GLOSSARY
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.