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ABA Routing Number: A unique nine-digit number assigned to each banking institution, used to identify the bank and direct ACH debits and credits. The ABA routing number is usually found at the bottom of a personal or business check. Back To Top

Account Number: A unique sequence of numbers assigned to a cardholder account that identifies the issuer and type of financial transaction card. Back To Top

Acquirer: A licensed member of MasterCard and/or VISA (or its agent) which maintains merchant relationships, receives all bankcard transactions from the merchant, and initiates that data into an interchange system. Back To Top

Acquiring Bank/Merchant Bank: The bank that does business with merchants enabling them to accept credit cards. A merchant who has an account with this bank deposits the value of the day's credit card sales every day. Acquirers acquire the merchant's sales slips and credit the value of the ticket to the merchant's account. Back To Top

Acquiring Bank: The financial institution that enters an electronic transaction into the collection stream. In the case of credit cards or POS debit cards this is usually the merchant's bank, or in the case of ATM debit card transactions, the ATM-owning bank. Back To Top

Acquiring Processor: The processor provides credit card processing, billing, reporting and settlement, and operational services to the acquirer. Many financial institutions hire a third party for more cost-effective bankcard processing. Back To Top

Address Verification Service (AVS): A service provided through merchant services in which the merchant verifies the cardholder's address. It is used primarily by mail/telephone order merchants to combat fraud. It should be noted, though, that it is not a guarantee that a transaction is valid. Back To Top

Address Verification Service (AVS): A service supported by Visa, MasterCard, Discover and American Express that verifies the cardholder's billing address against the one on file with the issuer. AVS is designed to help combat fraud in non-face-to-face transactions. For a list of AVS response codes, click here. Back To Top

American Express: A company that specializes in the issuance of Travel and Entertainment (T&E) cards. American Express services the cards it issues, serving as its own transaction processor with its own processing network. Back To Top

Application Service Provider (ASP): An organization that hosts software applications on its own servers within its own facilities. Customers access the application via private lines or the Internet. In some cases this is also called a Commercial Service Provider. Back To Top

Assessments: Fees paid quarterly by members to VISA and MasterCard to support marketing and operating activities. Back To Top

Association: MasterCard International, Visa U.S.A. or Visa International, which are licensing regulatory agencies for bankcard activities. Back To Top

ATM/Debit Card: The plastic card used in an ATM (automatic teller machine) for deposits, cash withdrawals, account transfers and other related functions. A PIN (personal identification number) must be entered to withdraw cash and access account functions. An ATM card may also be used to make a debit purchase if the merchant has a PIN pad to accept the key entry. Back To Top

Authentication: A data security technique designed to ensure that the sender of a transaction is indeed the person he or she claims to be. Back To Top

Authorization Approval Code: The numerical code designated by the issuer, assigned to a sales transaction as verification that the sale is authorized. Back To Top

Authorization Request: A merchant's request for an authorization to accept a cardholder's sales transaction. An authorization request can occur electronically via a credit card processing terminal or via telephone as a voice authorization. Back To Top

Authorization: The act of ensuring that the cardholder has adequate funds available against his or her line of credit. A positive authorization results in an authorization code, and then those funds being set aside. The cardholder's available credit limit is reduced by the authorized amount. Back To Top

Automated Clearing House (ACH): A regional organization used by member banks to electronically transfer funds between members. Back To Top

Average Ticket: The average dollar amount of sale for credit card transactions. Back To Top

B2B: See Business to Business. Back To Top

B2C: See Business to Consumer. Back To Top

Back-End Network: The settlement provider responsible for finalizing transactions, routing payment to a merchant's account and generating statements. Back To Top

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. A BIN is comprised of the first three to six digits of a standard cardholder account number. If necessary, it can be used by the member's affiliates. Back To Top

Bank Routing Number: The first nine digits that appear across the bottom of a personal check, which identifies the financial institution from which the check is drawn. Back To Top

Bankcard Association: A group of institutions formed to sponsor a bankcard program, using a common processing and administrative center. Back To Top

Bankcard: A MasterCard or Visa brand card issued under the auspices of a specific banking institution. Back To Top

Batch Deposit: The electronic depositing of a batch file transmitted to the transaction processor for settlement. Back To Top

