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 | ABA Routing Number |  |
| Also referred to as Transit Routing Number. Routes electronic ACH deposits to the proper banking institution. |
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| ACH | |
| Automated Clearing House. A regional organization used by member banks to electronically transfer funds between members. |
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| ACH Network | |
| A central distribution and settlement point for electronic items exchanged among depository financial institutions. |
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| AMEX | |
| Abbreviation for American Express, an organization that issues travel and entertainment cards and acquires transactions. |
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| Address Verification (AVS) |  |
| A service provided through merchant services in which the merchant verifies the cardholder's address. Primarily used by mail/telephone order merchants to combat fraud. However, does not a guarantee that a transaction is valid. |
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| Acquirer | |
| A licensed member of MasterCard and/or VISA (or its agent) which maintains merchant relationships, and receives all bankcard transactions from the merchant, and initiates data into the interchange system. |
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| Acquiring Bank/Merchant Bank | |
| A bank that does business with merchants enabling them to accept credit cards. A merchant has an account with this bank and each day deposits the value of the day's credit card sales. Acquirers (acquire) the merchant's sales slips and credit the tickets' |
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| Affinity Card | |
| A credit card issued in conjunction with an organization or collective group; for example, profession, alumni, retired persons association. The card issuer often pays the organization a royalty. |
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| Arbitration | |
| The procedure used to determine responsibility for a chargeback-related dispute between two members. |
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| Assessments | |
| Fees paid quarterly by members to VISA and MasterCard to support marketing and operating activities. |
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| Association | |
| An organization owned by members, which services and obtains processing services for members and functions as a principal/proprietary member of VISA or MasterCard. |
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| Authorization | |
| The act of ensuring the cardholder has adequate funds available against his or her line of credit. A positive authorization results in an authorization code being generated, and those funds being set aside. The cardholder's available credit limit is reduc |
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| Auto Representment | |
| Chargebacks (credit not issued, transaction not authorized, etc.) that were automatically resolved by processor on the merchant's behalf without their knowledge or intervention. |
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| Available Credit | |
| The difference between a cardholder's credit limit and the present balance on the account, including outstanding transactions not yet received through interchange. |
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| Average Ticket | |
| The average size of a merchant bankcard transaction. Generally used in pricing decisions and calculations. |
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| Bank Identification Number (BIN) | |
| A unique series of numbers assigned by MasterCard or VISA to a principal member institution that identifies the member in transaction processing. It is the first three to six digits of a standard cardholder account number and can be used by the member's a |
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| Bankcard | |
| A financial transaction card (credit, debit, etc.) issued by a financial institution. |
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| Bankcard Association | |
| A group of institutions formed for sponsoring a bankcard program, using a common processing and administrative center. |
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| Bankwire Transfer | |
| Transfer of funds to any bank within the Federal Reserve System. |
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| Base I | |
| The VISANet data processing systems, networks, and operations that provide authorization and authorization-related services to VISA members. |
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| Base II | |
| The VISANet data processing systems, networks, and operations that provide clearing, settlement, and other interchange-related services to VISA members. |
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| Batch | |
| The accumulation of captured (sale) transactions waiting to be settled. Multiple batches may be settled throughout the day. |
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| Batch Header Ticket | |
| The identifying form used by the electronic submission merchant to indicate a batch of sales/credit slips. |
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| Batch Processing | |
| A type of data processing and data communications transmission in which related transactions are grouped together and transmitted for processing, usually by the same computer and under the same application. |
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| Baud | |
| The number of electrical symbols per second that a modem sends down a phone line |
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| Bill Payment Service Provider (BPSP) | |
| A financial institution or non-financial entity acting as an intermediary between the biller and consumer for the exchange of electronic bill payment information. |
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| Bill Service Provider (BSP) | |
| An agent of the biller that provides an electronic bill presentment and payment service for the biller. |
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| Biller | |
| A company or organization that sends a bill or statement to a consumer, usually requesting payment for a product or service. |
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| CTMF | |
| Combined Terminated Merchant File |
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| Call Center | |
| A functional area within an organization or an outsourced, separate facility that exists solely to answer inbound or place outbound telephone calls. Usually refers to a sophisticated voice operations center that provides a full range of high-volume, inbou |
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| Cancellation Number | |
| A number provided by a hotel/motel to verify a cardholder's notification to cancel a guaranteed reservation or advance resort deposit. |
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| Capture | |
| Converting the authorization amount into a billable transaction record within a batch. Transactions cannot be captured unless previously authorized and the goods or services have been shipped or transmitted to the consumer. |
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| Capture Date | |
| The date on which a transaction is processed by an acquirer. |
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| Card Issuer | |
| 1) The financial institution or retailer that authorizes the issuance of a card to a consumer (or another organization), and is liable for the use of the card. The issuer retains full authority over the use of the card by the person to whom the card is is |
