Test yourself

Answer before you check. The explanation matters most on the ones you get wrong, so read it properly when that happens.

Every explanation names the page that teaches the answer. If a question uses a term you have not met yet, the glossary has it.

Mixed set

Mixed set

0 of 10 answered

1. How long can a consumer's bank take to return an ACH debit as unauthorized?

   60 calendar days.2 banking days.30 calendar days.120 calendar days.
2. Why prefer the earliest applicable operation when undoing a payment?

   Earlier operations cost less and return the customer's money faster.Later operations require acquirer approval.Only reversals are reported to the network.Refunds are blocked once a batch has closed.
3. A colleague quotes an interchange rate they read for a consumer card in another country. How much does that tell you about your own cost?

   Very little. Scheme rules travel between markets but interchange is regulated regionally.It is directly comparable, because the network publishes one global schedule.It is comparable for credit cards but not for debit cards.It applies once converted for the currency and the local assessment rate.
4. A retailer's Saturday takings never arrive. What should be checked first?

   Whether the batch was closed.Whether the issuer settled.Whether interchange downgraded.Whether the network had an outage.
5. What does a force capture give up? Select all that apply.

   The guarantee that the funds were available and reserved.The dispute protection an approval provides.The ability to refund the transaction later.The transaction's place in the current batch.
6. For a platform paying out to sellers, which questions must be answered before launch? Select all that apply.

   Who is the merchant of record, and therefore who carries chargeback liability.Whether funds are split at settlement or paid out afterwards.What happens on a chargeback after the seller has already been paid.Which card networks the platform will accept.
7. A platform wants to collect from buyers and pay sellers a week later, holding the funds in the meantime. What does that decision create?

   Custody of other people's money, which usually needs a licence and brings safeguarding obligations with it.A reserve, which the acquirer sets and releases on a rolling basis.Nothing new, as long as the money is paid out within the same month.A merchant-of-record change, moving the sale to the platform.
8. How do refunds relate to chargebacks?

   A customer who cannot get a refund will often ask their bank instead, which costs more and counts against your chargeback ratio.A refund and a chargeback are the same operation initiated by different parties.Issuing a refund automatically withdraws any dispute already filed.Chargebacks are refunds that the acquirer processes on your behalf.
9. A customer cancels 10 minutes after checkout. The transaction was authorized but not captured. What is the correct operation?

   Authorization reversal.Void.Refund.Nothing; let the hold expire.
10. An order for three items ships as two shipments. What is the cleanest approach?

    Multiple partial captures against the authorization, or one authorization per shipment where that is not supported.Capture the full amount at first shipment and refund any shortfall.Void the authorization and re-run a sale for each shipment.Force capture each shipment.

The full transaction flow

Purchase to funding

0 of 14 answered

1. A furniture retailer authorizes at checkout and ships six weeks later. What is the main risk?

   The authorization expires before capture, weakening protection and worsening the rate.The customer is double-charged when the goods ship.The acquirer refuses to route the capture.The issuer converts the hold into a payment automatically.
2. A hotel stay is extended by two nights. Which operation adds to the existing hold, and what does it not do?

   An incremental authorization. It adds to the hold but does not extend the original clock.An incremental authorization, which also restarts the clearing deadline.An estimated authorization, which replaces the original hold and its deadline.A second sale, because holds cannot be increased once placed.
3. You win a representment on a low-value sale. What is the financial outcome?

   You recover the transaction amount but still pay the dispute fee, so you may be down overall.You recover both the transaction amount and the dispute fee.You recover the transaction amount, and the issuer pays your costs.You recover nothing, but the dispute is removed from your ratio.
4. A customer sees a charge twice. What is the usual explanation?

   One settled transaction plus a hold that has not yet been released.The batch was submitted twice.The issuer double-posted at settlement.A refund was issued against the wrong charge.
5. Two customers buy 20 minutes apart on the same evening, and their payments fund a day apart. What is the most likely explanation?

   One capture landed after the daily batch cut-off and joined the next day's batch.One issuer settled more slowly than the other.One transaction downgraded at clearing.The acquirer split the batch by card type.
6. You receive a soft decline. What is the issuer asking for?

