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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. Which organization sets the rules and interchange fees for Visa transactions in the United States?

    Answer: Visa Inc.

    Visa Inc. establishes the network rules, interchange fee schedules, and operating regulations that all Visa participants must follow.

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

    Answer: A fee paid by the merchant's bank to the cardholder's issuing bank

    Interchange is the fee the acquiring bank pays to the issuing bank per transaction, compensating the issuer for credit risk and funding costs.

  3. What is a card scheme's 'honor all cards' rule?

    Answer: Merchants must accept all valid cards of that brand regardless of product type

    The honor-all-cards rule requires merchants who accept one Visa (or Mastercard) product to accept all valid Visa (or Mastercard) cards presented by customers.

  4. What does 'interchange plus' pricing mean for a merchant?

    Answer: The merchant pays the actual interchange rate plus a fixed acquirer markup

    Interchange plus (cost-plus) pricing passes the exact interchange cost through to the merchant with a transparent, fixed processor margin added on top.

  5. A Mastercard chargeback reason code related to 'Fraud' falls under which dispute category?

    Answer: 10 Series

    Mastercard organizes chargeback reason codes into series, with the 10 series covering fraud-related disputes such as 10.1 (EMV liability shift) and 10.4 (other fraud).

  6. What is the primary purpose of a payment network's BIN (Bank Identification Number) range?

    Answer: To identify the issuing institution and card product associated with a card

    The BIN (first 6–8 digits of a card number) identifies the issuer and card product, enabling routing, risk checks, and interchange classification.