|
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.
|
