TERM DEFINITION Access Number Account Number Acquirer Acquiring Bank Acquiring Processor Address Verification Service (AVS) Association Authorization Authorization Center Authorization Fee Automated Clearing House (ACH) Authorization Process Average Ticket Size Bank Identification Number (BIN) Batch Batch Header Fee Batch Processing An access number, dialed by a modem, that lets a computer communicate with an Internet Service Provider (ISP) or some other service provider. A number assigned to an account that identifies the issuer and type of financial transaction card. A financial institution which receives electronic data from a merchant relating to a transaction and initiates that data into an interchange system The financial institution that settles card transactions for a merchant. The processor provides credit card processing, billing, reporting and settlement and operational services to acquiring and issuing banks. The process by which a merchant verifies the address of a cardholder as part of the authorization. Any entity formed to administer and promote cards (including without limitation VISA and MasterCard). Approval by, or on behalf of, the issuing bank to validate a transaction for a merchant or another affiliate bank. An authorization indicates only the availability of the cardholder's credit limit at the time the authorization is requested and is not a guarantee that a transaction is valid. A department or service provider to be contacted by merchant to obtain authorization codes on card transactions from the issuing bank and which transmits such authorization to merchant via electronic equipment or by voice authorization. This is the amount of money the merchant is charged each time they issue an authorization for a transaction. A processing organization networked with others to exchange electronic transactions. The process whereby a transaction is approved by an issuing bank, authorized agent, or Visa/MasterCard/Discover/American Express on behalf of that issuer, before the transaction is completed by the merchant via telephone or terminal. A merchant's total processing volume divided by the number of card transactions. The digits of a credit card that identify the issuing bank. It is sometimes the first six digits and is often referred to as a BIN. A day's worth of transactions, including sales records and credit records, to be processed by the card processor. This is the amount of money the merchant is charged each time they batch transactions. This occurs when a merchant transmits the "batch" of daily sales stored in the terminal for processing. An "open" batch is
one that is not yet "closed." To "close" a batch is to transmit the information from the merchant's location (terminal or software) to the processor. Blue Pay Capture Card Card Association Card Verification Value - Visa (CVV 2) Card Validation Code - MasterCard (CVC 2) Cardholder Cash Reserve Account Days Cash Reserve Amount Percentage Chargeback Chargeback Ratio Credit Card Terminal Credit Record Credit Report Demand Deposit Account (DDA) Digital Certificate A payment gateway provider. Converting the authorization amount into a billable transaction record within a batch. A valid credit card or valid off-line debit card bearing the service mark of VISA, MasterCard, Discover or American Express. MasterCard International, Visa U.S.A., Visa International and any other association and/or network. A three-digit value printed in the signature panel on the back of a Visa card. This value is a security feature designed to crosscheck the information embossed on the card. A three-digit value printed in the signature panel on the back of a MasterCard card. This value is a security feature designed to crosscheck the information embossed on the card. The individual whose name is embossed on a valid card and any authorized user of such card. The number of days that funds will be set-aside in the reserve account. The percentage of settled transactions set aside in the merchant reserve account. The procedure by which a sales record or other indicia of a card transaction (or disputed portion thereof) is denied or returned to bank or the issuing bank after it was entered into the appropriate settlement network for payment, in accordance with the rules, for failing to comply with the rules including, without limitation from cardholder disputes, the liability of which is merchant's responsibility. The amount of sale transactions divided by the amount of chargebacks received in any given month. This is calculated using either the item count of both or the dollar amount of both. A hardware device equipped with a magnetic strip reading device utilized for processing of card transactions, typically used in a retail (face-to-face) environment. All documents or the electronic record of such documents used to evidence any refund or price adjustment given by merchant to a cardholder for a previous sale transaction, which must conform to the rules. The format for each credit record must be approved by bank or supplied by processor. A report detailing an individual's credit history. A checking account, which must be linked to a merchant processing account to deposit funds to and debit funds from as needed. An authentication that confirms a website is registered to the
correct individual(s) through a thorough validation process. Discount Fee Discount Rate Doing Business As (DBA) e-commerce Electronic Check Conversion (ECC) Electronic Commerce Transaction Electronic Ticket Capture (ETC) Face-To-Face Federal Tax ID Number Frequently Asked Questions (FAQ) Hardware Device Host Hotel Business Hyperlink Hypertext Hypertext Mark-up Language (HTML) The amount charged to merchant for processing its daily credit card transactions, which is computed as a percentage of the amount of merchant's sales records and credit records. The percentage of the total transaction amount, debit card and credit card, that is deducted from the amount deposited to the merchant account. The DBA is the name the public sees, whether on a physical storefront or on the web. This is a generic term denoting business done over the web and/or processed electronically. ECC allows you to process checks just like credit cards. Insert the check in your check reader, and give the check back to the customer. The funds will be transferred into your account, just like credit cards. In addition, since an ECC transaction cannot "bounce", there is no risk of any bounced check fees. A transaction conducted over the Internet or other networks where a cardholder enters card data and transmits the data. This includes email, electronic order forms, and interactive websites. Electronic Ticket Capture code that identifies the method that a merchant settles transactions. A face-to-face transaction is defined as a transaction with the customer present. This is commonly referred to as a "swiped transaction". This 9-digit number is assigned by the IRS for tracking business taxes. Lists of questions and corresponding answers that are unique to certain subject matter. A device used to perform credit card transactions and is commonly referred to as a credit card terminal. This is the computer on which a web site is physically located. Merchants selling lodging and hospitality services in a face-toface environment, who normally use conventional terminals and key or swipe their transactions. The most common form of link is the highlighted or underlined word or picture that can be selected by the user with a mouse, resulting in the opening of a file or web page. A document that contains highlighted areas which when selected automatically transfer the client to a different location within the original document, or another document, image, movie or other resource. Hypertext Mark-up Language, commonly referred to as HTML is a behind-the-scenes method of formatting text that is used in most web pages.
