What triggers the authorization fee described in the text?

Boost your career with the ETA Certified Payments Professional (CPP) Exam. Learn with flashcards and multiple choice questions, including hints and explanations. Prepare for your success!

The authorization fee is typically triggered when using specific methods for transaction verification, such as a telephone dial-up service for authorization. This method requires additional resources and incurs costs for the service provider, as it may involve manual processes or less efficient technology compared to automatic electronic systems.

In contrast, a successful transaction typically does not incur an authorization fee beyond standard processing fees because the transaction is carried out smoothly. Similarly, a failed transaction wouldn't typically trigger an authorization fee because the transaction did not reach completion. Daily batch processing is a way of handling multiple transactions efficiently, and while it may have associated fees, it is more related to the overall processing system rather than individual authorization triggers.

Understanding that the method of authorization—especially when it relies on older or more manual technologies—can lead to specific fees is crucial for those involved in the payments industry, as it emphasizes the importance of efficiency and cost management.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy