Definition of Terms

A

ABA Routing Number - a unique bank identifying number that directs electronic ACH deposits to the proper bank. This number precedes the account number printed at the bottom of the check.

Account Number - A unique number assigned by a financial institution to a cardholder account which identifies that issuer and type of financial transaction card. This number is embossed and encoded on the plastic card.

ACH – see Automatic Check Handling (also known as Automated Clearing House)

Acquirer or aquiring bank - Financial institution which provides the facilities and services for a business to accept credit cards as a means of customer payment .

Additional cardholder - When you have a credit card it is possible to add an additional card to the account for use by someone else. The main cardholder has responsibility for ensuring payments on the additional card are made. Purchases are shown on the credit card statement sent monthly.

Address Verification System - A method of reducing fraud in mail order, telephone order, and Internet transactions by using cardholder billing address information in the authorization request. (Checks to see that the billing address given by the customer matches the credit card.) If you opt not to use AVS, VISA and MasterCard will not support your transactions and will charge you an additional 1.25% on those sales. Most merchant accounts come with AVS at no extra charge.

Affinity Card - Affinity cards are credit cards that are linked to organizations like charities, political parties and sports clubs. They are a good way of raising money as the organization receives a donation from the card issuer for every card taken out, and a small percentage based on the amount of money you spend on the card each month.

American Express - Also known as AMEX, is one of the main international credit card issuing schemes. It issues it's own credit cards - unlike Visa and MasterCard and is responsible for it's own relationships with retailers. all card numbers begin with "37"

Annual Fee - Some issuers charge for the management of your credit card account. They sometimes provide access to a number of additional benefits as part of the charge. Expressed as % P.A.

Approval Code - a code issued by a card issuing bank allowing a sale to be charged against a cardholder's account.

ATM - see Automated Teller Machine

Audit Trail - For recording purposes, messages created as a by-product of data processing runs or mechanized operations.

Authentication - The process of verifying that the user of a credit card in a particular transaction is entitled to conduct payment transactions. Eg. Signature, Verified by Visa or MasterCard SecureCode PIN or password.

Authorization - This is the process where permission is granted by the financial institution that issued the card to allow the payment transaction to proceed. It is during this process that the issuing bank checks that the available credit on the card is not exceeded. The cardholder's available credit limit is reduced by the authorized amount.

Authorization Code - A code that an issuer or its authorizing processor provides to indicate approval or denial for an authorizationauthorization request.

Authorization Only - A transaction created to reserve a specific amount against a cardholder's available credit balance. After the authorization is made, the merchant is responsible for capturing the sale if payment is desired. Also termed Auth Only.

Automated Teller Machine - allow you to access cash with a credit card or other card associated with your bank account. You need to enter your personal identification number (PIN) into the machine to access cash.

Automatic Check Handling (ACH) - (Also Automatic Clearinghouse) ACH is a form of epayment or electronic payment. There are two ways payments can be transferred: (1) by wire transfer, or (2) through an automated clearinghouse. Wire transfer is an e-payment system that is designed to handle high-dollar, time-crucial payments, usually between large banks. ACH is designed to be an e-check or electronic check. Unlike the wire transfer, it is usually used to process higher volumes or small-dollar payments for settlement issues within 1 to 2 business days. All ACH transactions are settled pretty much the same way checks are. The clearinghouse takes all of the ACH files received daily from member banks, it then divides them by the originating bank (where the check was either cashed or deposited) and the paying bank (the bank where the check was drawn), then it totals the accounts, and credits or deducts the accounts accordingly. (Federal Reserve Automatic Clearing House System – merchant has to maintain an account at a bank that is a member – allows auto debit or credit of merchant account through Woodforest and FDR)

Average Ticket - the average dollar amount of merchant credit transactions for a given time period.

AVS - See Address Verification Service

B

Back-end Processor - The entity that receives authorized/captured transactions for processing through interchange to the cardholder's banks for the billing out of transactions on cardholder's statement.

Bad Credit - A term used to describe a poor credit rating. Common practices that can damage a credit rating include making late payments, skipping payments, exceeding card limits or declaring bankruptcy. "Bad Credit" can result in being denied future credit.

Balance Transfer - The process of moving an unpaid credit card debt from one issuer to another.

Bank Account - Bank account number for the merchant to which funds will be deposited.

Bank Identification Number - The 6 digits on the credit card assigned by the Federal Bureau of Standards that identify the card issuing institution.

Bankcard - A payment card issued by a bank and accepted by merchants. The credit card is the most common form of a bank card.

Basis Point - Discount rates are expressed as basis points. For instance, 1 basis point is expressed as .0001 or .01%

Batch - Is a collection of credit card transactions that are saved for submitting at the end of the business day.

Batch Close - The process of sending a batch to the financial institution for settlement.

BIN - See Bank Identification Number (VISA)

Buckets – qualified, mid-qualified, non-qualified

Business Card (Business Credit Card) - Usually issued to corporate executives or business owners in order to keep business expenses separate from personal charges more easily.

C

Capture - A procedure performed on a previously authorized transaction after a merchant has shipped goods or services to the customer. This transaction triggers the movement of funds from the issuer to the acquirer and then to the merchant's account.

Card Issuer - Any association member financial institution, bank, credit union, or company that issues, or causes to be issued, plastic cards to cardholders.

Card Not Present - Any credit card transaction, where the merchant cannot view the customer's credit card in order to assist validating the cardholder's identity.

Card Reader - A device capable of reading the encoding on plastic cards. See Magnetic Stripe Reader.

Card Verification Code (CVC2) - Numeric security code that is printed on the back of MasterCard credit cards. Requiring this number on order checkouts can reduce credit card fraud and chargeback instances significantly when used in addition to AVS protection.

Card Verification Value (CVV2) - Three-digit security number that is printed on the back of most Visa credit cards. Requiring this number on order checkouts can reduce credit card fraud and chargeback instances significantly when used in addition to AVS protection.

Cardholder - An individual to whom a card is issued, or who is authorized to use an issued card, to initiate a payment card transaction.

Cash Back - Cash back returns to you a percentage of the total amount spent on your credit card over a specific period of time, usually monthly or quarterly. This is particularly useful if you normally pay your credit card bills in full each month, as it means you get an effective discount on the products bought with your credit card.

CB - see Chargeback

CBR - Credit Bureau Report

CH - Cardholde

Chargeback - The act of taking back funds that have been paid to a merchant for a disputed or improper credit card transaction.

Chargeback Period - The number of days from the transaction processing date during which the issuer may initiate a chargeback, typically a six month period.

Check Authorization/Verification - The confirmation that the check presentor has not been linked to excessive returns of previously written checks.

Check Guarantee - A service that guarantees payment on each check presented. The guarantee service collects any returned items and the merchant typically follows a stringent set of procedures.

Co-Branded Card - A co-branded credit card is sponsored by both the issuing bank and a retail organisation such as a department store or an airline. Cardholders may get benefits such as discounts or free merchandise from the sponsoring merchant based on account usage and terms.

Commercial Cards - A general name for cards typically issued for business use and may include Corporate Cards, Purchase Cards, Business Cards, Travel and Entertainment Cards.

Compliance - A process where Visa or MasterCard resolves disputes between members arising from violations of the operating regulations and verification by the member that a financial loss has occurred.

CPS - see Custom Payment Service

Credit - Transaction done on a sale processed in a prior batch and is used to issue credit to the cardholder on the return of purchased goods or services. This transation will go through interchange to the cardholder's bank. Discounting is not charged when a credit is issued, but is charged on the sale that was previously processed.

Credit card - This is a type of bank card that can be widely used all around the world as a form of payment. The credit card holder must then reimburse the credit card company for the amount of the total sales the holder had charged on that particular credit card.

Credit Card Number - Unique number assigned to credit card.

Credit Card Processor - A company that performs authorization and settlement of credit card payments, usually handling several types of credit and payment cards (such as Visa, MasterCard, and American Express). If merchants wish to sell their products to cardholders, they retain the services of one or more processors who handle the credit cards that the merchant wishes to accept. When a merchant retains the services of a credit card processor, it is issued a merchant ID.

Credit History - A partial profile of your financial life given within a particular time frame (usually measured in years). It shows the extent to which you pay your bills on time and how much you may owe particular parties. Credit card issuers use this information to decide whether to provide customers with credit cards.

Credit Limit - The maximum amount of credit a cardholder has available to spend on their credit card.

Custom Payment Service (CPS) - Visa's regulations for the information that must be submitted with each transaction. Transactions must meet CPS criteria in order to qualify for lowest transaction processing fees available. Similar to MasterCard's Merit system.

