Credit Card Processing

Sign up now and we’ll provide you with a free merchant account and equipment for your business!

Credit Card Processing Machine


Agreement: The contract between the client, the processor and the bank regarding the merchant account.

Application: A document that is completed by the merchant and included in the agreement.

Authorization: The approval of the card issuer that validates a transaction for a merchant.

Authorization Approval Code: A number provided to a merchant that confirms the authorization for a sale or service.

Bank: The bank that is identified on your application.

Batch: A single Submission of a group of transactions, which usually represents a day’s worth of credit card transactions.

Business Day: Any day of the week excluding Saturdays, Sundays and Holidays in which banks are closed.

Cardholder: The person who is authorized to use the credit card. His/her name will typically be imprinted on the credit card.

Card Issuer: The bank or Association that provides an individual with a credit card.

Card Validation Codes: A three-digit value printed in the signature panel of most credit cards and a four-digit value printed on the front of an American Express Card. This code is also known as CVV2 for Visa, CVC2 for MasterCard or CID for American Express.

Chargeback: The client or customer disputes the transaction with their credit card provider. See More Info.

Client: The merchant (you) who signs the application and is issued a merchant account and/or credit card processing equipment.

Credit Card: A card that is issued by banks (Visa, MasterCard, Discover, American Express) that can be used by consumers to borrow money or purchase products and/or services.

Credit Limit: The maximum amount of credit that a credit issuer will extend to a user for a particular credit card.

Debit Card: A card that allows a cardholder to withdraw money or make purchases, where the costs are automatically deducted from his/her account.

Dial-Up Terminal: A terminal that dials an authorization center in order to validate transactions.

Electronic Benefit Transfer (EBT): An electronic system that allows a government benefit recipient to authorize the transfer of their benefits from a Federal, State or local government account to a merchant account to pay for products and services received.

Electronic Draft Capture (EDC): A process which allows a merchant’s Dial-Up Terminal to receive authorization and capture transactions, and electronically transmit them to a Card processor. This eliminates the need to submit paper for processing.

General Terms: The section of the program guide, including any amendments or modifications.

Gross: Total amount of credit card sales.

High Risk Merchant Account: This is typically an account that either has high chargeback issues or reputational issues. Banks shy away from these types of industries. (More Info)

Issuer: The bank or Association that has issued a card to an individual.

Magnetic Stripe: A stripe of magnetic information found located on the back of a credit or debit Card. It contains vital information about the cardholder and his/her account.

Merchant Account Number (Merchant Number): A number that identifies each merchant, outlet, or line of business, which is used for accounting and billing purposes.

Non-PIN Debit Card: A debit Card that is processed without entering a PIN.

Operating Procedures: Processes, instructions and directives relating to processing credit card transactions.

PIN: A Personal Identification Number (usually 4 digits) entered by the cardholder to submit a debit card transaction.

Point of Sale (POS) Terminal: A device placed in a merchant location, used to electronically process debit and credit card transactions.

Processor: The entity identified on the application that provides certain services under the agreement.

Program Guide: The booklet containing operating procedures, etc.

Recurring Payment Indicator: A value used to identify transactions for which a consumer provides permission to a merchant to bill his/her card account at either a predetermined interval or as agreed by the cardholder for recurring goods or services.

Referral: The message received from an issuer when an authorization attempt requires a call to the voice authorization center.

Resubmission: A transaction that was originally processed as a store and forward transaction but received a soft denial from the debit network or association. The resubmission transaction allows the merchant to attempt to obtain an approval for the soft denial.

Sales/Credit Summary: The identifying form used by a paper Submission merchant to indicate a batch of sales drafts and credit drafts (usually one day’s work).

Self-Service Terminal: A customer activated terminal that accepts payment of goods or services and does not accept PINs.

Split Dial: A process that allows the authorization terminal to dial directly to different card processors.

Store and Forward: A transaction that a merchant authorizes on his/her own when he/she cannot obtain authorization when the merchant is present. This usually occurs due to a communications failure.

Submission: A batch that is sent out to a processor for processing, done either electronically or by mail.

Transaction Fees: Service costs charged to a merchant on a per transaction basis.

Thank you so much for setting me up with my merchant account. In such a fast paced society it’s important to be able to get my customers in and out. My equipment always runs smoothly and I have you to thank for that MRI. – Tammy D.