Batch Header Ticket: The identifying form used by the electronic submission merchant to indicate a batch of sales/credit slips, typically for one day of sales activity. Back To Top

Batch Processing: The authorization of transactions offline when immediate approval is not required. Transactions are collected in a batch and sent as one transmission for authorization and/or settlement. Batch processing is generally used with mail/telephone order transactions. Back To Top

Batch: A group of approved credit card transactions, usually accumulated during one business day. Back To Top

Business Card: A payment card typically issued to and used by owners of small businesses. Back To Top

Business to Business (B2B): It refers to one business communicating with or marketing to another. Back To Top

Business to Consumer (B2C): It refers to a business marketing goods or services directly to consumers. Back To Top

Capture Date: The date on which a transaction is processed by an acquirer. Back To Top

Capture: The process of 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. Back To Top

Card Present: A type of transaction in which the card is present and swiped through an electronic device that reads the contents of the magnetic stripe on the back of the card. Back To Top

Card Reader: An input device on a card terminal that translates the information stored on the magnetic stripe on the back of a card. Back To Top

Card Validation Code (CVC2): A MasterCard term for the three-digit code printed next to the card number in the signature panel and used as part of the authorization process. Back To Top

Card Verification Value (CVV2): A Visa term for the three-digit code printed next to the card number in the signature panel and used as part of the authorization process. Back To Top

Cardholder Bank: The bank that has issued a bankcard to an individual. The term is frequently used in conjunction with interchange arrangement to identify the card-issuing bank. Back To Top

Cardholder: The consumer to whom a payment card is issued, or an additional person authorized by the original cardholder to use the card. Back To Top

Cardholder-Initiated Chargeback: A chargeback that results when a cardholder contacts the card issuer and refuses to accept a charge appearing on a monthly billing statement. A cardholder has 90 days to initiate a chargeback. Back To Top

Card-Not-Present: A type of card transaction in which the card is not present at the point of sale for the magnetic stripe to be read. These are considered higher risk transactions. Back To Top

Cellular Digital Packet Data (CDPD): A method of sending data through cellular networks. CDPD is used with wireless credit card terminals to transmit transactions and deposits in mobile environments. Back To Top

Chargback: A reversal of a credit card transaction, typically initiated by the transaction card issuer at the cardholder's request. Chargebacks can occur for a number of reasons, including customer disputes, potential or actual fraud on the part of merchants, sales associates or customers, processing errors and authorization issues. Chargebacks are governed by a complex set of rules and time limits that can be costly to merchants and their banks if disregarded. Back To Top

Charge Back Reason Code: A numerical code which identifies the specific reason for a chargeback. MasterCard and Visa each have their own chargeback codes. Back To Top

Chargeback Fee: The amount assessed by the acquirer for processing charge backs. Back To Top

Chargeback Period: The number of calendar days (counted from the transaction processing date) 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 45 to 180 days. Back To Top

Check Card: A bankcard that enables the user to purchase goods and services and obtain cash disbursements against his or her asset account (generally a checking account). The check card is also called an 'offline debit card' or 'deposit access card.' Back To Top

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. Back To Top

Check Reader: A device that reads the numbers encrypted on the bottom of most checks. Back To Top

Check Truncation: A term used to describe the conversion of a paper check to an electronic payment or digitized image for clearing, posting and settlement. These transactions can be governed by paper check or EFT laws. Back To Top

Check Verification: A service used to verify that a checkwriter and/or their checking account information is valid, and/or the account is in good standing. Back To Top

Checks By Phone (SM): A system that allows consumers to provide their checking account information to a merchant over the phone, after which a duplicate check (paper draft or electronic check) is created for payment. Back To Top

Clearing Account: An account at the clearing bank that will receive a member's credit or debit for net settlement. Back To Top

Close: When a merchant's completed transaction is sent to the host for processing. Back To Top

Code 10 Authorization: An authorization by the credit card company that a transaction is valid, prompted by a "Lost or Stolen Card," "Pick Up Card" or similar message on a POS device. The authorization operator will ask questions designed to determine if the transaction is valid. Back To Top

Corporate Card: A bankcard issued to companies for use by company employees. The liability for abuse of the card typically rests with the company and not with the employee. Back To Top

Credit Card: A plastic card with a credit limit used to purchase goods and services and to obtain cash advances on credit. The cardholder is then billed by the issuer for repayment of the credit extended. Back To Top

