PAYMENT PROCESSING GLOSSARY

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1 ABA Routing Number A unique, nine-digit number assigned to each banking institution, used to identify the bank and direct ACH debits and credits. The ABA routing number is usually found at the bottom of a personal or business check. ACH Automated Clearing House - group of processing institutions linked by a computer network to process electronic payment transactions between financial institutions. Acquirer, Acquiring Bank A financial institution that is a member of Visa and/or MasterCard and maintains the merchant credit card processing relationship. The acquirer receives all transactions from the merchant to be distributed to the issuing banks. Address Verification Service (AVS) A service supported by Visa, MasterCard, Discover and American Express that verifies the cardholder's billing address against the one on file with the issuer. AVS is designed to help combat fraud in non-face-to-face transactions. Advanced Programming Interface (API) APIs allow users to program to a pre-constructed interface, instead of individually programming a device or piece of software. Altered Card A card on which the original embossed or encoded information has been altered for fraudulent purposes. American Bankers Association (ABA) The trade association of American bankers. This body also has the registration authority to assign identification numbers. American Express A company that specializes in the issuance of Travel and Entertainment (T&E) cards. American Express services the cards it issues, serving as its own transaction processor with its own processing network. Approval Response An affirmative reply following a transaction authorization request. Arbitration A procedure used by an acquirer on behalf of the merchant to resolve a chargeback-related dispute with a card issuer. Assessment Fee Fees paid to MasterCard and VISA for marketing and administrative costs. This is a percentage of the sales passed through interchange. Association MasterCard International, Visa U.S.A. or Visa International, which are licensing regulatory agencies for bank card activities.

2 ATM (Automated Teller Machine) An unattended computer terminal that performs basic teller functions when a cardholder inserts a card into the ATM and enters the correct PIN. Typical functions include dispensing cash, accepting deposits and loan payments and accepting account transfers and inquiries. Also used by credit cardholders for receiving cash advances. Authorization The process by which a transaction is approved by the issuer, or by Visa/MasterCard on behalf of the issuer. Permission is given to (or denied) the merchant, via the acquirer, to accept a specific transaction from the cardholder account. An authorization indicates only that the card is valid and that sufficient funds are available on the cardholder's credit limit at the time the request is made. Authorization Approval Code The numerical code designated by the issuer, assigned to a sales transaction as verification that the sale is authorized. Authorization Only (Auth Only) Used to reserve an amount against a credit card's available credit limit for intended purchases. Authorization Only is most frequently used in the lodging (check-in), restaurant (tab) and car rental (pick-up) industries, where an approval is received for an estimated amount prior to the finalization of the charge amount. Authorization Request A merchant's request for an authorization to accept a cardholder's sales transaction. An authorization request can occur electronically via a credit card processing terminal or via telephone as a voice authorization. Auto Representment Automatically sending information to resolve a chargeback on a merchant's behalf without the need for merchant intervention. Average Ticket The average dollar amount of sale for credit card transactions. B2B Business to Business - refers to one business communicating with or selling to another. Back-End Network A data processing company that contracts with acquirers to provide communication and processing systems that connect with the interchange systems for clearing and the ACH systems for settlement services. The back-end processor receives the data, captures items from the front-end processor, formats and submits the items to the card company for clearing and settlement. The back-end processor also handles all chargeback and retrieval processing, the production of merchant statements, and the formatting of the merchant deposit for submission to the depository bank or into the ACH. Bank Identification Number (BIN) A unique series of numbers assigned by Visa/MasterCard to a member institution, which identifies that institution in transaction processing. The BIN comprises the first six digits of a standard credit card number.

