Glossary

Disclaimer of Warranties
This informational provisions guide is subject to change by Visa/MasterCard. The use of this guide is voluntary. US Bankcard Services, Inc. will not be responsible for any and/or all claims, liabilities, losses, damages, costs and expenses (including, without limitations, all reasonable attorneys’ fee) associate with the use of this guide. Merchant should consult their respective processing center for specific guidance. This article is provided by US Bankcard Services, Inc. for reference only. Please contact our service hotline if you have any comments, or would like to receive more information.

Glossary
We’ve provided this glossary to ensure your understanding of all the terms that appear on our website.



A:
ABA: The American Bankers Association.

ABA Routing Number: The ABA number that uniquely identifies the bank on which a check is drawn.

ACH: Automated Clearing House.

Account Number: A unique sequence of numbers assigned to a Cardholder account that identifies the Issuing Bank and type of financial transaction card.

Acquirer Or Acquiring Member A member of VISA and/or MasterCard who maintains merchant relationships and receives all bankcard transactions from the merchant.

Affinity Group A club, organization, or group with a common bond, such as an alumni association, a fraternal order, or a professional organization. Such groups sometimes offer their members a VISA or MasterCard with the group’s logo on it. Agreement: The TOS, the Merchant Application, the Merchant Operating Guide, any Merchant Agreement or Merchant Processing Agreement, and any other guides or manuals provided to Merchant from time to time, and all additions to, amendments and modifications of, and all replacements to any of them, as applicable.

Agreement: The TOS, the Merchant Application, the Merchant Operating Guide, any Merchant Agreement or Merchant Processing Agreement, and any other guides or manuals provided to Merchant from time to time, and all additions to, amendments and modifications of, and all replacements to any of them, as applicable.

AMEX: The normal abbreviation of American Express.

ARC: An accounts receivable conversion used for check present/ customer absent transaction environments and utilizes the ACH network for clearing checks converted to ECS Transactions.

Automated Response Unit (ARU) An ARU (also known as a voice authorization, capture and deposit) allows the manual keyed entry and subsequent authorization of a credit card over a cellular or land-line telephone. With this method a merchant typically imprints their customer's card with an imprinter to create a customer receipt and merchant copy, then process the transaction instantaneously over the phone.

Association: Organization, owned by financial institutions, that licenses a bank card program or performs transaction processing for its owners. The present-day national card associations, Mastercard International and Visa International perform four key functions: licensing bank cards and service marks to card issuing banks; authorizing transactions by cardholders; settling interchange transactions when the transaction processing bank (called the Merchant Bank) is different from the card issuer; and setting the Interchange rate, or the transaction processing fee paid by association members.

Automated Clearing House (ACH): The automated “bank” that transfers electronic funds into and out of the merchant’s bank account.

Automated Teller Machine (ATM): A machine provided by a bank that allows customers to access their accounts 24 hours a day, 7 days a week. An ATM card issued to the customer tells the machine the account numbers associated with the card and the Personal Identification Number (PIN) that must be entered to access the accounts.

Authorization: The permission of the Issuing Bank to accept a credit card for payment.

Authorization Code: The code sent by the Issuing Bank in response to an authorization request to indicate that a credit card can be accepted as payment.

Authorization Fee: A fee charged for every response a merchant receives through a terminal.

Authorization Request: A request sent to the Issuing Bank by the merchant for approval to accept a card for payment.

Authorization Terminal: A device used for obtaining credit card authorizations but not necessarily for processing transactions. Some paper processing merchants get authorizations through a terminal but process the transactions by paper.

Automated Response Unit (ARU): An ARU (also known as a voice authorization, capture and deposit) allows the manual keyed entry and subsequent authorization of a credit card over a cellular or land-line telephone. With this method a merchant typically imprints their customer's card with an imprinter to create a customer receipt and merchant copy, then process the transaction instantaneously over the phone.

Available Credit: A machine provided by a bank that allows customers to access their accounts 24 hours a day, 7 days a week. An ATM card issued to the customer tells the machine the account numbers associated with the card and the Personal Identification Number (PIN) that must be entered to access the accounts.

Average Daily Balance: An amount calculated by dividing the balance outstanding at the close of each day during the billing cycle by the number of days in that cycle. Used to calculate the interest due on the outstanding balance.

Average Monthly Volume: Total amount of sales for the year divided by 12 months.

