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CPP Payment Networks & Card Scheme Rules 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 Payment Networks & Card Scheme Rules flashcards as text

  1. What is the 'liability shift' that occurred with EMV chip card adoption in the US in 2015?

    Answer: Fraud liability moves to whichever party (issuer or merchant) does not support EMV

    The EMV liability shift means that if a counterfeit chip card is used at a non-chip terminal, the merchant (acquirer) is liable; if a mag-stripe card is used at a chip terminal, the issuer remains liable.

  2. Which term describes the difference between a card's authorization amount and the final settled amount?

    Answer: Authorization hold

    An authorization hold reserves funds on the cardholder's account; the final settlement may differ (e.g., tips at restaurants), and the difference is resolved during clearing.

  3. What is a 'floor limit' in card acceptance?

    Answer: The maximum transaction amount a merchant can process without obtaining an authorization

    A floor limit is a threshold below which some merchants (typically in specific offline environments) may complete a transaction without real-time authorization.

  4. Under Visa's dispute resolution process, what is the first step a cardholder must typically take before a chargeback is filed?

    Answer: Contact the merchant directly to attempt resolution

    Visa's dispute guidelines require cardholders to first attempt to resolve the issue with the merchant before the issuer can file a chargeback on their behalf.

  5. What does 'acquirer' mean in the card payment ecosystem?

    Answer: The financial institution that processes transactions and holds the merchant's account

    An acquirer (or acquiring bank) is the financial institution that contracts with merchants to process card transactions and deposit funds into the merchant's account.

  6. What is a 'retrieval request' in the chargeback process?

    Answer: An issuer's request for a copy of the original transaction receipt before filing a chargeback

    A retrieval request (or copy request) is the issuer asking the acquirer for documentation of the original transaction, often a precursor step before filing a formal chargeback.