Customer Code - A 17 character alphanumeric field that is used with Purchase Card transactions. The code is typically defined by the customer (cardholder) and used for accounting or project tracking purposes.

CVC - Card Verification Code

CVV - Card Validation Value

D

D & B Duns Number - Dun & Bradstreet Data Universal Numbering System. A unique 9 digit code that identifies and links more than 57 million companies worldwide.

DDA - see Demand Deposit Account

Debit - A charge to a customer's bankcard account. A transaction, such as a check, automated teller machine (ATM) withdrawal, or point-of-sale (POS) debit purchase that debits a demand deposit account.

Debit Access Fee - the amount the merchant pays per month to have access to all debit networks that the bank belongs to.

Debit Card - An ATM Bankcard requiring a PIN Code which is used to purchase goods and services and to obtain cash. The transaction will debit the cardholders personal deposit account.

Decline - Response to a transaction request meaning that the issuing bank will not authorize the transaction.

Demand Deposit Account - A standard checking account held by the merchant into which funds are deposited as a result of processed credit transactions

Deposit - Process of transmitting a batch of transactions from the merchant to the acquiring institution in preparation for settlement. Also known as release.

Digital Certificate - Online identification that authenticates a consumer, merchant and a financial institution. Digital certificates are used to encrypt information exchanged in secure electronic transactions.

Digital Receipt Infrastructure - (DRI) Utilizing this infrastructure enables consumers and organizations to prove that electronic transactions and events actually took place. In legal terms, these serve as a digital trail, as opposed to a paper trail.

Digital Signatures - An electronic signature, which cannot be forged. Instead it is generated from a computed digest of the text that is encrypted and sent with the text message. The recipient decrypts the signature and retrieves the digest from the received text. If the digests match, the message is authenticated and proved to be from the sender.

Discount Fee - Fee paid by the merchant to the merchant bank or other contracted party for processing the merchant's credit card sales (transactions). These fees are set by the Acquirer and are based on the interchange the Acquirer pays as well as merchant profitability.

Discount rate - A percentage calculated on the amount charged to the merchant by the acquiring bank for processing a transaction.

Discover - all card numbers begin with "6"

E

EBT - see Electronic Benefits Transfer

E-commerce - The processing of buying and selling via the Internet.

EDC - see Electronic Data Capture

EDI - see Electronic Data Interchange

EFT - see Electronic Funds Transfer

Electronic authorization - Obtaining authorization for use of a credit card by electronic means, as via computer equipment and telephone line.

Electronic Benefits Transfer - cards holding balance of government benefit funds

Electronic Data Capture - To use a Point Of Sale (POS) terminal for submitting credit card transaction information to a merchant account provider. The point-of-sale terminal reads the information encoded in the magnetic stripe of bankcards then electronically authorize and capture transaction data, eliminating the need for a paper deposit.

Electronic Data Interchange - The electronic communication of business transactions, such as orders, confirmations and invoices.

Electronic Funds Transfer - The transfer of money initiated through an electronic terminal, automated teller machine, computer, telephone, or magnetic tape. EFT also applies to credit card and automated bill payments.

eMerchantView - service offered by MCCS whereby merchants can track their account online including 6 months of monetary and adjustment history, 6 months of chargeback history, 6 months of retrievals history (documentation requests), 3 months of merchant statements, cardholder inquiries, keyed or swiped transactions

Encryption - Encryption is the process of disguising a message (using mathematical formulas called algorithms) in such a way as to hide its substance, a process of creating secret writing. Used as a data security technique for credit cards where their machine-readable data is scrambled and must be decoded before it can be processed.

eProcessingNetwork - Internet credit card and check processor (www.eprocessingnetwork.com)

ESO - EZ Check Sales Office

Expired Card - A card on which the embossed, encoded, or printed expiration date has passed.

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FDR - see First Data Resources

Federal Reserve System - A system of 12 regional bnaks that regulate bank-holding companies and subsidiary commercial banks, provide payment services that through open market operations, control the nation's money supply.

First Data Resources - This is the company that settles or clears the transactions between the merchant and the cardholder

Fleet Card - A corporate credit card used only for the purchase of fuel and vehicle maintenance services.

Floor Limit - An amount that Visa and MasterCard have established for single transactions at specific types of merchant outlets and branches, above which authorization is required.

