Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

APRP > Payment Systems > Flashcards

Payment Systems Flashcards

16%

1
Q

What is the ACH Network?

A

Processing and delivery system that provides for the distribution and settlement among financial institutions of electronic credits and debits as well as non-monetary entries with or without payment related information

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What is an Originator?

A

Natural person or organization that has been authorized by the Receiver it initiate a credit entry, debit entry, or non-monetary entry to the Receiver’s account at the RDFI, and has authorized an ODFI to transmit the entry to the Receiver’s account

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What are the requirements for negotiability of a check or draft?

A
  1. Written instruction
  2. Payable to named person or to bearer
  3. Payable on demand
  4. Signed by the Drawer
  5. For a fixed amount
  6. Unconditional order to pay
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What is a card association?

A

A governing body for the community of financial institutions, Independent Sales Organizations (ISOs), and Member Service Providers (MSPs) that support card processing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What are contactless cards?

A

Cards employing RFID technology for payment transmission through an embedded computer chip

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What are interchange fees?

A

Fees paid to cover handling costs and credit risk from the Merchant’s account at the Acquirer to the Issuer

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What are interface points?

A

Points when entities or processes interact with a transaction flow

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What is an Acquirer?

A

Organization that represents Merchants in the processing, acceptance, and settlement of POS transactions

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What is a Bank of First Deposit (BOFD)?

A

First depository institution at which a check is deposited

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What is a Bankers’ Bank?

A

An institution owned by depository institutions that typically provides correspondent services, including check clearing and settlement services, to its owners and other banks

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What is a Cardholder?

A

Person issued or authorized to use a credit, charge, debit, or prepaid bank card

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What is a clearing house?

A

Institution comprised of member depository institutions for the purpose of exchanging, clearing, and settling check payments among members

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What is a closed loop card network?

A

A payment service that is provided directly to Merchants and Cardholders by the owner of the network without the involvement of financial institutions as intermediaries
(ex. American Express and Discover)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What is a Correspondent Bank?

A

A private depository institution, Bankers’ Bank, or Federal Reserve Bank providing payment clearing or settlement services to a BOFD or Paying Bank

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What is a credit card?

A

Card in which payment is drawn from a short-term line of credit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What is a debit card?

A

Card in which payment is drawn directly from a demand deposit account (aka an access device)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

What is a Drawer?

A

A person ordering payment of a draft

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

What is a Issuer?

A

Financial institution that issues a card to a Cardholder

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

What is a Merchant?

A

Person or business that engages in the sale of goods or services and contracts with an Acquirer in order to accept card payments from Cardholders

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

What is a Payee?

A

Party or parties due payment as indicated on a check

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

What is a Paying Bank?

A

Depository institution associated with the routing number encoded in the MICR line on a check

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

What is a Receiver?

A

Natural person or organization that has authorized an Originator to initiate a credit entry, debit entry, or non-monetary entry to the Receiver’s account at the RDFI

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

What is a Receiving Depository Financial Institution (RDFI)?

A

Participating depository financial institution with respect to entries (a) it receives from its ACH Operator to the accounts of Receivers, (b) on which it is designated as the RDFI in accordance with Nacha Operating Rules Appendix Three

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

What is a Receiving Point?

A

An organization that receives entries from an ACH Operator on behalf of an RDFI

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

What is a remotely created check (RCC)?

A

A check that is not created by the paying bank and that does not bear a signature applied, or purported to be applied, by the person on whose account the check is drawn

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

What is a Sending Point?

A

An organization that transmits entries to an ACH Operator on behalf of an ODFI

27
Q

What is a single message transaction?

A

A transaction where both authorization and clearing take place through one message transmittal from Merchant’s card acceptance terminal

28
Q

What is a Third-Party Sender?

A

Type of Third-Party Service Provider that acts as an intermediary in transmitting entries between an Originator and an ODFI, including through Direct Access, and acts on behalf of an Originator or another Third-Party Sender

29
Q

What is a Third-Party Service Provider?

A

An organization that performs any function on behalf of the Originator, the Third-Party Sender, the ODFI, or the RDFI
(An Organization acting as a Third-Party Sender is also a Third-Party Service Provider)

30
Q

What is an application programming interface (API)?

A

A set of specifications, standards, or conventions that enable programs to exchange information

31
Q

What is an open loop card network?

A

A multi-party network that connects Issuers and Acquirers and manages the flow of value between the two
(e.g. VISA and Mastercard)

32
Q

What is an Originating Depository Financial Institution (ODFI)?

A

Participating depository financial institution with respect to Entries (a) it transmits directly or indirectly to an ACH Operator for transmittal to an RDFI, and (b) on which it is designated as the ODFI in accordance with Nacha Operating Rules Appendix Three

33
Q

What is authorization?