   Stronger authentication. Re-attempt with 3-D Secure rather than retrying as-is.A smaller amount, because the balance will not cover the full request.A delay, because a velocity limit has been tripped.New card details, because the ones supplied are invalid.
7. Your platform is the merchant of record for sales made by third-party sellers. What follows?

   You owe the customer the refund, even for goods you never handled.The chargeback is debited from your balance, and recovering it from the seller is your problem.Sales tax or VAT on the sale is yours to collect and file.The seller's own acquirer underwrites the transaction.
8. On a T+2 schedule with an evening cut-off, when does a Friday morning sale fund?

   Tuesday.Sunday.Monday.Wednesday.
9. A customer who paid through PayPal disputes the purchase. Where does the dispute arrive, and whose rules apply?

   It arrives through PayPal's own dispute process, under PayPal's rules. PayPal is the merchant of record on the card networks, not you.It arrives as a card chargeback through your acquirer, under network rules.It cannot be disputed, because wallet payments are final.It arrives from the customer's issuer as a fraud reason code.
10. You refund a sale in full. What determines whether you get the interchange back?

    Your provider's policy and pricing model.The card network's refund rules.Whether the refund was issued in the same batch as the sale.The issuer, which decides case by case.
11. A chargeback arrives for a transaction you already refunded in full. What should you do?

    Contest it, sending the refund record as the evidence.Accept it, because the customer has been made whole either way.Refund it again so the records match, then accept the chargeback.Escalate straight to pre-arbitration, since the facts are not in dispute.
12. Beyond the weaker dispute position, what does Visa charge on a settled transaction with no matching authorization?

    A zero floor limit fee, per item.A misuse of authorization fee, per item.A downgrade to the most expensive interchange category.Nothing, provided a voice authorization code is supplied.
13. In a T+2 funding schedule, what is T?

    The day the batch closed.The day the customer made the purchase.The day the authorization was approved.The day the network settled.
14. How long can a consumer's bank take to return an ACH debit as unauthorized?

    60 calendar days.2 banking days.30 calendar days.120 calendar days.

Who does what

Parties and responsibilities

0 of 8 answered

1. A cardholder does not recognise a charge. Who do they contact, and who opens the dispute?

   They contact their issuer, and the issuer opens the chargeback.They contact the merchant, and the acquirer opens the chargeback.They contact the card network, which opens the chargeback.They contact their issuer, which asks the acquirer to open the chargeback.
2. A payment facilitator onboards a seller in an afternoon while a bank takes three weeks for the same business. What is the difference?

   The facilitator runs lighter checks up front and has priced what a bad sub-merchant costs it.The facilitator is exempt from know-your-business checks because the seller trades under its master account.The bank is running the same checks more slowly because of its legacy systems.The facilitator defers the checks to the acquirer, who runs them after the first transaction.
3. Interchange flows in which direction?

   From the acquirer to the issuer.From the issuer to the acquirer.From the merchant to the card network.From the card network to the issuer.
4. How does a merchant account differ from an ordinary business bank account?

   An acquirer holds it, and card settlement funds land there before reaching your operating account.It is the account the card network settles into on the merchant's behalf.It is a regulated client-money account, so the funds are never the acquirer's.It differs only in name; the two are the same product sold differently.
5. Your gateway will not run know-your-customer checks on the sellers you onboard. Why not?

   A gateway only moves messages and never holds funds, so none of those obligations attach to it.Gateways are exempt from anti-money-laundering law by agreement with the card networks.The checks are the card network's job, and the gateway is not a network member.It can, but only for merchants above a volume threshold.
6. Why can a card issued by a small bank in one country be accepted by a merchant on the other side of the world?

   Both banks are members of the same network, so neither needs a relationship with the other.The issuer maintains correspondent accounts with acquirers in every market it operates in.The network issues the card on the small bank's behalf and settles centrally.The acquirer underwrites the cardholder as well as the merchant.
7. A non-bank provider says it can put you into the card networks. What arrangement makes that possible?

   BIN sponsorship, which lets it operate under a licensed bank's network membership.A gateway agreement with the network's certification programme.Registration as a merchant of record with each network.A master merchant account held directly with the network.
8. What distinguishes a three-party network from a four-party one?