3 Bank Card A card issued by a banking institution with a MasterCard or Visa brand. Basis Point One one-hundredth of a percent; one basis point is 0.01% or ; 10 basis points would be 0.10% or ; 25 basis points would be 0.25% or ; 100 basis points would be 1.0% or Batch A group of approved credit card transactions, usually accumulated during one business day. Batch Deposit The electronic depositing of a batch file transmitted to the transaction processor for settlement. Batch Processing The authorization of transactions offline when immediate approval is not required. Transactions are collected in a batch and sent as one transmission for authorization and/or settlement. Batch processing is generally used with mail order/telephone order (MOTO) transactions. Business Card A payment card typically issued to and used by owners of small businesses. Buy Rate The fee associated with the acquiring bank that is equal to interchange (which is paid to the issuing bank) plus the acquiring bank's markup. (The Green Sheet) Call Center An authorization request response displayed on the credit card terminal screen, generated by the issuer or through stand-in processing. The merchant must then call for a voice authorization. If an approval is given, the user must enter the approval code manually into the POS device as a "force" or "post-authorization." Capture Receiving and storing transaction data at the processor's host computer, to be submitted later for processing and payment. Card Identification Number/Card Identifier (CID) An American Express and Discover verification process that utilizes a non-embossed three- or four-digit number printed when authorizing credit card transactions where the physical card is not present. On American Express cards, the CID is a four-digit code printed on the front of the card. On Discover cards, the CID is a three-digit code printed next to the card number in the signature panel. Card-Not-Present A type of card transaction in which the card is not present at the point of sale for the magnetic stripe to be read. These are considered higher risk transactions.

4 Card Present A type of transaction in which the card is present and is swiped through an electronic device that reads the contents of the magnetic stripe on the back of the card. Card Reader Input device on a card terminal that translates the information stored on the magnetic stripe on the back of a card. Cardholder The person to whom a payment card is issued, or an additional person authorized by the original cardholder to use the card. Cardholder Account Number A sequence of numbers assigned specifically to a cardholder account that also identifies the issuer and type of payment card. The cardholder account number is the embossed number imprinted on the payment card. Cardholder-Initiated Chargeback A chargeback that results when a cardholder contacts the card issuer and refuses to accept a charge appearing on a monthly billing statement. A cardholder has 90 days to initiate a chargeback. CCD A credit or debit entry, initiated by a merchant, to consolidate funds of that organization, from its branches, franchises or agents, or from other organizations; or to fund the accounts of its branches, franchises or agents or of another organization. Chargeback A challenge to a transaction initiated by the issuer or cardholder that is returned to the acquirer for resolution. Chargeback Fee The amount assessed by the acquirer for processing chargebacks. Chargeback Period The number of calendar days from the central processing date of a transaction receipt during which the issuer may exercise a chargeback right. The number of days varies from 45 to 180 days, according to the type of transaction. Chargeback Reason Code A numerical code that identifies the specific reason for a chargeback. MasterCard and Visa each have their own chargeback codes. Check Card A bank card that can be used with a PIN at an ATM or without a PIN at the point of sale, also known as an offline debit card. When used at the point of sale, the transaction is processed through interchange as a credit card transaction with the funds debited from the cardholder's checking account.

5 Code 10 Authorization If the POS device displays "Lost or Stolen Card," or "Pick Up Card" or a similar message, the merchant should call the authorization center for a Code 10 Authorization. The operator will ask questions to determine if the transaction is valid. Commercial Cards Formal name for the following three types of cards: Corporate Card usually issued to the employees of a large corporation where the corporation assumes all liability for the card's usage. Purchasing Card issued to corporations. It allows the corporation numerous parameters to control daily and monthly spending limits, total credit limits and where the card may be used. Many employees may be issued the same card number. Business Card similar to the Corporate Card, but issued to a business with fewer employees. Each employee is responsible for his or her purchases. Compliance Compliance to the Visa and MasterCard regulatory bylaws. Also, a method of resolving a dispute between members if no chargeback reason code applies. The challenging member must prove financial loss due to a violation of MasterCard or Visa rules by the other member. Counterfeit Card A plastic card that has been fraudulently printed, embossed or encoded to appear to be a genuine bank card, but which has not been issued by a Visa or MasterCard member. It could also be a card which was originally issued by a member, but was subsequently altered without the issuer's knowledge or consent. Credit A refund or price adjustment given for a previous purchase. Credit Slip A form stating a refund or price adjustment will be credited to a cardholder account. Also referred to as a credit voucher or credit draft. CVC2 Card Validation Code - MasterCard term for the three-digit code printed next to the card number in the signature panel and used as part of the authorization process. CVV2 Card Verification Value - Visa term for the three-digit code printed next to the card number in the signature panel and used as part of the authorization process. Daily Discount For a merchant who does not have previous processing, their qualified discount rate is deducted from their batch sales total before their batch deposit is made. At the end of the month, the transaction fees and monthly fees are deducted from the merchant's DDA.

