Pricing Mastery Final Exam

40 Questions | Total Attempts: 30

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Pricing Mastery Final Exam

Questions and Answers
  • 1. 
    Your score will be shown upon completion, but correct answers will not be revealed. We will discuss your exam in our one-on-one Pricing Mastery Wrap-Up Call.After you complete the exam, you may hit the "Try Again" button if you are not happy with your results. Please note that all of your answers will be lost if you retake the exam. Therefore, you may want to make note of any answers you wish to re-enter.
  • 2. 
    Review this statement and answer Questions 28 through 40.Note: Questions 28 through 33 are worth double the points of all other questions on the exam. Give extra consideration to ensuring accurate answers.Hint: The most common mistake for determining Total Competitor Fees on this statement is not subtracting ALL of the Discover fees. Look throughout the statement; two Discover line items are very easy to overlook.
  • 3. 
    Answer the following questions regarding EIRF and Level II.
  • 4. 
    Which of the following are HPS costs that impact Margin? (Check all that apply)
    • A. 

      Interchange

    • B. 

      Monthly Statement Fee

    • C. 

      Transaction Fee

    • D. 

      Monthly Discounting Cost

    • E. 

      Monthly SRM Cost

  • 5. 
    How much is our monthly SRM cost on Exchange? 
  • 6. 
    Calculate 38 Basis Points on $550,000.
    • A. 

      $20.90

    • B. 

      $2,090

    • C. 

      $14,474

    • D. 

      None of the above

  • 7. 
    If you price a transaction at 9 cents and the Average Ticket is $13.00, what is the margin generated per transaction? (Assume that the merchant is processing on a Dial terminal and on HPS Exchange.)
    • A. 

      144 BP

    • B. 

      50 BP

    • C. 

      69 BP

    • D. 

      58 BP

  • 8. 
    Convert the $25 Monthly SRM Cost to Basis Points for a merchant processing $25,000 monthly.
    • A. 

      1 BP

    • B. 

      10 BP

    • C. 

      100 BP

    • D. 

      None of the above

  • 9. 
    Does this statement contain Junk Fees?
    • A. 

      Yes

    • B. 

      No

  • 10. 
    Does this statement show Interchange Refunds being withheld by the processor (for Returns/Credits items)?
    • A. 

      Yes

    • B. 

      No

  • 11. 
    Does this statement show daily discounting that could be leveraged as a Yellow Flag?
    • A. 

      Yes

    • B. 

      No

  • 12. 
    What are the primary reasons that a transaction might downgrade to EIRF? Check ALL that apply.
    • A. 

      The transaction was not settled within 24 hours of being authorized.

    • B. 

      The transaction was key-entered and missing AVS info.

    • C. 

      The transaction was not settled within 48 hours of being authorized.

    • D. 

      The transaction was over $1,000.

  • 13. 
    Which of the following are true in regard to Level II processing? Check ALL that apply.
    • A. 

      Level II applies to corporate cards used in a sales tax environment.

    • B. 

      Level II can be utilized in any business type.

    • C. 

      Level II must be indicated on the Equipment Setup screen in atlas to take effect.

    • D. 

      Level II rates are higher than typical corporate card rates.

  • 14. 
    True/False: All processors, regardless of size, pay the same Interchange rates. 
    • A. 

      True

    • B. 

      False

  • 15. 
    DPI is an industry abbreviation for:
    • A. 

      Discover Processing Index

    • B. 

      Determinating Price Index

    • C. 

      Discount Per Item

    • D. 

      Discount Price Indicator

  • 16. 
    Which of the following are Interchange-related fees? (Check all that apply)
    • A. 

      Assessments

    • B. 

      Discount Rate

    • C. 

      Batch Fee

    • D. 

      DPI

    • E. 

      MasterCard NABU Fee

    • F. 

      PCI Compliance Fee

    • G. 

      Visa FANF

  • 17. 
    True/False: An RM can choose the MCC code that is assigned to a merchant in order to get the best interchange rates possible. 
    • A. 

      True

    • B. 

      False

  • 18. 
    For a swiped transaction, which one of the following card types would typically have the highest Interchange rate?
    • A. 

      Check Card

    • B. 

      Corporate Card

    • C. 

      Rewards Card

  • 19. 
    True/False: A key-entered transaction will receive the same rate as a swiped transaction if address information is provided. 
    • A. 

      True

    • B. 

      False

  • 20. 
    True/False: Entering the CVV code from the back of the customer's card will not affect the Interchange rate. 
    • A. 

      True

    • B. 

      False

  • 21. 
    True/False: Transactions that are not settled (batched out) within 24 hours of being authorized will result in a higher Interchange Rate. 
    • A. 

      True

    • B. 

      False

  • 22. 
    "Small Ticket" Interchange applies to certain transactions that are $____ and under. 
    • A. 

      10

    • B. 

      15

    • C. 

      20

    • D. 

      25

  • 23. 
    True/False: Debit cards that are Regulated by the Durbin legislation have Interchange capped at .05% and 22 cents DPI (21 cents DPI if no fraud prevention measures in place.) 
    • A. 

      True

    • B. 

      False

  • 24. 
    What factor determines whether a debit card is Regulated or not? 
    • A. 

      The cardholder must enter their 4 digit PIN

    • B. 

      The card was issued by a bank with at least $10 billion in assets

    • C. 

      The card has either a Visa or Mastercard logo on the front

    • D. 

      The card is key-entered rather than swiped

  • 25. 
    Durbin Regulation results in a lower cost per transaction for most debit card purchases, but can actually cost more for very small transactions. 
    • A. 

      True

    • B. 

      False

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