   One company both issues the card and acquires the merchant, so there is no interchange to pay.The cardholder contracts directly with the network rather than with a bank.The network settles gross rather than net, removing the acquirer's role.Transactions clear in a single message rather than two.

By topic

Roles

Roles and parties

0 of 13 answered

1. A payment facilitator onboards a seller as a sub-merchant. Who carries the loss if that seller takes money and disappears?

   The facilitator, which underwrote the sub-merchant under its own master account.The acquirer, because the facilitator is not a network member.The card network, as the guarantor of last resort.The issuer, which approved the transactions.
2. Which of these never holds merchant funds?

   A gateway.An acquirer.A payment facilitator.A PSP that aggregates merchants.
3. Why can a card issued by a small bank in one country be accepted by a merchant on the other side of the world?

   Both banks are members of the same network, so neither needs a relationship with the other.The issuer maintains correspondent accounts with acquirers in every market it operates in.The network issues the card on the small bank's behalf and settles centrally.The acquirer underwrites the cardholder as well as the merchant.
4. What distinguishes a three-party network from a four-party one?

   One company both issues the card and acquires the merchant, so there is no interchange to pay.The cardholder contracts directly with the network rather than with a bank.The network settles gross rather than net, removing the acquirer's role.Transactions clear in a single message rather than two.
5. A cardholder does not recognise a charge. Who do they contact, and who opens the dispute?

   They contact their issuer, and the issuer opens the chargeback.They contact the merchant, and the acquirer opens the chargeback.They contact the card network, which opens the chargeback.They contact their issuer, which asks the acquirer to open the chargeback.
6. An issuer's systems are unreachable. What can happen to authorization requests?

   The network can approve on the issuer's behalf, within limits the issuer set in advance.All requests are declined until the issuer returns.The acquirer approves them and carries the risk itself.They queue at the network and are answered once the issuer recovers.
7. The network decides which interchange category a transaction falls into. Who receives the interchange?

   The issuer. The network sets the schedule but is not paid from it.The network, since it is the one that publishes the schedule.The acquirer, which then rebates part of it to the merchant.It is split between the network and the issuer.
8. Interchange flows in which direction?

   From the acquirer to the issuer.From the issuer to the acquirer.From the merchant to the card network.From the card network to the issuer.
9. Which party carries the loss if a merchant collapses owing a large volume of chargebacks?

   The acquirer.The card network.The issuer.The gateway.
10. A non-bank provider says it can put you into the card networks. What arrangement makes that possible?

    BIN sponsorship, which lets it operate under a licensed bank's network membership.A gateway agreement with the network's certification programme.Registration as a merchant of record with each network.A master merchant account held directly with the network.
11. A day's batch never closed and the takings have not arrived. Who owns the problem?

    The processor, which runs batching and clearing submission.The gateway, which submitted the transactions.The issuer, which has not released the funds.The card network, which never received the clearing file.
12. Which of these are worth taking to the card network's rules, via your acquirer? Select all that apply.

    A disagreement about the deadline for presenting a capture.A question about what evidence a given dispute reason code requires.A payout that is two days late.A reserve your provider has just imposed.
13. How does a merchant account differ from an ordinary business bank account?

    An acquirer holds it, and card settlement funds land there before reaching your operating account.It is the account the card network settles into on the merchant's behalf.It is a regulated client-money account, so the funds are never the acquirer's.It differs only in name; the two are the same product sold differently.

Lifecycle

The transaction lifecycle

0 of 4 answered

1. A customer cancels 10 minutes after checkout. The transaction was authorized but not captured. What is the correct operation?

   Authorization reversal.Void.Refund.Nothing; let the hold expire.
2. Why prefer the earliest applicable operation when undoing a payment?

   Earlier operations cost less and return the customer's money faster.Later operations require acquirer approval.Only reversals are reported to the network.Refunds are blocked once a batch has closed.
3. Why is running a single "sale" message risky for goods that ship three weeks later?

   The customer is charged three weeks before they receive anything, which invites disputes.The authorization will expire before the goods ship.Sale messages are not permitted for card-not-present transactions.The acquirer cannot batch a sale message.
4. Which of these are distinct failure states? Select all that apply.