Credit Limit: The maximum amount the cardholder may owe to the issuer on the card account at any time. Back To Top

CTMF: Combined Terminated Merchant File.  Back To Top

Data Capture: Also known as Draft Capture, it is the collection, formatting and storage of information in computer memory. Some POS terminals perform data capture functions. See also EDC Terminal. Back To Top

Data Encryption Key (DEK): Used for the encryption of message text and for the computation of message integrity checks (signatures). Back To Top

Debit Card: A bankcard used to purchase goods and services and to obtain cash, which debits the cardholder's personal checking account. During online debit transactions, the cardholder must enter a Personal Identification Number (PIN). Back To Top

Debit Switch: A portal that transmits debit data between gateway banks and debit card issuers. It is also referred to as Debit Network. Only financial institutions may be members of debit switches. Back To Top

Debit Transaction: A bankcard used to purchase goods and services and to obtain cash, which debits the cardholder's personal deposit account. Back To Top

Debit: A charge to a customer's bankcard account. Back To Top

Decline: A response from the card issuer denying the use of the card for the attempted transaction. If a request for approval is declined, the merchant must ask the cardholder for another form of payment. Back To Top

Demand Deposit Account (DDA): A checking account. Back To Top

Derived Unique Key Per Transaction (DUKPT): A method of PIN pad encryption. Back To Top

Dial-Up Line: A communications medium described as a non-dedicated telephone line, in which a connection is established by dialing a destination number and broken when the call is complete. This is the same type of phone line used in most private homes. Back To Top

Dial-Up Terminal: An authorization terminal that, similar to a convention telephone, that dials the authorization center for validation of transactions. Back To Top

Digital Certificate: An encrypted attachment to an electronic message, used for security purposes. The most common use of a digital certificate is to verify that a user sending a message is who he or she claims to be. The receiver is also provided with a way to encode a reply. Back To Top

DIP Switches (Dual In-Line Package Switches): A series of connected switches that determine the proper configuration for a payment card terminal printer. Back To Top

Discount Rate: An amount charged a merchant for processing its daily credit card transactions. Back To Top

Doing Business As (DBA): The name a business uses to operate.  Back To Top

E-Commerce: See Electronic Commerce. Back To Top

Electronic Benefits Transfer (EBT): The automation of government benefits through electronic authorization, data capture and settlement processes. Back To Top

Electronic Cash Register (ECR): A cash register that also emulates a point-of-sale terminal for processing credit card transactions. It functions most efficiently and effectively for large businesses with many registers in single or multiple locations, and provides a direct, computer-to-computer linkup between the processor host and the merchant's host. Back To Top

Electronic Check Acceptance (SM) (ECA): A system that captures banking information off a paper check and converts it into an electronic item processed through the Automated Clearing House network. With ECA, checks are processed in a manner similar to credit cards, and the paper check is returned to the consumer at the point of sale. Back To Top

Electronic Check Presentment (ECP): The transmission of the contents of a cash letter (based on MICR line capture) to a paying bank in advance of physical delivery of the (paper) cash letter, or as a result of the truncation of the cash letter items. Back To Top

Electronic Check: A generic term for any payment that begins as a paper check and is subsequently converted to an ACH transaction for electronic clearing and settlement. Also known as an E-Check. Back To Top

Electronic Commerce (E-commerce): Transacting business electronically rather than via paper. Back To Top

Electronic Data Interchange (EDI): The electronic communication of business transactions, specifically, the exchange of trade-related documents, such as purchase orders, invoices and corporate Electronic Funds Transfer (EFTs) in a standard format. With EDI, electronically transmitted data replaces paper documents in the business accounts receivable cycle. Back To Top

Electronic Draft Capture (EDC) Terminal: A point-of-sale device that reads information encoded in the bankcard's magnetic stripe, performs authorization functions, stores transaction data, and batches and transmits that data to the acquirer for processing. The stored transactions are used to create settlement files and transaction reports. It is also referred to as an Electronic Data Capture terminal. Back To Top

Electronic Draft Capture (EDC): The use of a point-of-sale device to authorize and settle credit card transactions. Back To Top