Average Ticket: Total net merchant sales divided by the number of transactions.

Address Verification Service (AVS): When a card is not swiped, the address must be verified to combat possible fraud. This feature is used primarily by mail or telephone order merchants but can be used by retail merchants when a card cannot be swiped. A prompt appears on the terminal asking the merchant to enter the numerical value of the cardholders billing address, the Zip Code and, on occasion the CVV / CID code of the Cardholder so that the address can be verified. Complete AVS is a service that verifies the Cardholder’s billing address.

B:
Balance: The amount of money owed by the Cardholder to the card Issuing Bank.

Balancing: A procedure to reconcile.

Bankcard: A plastic card issued by a financial institution, which allows a Cardholder flexibility in how he or she pays for purchases. Also called credit cards, charge cards, or debit cards, depending on their use.

Bank Identification Number (BIN): The first six digits of a VISA or MasterCard account number, which identifies the bank that issued the card.

Bankcard Associations: A group of banks which has banded together so that they can exchange information on credit card transactions, allowing for wider acceptance of the credit card issued by the association.

Basis Point: One hundredth of a percentage point (.01%). Discount rates are assigned as basis points. For example 0.50% = 50 basis points; 1.00% = 100 basis points.

Batch: The group accumulated credit card transactions stored in the terminal or Host. A batch can be as few as one transaction or as many transactions as the terminal has the memory to hold. Also refers to a group of paper credit card sales slips from transactions accepted by a merchant who does not process transactions electronically.

Batch Header: A summary, similar to a deposit slip, of a group of credit card transactions accepted by a merchant who does not process transactions electronically. It is attached to the credit card slips when they are sent to the paper processor.

Billing Date: The month, day and year when a monthly statement is produced. The current finance charges, minimum payment due, and new balance are calculated as of the billing date.

C:
Card Not Present: The processing environment where the Payment Device is not physically presented to the Merchant by the Cardholder as the form of payment at the time of the Transaction. Card Not Present includes, but is not limited to, Mail Order, Telephone Order, and Electronic Commerce Transactions.

Card Present: The processing environment where the Payment Device is physically presented to theMerchant by the Cardholder as the form of payment at the time of sale.

Cardholder: The person to whom a bankcard is issued or a person authorized to use the card.

Cardholder Information Security Program (CISP): Visa's data security regulations to protect Cardholder account data and other data security best practices. The exact requirements for CISP can be found at www.visa.com/cisp.

Cardholder Data: One or more of the following data elements pertaining to a Cardholder's account: Card number, Cardholder name (if applicable), Card account activity, Cardholder account balance, and/or such other data applicable to the Merchant's Card program.

Cash Advance: A transaction in which a Cardholder gets cash from a member financial institution or ATM. The advance is added to the balance owed on the credit card account by the Cardholder and interest is charged.

Cash Back: When a Cardholder disputes a charge, the Issuing Bank charges the amount of the transaction back to the merchant until the dispute is resolved.

Charge Card: A true charge card must have the balance paid off each month (unless special arrangements are made with the Issuing Bank to extend temporary credit under certain circumstances). American Express is an example of a charge card. The Optima card from American Express however, is a credit card - the balance can be carried from month to month with an interest charge - but it is a travel and entertainment card rather than a bankcard since it is not issued by a financial institution.

Chargeback: A sales Transaction disputed by a Cardholder or Issuer pursuant to the Payment Network Regulations.

Check Guarantee: A service which guarantees check payment (up to a limit defined for the account) provided that the merchant follows correct procedures in accepting the check.

Check Verification: A service that tells a merchant whether a check writer has been reported for writing bad checks, but it does not guarantee payment if the check bounces.

China Unionpay: A credit card issued in China that has become more widely accepted in the United States in recent years due to the growing number of Chinese and Asian business people traveling and working here.

Cirrus: A subsidiary of MasterCard that operates an international ATM sharing network.

Clearing: The exchange of financial transaction information.

Closing: The sending through the Interchange of the credit card transactions accumulated by the merchant in the terminal or Host so the merchant can be paid for them.

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

Co-Branded Card: A VISA or MasterCard with a specific retail brand attached to it, such as a gasoline station, a grocery store, a phone company, a car company, etc. These cards offer special incentives to Cardholders to shop with the retailer involved.

