APRP Handbook - Ch 1 Payment Systems (16%)Review Practice Study Questions.

APRP Handbook - Ch 1 Payment Systems (16%)Review Practice Study Questions. NACHA was formed in the year... - correct answer 1974 Memo Post - correct answer A posting to an account which may affect the balance but is temporary until the institution has completed all verification and reconciliation it receives throughout the day. Proximity Payments - correct answer POS transactions made with a mobile device like a cellphone, smart card, PDA or any device with a microchip (the term M-payment is exclusive to a mobile phone) Decoupled Debit Cards - correct answer A card issued by a financial institution regardless of where customer's transaction accts are held. The issuer uses the ACH network instead of EFT network for settlement. (example: Target Red Card) Contactless Cards or key fobs - correct answer Utilize an embedded computer chip with financial and personal info for transactions. They employ radio-frequency identification (RFID) technology PCI DSS is... - correct answer Payment Card Industry Data Security Standards: designed to ensure that ALL companies that accept, process, store or transmit credit card information maintain a secure environment Open Loop Network is... - correct answer A multiparty network that connects the Issuing FI and Acquiring FI, and manages the flow of value between them. (Example: Visa and MasterCard) Closed Loop Network - correct answer Provides payment services directly to merchants and cardholders without involving FIs (Example: Amex and Discover) Check Clearing is... - correct answer The path the check follows Check Collection is... - correct answer The process of ensuring the funds represented by the check are debited from and credited to the appropriate accounts Benefits of RDC include... - correct answer Decreased Processing costs Support New and Existing banking products Improve Customer's access to their deposits Which party warrants the maker's signature is authorized on a RCC (Remotely Created Check)? - correct answer The Bank of First Deposit