ETA CPP Exam Prep Free practice test →

Free ETA CPP Practice Questions

10 free, exam-style ETA Certified Payments Professional (ETA CPP) practice questions with answers and explanations. No signup required. Work through them below, then take the full free ETA CPP practice test to study every exam domain.

These 10 free ETA CPP questions are organized by exam domain, so you can see how each part of the ETA Certified Payments Professional blueprint is tested. Reveal the answer and explanation under each question.

Domain 2: Pricing and Interchange

Question 1

Under a tiered (qualified / mid-qualified / non-qualified) pricing model, which party determines which transactions fall into the non-qualified tier?

  1. The card networks, through their published interchange tables
  2. The cardholder's issuing bank, based on the account type
  3. The processor, which defines the tiers in the merchant agreement
  4. The merchant, based on which card brands they accept
Show answer & explanation

Correct answer: C - The processor, which defines the tiers in the merchant agreement

Question 2

A merchant processed $40,000 in card volume last month and paid $1,200 in total processing fees. What is the merchant's effective rate?

  1. 1.20%
  2. 2.50%
  3. 3.00%
  4. 3.33%
Show answer & explanation

Correct answer: C - 3.00%

Domain 3: Process, Operations and Workflow

Question 3

A merchant asks which part of their processing cost is paid to the bank that issued the customer's card. The correct answer is:

  1. The assessment, which the card network charges on each transaction
  2. The processor markup, which the ISO negotiates with the merchant
  3. The monthly statement fee charged by the acquiring bank
  4. The interchange, which is paid to the cardholder's issuing bank
Show answer & explanation

Correct answer: D - The interchange, which is paid to the cardholder's issuing bank

Question 4

A new online business is boarded within minutes under a single master merchant account, and the provider assumes responsibility for the sub-merchant's transaction losses. The provider is functioning as a:

  1. Payment facilitator (PayFac)
  2. Independent sales organization (ISO)
  3. Payment gateway
  4. Issuing bank
Show answer & explanation

Correct answer: A - Payment facilitator (PayFac)

Question 5

At the point of sale a card is approved and the cardholder's available credit is reduced, but no money has yet moved to the merchant. Which stage of the transaction lifecycle is this?

  1. Authorization
  2. Clearing
  3. Settlement
  4. Funding
Show answer & explanation

Correct answer: A - Authorization

Domain 5: Risk

Question 6

After the October 2015 EMV liability shift, a merchant accepts a counterfeit chip card by swiping its magnetic stripe on a terminal that is NOT chip-enabled. The resulting fraud loss is generally borne by the:

  1. Card network
  2. Cardholder
  3. Issuing bank
  4. Merchant
Show answer & explanation

Correct answer: D - Merchant

Question 7

A cardholder makes a legitimate online purchase, receives the goods, and then disputes the charge with their bank claiming they never authorized it. This is BEST described as:

  1. Counterfeit card fraud
  2. Account takeover fraud
  3. Friendly fraud
  4. Stolen identity fraud
Show answer & explanation

Correct answer: C - Friendly fraud

Domain 6: Regulatory, Compliance and Security

Question 8

To remain PCI DSS compliant, which piece of data must a merchant NOT retain after a transaction has been authorized?

  1. The cardholder's billing ZIP code
  2. The card security code (CVV/CVC)
  3. The last four digits of the card number
  4. The transaction amount and date
Show answer & explanation

Correct answer: B - The card security code (CVV/CVC)

Question 9

The Durbin Amendment (Regulation II) caps interchange on which transactions, and for which financial institutions?

  1. Credit card transactions, for all issuing banks
  2. Debit card transactions, for issuers with at least $10 billion in assets
  3. Debit card transactions, for all issuers regardless of size
  4. Credit card transactions, for issuers with at least $10 billion in assets
Show answer & explanation

Correct answer: B - Debit card transactions, for issuers with at least $10 billion in assets

Domain 7: Underwriting

Question 10

An underwriter reviews a travel agency that collects full payment from customers months before the trips occur. Compared with a restaurant, why does this merchant represent greater risk to the acquirer?

  1. Travel agencies always operate on lower profit margins
  2. The long gap before delivery increases potential chargeback exposure
  3. Travel transactions cannot be processed using EMV chip cards
  4. The travel merchant category code is not supported by the card networks
Show answer & explanation

Correct answer: B - The long gap before delivery increases potential chargeback exposure

The rest of the ETA CPP blueprint

The ETA CPP exam also covers these domains. Drill them in the full free practice test:

Ready for the real thing?

Practice hundreds more ETA CPP questions with instant scoring, weak-area drills, and full exam simulations.

Start the free practice test See pricing