Whenever additional parties are included in payment card transaction processing, the system is called a(n) _____system.
A) open loop
B) offline transaction
C) point of purchase
D) direct payment

Question

Quizplus · Accepted Answer

An open loop system includes additional parties such as issuing banks, acquiring banks, and card networks in the payment card transaction processing. These parties all work together to authorize and settle the transaction, making it an open loop system. Offline transactions refer to transactions where the authorization process is not immediately online, and point of purchase refers to the physical location where the transaction takes place. Direct payment typically refers to a transaction where the payment is made directly from the customer's bank account without the use of a payment card network.

Whenever Additional Parties Are Included in Payment Card Transaction Processing