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ABA Routing Number- Also referred
to as a Transit Routing Number. Directs electronic ACH deposits
to the proper bank institution.
Acquirer- A financial institution
that maintains the merchant credit card processing relationship
and receives all transactions from the merchant to be distributed
to the Cardmember Banks.
Address verification- A service in
which the merchant verifies the cardmember's address. Primarily
used by Mail/Telephone order merchants. Not a guarantee that a
transaction is valid.
Arbitration- The procedure an Acquirer
may use to resolve a complaint with a Card Issuer on behalf of
Associations- MasterCard International,
Visa U.S.A., or Visa International, which are licensing regulatory
agencies for bankcard activities.
Authorization- Approval by, or on
behalf of, the card issuer to validate a transaction for a merchant
or another affiliate bank. An authorization indicates only the
availability of the cardmember's credit limit at the time the
authorization is requested.
Authorization approval code- A number
issued to a participating merchant by the Authorization Center
that confirms the authorization for a sale or service.
Automated clearing house (ACH)- A
method of transferring funds between the banks and financial institutions
via the Federal Reserve System.
Average ticket- The average dollar
amount of your credit card transactions.
Auto-representment- Chargebacks (credit
not issued, transaction not authorized, etc.) that were automatically
resolved on the merchants behalf without their knowledge or intervention.
Balance sheet- A financial statement
that shows assets, liabilities, and net worth as of a specific
Batch- Usually a day's worth of transactions,
including sales and credits to be processed by the card processor.
Card issuer- Financial organizations
authorized by a regulatory organization to issue credit cards
to individual cardholders. Also see Cardmember Bank.
Cardholder- Also referred to as cardmember.
The authorized user to whom a credit card has been issued.
Cardmember bank- The bank that issued
a bankcard to an individual. The term is frequently used in conjunction
with interchange arrangements to identify the card-issuing bank.
Chargeback- A returned transaction
resulting from the lack of adherence to the conditions of the
Sales Agreement, Association regulations or these Operating Procedures
and the resultant debiting of your merchant account.
Client reference number- An 8-digit
number supplied with a credit card transaction. This number is
given to the Acquirer along with a retrieval request.
Compliance- Compliance to the Visa
and MasterCard regulatory bylaws.
Credit- A refund or price adjustment
given for a previous purchase transaction.
Credit draft- A document evidencing
the return of merchandise by a cardmember to a merchant, or other
refund made by the merchant to the cardmember.
Data encryption- The scrambling
of information sent over the Internet. Only the intended users
can read and understand encrypted information
DDA- Demand Deposit Account. The
individual business bank account that is credited or debited for
deposits, fees, and adjustments.
Discount Rate- The amount a merchant
processor charges a merchant to give credit for depositing and
handling merchants' daily credit card transactions.
Entitlements- Also known as card
types. The credit card processing services provided to an establishment.
Exceeded timeliness- Transaction
was deposited late. The authorization date, compared to the processing
date, exceeded the time frame allowed for the interchange level
for which the merchant is priced.
Expiration date- The date embossed
on the credit card beyond which the card is not acceptable by
the establishment at the point-of-sale.
Fraud investigation- The process
of identifying suspicious merchant and/or cardholder activity.
I Issuing bank- Cardmember's
bank, or the bank that has issued a MasterCard or Visa card to
Media- The documentation of monetary
transactions (i.e., sales drafts, credit slips, computer printouts,
Media retrieval requests- Media retrieval
is the process of obtaining paper documents from a centralized
location. You can obtain 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 within 12 days of receipt. If you fulfill
media after 12 days of receipt, the status is fulfilled late.
If you cannot fulfill the media, the status is expired.
Merchant- Store owner or seller of
Merchant account number- A number
that numerically identifies each merchant to the merchant processor
for accounting and billing purposes.
Merchant category code (MCC)- A code
assigned by an Acquirer to identify a merchant's type or mode
of business and the merchandise sold.
MID- A unique identification number
assigned to a merchant by the Acquirer.
Primary account number (PAN)- The
cardholders account number to which transactions are to be charged.
Point of sale (POS)- The point at
which a product is purchased and delivered.
Recurring transaction- A transaction
that is periodically charged to the cardholder's account for ongoing
goods or services, for which written permission has been granted
by a cardholder to a merchant.
Referral- The message received from
an issuing bank when an attempt for authorization requires a call
to the Voice Authorization Center.
Representment- A transaction presented
to the issuer by the Acquirer when the establishment requests
a reversal of a chargeback.
Retrieval request- A request to a
merchant for either a legible copy or an original sales record.
Reversal- A request by the establishment
to represent a chargeback to the card issuer.
SIC code- The Standard Industry
Classification assigned by an Acquirer to identify a merchant's
Submission- The process of sending
batch deposits to the Acquirer for processing.
Summary adjustment- A correction
to an establishment's deposit made by the Acquirer when there
is an error in the submitted deposit.
TID- A unique identification number
assigned to a specific point of sale device by the Acquirer.
Transaction- A credit card sale or
refund between the cardholder and merchant, or the processing
of the exchange by the Acquirer.
Transaction fees- Service costs charged
to a merchant on a per transaction basis.
Valid date- The date embossed by
the card issuer on the credit card. An establishment cannot accept
a card for payment of goods or services prior to this date.