Confidential Information: All information or items proprietary to Servicer or Member, of which the Merchant obtains knowledge or access as a result of the Merchant's relationship with Servicer and Member, including, but not limited to, the following types of information and other information of a similar nature (whether or not reduced to writing): scientific, technical, or business information, product makeup lists, ideas, concepts, designs, drawings, techniques, plans, calculations, system designs, formulae, algorithms, programs, software (source and object code), hardware, manuals, test procedures and results, identity and description of computerized records, identity and description of suppliers, customer lists, processes, procedures, trade secrets, “know-how,” marketing techniques and material, marketing and development plans, price lists, pricing policies, and all other financial information.

Convenience Fee: Any fee or charge for the use of a Payment Device in a Transaction.

Coverage Area: The geographic area in which wireless Transaction processing is available to Merchant.

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 Issuing Bank for repayment of the credit extended.

Credit Line: Also called a credit limit. The amount of money a Cardholder can charge against his or her card. This amount is determined by the Issuing Bank based on the Cardholder’s past credit history and income.

Credit Card Rules: All applicable rules and operating regulations of the Credit Card Associations, and all rules, operating regulations, and guidelines for Credit Card Transactions issued by Servicer from time to time, including, without limitation, all amendments, changes and revisions made thereto from time to time.

CVV / CID Code: The 3 or 4 digit Security Code that can be found on the back of a credit card. For American Express, the Security Code can be found on the front of the card. CVV stands for Card Verification Value. At American Express, CID stand for Card IDentification number.

D:
Data Capture: The collection, formatting, and storage of information in computer memory.

Debit: A charge to a cardholder’s bankcard account or funds electronically removed from a merchant’s account.

Debit Card: A card that allows the Cardholder to pay for purchases by having the amount taken directly from his or her bank account. It is not a credit card or a charge card.

Decryption: The method of unscrambling encrypted information. See “Encryption.”

Demand Deposit Account (DDA): The bank checking account to which the merchant’s deposits are made or funds debited.

Discount Rate: The fee charged to a merchant for processing credit card transactions.
Also called “Discount Fee,” “Base Rate or Fee,” “Monthly Rate or Fee,” or just “Rate” or “Fee.”

E:
Electronic Draft/Data Capture (EDC): Sending the information about each credit card transaction to the Issuing Bank electronically through the point of sale terminal.

Electronic Gift Cards (EGC): A special card purchased by a customer or provided by Merchant to a customer that is redeemable for in-store merchandise or services.

Embossing: The process of printing data on a bankcard in the form of raised characters to allow the imprinting of sales slips.

Encoding: The recording of data on the magnetic stripe of the bankcard.

Encryption: The method used to scramble financial information for security purposes. For example, all Personal Identification Numbers (PINs) are encrypted when transmitted for authorization.

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

F:
FI (Financial Institution) Number: A number used as part of the Terminal Identification (TID) number that indicates the banking relationship group to which the merchant belongs.

Finance Charge: See Interest.

Financial Institution: Any organization in the business of moving, investing, or lending money, dealing in financial instruments, or providing financial services. Includes commercial banks, thrifts, federal and state savings banks, savings and loan associations, and credit unions.

Floor Limit: A dollar amount over which the merchant must get authorization. The Acquirer in accordance with Visa and MasterCard rules and regulations sets this limit.

Folio Number: A tracking number used by a lodging merchant for guest bills. This number is usually the guest’s room number but some hotels assign separate folio numbers depending on their accounting system.

Force: Allows the merchant to enter a transaction if unable to process under the regular sale key. Also called an “Offline sale”or Ticket Only.

Foreign Network: A processor network other than the clearing processor.

G:
Guarantor: A Person that executes a Personal Guaranty for the benefit of Servicer and Member.

H:
Hologram: A laser-created three-dimensional image on a card to combat counterfeiting.

Host Based: A software program that stores transactions only in the processors Host system.

I:
Imprinter: A device used by a merchant to imprint card information onto a sales draft. Commonly known as a “Knuckle-Buster”.

Incremental Approvals: A request for an additional dollar amount on a prior authorization. An incremental authorization is used when the final amount for a transaction is greater than the dollar amount of the original authorization. Incremental authorizations are common in the lodging industry. For example, a hotel guest might register for one night, but then decide to extend the reservation for additional night. In that case, an incremental authorization might be performed in order to get approval for additional charges pertaining to the second night.

