How Credit Cards Work - 25 Question Multiple Choice Test

What is the average number of credit cards held by Americans?

• One

• Two

• Four

• Six

What is one major disadvantage of carrying a credit card balance?

• You earn more rewards

• No interest is charged

• You lose access to cash

• You pay finance charges

What company introduced the first universal credit card?

• American Express

• Diners Club

• Visa

• Discover

When did BankAmericard change its name to Visa?

• 1966

• 1959

• 1976

• 1989

What is the purpose of the last digit in a credit card number?

• Expiration checker

• Card type indicator

What is a magstripe?

• A. A signature strip

• B. A magnetic stripe storing data

• C. A barcode reader

• D. A smart chip

Which of the following can erase a magstripe?

• A credit score check

• Exposure to magnets

• Freezing temperatures

• Chip damage

What type of card uses encrypted transactions and may support contactless payment?

• Store card

• Magstripe card

• Smart card

• Cash card

What technology allows contactless cards to transmit data to a terminal?

• NFC

• RFID

• UV

• TCP

What law limits your liability to $50 in case of credit card fraud?