6 Data Encryption The scrambling of data so only the intended users can read and understand the encrypted information. DBA Doing Business As - the name a business uses to operate. Debit Card A bankcard used to purchase goods and services and to obtain cash, which debits the cardholder's personal checking account. During online debit transactions, the cardholder must enter a PIN. Decline A response from the card issuer denying the use of the card for the attempted transaction. If a request for approval is declined, the merchant must ask the cardholder for another form of payment. Demand Deposit Account (DDA) A checking account. Derived Unique Key Per Transaction (DUKPT) A method of PIN pad encryption. Dial-Up Terminal An authorization terminal that uses a telephone line to communicate with the authorization center. Direct Response Term used to describe a merchant processing primarily non-face-to-face or card-not-present transactions. Discount Rate The fees charged by the card acquirer to the merchant for processing payment card transactions. Downgrades When a transaction does not meet the qualifications for a particular level and it is assessed with an additional fee. For example, if a transaction that would normally be swiped is keyed, that transaction will downgrade and will be assessed accordingly. E-commerce Electronic Commerce - the sale and purchase of goods or services over the Internet. Early Termination Fee (ETF) A fee charged for the termination of the merchant account prior to the contract end date. Electronic Benefits Transfer (EBT) The automation of government benefits through electronic authorization, data capture and settlement processes. Plastic cards with magnetic stripes are used, eliminating paper benefits and coupon distribution.

7 Electronic Funds Transfer (EFT) An electronic system that automatically moves funds, e.g., an ATM withdrawal or pay-by-phone transaction. Encryption Method of scrambling data to protect a cardholder's personal information. Exceeded Timeliness A transaction that is deposited too late to qualify for the best interchange rate. Expiration Date The embossed date on a bankcard. After that date, the card becomes invalid and should no longer be accepted. Factoring When a legitimate merchant processes another merchant's transactions in return for payment. This practice is forbidden by the associations. File Transfer Protocol (FTP) A protocol used to transfer files over a TCP/IP network (Internet, UNIX, etc). Financial Institution Any organization in the business of moving, investing or lending money, dealing in financial instruments or providing financial services. This includes commercial banks, thrifts, federal and state savings banks, saving and loan associations and credit unions. Fleet Card Payment card designed mainly for fueling, maintenance and repairs of corporate motor vehicles. Fleet cards are normally used to provide specialized reporting. Floor Limit An amount of payment at which credit and debit card transactions must be authorized; this amount is specified in each merchant's processing agreement. Force The process by which a voice-authorized transaction is key-entered to be settled electronically with a batch of transactions. Also known as a post-auth. Fraud Investigation The process of identifying suspicious merchant or cardholder activity. Front-End Network The front-end is responsible for collecting card information in various forms (terminal, gateway, software) and processing it to conform to a specification the back-end can use. The front-end is a kind of interface between the user and the backend, which allows merchant to request authorization for transactions.

8 Gateway In payment processing, any network that connects merchant POS terminals with transaction processing and settlement networks, such as the MasterCard and Visa settlement networks. Gateways can also provide related services, including transaction management and reporting. Gateways more commonly refer to an Internet Gateway, such as Authorize.Net, which allow merchants to set up shopping carts or accept transactions when the card is not present. Good Faith An attempt by a card association member to resolve a dispute with another member in writing. A good-faith attempt at resolution must be made before filing a compliance case. Guarantor One who guarantees an obligation and has a legal duty to fulfill it. Hard Decline A declined authorization attempt resulting from a lost or stolen card, pick-up card, etc. A Code 10 call should be made by the merchant to the authorization center. High Ticket Dollar amount of a merchant s largest sale/transaction. Host Capture System (HCS) A transaction is transmitted with an authorization request to the host computer at the front end, the information is captured at the host, then sent back to the POS device. Since the information is already stored at the host, it can be settled without the merchant performing a settlement function. Idle Prompt The standard display on a payment card terminal waiting to process the next transaction. Imprinter A device used to imprint embossed card information onto a sales draft for payment card transactions. An imprinter is used if the card is present and the POS device cannot read the contents of the magnetic stripe. Independent Sales Organization (ISO) Also referred to as a Merchant Member Service Provider, a type of Member Service Provider (MSP) that supports a member s acquiring program by soliciting merchants and presenting the member merchant agreement. Interchange The exchange of transaction data between acquiring and issuing institutions. Interchange Fees Fees paid by the acquirer to the issuer to compensate for transaction-related costs. MasterCard and Visa establish interchange fee rates.