   Declined at authorization.Approved but never captured.Settled but not funded.Funded and later reversed by a chargeback.

Authorization

Authorization and capture

0 of 11 answered

1. Under Mastercard's rules, why does a preauthorization get longer to reach clearing than a final authorization?

   A preauthorization is flagged as an estimate, so the real amount is still to come.A preauthorization is only used in card-present environments, which clear more slowly.A final authorization has already been captured, so its clock has stopped.A preauthorization carries stronger authentication data, which earns a longer window.
2. A subscription renews and you charge the stored card. What kind of transaction is that?

   A merchant-initiated transaction, raised on consent the customer gave earlier.A card-not-present transaction requiring fresh 3-D Secure authentication.An incremental authorization against the original sign-up transaction.A cardholder-initiated transaction, because the customer chose to subscribe.
3. A customer cancels an order minutes after checkout, before capture. What should the merchant send?

   An authorization reversal.A refund.A chargeback.Nothing; the hold expires on its own.
4. A furniture retailer authorizes at checkout and ships six weeks later. What is the main risk?

   The authorization expires before capture, weakening protection and worsening the rate.The customer is double-charged when the goods ship.The acquirer refuses to route the capture.The issuer converts the hold into a payment automatically.
5. Why are decline reasons often vague, such as "do not honour"?

   Detailed reasons would help attackers probe cards, so issuers withhold them.The card networks do not support detailed decline codes.Acquirers strip the detail before passing it to the merchant.The issuer usually does not know why its own model declined.
6. Which of these are true once a transaction is captured but not yet settled? Select all that apply.

   The merchant has claimed the funds from the issuer.The transaction can still be disputed later by the cardholder.The money is available in the merchant's operating account.The authorization hold has been converted into a claim.
7. A card authorization has just been approved. What has happened to the money?

   Nothing has moved. The issuer has placed a hold on the cardholder's balance.The funds have moved from the issuer to the acquirer.The funds are in the merchant's bank account, pending clearance.The card network is holding the funds in escrow.
8. You want to store a card for later use and check the details are real. What should you send?

   A zero-dollar authorization, also called account verification.A one-cent authorization, then a reversal.An estimated authorization for the expected first charge.A sale for the smallest amount the processor permits, then a refund.
9. You receive a soft decline. What is the issuer asking for?

   Stronger authentication. Re-attempt with 3-D Secure rather than retrying as-is.A smaller amount, because the balance will not cover the full request.A delay, because a velocity limit has been tripped.New card details, because the ones supplied are invalid.
10. What is the auth code for?

    It is the issuer's reference for the approval, and a later capture is linked back to it.It confirms to the cardholder that the transaction completed.It identifies which interchange category the transaction qualified for.It is the merchant's reference, generated at checkout and echoed by the issuer.
11. A hotel stay is extended by two nights. Which operation adds to the existing hold, and what does it not do?

    An incremental authorization. It adds to the hold but does not extend the original clock.An incremental authorization, which also restarts the clearing deadline.An estimated authorization, which replaces the original hold and its deadline.A second sale, because holds cannot be increased once placed.

Capture

Capture

0 of 8 answered

1. The final bill comes in slightly above the amount you held. What lets you claim it without a new authorization?

   The over-capture tolerance, which allows a small excess over the held amount.A partial capture, adjusted upwards at batch close.The authorization-to-clearing time frame, which permits amendment within the window.Nothing. Any excess requires a force capture.
2. A retailer's Saturday takings never arrive. What should be checked first?

   Whether the batch was closed.Whether the issuer settled.Whether interchange downgraded.Whether the network had an outage.
3. What are the likely consequences of capturing well after the authorization window has lapsed? Select all that apply.

   The transaction may downgrade to a worse interchange category.Chargeback protection tied to the original approval is weakened.The issuer may refuse the clearing record entirely.The acquirer automatically re-authorizes on your behalf.
4. Two customers buy 20 minutes apart on the same evening, and their payments fund a day apart. What is the most likely explanation?