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| Card Verification Code (CVC) | |
| A unique value calculated from the data encoded on the magnetic stripe of a MasterCard card, validating card information during the authorization process. |
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| Card Verification Value (CVV) | |
| A unique value calculated from the data encoded on the magnetic stripe of a VISA card, validating card information during the authorization process. |
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| Cardholder | |
| The person to whom a financial transaction card is issued or an additional person authorized to use the card. |
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| Cardholder Bank | |
| The bank that has issued a bankcard to an individual. |
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| Chain | |
| A series of merchant locations which are owned by the same entity. |
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| Charge Per Transaction | |
| A fee charged on any authorized transaction to cover costs usually associated with delivery of the authorization and interchange fees. |
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| Chargeback | |
| A transaction that is challenged by a cardholder or card issuing bank and is sent back through interchange to the merchant bank for resolution. |
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| Chargeback Period | |
| The number of calendar days from the time of authorization during which the issuer has the right to charge the transaction back to the acquirer. The number of days varies according to the type of transaction from 30 to 180 days. |
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| Chargeback Reason Code | |
| A numerical code which identifies the specific reasons for the chargeback. VISA and MasterCard each have their own chargeback codes. |
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| Chargeback Reference Number | |
| A 10-digit number assigned to every chargeback, unique for each individual chargeback. The first four digits of the chargeback reference number are the issuer's identification (BIN/ICA) number. |
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| Check Card | |
| A bankcard that enables the user to purchase goods and services and obtain cash disbursements against his or her asset account most often a checking account. The check card is also called an 'offline debit card' or 'deposit access card.' |
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| Check Guarantee | |
| A service provided by a third party vendor who guarantees a customer's payment by check for a specified amount. Stipulations require that the merchant follow correct authorization procedures. |
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| Check Verification | |
| A service provided in which a merchant accesses a national negative file database through their terminal/register to verify or authorize the person has no outstanding bad check complaints at any of the member merchants. This is not a guarantee of payment |
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| Clearing | |
| The process of exchanging financial transaction details between an acquirer and an issuer to facilitate posting of a cardholder's account and reconciliation of a customer's settlement position. |
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| Clearing Account | |
| An account at the clearing bank that will receive a member's credit or debit for net settlement. |
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| Clearing Bank | |
| A bank designated by the member to receive the member's daily net settlement advisement. The clearing bank will also conduct funds transfer activities with the net settlement bank and maintain the member's clearing account. This bank may be the member its |
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| Compliance | |
| The procedure a VISA or MasterCard member may use to resolve a dispute between members when no chargeback reason code applies. The challenging member must prove financial loss due to a violation of MasterCard and/or VISA rules by the other member. |
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| Convenience User | |
| A cardholder who pays the balance in full on each payment due date. |
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| Cookie | |
| A small chunk of information, stored on your computer by a Web site you have visited, that's used to remind that site about you the next time you visit it. |
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| Corporate Card | |
| A bankcard issued to companies for use by company employees. |
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| Counterfeit Card | |
| A plastic card which has been fraudulently printed, embossed, or encoded to appear to be a genuine bankcard, but which has not been authorized by MasterCard or VISA or issued by a member. A card originally issued by a member but subsequently altered witho |
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| Credit Card | |
| A plastic card with a credit limit used to purchase goods and services and to obtain cash advances on credit for which a cardholder is subsequently billed by the issuer for repayment of the credit extended. |
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| Credit Deposit | |
| The value of a merchant's credit card purchases that are credited to its bank account after the acquiring bank buys the merchant's sales slips. The deposit is credited but is not funded until the acquiring bank gets the monetary value from the issuer duri |
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| Credit Limit | |
| The maximum amount the cardholder may owe to the issuer on the card account at any time. |
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| Credit Loss | |
| The amount lost (charged off) as a result of failure of the cardholder to repay the amount owed on the account. |
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| Credit Scoring | |
| A method for predicting the credit worthiness of applicants for credit. |
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| Credit Transaction | |
| A claim for funds by a cardholder for credit against his or her account. At the same time, it provides details of funds acknowledged as payable by the acquirer, the card acceptor, or both, to the card issuer. |
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| Current Risk | |
| The risk exposure presented in the given month projected from the prior month's processing volumes. |
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| Cycle | |
| The grouping of cardholder accounts to provide for a distribution of workload and easier account identification. |
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| Cycle Period | |
| A specific period of time during which both debit and credit transactions are accumulated from billing. |
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| Data Encryption Standard (DES): | |
| A popular standard encryption scheme. |
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| Debit Transaction | |
| A bankcard used to purchase goods and services and to obtain cash, which debits the cardholder's personal deposit account. |
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| Discount Rate | |
| An amount charged a merchant for processing its daily credit card transactions. |
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| Doing Business As (DBA) | |
