Exercise 2: How do credit cards work?
True or false: You have to swipe a credit card to use it.
Which parties participate in credit card processing?
- The issuer, the director, and the buyer
- The acquirer, the analyst, and the accountant
- The merchant, the acquirer, and the issuer
- The authorizer, the batcher, and the lender
What are the steps of credit card processing?
- Authorization, batching, sorting, and funding
- Batching, acquiring, issuing, and lending
- Clearing, funding, batching, and selection
- Authorization, batching, clearing, and funding
Which of the following is not a way to pay off a credit card?
- At a store or bank
- With another credit card
- On the phone
- All of these will work as credit card payment options
What is the approximate minimum payment for a card with a $1,000 balance?
- Explanation: This refers to the following statement (page 9): “Your minimum monthly payment…is usually 2% of the balance or $15 (whichever is higher).” 2% of $1,000 = .02 x $1,000 = $20