Force Transaction - A sale transaction for which a merchant received a voice authorization or authorization only. A force is done so that the previously authorized transaction can be settled and the merchant can receive funds. (also known as post auth or prior sale)

Fraudulent Transaction - A transaction unauthorized by the cardholder of a bankcard. Such transactions are categorized as lost, stolen, not received, issued on a fraudulent application, counterfeit, fraudulent processing of transactions, account takeover, or other fraudulent conditions as defined by the card company or the member company.

Fraudulent User - An individual who is not the cardholder or designee and who uses a card (or cardnumber in a mail/phone order or recurring transaction) to obtain goods or services without the cardholder's consent.

Front-end Processor - A company/vendor that provides communication and data processing services for authorization of card payments and the transfer of data between merchants' point of sale equipment to the back-end clearing and settlement processor.

H

Holdback - Also referred to as a reserve. This is a fee held back from a merchant's credit card transactions to cover any possible charge backs, and other disputed charges that a merchant may encounter. Usually, after a time, the hold backs are returned to the merchant.

I

ICA - see Interbank Card Association

Imprint - Can be electronic (by swiping the card through a card reader) or manual (by obtaining a physical imprint using an imprinter) one of the two is always required to prove the card was present at the time of the transaction.

Independent Sales Organization (ISO) - This is an organization licensed by VISA that processes merchant's credit card transactions in exchange for a percentage of the sales or transaction fees. A term for a company that is sponsored by an acquiring bank to solicit and sometimes support merchants.

Interbank Card Association - Unique four digit identification number assigned by MasterCard to identify its members.

Interchange - The exchange of information, transaction data and money among banks. Interchange systems are managed by Visa and MasterCard associations according to their requirements and are very standardized so banks and merchants worldwide can use them.

Interchange Fee - A fee paid by the acquiring bank/merchant bank to the issuing bank. The fee compensates the issuer for the time after settlement with the acquiring bank/merchant bank and before it recoups the settlement value from the cardholder

Internet commerce - A term that covers all commercial transaction activity on the Internet.

Introductory Rate - Various credit cards offer a low introductory rate that switches to a higher variable or fixed rate in order to attract customers. It could be described as a special offer, or discount. Make sure that you know how long the introductory rate is applicable and what APR the card will carry after the introductory period elapses. Be aware that the introductory rate for some cards may be very different to the actual standard rate.

ISO - see Independent Sales Organization

Issuer - This is the bank that maintains a consumer's credit card account and will pay out to a merchant's account when the consumer makes a credit card purchase. At the end of the month the issuing bank will bill the customer for the debt.

J

JCB - Japanese Credit Bureau - a credit card mostly used by Japanese consumers in the U.S.

L

Local Review - The ability for a merchant to review, from their terminal the contents of a batch either before or after settlement (also referred to as a bacth report)

M

Magnetic Stripe - A stripe of magnetic information affixed to the back of a plastic credit or debit card. It contains customer and account information required to complete electronic financial transactions.

Mail Order / Telephone Order - A transaction where a cardholder orders goods or services from a merchant by telephone, mail or other means of telecommunication, and neither the card nor the cardholder is present at the merchant outlet. Defined as a merchant that keys in more than 50% of their transactions without getting manual imprints.

Manual Entry - Credit card information that is entered via terminal keypad or keyboard instead of swiping the card through a card reader.

Marketing Unit Director - an independent member of the MCCS sales team

Mastercard - MasterCard International Inc., and all of its subsidiaries and affiliates. All Mastercard numbers begin with "5"

MATCH - Member Alert to Control High Risk - see TMF

MCC - Merchant Category Code - see SIC Code

Member Service Providers - This is an organization licensed by MasterCard that processes merchants online credit card transactions in exchange for a percentage of the sales or transaction fees.

Merchant - An entity that contracts with merchant banks or ISO's to originate transactions.

Merchant Account - An account that is established by a merchant to receive payment via credit cards.

Merchant Agreement - A written agreement between a merchant and a bank containing their respective rights, duties, and warranties with respect to acceptance of the bankcard and matters related to the bankcard activity.

Merchant Bank - Bank that has an agreement with a merchant to accept (acquire) deposits generated by bankcard transactions.

Merchant Category Code - A code assigned by an acquirer to a merchant to identify the merchants principle trade, profession or line of business. This four digit code is also known as the Sic Code.

