Practice Test GeeksCPP - Certified Payment Professional Practice Test
← All CPP Flashcard Decks

CPP Card Networks & Interchange Flashcards

6 cards from real CPP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 6 CPP Card Networks & Interchange flashcards as text

  1. What does the term 'acquiring bank' (acquirer) refer to in card processing?

    Answer: The bank that processes card transactions on behalf of merchants and deposits funds into their accounts

    The acquiring bank (acquirer) is the financial institution that enables merchants to accept card payments by processing transactions and settling funds into merchant accounts.

  2. What is tokenization in the context of card payments?

    Answer: Replacing sensitive card data with a non-sensitive surrogate value (token) that cannot be reverse-engineered

    Tokenization replaces a card's primary account number (PAN) with a unique token that is useless to fraudsters if intercepted, reducing data breach risk.

  3. What is the purpose of Address Verification Service (AVS) in card-not-present transactions?

    Answer: To compare the billing address provided by the customer against the address on file with the issuer to detect fraud

    AVS compares the billing address and ZIP code entered by the customer with the information stored at the issuing bank to help merchants identify potentially fraudulent transactions.

  4. What is the Card Verification Value (CVV/CVC) and why is it important for CNP security?

    Answer: A 3 or 4-digit code on the card that verifies physical possession of the card in card-not-present transactions

    The CVV/CVC is a static 3 or 4-digit security code printed on the card (not encoded on the magnetic stripe) that helps verify the customer physically has the card during CNP transactions.

  5. What is 3D Secure (3DS) and how does it benefit card-not-present transactions?

    Answer: An authentication protocol that adds an extra verification step for online card transactions to reduce fraud and shift liability

    3D Secure (3DS) is an authentication protocol that adds a layer of identity verification for online transactions, reducing fraud and shifting chargeback liability from the merchant to the issuer when successfully authenticated.

  6. Which organization sets the interchange rates for Visa and Mastercard transactions?

    Answer: Visa and Mastercard each set their own interchange schedules for their respective networks

    Visa and Mastercard independently publish and set interchange rate schedules for their own networks, with rates varying by card type, transaction type, and merchant category.