ACQUIRER OR ACQUIRING BANK A financial institution (often a bank) where a merchant has an account to process transactions and card payments

Transcription

1 A TO Z JARGON BUSTER A ACQUIRER OR ACQUIRING BANK A financial institution (often a bank) where a merchant has an account to process transactions and card payments ATM Automated Teller Machine. Unattended, customer operated machine - used to dispense cash/other services ATV Average Transaction Value AUTHORISATION Authorisation is carried out by a card issuer to ensure that there are sufficient funds in a cardholder s account to cover a transaction AUXILIARY DATA Auxiliary data is additional information that supports a payment card transaction AVS ADDRESS VERIFICATION SERVICE Fraud-prevention mechanism that verifies a customer address against a card B BATCH A batch is a group of transactions produced, processed or gathered together and treated as a single unit BIN BIN is an abbreviation for Bank Identification Number, the first six digits of the number on a payment card. These digits identify a card scheme and issuer C CARD ASSOCIATION A card association is a network of issuing banks and acquiring banks that process payment cards for a specific brand, such as VISA or MasterCard. The card associations VISA and MasterCard are each comprised of over 20,000 card issuing banks CHARGEBACK Is a practice in which the bank that issues the credit card returns a customer s disputed transaction to the merchant via the merchant s acquirer for resolution CHIP AND PIN Chip and PIN is the UK s initiative to implement the EMV standard for secure payments CNP CARDHOLDER NOT PRESENT A card not present transaction is a credit card purchase made over the telephone or over the Internet where the physical card has not been swiped or inserted into a reader CVV2 CVV2 is an abbreviation for Cardholder Verification Value 2 which is a 3 or 4 digit value printed only on the payment card and used therefore to verify that a cardholder has the card in their physical possession, giving a merchant protection against fraud

2 D DEBIT CARD A debit card provides a convenient payment alternative to cash funds are withdrawn directly from a bank account or the remaining balance on the card. In some cases, the card is used exclusively on the internet with no physical card existing DISPUTE Generated when cardholders have problems with goods/services purchased using credit cards. Disputes can become chargebacks DYNAMIC CURRENCY CONVERSION (DCC) A foreign exchange mechanism provided by banks and third parties that gives a cardholder an option to pay either in the merchant s local currency or the customer s home currency at the point-of-sale, wherever they are in the world E E-COMMERCE Electronic Commerce enables the buying and selling of products or services over the internet eftpos Electronic Funds Transfer Point-Of-Sale. Complete process of electronic funds transfer to bank issuer from point-of-sale through merchant acquiring bank ELECTRONIC FUNDS TRANSFER (EFT) Electronic funds transfer (EFT) is the electronic exchange, transfer of money from one account to another, either within a single financial institution or across multiple institutions, through computer based systems EMV EMV stands for Europay, MasterCard and Visa and is the global standard for Integrated Chip cards and machines that can read Integrated Chip cards for the purposes of authenticating credit and debit card transactions EWALLET An ewallet is a payment method where an amount of money gets prepaid into a wallet to be used for (micro) payments on the internet. Many ewallet solutions also provide the possibility to credit this account from a credit or debit card ( top-up ). The ewallet may also be used for online purchases with the stored credit card data F FLOOR LIMIT Monetary amount assigned to merchant bank (guidelines set by Visa/MasterCard), above which the transaction requires authorisation. Merchant transaction without business authorisation assumes risk FRAUD SCREENING Fraud Screening is a method to filter good and bad transaction processing. It forms part of the online transaction authorisation process and assists with reducing fraud and reducing chargebacks FUNDS GUARANTEE When transaction, merchant acquirer guarantees funds, giving merchant certainty of settlement G H GIFT CARD Preloaded debit card that allows the cardholder to use it for the purchase of goods or services HOME SHOPPING Shopping carried out from ones own home by ordering goods advertised in a catalogue or on a television channel, or by using various electronic media

3 HOT HOT Multi-active services data centre I ISSUER Also called issuing bank; financial institution that issues cards/maintains card accounts for individuals/companies INTERCHANGE A fee charged for passing a transaction from the acquirer to the card issuing bank J K L M JCB The JCB Card has a merchant network of million spanning 189 countries KEYED TRANSACTIONS Transactions where a credit card is not physically swiped through a terminal LINE ITEM DETAIL (LID) The auxiliary data attached to a purchase card transaction to qualify for VAT certification in place of an invoice MAG SWIPE Often refers to the magnetic stripe on the back of a payment card or the method used to read the data on it MERCHANT An entity that trades goods or services and receives payment through a payment card MERCHANT ACQUIRER Also called acquiring bank - financial institution providing card acceptance service, holds merchant acquiring contract, maintains account MERCHANT BIN Bank Identification Number - identifies merchant account for each scheme/each acquirer MERCHANT PLUG-IN (MPI) Merchant plug-in (MPI) is a software module designed to facilitate 3D Secure verifications to help prevent credit card fraud MID The Merchant Account Identification Number with the bank acquirer MOTO MOTO is an abbreviation for Mail Order or Telephone Order in card not present transaction processing MSC Merchant Service Charge, the overall fee paid by the merchant to the acquirer for processing card based transactions, usually inclusive of Interchange MULTI-CHANNEL PROCESSING The ability to sell goods or services through different sales channels including Customer Present, E-Commerce and Mail Order/Telephone Order N NFC (NEAR FIELD COMMUNICATIONS) is a set of standards for smartphones and similar devices to establish communication with each other by touching them together or bringing them into close proximity