Merchant Club – an MCCS service - an owned or leased equipment maintenance program costing $4.95/mo that automatically replaces faulty equipment within 24 hours (terminal, printer, pinpad or any combination thereof) if it cannot be repaid – does not include wireless and some specific terminals (Linkpoint 2000, Nurit 2060, Zon Jr. XL)

Merchant Identification Number - A group of digits provided by a merchant bank to uniquely identify the merchant in an e-commerce transaction. Also called the Merchant ID or Merchant Number

Merchant Service Provider (MSP) - This is a bank or other firm that provides processing for credit card transactions. Most MSP's provide merchant accounts.

Merit - MasterCard's requirements for obtaining favorable interchange rates. Similar to CPS requirements by Visa.

MICR - Magnetic Ink Character Recognition (checks swiped for verification of funds)

MID - see Merchant Identification Number

Mid-Qualified Rate - This reflects the amount of activity that was hand keyed into the terminal or voice authorized or not processed by closing the terminal within 24 hours. This activity is assessed a higher discount rate (an additional 1%)

Monthly minimum - This is the amount of fees you must meet each and every month, usually $25. If the month's sales do not make the monthly minimum the merchant account holder must make up the difference.

MOTO - see Mail Order/Telephone Order

MSP - see Member Service Providers

MUD - see Marketing Unit Director

Multiple Transaction Processing (Multi-Trans) - Electronic communications process where multiple authorization requests and responses are exchanged during a single phone connection with the third-party transaction processor.

N

NACHA - National Automated Clearing House Association - a national organization that establishes the standards, rules, and procedures for electronic payments.

NAICS Code - North American Industry Classification System. Common industry definitions for Canada, Mexico and the United States. This system is replacing the SIC Code system.

Non-Qualified Rate - Charged on anything not qualified or mid-qualified as well as on business cards and manually keyed foreign cards. This activity is assessed the maximum discount rate

Northern Leasing Systems, Inc - terminal equipment leasor for MCCS

O

One Stopp - an MCCS service available to merchants for $50 that verifies lease paperwork, ships required equipment, provides telephone support to install equipment, and provides customer support after the sale

Oracle - Database used for in-house system at MCCS

Order Number - A 17 character alphanumeric field that may be used between the Cardholder and the Merchant for accounting or tracking purposes.

Original Draft - The original copy of the forms and signature used in the transaction - also referred to as the "Hard Copy"

Overlimit - This refers to a cardholder's account that has surpassed its credit limit with a transaction. (Their outstanding balance is beyond their credit limit.)

P

Partial Download - This process is when the credit card terminal dials into our bank to be partially reprogrammed, normally for updated information generally this term is used whenever verifone equipment is programmed.

Payment Service Provider - A company that specializes in the provision of payment services for merchant on the Internet. The PSP will handle the capture, authorization and settlement of Credit and debit card payments and all the electronic and physical security required. They will often provide additional services such as fraud detection and prevention.

Per Transaction Fees - Fees paid by the merchant to the merchant bank or other contracted party on a per transaction basis.

Personal Identification Number - A sequence of digits used to verify the identity of the holder of a bank card. It is a kind of password.

PIN - see Personal Identification Number

Pin Pad - This devise is used in conjunction with a terminal when processing debit sales to insure authorized usage. The pin pad will ask for the customers secret 4 digit # during the sale (Pin #)

PIP - Refers to Plural Interface Processing. Capabiltiy that allows the processing of American Express directly through the AMEX Network, thereby eliminating AMEX authorization fees.

Plastic (Card) - This is a generic term used to identify any of the various cards issued to cardholders.

Point Of Sale - Location in a merchant establishment at which the sale is conducted by payment for goods or services received.

Point Of Sale terminal - Electronic device used by retail businesses to process credit card transactions. If the customer is present, they swipe or slide their credit card through the machine.

POS - see Point of Sale

Posting - The process of updating individual cardholder account balances to reflect merchandise sales, instant cash, cash advances, adjustments, payments, and any other charges or credits.

Presentment - A clearing record that an acquirer presents to an issuer through interchange, either initially (a first presentment) or after a chargeback (a re-presentment).

Primary Account Number (PAN) - The number that is embossed, encoded, or both, on a plastic card that identifies the issuer and the particular cardholder account.

Prin – Principle Bank Identifier - a set of numbers identifying the issuing bank within the Merchant ID

Prior authorization - An authorization usually done before a transaction takes place. The approved authorization request may be held for an extended length of time before a card is present or not.