Electronic Financial Services (EFS): - Financial services that are provided via electronic delivery channels (e.g. PCs, telephones, screen phones and ATMs). These services may be transaction- or information-oriented and may be provided by bank and non-bank providers. Back To Top

Electronic Funds Transfer (EFT): A transfer of funds between accounts by electronic means rather than conventional paper-based payment methods. EFT is any financial transaction originating from a telephone or electronic terminal, or from a computer or magnetic tape. Back To Top

Electronic Funds Transfer at the Point of Sale: The technology and practice of making payments for goods and services by means of electronic funds transfer initiated at the point where goods and services are purchased. Back To Top

Encryption: The technique of scrambling data automatically in the terminal or computer before data is transmitted for security and anti-fraud purposes. Back To Top

Entitlement: The license or permission to accept a particular type of payment card or other payment vehicle. Back To Top

EPROM (Erasable Programmable Read Only Memory): Industry-initiated standards used to identify terminal types and components. Back To Top

Expiration Date: The date embossed on a bankcard, beyond which the card becomes invalid.  Back To Top

Factoring: When a legitimate merchant processes another merchant's transactions in return for payment. This practice is forbidden by the associations. Back To Top

Financial EDI (Electronic Data Interchange): Electronic exchange of payments, payment information or financially related documents in standard formats between business partners. Back To Top

Financial Institution (FI): Any organization in the business of moving, investing or lending money, dealing in financial instruments, or providing financial services. This includes commercial banks, thrift or credit unions, federal and state savings banks, and savings and loan associations. Back To Top

Fleet Card: A payment card designed mainly for fueling, maintenance and repairs of corporate motor vehicles. Fleet cards are normally used to provide specialized reporting. Back To Top

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. Back To Top

Forced Transaction: The after-the-fact entry of a purchase resulting from a referral (Call Authorization Center) message or a downtime interruption of service from a Network which enables the merchant to enter (as a force/post authorization) the transaction and the approval code into the EDC batch. Back To Top

Fraud Investigation: The process of identifying suspicious merchant or cardholder activity. Back To Top

Front-End Network: The network provider responsible for authorizing and capturing transactions and forwarding the information to the back-end network. Back To Top

Fulfillment: The acquirer's response to an issuer's retrieval request for a sales draft. The acquirer supplies the issuer with the original draft or a clear reproduction. The fulfillment record confirms the response and initiates reimbursement to the acquirer for fulfilling the request. Back To Top

Funding: Refers to the payment to a merchant for his submitted deposits.  Back To Top

Gateway: Manages the electronic connection between consumers and their financial institutions and transmits data. Back To Top

Gift Card: A reusable, stored-value card that enables merchants to have an electronic alternative to paper gift certificates. Back To Top

Gross Deposit: Submitting bankcard sales and credits at the face amount. The acquirer later deducts the discount.  Back To Top

Hard Copy: The original document of a transaction, such as sales drafts and credit slips. Back To Top

Hard Decline: A declined authorization attempt resulting from a lost or stolen card, pick-up card, etc. A Code 10 call should be made by the merchant to the authorization center. Back To Top

Host Capture System (HCS): The system by which a transaction is transmitted with an authorization request to the host computer at the front end, then the information is captured at the host, and finally it is sent back to the POS device. Since the information is already stored at the host, it can be settled without the merchant performing a settlement function. Back To Top

Hot Card: A card account on which excessive use is occurring often an indication that the card (or account number) has been stolen.  Back To Top

Idle Prompt: The standard display on a payment card terminal waiting to process the next transaction. Back To Top

Imprinter: A device used to imprint embossed card information onto a sales draft for payment card transactions. An imprinter is used if the card is present and the POS device cannot read the contents of the magnetic stripe. Back To Top

Independent Sales Organization (ISO): An outside company (not MasterCard or VISA member) which is contracted by members to sell merchant and/or cardholder account processing. It is also called a member service provider.  Back To Top

Interactive Voice Response (IVR): The process in which a voice processing system prompts the caller for information which can then be used as a search key to a database. The result of the search is subsequently reported back to the caller. A typical application of IVR in the banking system occurs when a caller calls the bank's IVR lines, enters an account number, and receives information such as account balance and last check cleared. Back To Top

Interchange Fees: Fees paid by the acquirer to the issuer to compensate for transaction-related costs. MasterCard and Visa establish interchange fee rates. Back To Top