A

The explicit instructions including timing, amount, payee, the source of funds, and other conditions given by the payer for a one-time or recurring fund transfer

34
Q

What is blockchain?

A

Digitized transactions sequentially appended and hashed for confirmation by permissioned, public owners of distributed ledgers

35
Q

What is distributed ledger technology (DLT)?

A

Technology that uses a consensus of replicated, shared, and synchronized digital data geographically spread across multiple sites, countries, or institutions with no central administrator or centralized data storage

36
Q

What is FedNow?

A

A real-time payment service developed by the Federal Reserve Banks to process and deliver electronic credits and payment related information between financial institutions

37
Q

What is Fedwire Funds Service?

A

A real-time gross settlement system used to settle interbank funds transfers; transactions are irrevocable and final

38
Q

What is Fedwire Securities Service?

A

A mechanism for issuance, transfer, maintenance, and safekeeping of book-entry securities

39
Q

What is interoperability?

A

The ability to process payment instructions across payment systems or platforms that requires the use of common standards and technical compatibility between systems

40
Q

What is messaging?

A

Exchange of data between entities to support a request for, or a response to, a request about a payment or its status
(could include authorization)

41
Q

What is remote deposit capture (RDC)?

A

A deposit transaction delivery system that allows customers to electronically deposit checks and other monetary instruments at remote locations

42
Q

What is SWIFT BIC?

A

Bank identifier code for members of the SWIFT network

43
Q

What is SWIFT?

A

A messaging network that financial institutions use to securely transmit information and instructions through a standardized system of codes

44
Q

What is an ACH Operator?

A

An entity acting as a central facility for the clearing, delivery, and settlement of entries between or among Participating DFIs

45
Q

Who are Electronic Data Interchange (EDI) Participants?

A
  1. Buyer (Payor)
  2. Supplier (Payee)
  3. Receiving Financial Institution
  4. Sending Financial Institution
46
Q

What are Financial Market Utilities (FMU)?

A

Multilateral messaging systems that provide infrastructure for transferring, clearing, and settling payments, securities, and other financial transactions between financial institution or systems

47
Q

What are ATM/POS and card networks?

A

Organizations that operate a network of systems that facilitate the routing of card authorization requests, corresponding responses, and settlement transactions between Acquirers and Issuers

48
Q

What is a dual message transaction?

A

A Merchant transmitted message containing information for authorization, with a second message required for clearing and settlement transmitted later, possibly in a batch

49
Q

What is a faster payments mechanism?

A

A means or instrument for payment clearing where settlement occurs between parties rapidly so that funds are made available to the payee either same day or real time

50
Q

What is a Independent Sales Organization (ISO)?

A

A third party used by an Acquirer to conduct and monitor day-to-day activities of its Merchant accounts

51
Q

What is Apple Pay?

A

A mobile payment and digital wallet service that lets users make payments using an iPhone, Apple Watch, iPad, or Mac

52
Q

What is Electronic Data Interchange (EDI)?

A

A data format used for machine-to-machine exchanges of data and messages for a range of payment and related processes

53
Q

What is Google Pay?

A

A digital wallet platform developed to power in-app and tap-to-pay purchases on mobile devices (phones, tablets, or watches) running an Android operating system

54
Q

What is Mastercard Send?

A

A Mastercard solution that leverages debit networks to transfer funds to virtually all U.S. debit cards and typically occur within seconds

55
Q

What is National Settlement Service (NSS)?

A

A multilateral settlement service owned and operated by the Federal Reserve Bank that allows participants in private clearing arrangements to settle their net obligations with same-day finality using participant’s reserve or clearing account balances maintained with the Federal Reserve

56
Q

What is payment-related information?

A

Information that flows directly with a payment to describe its purpose and / or instruct the receiving party how to apply the funds

57
Q

What is RTP?

A

A core industry infrastructure owned and operated by The Clearing House that processes and delivers real-time electronic credits and payment-related information between financial institutions

58
Q

What is Venmo?

A

A streamlined person-to-person (P2P) payment method combined with a social-media overlay that is a subsidiary of PayPal, Inc

59
Q

What is Visa Direct?

A

A service offering real-time push payment capabilities utilizing Visa’s global payment system

60
Q

What is Zelle?

A

A person-to-person (P2P) payment method available to U.S. bank account holders that is owned by Early Warning Services, LLC

61
Q

What are wholesale payments?

A

Payments typically between businesses, although there is no definitive division between wholesale and retail

62
Q

What are retail payments?

A

Payments between two consumers, a consumer and a business, or between two businesses, although there is no definitive division between wholesale and retail

63
Q

What does batch processing, store-and-forward mean?

A

Transactions received during the day are stored and processed together at a later time in a batch instead of each payment being sent separately

APRP (6 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions