In the Context of Payment Acceptance and Processing, Closed Loop

question 77

Multiple Choice

In the context of payment acceptance and processing, closed loop systems:

• A) include additional payment processing units.
• B) involve paying the merchants directly.
• C) work similar to an open loop system.
• D) make use of an intermediary, such as a bank.

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Definitions:

Fixed Costs

Expenses that do not change with the volume of production or sales, such as rent, salaries, and insurance.

Variable Costs

Expenditures that adjust based on the quantity of production or the scale of sales.

Utility Rates

Charges imposed by utility companies for the use of services such as electricity, gas, water, and sewer.

Contribution Margin

The amount by which the sale of a product or service exceeds its variable costs, used to cover fixed costs and contribute to net income.