   One capture landed after the daily batch cut-off and joined the next day's batch.One issuer settled more slowly than the other.One transaction downgraded at clearing.The acquirer split the batch by card type.
5. Beyond the weaker dispute position, what does Visa charge on a settled transaction with no matching authorization?

   A zero floor limit fee, per item.A misuse of authorization fee, per item.A downgrade to the most expensive interchange category.Nothing, provided a voice authorization code is supplied.
6. What does a force capture give up? Select all that apply.

   The guarantee that the funds were available and reserved.The dispute protection an approval provides.The ability to refund the transaction later.The transaction's place in the current batch.
7. An order for three items ships as two shipments. What is the cleanest approach?

   Multiple partial captures against the authorization, or one authorization per shipment where that is not supported.Capture the full amount at first shipment and refund any shortfall.Void the authorization and re-run a sale for each shipment.Force capture each shipment.
8. You build one internal capture deadline for both Visa and Mastercard. What goes wrong?

   The schemes run different clocks, so a single deadline will breach the tighter one.Mastercard rejects captures made inside Visa's window.The acquirer cannot submit a mixed batch.Nothing; the windows have been aligned since 2024.

Voids, reversals, and refunds

Voids, reversals, and refunds

0 of 7 answered

1. Why is a same-day void preferable to a same-day refund? Select all that apply.

   The void usually avoids interchange entirely.The customer never sees a charge followed by a credit.The customer gets their money back sooner.Voids are guaranteed to succeed at any time.
2. A customer complains that their refund has not arrived three days after you issued it. What is true?

   The remaining wait is on the issuer's side and support cannot accelerate it.The refund has failed and should be reissued.The refund was netted against sales and will not appear separately.The refund will appear as a reversal of the original charge.
3. A transaction was captured two hours ago and the batch has not closed. The customer cancels. Best operation?

   Void.Authorization reversal.Refund.Chargeback.
4. You refund a sale in full. What determines whether you get the interchange back?

   Your provider's policy and pricing model.The card network's refund rules.Whether the refund was issued in the same batch as the sale.The issuer, which decides case by case.
5. Why does an abandoned authorization cost money even though no sale happened?

   Visa charges a misuse of authorization fee for any approved authorization that is neither settled nor reversed.The issuer bills the merchant for the released hold.The acquirer charges a batch fee for the unmatched record.It does not cost anything; the hold just expires.
6. How do refunds relate to chargebacks?

   A customer who cannot get a refund will often ask their bank instead, which costs more and counts against your chargeback ratio.A refund and a chargeback are the same operation initiated by different parties.Issuing a refund automatically withdraws any dispute already filed.Chargebacks are refunds that the acquirer processes on your behalf.
7. Why are blind refunds, credits with no matching original sale, heavily restricted?

   They are an obvious route for moving money out of a merchant account, so schemes and acquirers monitor them closely.They cannot be matched at clearing and always fail.They are only permitted for card-present merchants.They bypass the batch and settle immediately.

Clearing and settlement

Clearing and settlement

0 of 6 answered

1. Why will a settlement figure rarely match any single order total? Select all that apply.

   Settlement is net of refunds and chargebacks.It aggregates a whole batch.It may be net of fees, depending on the funding arrangement.It is dated by batch close rather than by purchase.
2. At which step is the final cost of a transaction determined?

   Clearing.Authorization.Capture.Funding.
3. What does flat-rate pricing hide that interchange-plus exposes?

   Which transactions are the expensive ones to accept.The total amount paid in fees.Whether settlement occurred.The number of transactions in a batch.
4. Which fee is the card network's own revenue?

   Assessments.Interchange.The processor markup.The dispute fee.
5. Which component of processing cost is negotiable with your provider?

   The processor's markup.Interchange.Network assessments.All three equally.
6. A transaction that qualified for a good interchange category at authorization lands in a worse one. When do you find out?

   Weeks later, as a line on a statement. Nothing tells you at the time.At clearing, as a rejected record you can resubmit.Immediately, in the authorization response.At settlement, as a reduced net position for that batch.

Funding and disbursement

Funding and disbursement

0 of 6 answered

1. Under net funding, why does no deposit ever equal a familiar number?

   Fees are deducted per batch before the deposit arrives, on top of refund and chargeback netting.Deposits are rounded to the nearest currency unit.The processor holds a fixed percentage of every deposit permanently.Deposits combine multiple currencies.
2. Your funding is two days late. Who should you contact?

