| Address Verification System |
A system used to verify the identity of the person claiming to own the credit card. The system will check the billing address of the credit card provided by the user with the address on file at the credit card company. |
| ACH |
See Automated Clearing House. |
| Authorization |
The process of verifying that the credit card has sufficient funds available to cover the amount of the transaction. An authorization must be obtained for every sale, and is not a guarantee of payment. |
| Authorization Code |
A code that the credit card issuing bank returns in an electronic message to the merchant's equipment. The code serves as a proof of the authorization and indicates approval of the transaction. |
| Authorization Response |
An issuing financial institution's electronic message reply to an authorization request. It can indicate a decline or an approval among others. |
| Auto-Batch |
A feature of the merchant's terminal that allows batch settling to occur automatically at a specified time every day. |
| Automated Clearing House |
An electronic banking network operating in the United States. ACH processes large volumes of both credit and debit transactions which are originated in batches. Rules and regulations governing the ACH network are established by the National Automated Clearing House Association (NACHA). |
| AVS |
See Address Verification System. |
| Bankcard |
A card issued by MasterCard or Visa. |
| Cardholder |
The person that uses a payment card account purchase goods or services from a merchant. |
| Card Issuing Bank |
This is the bank that a card was originally issued from and contact information can be found on the back of the card.
|
| Card Not Present |
A sales environment where the cardholder (and the card) is not physically present at the time of purchase. Such transactions take place in businesses focused on mail order/telephone order, business to business, and Internet-based transactions. |
| Chargeback |
An amount that is charged by the acquiring bank and deducted from a merchant account for any transactions that are disputed by a credit card holder as being unauthorized or fraudulent. |
| Check Guarantee |
A service that guarantees the checkwriter's payment and assumes the collections risk of check payments for a merchant. |
| Code 10 Authorization |
If you suspect a card is fraudulent at the time of the transaction, the merchant can call their voice authorization phone number and ask for a code 10. The voice operator will instruct the merchant on how to proceed. |
| Debit Card |
Funds are withdrawn directly from the cardholder's checking account when a debit card is used for the transaction. |
| Decline |
A transaction for which authorization is declined by the issuing bank. |
Discount Rate
|
A percentage-based fee that is paid to the acquiring bank and the credit card processing organization for the time and expense involved in the handling of any electronic transaction. |
| Gateway |
A computer-based software application that takes the transactions from online merchant storefronts and then routes them to a processing system. |
Interchange
|
The standardized electronic exchange of financial and non-financial data associated with sale and credit data between merchant acquirers and card issuers on various types of MasterCard and Visa transactions. |
| Mail Order/Telephone Order |
Credit card transactions initiated via mail, email or telephone. Also known as card-not-present transactions. |
| MATCH |
See Member Alert To Control High Risk Merchants. |
| Member Alert To Control High Risk Merchants |
The MATCH file is maintained by MasterCard. It lists merchants that have been terminated for special causes, like excessive chargebacks or fraud. |
| Merchant Identification Number |
This number is generated by a processor/acquirer and is specific to each individual merchant location. This number is used to identify the merchant during processing of daily transactions, rejects, adjustments, chargebacks, end-of-month processing fees, etc. |
| MID |
See Merchant Identification Number. |
| Magnetic Stripe |
This is the black stripe that is on the back of a credit card thatt holds theaccount information. |
| MOTO |
See Mail Order/Telephone Order. |
| POS |
See Point Of Sale. |
| Point Of Sale |
A location where credit card transactions are performed with the cardholder present, such as a retail store. The card is read magnetically, and the cardholder's signature is obtained as insurance against the transaction. This is the most secure form of credit card commerce. |
| Processor |
A data center that processes credit card transactions and settles funds to merchants. A processor connects to the merchant on behalf of an acquirer via a gateway or POS system to process payments electronically. Processors edit and format messages and switch to bankcard networks. They provide files for clearing and settlement and other value-added services. |
| Receipt |
This is the paper that prints out of the credit card terminal when you run a sale. |
| Retrieval Request |
A request to a merchant for documentation concerning a transaction, usually initiated by a cardholder dispute or suspicious sale/return. A retrieval request can lead to a chargeback. |
| Terminal |
This is the credit card machine. |
| Terminal Software |
This is the merchant information that we load into the credit card terminal so that the transactions know where to go to. |
| Transaction |
This is when you run a credit, debit or EBT sale. |
| Sponsoring Bank |
A Sponsoring Bank is a Chartered Bank or S & L that has obtained membership in Visa or MasterCard in order to allow a Processor access to the Visa and MasterCard networks ( in order to process these types of transactions).
-Since only a Bank may join Visa or MasterCard, many Processors make deals with a Sponsoring Bank in order to gain access to the Visa and MasterCard networks.
-Because these Sponsoring agreements are usually like a partnership, the line between the Sponsoring Banks and their Processors is not always clear; sometimes the partnership is referred to by the name of the bank, while other times they are referred to by the name of the Processor.
|
| Swiped Card |
This is when you physically swipe the card through the terminal, as apposed to keying in the account number manually.
|
| Terminal Identification Number |
This is the unique ID number that we use to find out which terminal that you are currently using.
|
| Transaction Fee |
The fixed amount charged to the merchant for each credit card transaction. Does not vary based on the dollar amount of the transaction. |
| TID |
See Terminal Identification Number. |
| Voice Authorization |
Credit card authorization obtained by telephoning an operator as opposed to swiping the card. |
| Void |
The reversal of an approved transaction, one that has been authorized but not settled yet. In order to reverse a settled transaction, processing of a credit is required. |
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