9 Issuer, Issuing Bank The financial institution and member of Visa or MasterCard that holds contractual agreements with, and issues cards to, cardholders. Interchange Plus Pricing A pricing structure in which the interchange and dues/assessments are passed directly through to the merchant. Basis points are added for profit and a charge per transaction for authorization is added to cover the cost and secure profit. This structure is sometimes also referred to as cost-plus pricing. This type of pricing is usually used for larger volume merchants. Magnetic Stripe A panel located on the back of a payment card containing magnetically encoded cardholder account information. Magnetic Stripe Reader A point-of-sale device that reads the encoded information from the magnetic stripe when the card is passed through the reader. Readers may read Track Two, which contains the cardholder account number and expiration date, or both Track Two and Track One, which contains the cardholder name. Mail Order / Telephone Order (MOTO) A type of transaction in which the merchant typically has a card terminal and manually keys in the required card information for transmission to the appropriate authorization network. Media The documentation of monetary transactions (i.e., sales drafts, credit slips, computer printouts, etc.). Media Retrieval Requests Media retrieval is the process of obtaining paper documents from a centralized location. There are two types of media retrieval requests: 1) requests for sales record from cardholders and 2) requests for documentation in defense of the chargeback from card issuers. You must fulfill media retrieval requests within 12 days of receipt. If you fulfill media retrieval requests after 12 days of receipt, the status is fulfilled late. If you cannot fulfill the media retrieval requests, the status is expired. Merchant Agreement The written contract between the merchant and acquirer that details their respective rights, responsibilities and warranties. Merchant Bank See Acquirer. Merchant Category Code (MCC) A universal four-digit merchant classification code that identifies the merchant by type of processing, authorization and settlement. Similar to a Standard Industrial Classification (SIC), but more defined.

10 Merchant Discount The fee an acquiring member charges the merchant to cover the costs of providing deposit credit and handling credit card sales transactions. See Discount Rate. Merchant Identification (MID) Number The identification number assigned to a merchant by the acquirer. Merchant Service Provider (MSP) 1) An entity or individual that contracts with a member to provide merchant sales and solicitations. (2) A type of registration for MasterCard under the Member Services Provider (MSP) program. See Independent Sales Organization. Method Of Payment (MOP) The way a merchant chooses to accept payment for products or services. Examples include: MasterCard, Visa, American Express, Discover, Carte Blanche, Diners Club, JCB, Electronic Check and private label cards. Mid Qualified Discount Surcharge Discount rate and sometimes transaction fee charged in addition to the qualified discount rate for transactions that are key-entered, batched out within 24 hours of the transaction time, have AVS (Address Verification Service), and Order Number and reply to the Mail/Telephone Order prompt with an Exact match; sometimes referred to as a mid-qualified bump. The mid-qualified surcharge is not assessed on MOTO/Internet merchants (as mid-qualified is considered the MOTO/Internet qualified discount rate). Mid Qualified Rate A Mid-Qualified Rate (which is sometimes called a partially qualified rate) is the percentage rate that merchants are charged when they accept credit cards that don t qualify for the smallest rate. It will occur for a few reasons, such as when a the credit card a customer is keyed into a POS as opposed being swiped magnetically, or a business credit card or special rewards is employed. Monthly Discount For merchants who can supply at least one month of previous processing statements from the last three months, their full batch sales total (less returns and third party amounts) will be deposited into their DDA. All discount, transaction, and monthly fees will be deducted at the end of the month from the merchant's DDA. Monthly Minimum A way to ensure the merchants pay a minimum amount in fees each month and or cover costs from the provider to maintain the account and to create minimal profits. If a merchant s qualified fees do not equal or exceed the monthly minimum, they will be charged up to the monthly minimum to satisfy their minimum fee requirements. In a three-tier or four-tier pricing structure, the qualified discount rate is used in calculating the monthly minimum. With NAB, a monthly minimum of $25.00 is required for free equipment. For example, if a merchant usually processes $10,000 in Visa/MasterCard volume and their qualified discount rate is 1.69%, the merchant would have paid $ in qualified discount rates. Because this is more than $25.00, the merchant would not be billed any portion of the monthly minimum. If however the merchant processes $1,000 in Visa/MasterCard volume and their qualified discount rate is 1.69%, the merchant would have paid $16.90 in qualified discount rates. This means that the merchant did not reach their $25.00 in monthly minimum and so would be assessed with an additional charge of $8.10 to get the merchant up to $25.00 in qualified discount rates. In an interchange plus pricing scenario, the basis points charged to the merchant are what count towards the monthly minimum.