   Your processor or PSP.The card network.The issuing bank.The cardholder's bank.
3. For a platform paying out to sellers, which questions must be answered before launch? Select all that apply.

   Who is the merchant of record, and therefore who carries chargeback liability.Whether funds are split at settlement or paid out afterwards.What happens on a chargeback after the seller has already been paid.Which card networks the platform will accept.
4. On a marketplace, why does it matter who the merchant of record is?

   Whoever it is carries the chargeback liability, which may not be the seller who shipped.It determines which party the card network settles funds to.It determines whether the platform can offer instant payouts.It sets which side of the transaction pays interchange.
5. What characterises a rolling reserve?

   A percentage of each day's volume held for a fixed period, then released.A one-off amount accumulated and held indefinitely.A temporary stop on a single payout pending review.A permanent deduction from every deposit.
6. One payout has been stopped following a risk review, while the rest continue normally. What is this?

   A funding hold, which stops a specific payout.A rolling reserve, which holds a percentage of each day's volume.A fixed reserve, accumulated once and held.A negative net position, recovered from the next batch.

Disputes and chargebacks

Disputes and chargebacks

0 of 7 answered

1. Why is the reason code the first thing to read on a dispute notice?

   It defines what the cardholder is claiming, and therefore which evidence counts.It sets the dispute fee your provider will charge.It tells you whether the transaction was authorized correctly.It determines whether the chargeback counts towards your ratio.
2. A chargeback arrives for a transaction you already refunded in full. What should you do?

   Contest it, sending the refund record as the evidence.Accept it, because the customer has been made whole either way.Refund it again so the records match, then accept the chargeback.Escalate straight to pre-arbitration, since the facts are not in dispute.
3. A chargeback is filed against a transaction you were funded for last month. What happens to the money while you decide whether to contest it?

   It is already debited from you. Contesting is an attempt to get it back.It is frozen pending the outcome, and moves only once the case is decided.Nothing moves until you either accept the chargeback or lose a representment.The issuer holds it, and your provider is not involved until arbitration.
4. Why is arbitration rarely the right destination for a disputed transaction?

   The network charges the losing side a fee that usually exceeds the transaction.The network almost always finds for the issuer.Entering arbitration doubles the entry's weight in your chargeback ratio.Arbitration is only available to acquirers, not to merchants.
5. What is the key structural difference between a card chargeback and an ACH return?

   A chargeback can be contested with evidence. An ACH return is final.A chargeback takes money back, whereas an ACH return only flags the transaction.An ACH return can be contested, but only within two banking days.A chargeback arrives with a reason code, whereas an ACH return gives no reason.
6. You win a representment on a low-value sale. What is the financial outcome?

   You recover the transaction amount but still pay the dispute fee, so you may be down overall.You recover both the transaction amount and the dispute fee.You recover the transaction amount, and the issuer pays your costs.You recover nothing, but the dispute is removed from your ratio.
7. Which of these affect your chargeback ratio or its consequences? Select all that apply.

   A chargeback you accept without contesting.A chargeback you contest and win.Refunding an unhappy customer before they contact their bank.An authorization you reversed instead of capturing.

Timing

Timing

0 of 7 answered

1. On a T+2 schedule with an evening cut-off, when does a Friday morning sale fund?

   Tuesday.Sunday.Monday.Wednesday.
2. Money is missing. Which causes are operational rather than failures in the payments chain? Select all that apply.

   The batch was never closed.Capture never ran after the order shipped.A bank holiday nobody accounted for.More refunds than sales in the period, so there was nothing to fund.
3. In a T+2 funding schedule, what is T?

   The day the batch closed.The day the customer made the purchase.The day the authorization was approved.The day the network settled.
4. In a period where refunds and chargebacks exceed sales, what happens?

   A negative net position, which the processor recovers from later batches or by debiting you.The deposit is zero and the shortfall is written off by the provider.The refunds are queued until sufficient sales offset them.The provider funds the shortfall and invoices it at month end.
5. How long can a consumer's bank take to return an ACH debit as unauthorized?