Prior Authorized Sale - A transaction for which authorization was obtained at an earlier time (I.E. A merchant had to call for voice authorization, merchant authorized card before services rendered, Hotel reservation, auto rental, etc.)

Processing bank - The bank that processes the transaction once a credit card number is entered.

Processor - This is the company that processes the merchants batch and submits them to FDR for settlement.

Proprietary Equipment - This type of equipment was specifically manufactured for a particular processor - it operates off of different software and can't be loaded until a conversion has been done.

PSP - see Payment Service Provider

Q

Qualification - A level at which a transaction interchanges level of qualification is dependent on how the credit card number is entered, how quickly a transaction is settled, and type of industry, etc.

Qualified Retail Discount Rate - charged on all swiped bankcard transactions that are electronically authorized and closed in a daily batch

Quick Stopp - an MCCS service available to merchants for $25 that provides telephone support to install equipment and provides customer support after the sale since the merchant already has an existing terminal

R

Receipt - A hard copy document recording a transaction that took place at the point of sale, with a description that usually includes: date, merchant name/location, truncated primary account number, amount, and reference number.

Recurring Billing - Transactions for which a cardholder grants permission to the Merchant to periodically charge his account number for recurring goods or services.

Recurring Transaction - A transaction for which permission has been granted by a cardholder to a merchant that is periodically charged to a cardholders account.

Refund - Create a credit to a cardholder account, usually as a result of a product return or to correct an error.

Request Auth - Submits a transaction for Authorization Only. (See Authorization)

Residual Income – whereby the sales agent receives a portion of the fees charged to a merchant

Retail Merchant - A merchant that provides goods and/or services in the retail industry, but is not a mail/phone merchant, a recurring services merchant, or a T&E merchant.

Retrieval Request - A request to a merchant for documentation concerning a transaction, usually a cardholder dispute or a suspicious sales/return. A retrieval request can lead to a chargeback.

Revenue Sharing - Sales agents receive a portion of the overall profit generated by each merchant in their portfolio

Reversal - An online financial transaction used to negate or cancel a transaction that has been sent through interchange in error.

RIS - Risk Identification Service - VISA

Rollover/Reprogramming Incentive - MCCS program whereby a sales agent that signs a merchant previously with another processor receives a cash bonus – rollover merchant account must remain open for at least 90 days to retain the first half of the bonus paid in month after application approval, second half paid after 90 days and may be retained if account remains open another 90 days

RTF - Real Time Fraud

S

SAFE - System to Avoid Fraud Effectively - MasterCard

Sale - a transaction done against a credit card for the purchase of goods or services. This transaction will go through interchange to the cardholder's bank. Merchant will pay discounting accordingly.

Sales Draft - A paper record evidencing the purchase of goods or services by a cardholder. Same as a receipt.

SCRIP - cash coupon program offered by MCCS. Instead of rendering cash this ATM-like machine issues a coupon to its user to redeem with merchant for purchases and cash back

Service Charge - A component of some credit card's finance charges, such as the fee for triggering an overdraft checking account into use.

Settlement - The step in the clearing process when the acquirer credits the merchant account with the amount of a credit card purchase, and the bankcard association (such as Visa and MasterCard) credits the acquirer and debits the card issuer for the transaction.

Setup fees - A fee that is charged by a merchant services provider for establishing a merchant account.

SIC Code - see Standard Industry Code.

Smart cards - Similar to a credit card, but has a small microprocessor built-in to the card that holds and/or processes information for financial and other applications.

Standard Industry Code - A 4-digit numbering system used to categorize businesses by industry group. This system is being replaced by the NAICS Coding system.

Statement - A written record prepared by a financial institution, usually once a month, listing all transactions for an account, including deposits, withdrawals, checks, electronic transfers, fees and other charges, and interest credited or earned. The statement is usually mailed to the customer.

Stored-Value Card - A credit-card-sized device, implanted with a computer chip, with stored money value. A reloadable stored-value card can be reused by transferring value to it from an automated teller machine or other device. A disposable card cannot be reloaded.

Surcharges - Any additional charges to a merchants standard processing fees, they are a result of mid and non-qualified transactions.

T

T & E - An abbreviation for Travel and Entertainment. American Express is considered a T&E Card.

