Question 18: "Interchange fee" in Merchant Acquiring Business means:
A) The incentive paid by the Acquirer Bank to the Card Issuer Bank
B) The incentive paid by the Issuer Bank to the Card Acquirer Bank
C) The incentive paid by the Acquirer Bank to the Merchant
D) The incentive paid by the Merchant to the Acquirer Bank
Question 19: Acquirer in Merchant Acquiring Business means:
A) Bank issuing the card
B) Bank installing the POS
C) Customer acquiring goods
D) Merchant acquiring payment
Question 20: Which of the following is one of the benefits to Card Holder under Merchant Acquiring Business?
A) Need not carry cash
B) Need not carry card
C) No need for card limit / balance
D) No need to go personally
Answer (2)
The interchange fee is primarily the incentive paid by the Acquirer Bank to the Card Issuer Bank. The Acquirer refers to the bank that installs the POS, and a key benefit to the Card Holder is not needing to carry cash. The selected answers are A, B, and A for each respective question.
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Question 18: An 'interchange fee' is the fee paid by the Acquirer Bank to the Card Issuer Bank. This fee is part of the transaction process when a customer uses a credit or debit card at a merchant's point of sale. The fee compensates the issuer bank for facilitating the transaction. The correct answer is A) The incentive paid by the Acquirer Bank to the Card Issuer Bank.
Question 19: In the context of Merchant Acquiring Business, the 'Acquirer' refers to the bank that provides the merchant with the facilities to accept card payments, typically by installing the necessary point of sale (POS) technology. The Acquirer Bank processes the transactions for the merchant. Hence, the answer is B) Bank installing the POS.
Question 20: One of the benefits to a cardholder under Merchant Acquiring Business is that they need not carry cash when making purchases, as they can use their card instead. This convenience enhances security and ease of transactions for the cardholder. Therefore, the correct answer is A) Need not carry cash.