   60 calendar days.2 banking days.30 calendar days.120 calendar days.
6. What is the dangerous assumption when applying card thinking to ACH?

   That a debit which has not returned has succeeded.That ACH is more expensive per transaction.That ACH settles faster than cards.That ACH transactions cannot be reversed.
7. A customer sees a charge twice. What is the usual explanation?

   One settled transaction plus a hold that has not yet been released.The batch was submitted twice.The issuer double-posted at settlement.A refund was issued against the wrong charge.

Cards

The card rail

0 of 5 answered

1. What does a card payment do that a bank transfer does not?

   It asks the payer's bank for permission before any money is claimed.It moves the money in real time rather than in a batch.It guarantees the merchant will be paid regardless of what happens later.It settles directly between the two banks without an intermediary.
2. Why does a card-not-present transaction cost more and get longer to clear than a card-present one?

   The card cannot be proven present, so the merchant generally carries the fraud loss.Online transactions travel through more intermediaries, each taking a fee.The issuer cannot check the balance without the physical card.Card-not-present transactions settle through a separate, slower network.
3. What makes a payment a pull rather than a push?

   The payee instructs the payer's bank to take the money, rather than the payer sending it.The money is taken in a batch rather than one transaction at a time.The payment can be reversed after the fact.The payer's balance is checked before the money moves.
4. Your integration authorizes at checkout and captures on dispatch. Which card products can break that design?

   Single-message products, where the amount is final at approval and there is no later capture.Credit cards, because the issuer extends a line rather than holding funds.Cards issued outside your own market, which clear on a different timetable.Cards carrying more than one debit network, because routing is chosen at capture.
5. A colleague quotes an interchange rate they read for a consumer card in another country. How much does that tell you about your own cost?

   Very little. Scheme rules travel between markets but interchange is regulated regionally.It is directly comparable, because the network publishes one global schedule.It is comparable for credit cards but not for debit cards.It applies once converted for the currency and the local assessment rate.

ACH

ACH

0 of 8 answered

1. Why does Nacha monitor unauthorized return rates rather than overall return rates alone?

   Unauthorized returns indicate bad authorization practice, which no retry logic can fix.Unauthorized returns are the only returns that cost the receiving bank money.Overall return rates are not visible to Nacha, only to the originating bank.Unauthorized returns are the only category with a 60-day window.
2. Which return codes are worth retrying? Select all that apply.

   R01, insufficient funds.R09, uncollected funds.R02, account closed.R07, authorization revoked by the customer.
3. Why does R29 carry a two-banking-day window when R10 gets 60 calendar days, given both mean "not authorized"?

   The 60-day window is a consumer protection, and R29 is the business-account equivalent.R29 is raised by the receiving bank, whereas R10 is raised by the customer.R29 applies only to same-day ACH, which settles on a shorter clock.R10 requires a written statement from the customer, which takes longer to obtain.
4. What does an ACH debit that has not returned tell you?

   Only that it has not failed yet. It is not confirmation that it succeeded.That it succeeded, once the effective date has passed.That the receiving bank checked the balance and found the funds.That it succeeded, unless the account is a consumer account.
5. In an ACH transaction, what are the ODFI and the RDFI?

   The originating bank, which submits the entry, and the receiving bank, which posts or returns it.The merchant's processor and the customer's processor.The originating and receiving branches of the same clearing house.The bank that holds the funds and the bank that guarantees them.
6. What does the effective date on an ACH entry represent?

   The date the funds are meant to post, not the date the file was sent.The date the originating bank transmitted the file.The last date on which the receiving bank may return the entry.The date the merchant is funded for the entry.
7. You receive a notification of change (NOC) on an ACH debit that otherwise succeeded. What does it mean?

   The debit worked, but the account details you hold are wrong and must be corrected.The debit was returned and must be resubmitted with the same details.The customer has changed banks and the authorization is no longer valid.The receiving bank is warning you that the account is close to its limit.
8. What does the SEC code on an ACH entry identify?

   How the debit was authorized, which determines the rules that apply to it.Which settlement window the entry belongs to.Whether the receiving account is a consumer or a business account.The security standard used to encrypt the file in transit.