Hypertext Transfer Protocol (http) Hypertext Transfer Protocol, Secure Connection (https) Imprinter Hypertext Transfer Protocol tells computers how to communicate with one another. This allows for secure communication between computers. See Secure Socket Layer (SSL) A device used to produce an image of the raised (embossed) characters on a credit card, on a transaction slip. All merchants should have a manual imprinter for cases that demand a physical imprint. These devices are sometimes referred to as a "knuckle buster". Independent Sales Organization (ISO) This acronym refers collectively to registered sales organizations with Visa. Inquiry Fee IntegRated Point of Sale (IPOS) Interchange Interchange Fee Internet Internet Business Internet Merchant Internet Payment Gateway Internet Service Provider (ISP) Issuer Issuing Bank Java A fee imposed for all card types (MasterCard, Visa, American Express, etc.) each time an authorization is requested and/or a batch is closed. This acronym refers to conventional terminals that may be setup to communicate with like terminals owned by the same merchant. In some cases, these terminals are located at different locations and with different merchant numbers. The exchange of information, transaction data and money among banks. Interchange systems are managed by Visa and MasterCard associations and are very standardized so banks and merchants worldwide can use them. The fee which is paid daily by bank to VISA, MasterCard or other association for entering sales records and credit records into their respective settlement networks. This is a large computer network that links smaller computer networks on a world-wide basis. An internet business is one which processes transactions via the internet. Processing transactions via the internet means that the cardholder types their credit card information online and the transaction is processed seconds later. An internet merchant is one which processes transactions via the Internet. A standard Internet connection for merchants and merchant aggregators (businesses that provide hosting and other e- commerce processing services for multiple merchants) to securely and reliably send and receive payment transaction messages. A company that provides access to the Internet. The bank that extends credit to customers through bankcard accounts. The cardholder's bank, or the bank which has issued a card to an individual. Programming language developed by Sun Microsystems that creates code for interactive applications that is executable on web pages by web browsers.