| Refers to the specific name and location of the merchant establishment where credit card purchases are made. |
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| Domain Name System (DNS) | |
| A general-purpose data query service whose principal use is the lookup of host addresses based on host names. Important domains are .com, .edu, .net, .gov, .mil, and .org. |
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| Down Time | |
| A period when all or part of a system or network is not available to end users due to failure or maintenance. |
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| Electronic Commerce (E-commerce) | |
| The transacting of business electronically rather than via paper. |
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| Encryption | |
| The technique of scrambling data automatically in the terminal or computer before data is transmitted for security/anti-fraud purposes. |
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| Expiration Date | |
| The date embossed on a bankcard, beyond which the card becomes invalid. |
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| Floor Limit | |
| A dollar amount set by the acquirer in accordance with MasterCard and VISA rules and regulations. The merchant must obtain authorization for any transaction over the floor limit. |
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| Issuer / Issuing Bank | |
| The financial institution (a licensed member of MasterCard or VISA) which holds contractual agreements with and issues cards to cardholders. |
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| MCC | |
| Merchant classification code which identifies the merchant by type of processing, authorization and settlement. |
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| Member | |
| A financial institution which is a member of VISA USA and/or MasterCard International. A member is licensed to issue cards to cardholders and/or accept merchant drafts. |
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| Merchant | |
| A retailer, or any other person, firm, or corporation that, according to a Merchant Agreement, agrees to accept credit cards, debit cards, or both, when properly presented. |
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| Merchant Agreement | |
| The written contract between merchant and acquirer who detail their respective rights, responsibilities, and warranties. |
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| Merchant Category Code (MCC) | |
| is a four-digit number assigned to a business by MasterCard or VISA when the business first starts accepting one of these cards as a form of payment. The MCC is used to classify the business by the type of goods or services it provides. |
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| Merchant Fraud | |
| The act of submitting sales drafts which are not the result of legitimate sales for the purpose of defrauding the services, the client bank, or individual cardholders. Fraud includes knowingly accepting lost, stolen, or counterfeit credit cards. |
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| Merchant Number | |
| A number that numerically identifies each merchant to the merchant processor for accounting and billing purposes. |
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| Merchant Service Charge | |
| The discount rate or other fees assessed by the acquirer. |
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| Merchant Settlement Amount | |
| The net dollar amount for each business day of card transactions processed, less chargebacks debited to the merchants and other debits or credits to the merchants. |
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| Operating Risk | |
| The sum total of cumulative chargeback risk exposure plus the cumulative credit risk exposure with a given merchant. |
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| Point of Sale (POS) | |
| The location of a merchant where the customer makes a purchase. |
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| Processor | |
| An organization that is connected to VISANet and or Banknet and provides authorization and/or clearing and settlement services on behalf of a member. |
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| Reason Code | |
| A code used to provide additional information to the receiving clearing member regarding the nature of a chargeback, subsequent presentment, fee collection, funds disbursement, or request for a source document |
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| Recurring Transaction | |
| A transaction charged to the cardholder (with prior permission) on a periodic basis for recurring goods and services, i.e., health club memberships, book-of-the-month clubs, etc. |
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| Secure Socket Layer (SSL) | |
| A Web-based technology that lets one computer verify another's identity and allows secure connections. |
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| Service Entitlement Number | |
| Assigned by and required for processing American Express, Discover, Diners Club, and JCB. |
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| Settlement | |
| As the sales transaction value moves from the merchant to the acquiring bank to the issuer, each party buys and sells the sales ticket. Settlement is what occurs when the acquiring bank and the issuer exchange data or funds during that function. |
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| Shopping Cart Software | |
| Shopping cart software allows the cardholder to select items from an online store and place them in a 'virtual shopping basket' or 'shopping cart.' The GET shopping cart remembers which items are selected while the cardholder views other items within the |
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| Smart Card | |
| A plastic card resembling traditional credit or debit cards that contains a computer chip; the chip is capable of storing significantly more information than a magnetic stripe. |
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| T&E CARD | |
| Travel and Entertainment card issued by a private, non-bank company which deals directly with the cardholder and merchant and which generally requires payment in full monthly. |
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| T&E MERCHANT | |
| An airline, car-rental company, lodging, or restaurant establishment whose primary function is to provide travel/entertainment-related services. |
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| Terminated Merchant File (TMF) | |
| A file listing the names of merchants and their principals whose bankcard relationships have been terminated for some reason by an acquirer. Operated jointly by VISA and MasterCard. |
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| Third-Party Processing | |
| Processing of transactions by service providers acting under contract to card issuers or acquirers. |
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| Transaction | |
| Any event that causes a change in an organization's financial position or net worth, resulting from normal activity. Advance of funds, purchase of goods at a retailer or when a borrower activates a revolving line of credit. Activities affecting a deposit |
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| Transaction Date | |
| The actual date on which a transaction occurs. Used in recording and tracking transactions. |
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| Transaction Fees | |
| Service costs charged to a merchant on a per-transaction basis. |
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