Interchange: A fee, set by a network operator (such as Visa, MasterCard and debit card networks such as STAR) and paid by the transaction-acquiring bank to the card-issuing bank. Back To Top

Issuer or Issuing Bank: The financial institution and member of Visa or MasterCard that holds contractual agreements with, and issues cards to, cardholders.  Back To Top

Magnetic Information Character Recognition (MICR): Imprinted banking numbers (routing/transit number, checking account number, check number) at the bottom of the check. Back To Top

Magnetic Ink Character Recognition Number (MICR): The bank routing and transit number, checking account number and check number, all encoded at the bottom of a check, which can be used to authorize the check. Back To Top

Magnetic Stripe Reader: A point-of-sale device that reads the encoded information from the magnetic stripe when the card is passed through the reader. Readers may read Track Two, which contains the cardholder account number and expiration date, or both Track Two and Track One, which contains the cardholder name. Back To Top

Magnetic Stripe: A stripe (on the bankcard) of magnetically encoded cardholder account information affixed to a plastic card. Back To Top

Mail Order/Telephone Order (MO/TO): Merchants involved in the direct marketing catalog industry. Back To Top

MasterCard International Incorporated: A member-owned international bankcard association, governed by a board of directors, which licenses members to issue cards or accept merchant drafts under the MasterCard Program. MasterCard owns and operates its own international processing network. Back To Top

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. Back To Top

Merchant Acquirer: A member that has entered into an agreement with a merchant to accept deposits generated by bankcard transactions. This is sometimes also called the acquirer or acquiring bank. Back To Top

Merchant Agreement: The written contract between the merchant and acquirer that details their respective rights, responsibilities and warranties. Back To Top

Merchant Category Code (MCC): A universal four-digit merchant classification code that identifies the merchant by type of processing, authorization and settlement. It is similar to a Standard Industrial Classification (SIC), but more defined. Back To Top

Merchant IDentification Number (MID): The identification number assigned to a merchant by the acquirer. Back To Top

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. Back To Top

Merchant Number: A number that numerically identifies each merchant to the merchant processor for accounting and billing purposes. Back To Top

MICR Number Method: A check authorization procedure that uses the bank routing/transit numbers, checking account numbers and check number encoded along the bottom of the check.  Back To Top

National Automated Clearing House Association (NACHA) - The national association that establishes the standards, rules and procedures that enable depository financial institutions to exchange ACH payments on a national basis. Back To Top

Negative File: A collection of records (cardholder accounts) containing all accounts on which charge privileges have been revoked and/or require a voice authorization. Back To Top

Net Payment: Payment to the merchant for sales drafts less credits minus the appropriate discount fee. Back To Top

Net Revenue: Discount income less interchange expense, association dues, fees and assessments. Back To Top

Net Settlement: The settlement, through an actual transfer of funds, of the net effect of a series of financial transactions involving customers of two or more banks. Back To Top

Network Service Provider: A terminal-centered system that allows the merchant to obtain authorization and/or data captured through the network. It involves a third party vendor that provides authorization network services such as Banknet, VISANet, and NDC. Back To Top

Non Face-to-Face Transaction: Any transaction in which the card is not presented, such as a phone, mail or Internet purchase. Back To Top

Non-Bank: In a payment system, a financial institution not offering retail banking services.  Back To Top

Offline Debit: Debit transaction that occurs when a Visa/MasterCard check card is authorized through the credit card system and the amount is debited from the cardholder's checking (DDA) account. Back To Top

Offline Transaction: A transaction that is authorized through a voice authorization and later keyed into a POS terminal prior to settlement. Back To Top

Online Debit: Debit card transactions that are instantly debited from the cardholder's bank account. No signature is required. A pin pad is required at the point of sale. Cashback is available and the funds are guaranteed. Back To Top

Online Transaction: A transaction that is authorized electronically from the front-end network. Back To Top

Operating Rules: Rules and business practices meant to increase consistency and interoperability among the various financial service providers that will interact with each other and end-users. Back To Top

Original Draft: The actual bank copy of the form used in the transaction. Also referred to as the hard copy.  Back To Top

Personal Identification Number (PIN): The confidential individual number or code used by a cardholder to authenticate card ownership for ATM or POS terminal transactions. Back To Top

