systems that are compatible with the processor and of the exact way the merchant prefers specific solutions to process
Which of the following merchant types would be placed under permitted? (Some merchant types could t under more than one category)
Lingerie sales
On a merchant statement, how would you determine if the merchant is being billed on Interchange Plus, tiered pricing or a bundled rate program?
Look at the discount rate section
Which one of the following relationships is NOT important to the success of retaining a merchant account?
Mail Carrier
Which entity is responsible for merchant payment system acceptance of card network products?
Member
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?
Merchant Identification Number
An established merchant that processes $25,000 in bank card transactions per month has no marketing budget, but has been offered a sponsorship opportunity. What product/solution should the payments professional recommend?
Merchant funding
What does surcharge/Bill back mean on a merchants statement?
Mid and Non Qualified fees
A parts manufacturer with a tiered-pricing setup (two buckets) keys a Visa Business credit card transaction that qualifies for Visa's business-to-business interchange qualification. What rate will the merchant pay on this transaction?
NON-QUALIFIED
What does "No Line"mean when displayed on the POS device?
No dial tone detected
In a blended pricing solution (three tiers, enhanced bill-back), a merchant batches out transactions once a week. Into which of the following categories do these transactions fall?
Non-qualified
Which of the following merchant types would be placed under Restricted? (Some merchant types could t under more than one category)
Nutraceuticals
Which regulatory agency is NOT currently a factor in acquiring?
OSHA
When a merchant processes a mail order/telephone order or e-commerce transaction, what action should be implemented to combat fraud?
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.
A payments professional encounters merchants who have competitive pricing that cannot be matched or beaten. What is the BEST course of action to make the processor aware of the market competition?
Obtain copies of merchant processing statements or the competing written offer to share with the employer or corporate office.
When first meeting a prospect, which of these activities might a sales professional engage into to ease tension?
Open ended questions
Which of the following is the largest negotiation element in any sales call?
Price
Tokenization is best described as:
Providing a merchant or system with a value that corresponds to card data for use in transaction processing
Which of the following IS NOT a card present warning sign?
Purchases for groceries and standard household items
Which of the following is part of the process for training/educating a merchant on the use of a terminal?
Read the terminal user guide to the merchant
A merchant has an existing paper-based gift card program. Which of the following are the MOST important benefits of the merchant converting to an electronic gift card program?
Reconciliation, increased cash flow, and branding
What type of transactions and which banks were regulated by the Durbin amendment to the Dodd Frank Wall Street Reform and Consumer Protection Act?
Regulated debit card transactions from large issuing banks
Which of the following is NOT a warning sign of e-commerce (Card Not Present) fraud?
Repeat customer with good history
Which of the following techniques is BEST for managing customer expectations?
Set realistic expectations.
Which of the following is NOT a merchant initiated type of payment card fraud?
Shipping goods when CVV doesn't match
Which of the following is the most appropriate response when a merchant objects to a particular solution being offered?
Stop and Listen
What is the BEST way to ensure a fast approval process for a new merchant application?
Submit a completed application including required information and supporting documentation.
Which requirement must ALL merchants complete in order to be PCI-compliant?
Submit a self-assessment questionnaire (SAQ).
What constitutes a small ticket transaction?
Swiped sale under $15
In the United States, a merchant service contract is between a merchant and which of the following?
The acquiring bank
In the United States, which organization is responsible for creation and administration of the merchant contract
The acquiring bank
Which of the following is the BEST method of selling value over price?
The return on investment of the product of service being sold to the customer.
Which of the following is applicable to a gateway provider?
They must support all card types and brand
Which of the following is NOT an important component of a merchant processing statement?
Tips on how to save money
What purpose does a gateway serve for a merchant?
To process transactions originating from a website or shopping cart
How is the merchants effective rate calculated?
Total fees divided by total sales
What is terminal capture?
Transaction approved by processor then captured in memory in terminal for batch settlement
A chip card performs which of the following functions?
Utilizes an algorithm to send to the issuer instead of track data
What type of questions should you ask a merchant to have them provide a detailed explanation of their business objectives and needs for credit/ debit card processing?
What payment types and ancillary services are needed?
Which of the following is NOT an accurate source for industry knowledge?
Wikipedia
What is the purpose of AVS?
a. To assist in the veri cation of the cardholder both on and o ine
A banking institution is set up to process cash advances. The institution would like to run the cash advances as keyed/manual transactions. The payments professional should explain that manually entered cash advances:
are prohibited by the card brands.
What term best describes the accumulation of captured credit card transactions in the merchant's terminal or POS system awaiting settlement?
batch
End-to-End encryption is best described as:
card data encrypted within the terminal environment and remaining encrypted all the way to the processor's host or card brand
A retail merchant has been contacted via email by a cardholder in Nigeria. The merchant contacts the payments professional for advice before accepting the sale. The payments professional should advise the merchant to:
delay the transaction and contact the processor's risk department immediately.
