| September 2007 P2 Money
Quiz Answers
Credit Card Knowledge
1. A credit card is also known as a form of ________. All of the above (revolving credit, line of credit, open credit line)
2. A credit card is different from a debit card because it does not ________. remove money from the user's account immediately
3. The verification of a credit card is performed at the time of a transaction using a ________ (POS) system that communicates to the card merchant's bank. Point of Sale
4. Additional verification information, mainly the ________, may be requested for internet, mail, fax, or phone purchases where the card is not present. All of the above [Card Security Code (CSC), Card Verification Value (CVV), Card Verification Code (CVC)]
5. According to the ________, a cardholder may dispute any charges that he or she thinks are incorrect on a credit card statement. Fair Credit Billing Act
6. Most credit cards have the same shape and size, as specified by the ________ standard. ISO 7810
7. ________ may increase dramatically if a cardholder is late making a payment. Interest rates
8. After a transaction is authorized, it is stored in a ________, which the merchant then sends to the ________ later to receive payment. batch, acquirer
9. A secured credit card is a type of credit card that is secured by a ________. deposit account
10. A ________ has a security chip embedded in the card used to process information. smart card
BONUS. When a cardholder becomes severely delinquent on a credit card payment (often at the point of six months), the credit card company may declare the debt to be a(n) ________. charge-off
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