11 NACHA NACHA develops operating rules and business practices for the Automated Clearing House (ACH) Network and for electronic payments in the areas of Internet commerce, electronic bill and invoice presentment and payment (EBPP, EIPP), e-checks, financial electronic data interchange (EDI), international payments and electronic benefits services (EBS). Additional Information: Network An entire system of communication hardware and software used to transfer electronic information during the authorization and settlement process. Non Face-to-Face Transaction Any transaction in which the card is not presented, such as a phone, mail or Internet purchase. See Card-Not-Present. Non-Qualified Discount Rate Discount rate and sometimes transaction fee charged in addition to the qualified discount rate for transactions that do not meet the qualified or mid-qualified requirements. Additionally, Visa/MasterCard/Discover business card transactions and key-entered foreign card transactions will always be charged the non-qualified rate. Non-Qualified Rate A card transaction that does not meet qualifications for authorization by the card-holder s bank qualifications such as receipt of a valid billing address or completion of batch settlement within three days. Offline Transaction A transaction that is authorized through a voice authorization and later keyed into a POS terminal prior to settlement. OK Number A validation number from the host computer confirming a successful batch deposit. Online Transaction A transaction that is authorized electronically from the front-end network. Payment Card Industry (PCI DDS) Created to ensure the security of payment card information. Failure to adhere to the standard (by any party that handles card information, including merchants and ISOs) can result in hefty fines. Adherence to the Payment Card Industry Data Security Offline Transaction Standard. PCI compliance is required by all card brands. Often shortened to PCI. A transaction that is authorized through a voice authorization and later keyed into a POS terminal prior to settlement. Payment Gateway An OK e-commerce Number application service provider service that authorizes payments for e-businesses, online retailers, bricks and clicks, or traditional brick and mortar. It is the equivalent of a physical point of sale terminal located in most retail A validation number from the host computer confirming a successful batch deposit. outlets; see also Gateway. Online Transaction A transaction that is authorized electronically from the front-end network.

12 PBX Access Code An access number that is dialed to reach an outside line. Personal Identification Number (PIN) A numeric code used as verification to complete a transaction via a payment card. The number is entered into a keypad and is encrypted to travel along with the authorization. Pick Up Card An issuer's electronic response to an authorization request, asking that the card be retained by the merchant and returned to the issuer. PIN Debit A debit card transaction authorized by a cardholder using a personal identification number to complete the transaction. Point-of-Purchase Conversion (POP) A one-time ACH debit from a consumer's bank account for in-person purchases made at the point-of-sale; upon receipt of a check and signed authorization. Point-of-Sale (POS) The location at which a payment card transaction occurs, usually by way of a device such as a credit card terminal or cash register. Point-of-Sale Terminal (POS Terminal) A terminal at the point of sale, connected via telecommunication lines to a central computer. Authorization, recording and transmission of electronic transactions are performed through the terminal. Posting The process of recording debits and credits to an account. Presentment Currency The currency in which a purchase is authorized through Visa, MasterCard or American Express. Private Label Card A card issued by a merchant that can only be used in the issuing merchant's business. An example would be a department store credit card. Processing Fees The fees associated with the processing of credit card transactions. Processor A company responsible for processing interchange transactions - operated by an acquirer or acting on the acquirer's behalf.