PIN Authorization Request: A procedure enabling the issuer to validate cardholder identity by comparing the PIN to the account numbers. Back To Top

PIN: See Personal Identification Number. Back To Top

Point Of Sale (POS): The location at which a payment card transaction occurs, usually by way of a device such as a credit card terminal or cash register. Back To Top

Point-of-Sale System: An electronic system that accepts financial data at or near a retail selling location and transmits that data to a computer or authorization network for reporting activity, authorization and transaction logging. Back To Top

POS Terminal: A device placed in a merchant location that is connected to the bank's system or authorization service provider via telephone lines and is designed to authorize, record, and forward data by electronic means for each sale. Back To Top

POS: See Point of Sale. Back To Top

Presentment: The process by which the acquirer sends the transaction to the issuer for reimbursement. Back To Top

Principal Member: A financial institution that directly participates as an issuing and/or acquiring member of MasterCard International. Back To Top

Private Label Card: A card issued by a merchant that can only be used in the issuing merchant's business, for example, a department store credit card. Back To Top

Private Label: A retailer's proprietary card. It is accepted only at that merchant's retail establishments. Back To Top

Processing Date: The earliest date stamped on the transmittal summary and draft by the member or its processor. Back To Top

Processing Fees: The fees associated with the processing of credit card transactions. Back To Top

Processing: A term used to describe the management of payment transaction flows. Back To Top

Processor: A company responsible for processing interchange transactions, and which is operated by an acquirer or is acting on the acquirer's behalf. Back To Top

Purchasing Card: A card designed to help companies maintain control of small purchases while reducing the administrative cost associated with authorizing, tracking, paying and reconciling those purchases.  Back To Top

Random Access Memory (RAM): Short-term memory for a computer or payment card terminal. Back To Top

Reason Code: A two-digit code identifying the reason a chargeback was initiated. Back To Top

Re-authorization: When one requests an additional amount to be authorized on an existing transaction. It is used mostly in the lodging industry when the original authorization is not sufficient to cover the charges. Back To Top

Receipt: A hard copy description of the transaction that took place at the point-of-sale, containing at minimum: date, merchant name/location, primary account number, type of account accessed, amount, reference number, and an action code. Back To Top

Recurring Transaction: A transaction charged to a cardholder's account, with prior permission, on a periodic basis for recurring goods and services, such as with health club memberships. Back To Top

Refund: When the merchant rebates all or a portion of an original transaction amount to the cardholder. Refunds are made to the same card that was used for the original transaction. It is similar to a Credit. Back To Top

Regional Network: A network which processes debit transactions for financial institutions and retailers in a given geographic area. Regional networks are not part of the national interchange system. Back To Top

Represented Check Entry (RCK): An ACH transaction format for collecting funds represented by a paper check returned for insufficient or uncollected funds. Back To Top

Representment: A transaction presented to the issuer by the acquirer, when the merchant requests a reversal of a chargeback. Back To Top

Retail Transaction: A face-to-face transaction in which the cardholder presents a card to the merchant to pay for goods or services. Back To Top

Retrieval Request: A request by the issuer to the acquirer for a copy of the original sales ticket. Back To Top

Reversal: When an acquirer successfully represents a chargeback to the issuer, the chargeback is reversed and the funds are returned to the merchant. Back To Top

Routing Transit Number (R/T Number): also known as the ABA Number, is A nine-digit number contained in a check's MICR line identifying the financial institution on which a check has been drawn. It is also known as the ABA Number and by the acronym RTN. Back To Top

RS232: The standard port on POS device used to support a wireless transmission via VSAT, Frame, VPN or Motient. May also be used with various peripheral devices i.e. Check Reader or Personal Computer.  Back To Top

Sales Draft: Paper documentation of a transaction. Also called a sales slip, charge slip, or hard copy. Back To Top

Secure Socket Layer (SSL): A Web-based technology that lets one computer verify another's identity and allows secure connections. Back To Top

Security: The area within Credit/Risk Management tasked with monitoring the performance of the entire active portfolio by means of exception reports identifying, investigating and monitoring suspect accounts for fraud-related activities. Back To Top

Serial Port: The place on the back of your computer where you plug in your modem. Also called a communications port or a comm port. Back To Top