4 O P ONLINE SHOPPING Allows customers to purchase goods via the internet PA-DSS Payment Application Data Security Standard (PA-DSS) is the best practices standard maintained by the Payment Card Industry Security Standards Council (PCI SSC). It was created to assist software and other third-party vendors to develop secure payment applications that support PCI-DSS compliance PCI-DSS The Payment Card Industry Data Security Standard (PCI DSS) is an information security standard for organisations that handle cardholder information for the major debit, credit, prepaid, e-purse, ATM and POS cards. It s important to know the standards as you may be storing cardholder information, (e.g., receipts, terminals or s that have cardholder details in them) in a way that the standard does not allow PED A PED is a PIN entry device, where a card is inserted and a PIN entered PIN Personal Identification Number - number issued to cardholders used in ATM and POS terminals to withdraw cash/make purchases POINT-OF-SALE (POS) Suppliers terminal through which the transaction is processed PROCESSOR Company that handles transaction processing for merchants, card issuers and cardholders - includes authorisation, clearing, merchant and chargeback processing PRIMARY ACCOUNT NUMBER (PAN) A PAN is a payment card number PSP A Payment Service Provider PXP A unique type of payment service that delivers strategic advantage to merchants Q R QUEUE BUSTING Queue busting is a way to engage, interact and initiate elements of a transaction before arriving at the point-of-sale (POS) register REVERSAL A consumer may reverse a payment order, if e.g. the underlying transaction such as goods or services ordered did not take place or the consumer was not satisfied with the quality of the service. It may also happen if the consumer thinks the payment transaction was done erroneously RISK ASSESSMENT Process followed by merchant acquirer to check likelihood of merchant bankruptcy or fraud typically before merchant contract signed REPORTING Secure web based reporting tools enable you to view all your transactions, refund them if necessary and even export the data to reconcile in any existing systems S SCHEME Mainly Visa and MasterCard allow financial institutions to become members, so they can use their networks to issue or acquire the transactions performed

5 SETTLEMENT Accounting/balancing function of electronic funds exchange between cardholder s bank, merchant acquirer and merchant acquirer s bank SHOWROOMING Consumers using their mobile devices while in your store (either store vs store. com, store vs online competitors or both) SWIFT The Society for Worldwide Interbank Financial Telecommunication (SWIFT) operates a worldwide financial messaging network exchanging messages between banks and other financial institutions. It s a cooperative society under Belgian law links over 8,000 financial institutions in 208 countries T TAN A Transaction Authentication Number, or TAN, is used in online banking as a single use password to authorize financial transactions. TANs come in different forms: printed on a list (TAN), sent by SMS (mtan), in an indexed list (itan) or with a sm@rt-tan generator TID Terminal Identification Number is a number linked to a point-of-sale terminal than can be used to identify the merchant that processed the card transaction TOKENISATION For merchants who wish to carry out continuous authorisations on the same card, without the need to hold card data locally. Card details are captured and allocated against a unique secure token. Once the transaction is authorised the Token is sent back to the merchant where it can be held and used for any further continuous authority transactions on the same card. This negates the need for the merchant to hold card data and helps assist them with achieving data security standards as required by the payment card industry TRACK 2 Refers to the data on a payment s card magnetic stripe, which contains sensitive information such as the PAN currencies used for remittance U V W X Y Z UNIFICATION Allowing merchants to manage any payment device across any application from a centralised point VBV VERIFIED BY VISA A methodology introduced by the Card Scheme and Banks to provide an additional, secure cardholder verification process prior to an Internet transaction proceeding WEBSITE with shopping cart facility gives your visitors the ability to put the goods and services you want to sell into their shopping basket, ready for payment XMODEM A simple file transfer protocol used to submit settlement files YULETIDE Traditionally the busiest time of year for high street retailers ZIP ZAP MACHINE A manual credit card impression machine that creates multiple receipts by sliding a handle to record the raised numbers on the front of a credit card onto carbonpaper copies