Keyed Merchants Link Mail Order/Telephone Order (MOTO) Business Member Alert To Control High-Risk Merchants (MATCH) Merchant Merchant Category Code (MCC) A merchant whose transactions are keyed more than 50% of the time. On the internet and intranets, links may be either text or graphic/icons. Links enable transition from one Internet site to another or internally within a web site by clicking on the "link" with your mouse. Merchants selling tangible goods or services in a non-face-toface mail order, Internet or telephone order environment, who normally use software or conventional terminals and always key their transactions. MATCH is an electronic bulletin board used to track people and businesses whose merchant processing accounts are reported "terminated" by acquiring banks Person or entity named in a merchant agreement. Merchant classification code that identifies the merchant by type of processing, authorization and settlement. Sometimes referred to as "SIC code". Merchant Identification Number (MID) A unique number that is assigned by the acquiring bank to identify a merchant. Modem Monthly Minimum Monthly Sales Volume (MSV) Online Payment Gateway Personal Identification Number (PIN) Pinpads Point of Sale (POS) Processor An electronic device the converts computer signals into an analog signals in order to transmit data over a telephone line. Charge levied by the merchant bank instead of the monthly credit card volume multiplied by the discount Rate if the merchant's monthly credit card volume multiplied by the discount Rate is less than the monthly minimum. The gross dollar amount of card sales, before return, refund, or exchange that are generated by merchant and processed by processor during a calendar month pursuant to a merchant agreement. This word is used to indicate having a presence on the Internet or with having access to the Internet. The transaction processing vehicle that receives encrypted transactions from the merchant server, authenticates the merchant, decrypts the payment information, and transmits the data to the authorization and settlement networks. A number or code used by an account holder in conjunction with a credit or debit card to verify the user's identity to an automated teller machine. A small device which a cardholder enters numeric information for authentication purposes. 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. An entity engaged in the business of processing and transmitting electronic data of a financial, banking or economic
nature, including but not limited to card transactions. Products Qualified Discount Rate Real-time Recurring Transaction Refund Policy Reserve Account Restaurant Business Retail Business Retrieval Request Reversal Routing Number Sales Record Search Engine Secure Electronic Transaction (SET) Secured Sockets Layer (SSL) Settlement Goods and/or services sold, rented or rendered by merchant. A Qualified Discount Rate is the Rate a merchant is charged when all conditions are optimum. Refers to the rapid retrieval, processing and transmission of data A transaction whereby Merchant charges a cardholder's card periodically for recurring goods or services (e.g., monthly insurance premiums, yearly subscriptions, annual membership fees, etc.) which are to be delivered or performed periodically. A policy that defines how Refunds are handled by the merchant or provider. An account established at and managed by a bank for the deposit of funds received from a merchant pursuant to a merchant agreement as collateral to protect the bank against actual or contingent liability or losses (i.e. reserves) that might be incurred by bank should the merchant be unable or fail to pay chargebacks, adjustments, fees and other charges and obligations due to the bank. Merchants selling prepared foods in a face-to-face environment, who normally use conventional terminals and swipe their transactions. Merchants selling goods in a face-to-face environment who normally use conventional terminals and swipe transactions. A request from the cardholder's bank to supply a copy of the sales draft usually for research of a dispute. A transaction from the acquirer to the card issuer informing the card issuer that the previously initiated transaction cannot be processed as instructed, i.e., is undeliverable, unprocessed or cancelled by the receiver. A 9-digit number that identifies an individual bank. All documents or the electronic record of such documents used to evidence the sale of products through the use of cards. The format for each sales record must be approved by bank or supplied by processor. A software program that searches a database and gathers and reports information that contains or is related to specified terms. A future industry standard that will authenticate customers and merchants to ensure the safety and confidentiality of data processed over the Internet. SSL is used to encrypt and protect data on an order from an online merchants web site. Settlement is what occurs when the acquiring bank and the issuer exchange data or funds.
Shopping Cart Statement Fee Swiped Merchants Terminal Identification Number (TID) Terminated Merchant File (TMF) Test Transaction Ticket Trade Reference Transaction Transaction Fee Transit Routing Number / ABA # Transmittal Travel and Entertainment (T&E) Upload Uniform Resource Locator (URL) World Wide Web (www) A method of collecting the items chosen by a consumer for purchase from an on-line catalog. Charge levied by the merchant bank for monthly reports detailing activity on a merchant account. A merchant whose transactions are swiped more than 50% of the time. An identification number is used to identify a specific serialnumbered piece of equipment. Merchants with excessive charge backs can lose the ability to accept credit cards. The merchant is listed on the TMF match list that all merchant service providers have access to, and will have difficulty entering into another merchant account contract until the previous activity is resolved. A test transaction is a means for the merchant to test a terminal that has been freshly down-loaded or changed in some way. Another name for the sales slip or its monetary value that results when a debit card or a credit card purchase is made. A trade reference is a business that extends credit or otherwise has a business relationship with the applicant. The initiation of a sale inquiry, or a consummation of a sale/rental of products or of a credit to a cardholder by merchant by means of a sales record or credit record, respectively, as well as a batch closing to processor. The cost charged to Merchant on a per transaction basis. A nine-digit identification number assigned to a financial institution necessary to Authenticate Automated Clearinghouse (ACH) transmissions regarding a merchant account. The process whereby sales records and credit records are electronically transferred in the form of electronic records. This phrase refers to American Express (Amex) and Diners Club cards where a cardholder normally pays off the card each month. This is the process of transferring data from one computer to another via the internet. This term, as well as domain name, describes the location and access method of a resource on the Internet An information system using the Internet to access information stored on computers worldwide. *The Industry Terms contained herein are for informational and reference purposes only. While every effort has been made to provide accurate and helpful information, nothing here should be interpreted as legally binding. Many terms have multiple meanings. We have endeavored to provide the definition that is generally used in our industry.