13 Qualified Discount Rate The percentage of the merchant's volume that is charged to process their transactions. The qualified rate is the best rate a merchant can receive per their merchant agreement. For a retail merchant, this will be a swiped consumer credit or check card transaction. For a MOTO or Internet merchant, this will be a keyed consumer credit or check card transaction using AVS and including an invoice number. For both retail and MOTO/Internet merchants, the transaction must be batched out within 24 hours of the time of the transaction. Quick Service Restaurant No signature required for transactions under $25.00 for certain MCC/SICs. Re-authorization (re-auth, add auth) To request an additional amount to be authorized on an existing transaction. Used in the lodging industry when the original authorization is not sufficient to cover the charges. Recurring Transaction A transaction charged to a cardholder's account (with prior permission) on a periodic basis for recurring goods and services, i.e., health club memberships. Referral The message received from an issuing bank when an attempt for authorization requires a call to the Voice Authorization Center. Refund A refund occurs when the merchant rebates all, or a portion, of an original transaction amount to the cardholder. Refunds are made to the same card that was used for the original transaction. Similar to a Credit. Representment An attempt to reverse a chargeback initiated by a merchant or acquirer to the issuing bank that presented the chargeback, backed by supporting documentation. Reserve The money set aside from a merchant's credit card receipts to cover potential chargebacks or other disputes. Typically, the amount is returned after a specified period. Also known as a hold back. Retail Transaction A face-to-face transaction in which the cardholder presents a card to the merchant to pay for goods or services. Retrieval Request A request by the issuer to the acquirer for a copy of the original sales ticket. Reversal When an acquirer successfully represents a chargeback to the issuer, the chargeback is reversed and the funds are returned to the merchant.

14 Sales Transaction Fee The amount the financial institution charges a merchant for each sales transaction. Settlement The process in which a merchant transmits batches of transactions to the acquirer. In interchange, it is the process by which acquirers and issuers exchange financial data resulting from sales transactions, cash advances, merchandise credits, etc. Settlement Currency The currency in which a merchant receives funds after the completion of a foreign exchange conversion. Shopping Cart Gateway software that acts as an online store's catalog and ordering process. Typically, a shopping cart is the interface between a company's website and its deeper infrastructure, allowing consumers to select merchandise; review what they have selected make necessary modifications or additions; and purchase the merchandise. Signature Debit A Visa Debit or Debit MasterCard transaction authorized by a cardholder's signature; to the casual observer it looks just like a credit card transaction; See also Check Card and Off-line Debit. Skimming A method of stealing credit card information using a small, handheld electronic device that scans and stores card data from the magnetic strip. This process can be done manually by criminals who place a skimming device on top of a regular credit card reader (usually at gas stations or ATMs machines) and retrieve it later. Smart Card A payment card with a built-in microprocessor (chip) that stores information. Smart cards can be used for stored-value cards, credit cards, loyalty programs and security access. Soft Decline A declined authorization attempt that does not necessarily mean the card is bad (i.e., call referral, issuer unavailable or cardholder over limit). These transactions may be resubmitted a day or two later in an attempt to obtain a valid authorization. Split Dial The capability of a card terminal to dial different telephone numbers to obtain an authorization or settlement of different card types. Standard Industrial Code (SIC) A universal four-digit code that designates a merchant's industry type. Similar to an MCC code. Submission A file sent by the merchant that contains one or more transactions.

15 Summary Adjustment A correction to a deposit, made by the acquirer, when there is an error in the submitted deposit. T&E Cards Cards that are developed for and used primarily in travel-related services. T&E Merchant An airline, car rental company or lodging establishment with a primary function of providing travel-related services. Tear Sheet A tear sheet is used to assist with setting up a merchant s gateway. Information from this is input into the gateway account syncing to your merchant account. Tear sheets will vary depending on the platform, but generally contain the name of platform along with various identifying factors. Terminated Merchant File (TMF) A list when consumers do not honor the terms of their credit agreements, the creditor may report the default to a credit reporting agency. Also known as MATCH. Terminal Capture System (TCS) The process in which transactions are stored in the terminal until the batch is settled to the host. Most often used in restaurant applications where tip adjustments need to be made. Terminal Identification Number (TID) Number identifying a merchant to the front-end network. Third Party Processor A company that lets a company process another merchants payments via their merchant account and then transfer the money to their bank account. Tiered Pricing Pricing structure that has set amounts for the different qualification levels. Track One Track One information, stored on the magnetic stripe on the back of a card, has the cardholder's name in addition to the account number and expiration date stored in it. Track Two Track Two information, stored on the magnetic stripe on the back of a card, has the account number and expiration date. Transaction Any action between a cardholder and a merchant or member that results in activity on the account, such as a purchase, cash advance or credit.

16 Transaction Date The actual date on which a transaction occurs. Transaction Fee The amount a merchant pays per transaction for processing. Valid Date The date embossed on a payment card stating when the card may first be used. Value Added Reseller (VAR) A third-party that certifies their software to be used on a processor's system. Voice Authorization Transactions authorized by a voice operator. Voice-approved transactions must be "forced" into a terminal batch for settlement. Zero Floor Limit Requires that all transactions receive authorization.