Settlement Statement: A document issued to the merchant, indicating the sales and credit activity, billing information, discount fee and chargebacks (if any) occurring during a particular time frame (one week, one month). Back To Top

Settlement: Refers to the final accounting in which debits and credits are posted to the appropriate financial institution accounts. Back To Top

Shopping Cart Software: Software that allows the cardholder to select items from an online store and place them in a 'virtual shopping basket' or 'shopping cart.' The shopping cart remembers which items are selected while the cardholder views other items within the 'virtual storefront,' keeps a running total. It may also calculate taxes and shipping. The items in the shopping cart are eventually ordered if the cardholder so selects. Back To Top

Smart Card: A payment card with a built-in microprocessor (chip) that stores information. Smart cards can be used for stored-value cards, credit cards, loyalty. Back To Top

Split Dial Authorization: A process allowing the authorization terminal to dial directly to different card processors (such as American Express) for 'authorization.' In this instance, the merchant cannot be both EDC and Split Dial. Split Dial is also utilized for Check Guarantee companies. Back To Top

Split Dial: The capability of a card terminal to dial different telephone numbers to obtain an authorization or settlement of different card types. Back To Top

Standard Industrial Code (SIC): A universal four-digit code that designates a merchant's industry type. Similar to an MCC code. Back To Top

Start Up Kit: Supplies shipped to new merchants including sales slips, credit slips, batch header tickets, return envelopes, VISA/MasterCard decals, merchant plastics, imprinter slugs and instructional materials. Back To Top

Stored-Value Card: A pre-paid payment card that stores a monetary value from which the purchase amount is deducted from the card each time the card is used. Back To Top

Submission: The process of sending batch deposits for processing. This may be done electronically or by mail. Back To Top

Summary Adjustment: A correction to a deposit, made by the acquirer, when there is an error in the submitted deposit. Back To Top

Support Documentation: The forms necessary to effect a chargeback processing cycle, and any additional material to uphold a dispute. Back To Top

Suspect Transaction: A transaction that occurs one day prior to or following the account number being listed in the combined Warning Bulletin or listed as pickup card.  Back To Top

T&E Cards: Cards that are developed for and used primarily in travel-related services. It stands for travel and expenses. Back To Top

T&E Merchant: An airline, car rental company or lodging establishment with a primary function of providing travel-related services. Back To Top

Terminal Based: A system that captures card transactions and holds them until settlement. Back To Top

Terminal Capture System (TCS): The process in which transactions are stored in the terminal until the batch is settled to the host. Most often used in restaurant applications where tip adjustments need to be made. Back To Top

Terminal IDentification Number (TID): The number identifying a merchant to the front-end network. Back To Top

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. Back To Top

Third Party Processor: A company that processes ACH files and transactions on behalf of banks or other participants to those transactions. Back To Top

Third-Party Processing: The processing of transactions by service providers acting under contract to card issuers or acquirers. Back To Top

Ticket: Another name for the sales slip or its 'monetary value' that results when a credit card purchase is made. Back To Top

Track One: Information that is stored on the magnetic stripe on the back of a card which includes the cardholder's name, account number and expiration date. Back To Top

Track Two: Information that is stored on the magnetic stripe on the back of a card which includes the account number and expiration date. Back To Top

Transaction Date: The actual date on which a transaction occurs. Back To Top

Transaction Fee: The amount a merchant pays per transaction for processing. Back To Top

Transaction: Any action between a cardholder and a merchant or member that results in activity on the account, such as a purchase, cash advance or credit. Back To Top

Transmission Control Protocol/Internet Protocol (TCP/IP): The system networks use to communicate with each other on the Internet. Back To Top

Valid Date: The date embossed on a payment card stating when the card may first be used. Back To Top

Visa USA: A member-owned national bankcard association, governed by a board of directors, which licenses members to issue cards and accept merchant drafts under the Visa Program. MasterCard owns and operates its own international processing network. Back To Top

Visanet: The data processing systems, networks, and operations used to support and deliver authorization services, exception file services, and clearing and settlement services. Back To Top

Voice Authorization: Transactions authorized by a voice operator. Voice-approved transactions must be "forced" into a terminal batch for settlement. Back To Top

Voice Response Unit (VRU): An automated authorization support system for touch-tone telephones. ABA (the American Bankers Association) is the trade association that has the registration authority to assign identification numbers. Back To Top