T & E Merchant - An airline, car rental company, or hotel whose primary function is to provide travel-related services. A travel agency (excluding one that is primarily engaged in the sale of transportation or travel-related arrangement services by mail/phone order) is a T&E merchant to the extent that it acts as the agent of an airline, car rental company, or hotel.

Terminal Capture - The term means that a sale will be registered within the terminal only until the sale is processed for deposit. If for any reason the sale deleted from the terminal before the deposit is processed the merchant will not get paid on the transaction. The merchant is required to do a deposit on the terminal for terminal capture applications.

Terminal Id - In the payment card industry, a number provided to a merchant by a credit card processor when that merchant retains the services of that credit card processor to uniquely identify a terminal. Also sometimes called the terminal number. A credit card processor may assign several terminal IDs to a given merchant's terminals although that merchant has a single merchant ID with that processor.

Terminated Merchant File (TMF) - Merchants with excessive chargebacks are stripped of their merchant account and the ability to accept credit card orders. The merchant is then placed on the TMF match list that all Merchant Service Providers have access to. Being placed on this file can keep you from obtaining another merchant account for several years. The file lists the business owner's name, social security number, business name, and business address. Once listed on the TMF, the listing is never removed.

TID - see Terminal ID

TMF - see Terminated Merchant File

Transaction - Action between a cardholder and a merchant or a cardholder and a member that results in activity on the cardholder account.

Transaction fee - A fee charged by a merchant account provider for each credit card transaction completed.

Transaction Identifier - A unique 15 character value that VISA assigns to each transaction and returns to the Acquirer in the authorization response. VISA uses this value to maintain an audit trail throughout the life cycle of the transaction and all related transactions, such as reversals, adjustments, confirmations, and chargebacks.

Transaction Processor - An entity that validates and authorizes credit card purchases. They may also service the actual accounts on behalf of the issuers, emboss cards, and mail cards to cardholders.

Transaction Type - A specific type of financial detail transaction activity that can be submitted to the clearing system.

Triad process - An MCCS program that uses customized, customer-specific data for highly-efficient merchant approvals – gives MCCS ability to handle small, medium, and large big-ticket accounts. The MCCS 3-tiered approval process allows us to accept the most merchant applications possible

Type 4 - An MCCS program allowing touch-tone telephone authorizations for those who cannot afford or don't use processing equipment. The merchant must imprints and maintain copies for 3 years

U

User Authentication - Process of validating that a user is who the user represents himself/herself as.

V

Validation Code - A unique 4 character value that VISA includes as part of the CPS/ATM program in each authorization response to ensure that key authorization fields are preserved in the clearing or settlement record.

Valutec - gift/loyalty card provider (see www.valutec.net)

Variable Interest Rate - With variable-rate cards, the APR changes when interest rates or other economic indicators change. Also known as a floating rate.

VARS - Value-Added Resellers

VBV - see Verified by Visa

Verified By Visa - The Visa scheme designed to authenticate cardholders so that they cannot subsequently repudiate their use of a card to purchase goods. It will also reduce other fraud as fraudulent users will not generally know the pass phrase or PIN associated with the card.

Visa - Visa International Service Association and all of its subsidiaries and affiliates. All Visa card numbers begin with "4"

Visa PAS (Payment Authentication Service) - Under Visa's PAS, cardholders must authenticate themselves by verifying their identity with a password when buying from a Web storefront.

Voice Authorization - An approval response obtained through interactive communication between an issuer and an acquirer, their authorizing processors, or stand-in processing, through telephone, facsimile, or telex communications.

Void - The reversal of a current transaction, one that has been authorized, but not settled. Settled transactions require processing of a credit or return in order to be reversed.

Void Transaction - Transaction that is done on a sale that is contained in an open batch. This voids the sale and does not go through interchange to the cardholder's bank. This does not remove the authorization that was obtained when the sale was initially run. This removes the transaction from the batch of transactions to be settled. Merchant will not pay discounting when a void is issued.

9

12B - Retrieval Request

3-D Secure - A protocol for e-commerce which is designed to increase the security of online credit card transactions by adding an extra step requiring a PIN or password for authentication. Another name for the Verified By Visa cardholder authentication protocol.

LTD Merchant Services is a registered ISO/MSP of Wells Fargo Bank, N.A. Walnut Creek CA
and a registered ISO/MSP of BMO Harris Bank, Chicago, IL

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Fax: 305.673.3355
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REPS / ISO

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