Interchange: The clearing and settlement system for Visa and MasterCard Credit Cards and Debit Cards where data is exchanged between the Servicer and the Issuer.

Interest: A fee charged by the card Issuing Bank when the Cardholder does not pay off his or her entire balance with each statement. Interest is charged to offset the cost of carrying the balance.

Interlink: A national debit network.

Interchange: The clearing and settlement system where data is exchanged between the credit card processor and the Issuing Bank.

Interchange Card Association (ICA) Number: A four-digit number located below the expiration date of the card that identifies the Issuing Bank of the card.

Interchange Fees: The fees deducted from the transaction amount by the Issuing Bank to cover the cost of the process. The Acquirer pays the net amount to the Issuing Bank.

Independent Sales Organization (ISO): Another name for a registered Member Service Provider (MSP). See Member Service Provider.

Issuing Bank: The bank or other company that issues a credit card to a Cardholder.

Issuing Banks’ Clearinghouse Service (ICS): A joint Visa and MasterCard service designed to detect fraudulent and high-risk credit card applications. The service, which is mandated for use in the application screening process, validates and tracks addresses, phone numbers, and Social Security numbers used in credit applications and in reports of fraudulent activity.

J:
Japanese Credit Bureau (JCB): A credit card issued in Japan that has become more widely accepted in the United States in recent years due to the growing number of Japanese business people traveling and working here.

L:


M:
Maestro: A national debit network.

Magnetic Stripe: A stripe on a bankcard that is magnetically encoded with Cardholder account information.

Mail Order/Telephone Order (MO/TO) Transaction: For MO, a Transaction that occurs when the Cardholder uses the mail to make a purchase from a Merchant and for TO, a Transaction that occurs when the Cardholder uses a telephone to make a purchase from a Merchant.

Master Account: The account (e.g. funds pool) that is used to hold the value of Cards that have been issued among a group or chain of merchants, alternatively, this may refer to the back-up account used to offset ACH rejects, if applicable.

MasterCard: MasterCard International Incorporated.

MasterCard International Incorporated: A public international bankcard association governed by a board of directors that licenses members to issue cards and/or accept merchant drafts under the MasterCard Program. MasterCard owns and operates its own international processing network.

Member: An entity or financial institution that registers to be a member of VISA USA and/or MasterCard International. Once registered, a member is licensed to issue credit cards to cardholders.

Member Service Provider (MSP): Usually an independent salesperson, office or company who contracts with a bank or a processor to sell credit card processing, equipment, and services to the merchant, and sometimes provide back office functions such as settlement and chargeback/retrieval management, equipment-related customer service, paper storage and retrieval, and supplies. Also known as Independent Sales Organizations (ISOs)

Merchant (or you): Any business that has met the qualification standards of MasterCard and/or VISA, has been approved by any acquiring member, and accepts MasterCard and/or VISA cards as payment for goods and services.

Merchant Accounting System: The accounting system that transfers electronic funds from the Interchange to the merchant’s bank account via the Automated Clearing House (ACH) and sends the merchant monthly statements concerning the merchant’s credit card transfers.

Merchant Application: Any document containing information regarding Merchant’s business that is submitted to Servicer and Member in connection with Merchant’s application for processing services, including any additional location form(s) and any documents submitted by Merchant as a part of the bid process, if applicable.

Merchant Agreement (Merchant Processing Agreement): Any agreement that Merchant has entered into for processing services, which agreement is either with Servicer or another entity that, directly or indirectly, transferred its rights under such agreement to Servicer. Merchant Application: Any document containing information regarding Merchant's business that is submitted to Servicer and Member in connection with Merchant's application for processing services.

Merchant Category Code (MCC) Code: used by MasterCard to identify what a merchant sells.

Merchant Discount Rate: The fee charged to a merchant for processing credit card transactions. Also called “Discount Fee,” “Base Rate or Fee,” “Monthly Rate or Fee,” or just “Rate” or “Fee.”

Merchant File: A file used by the Acquirer to list pertinent information on its merchants.

Merchant Identification Number (MID): Each merchant is assigned a unique identification number that is used to locate information concerning the merchants and their accounts.

Merchant Operating Guide: The operating manual provided by Servicer to its Merchants. The Merchant Operating Guide may be amended from time to time by Servicer in its sole discretion.

Merchant Processing Agreement (MPA): A signed contract between the merchant and the credit card processor that outlines the responsibilities of the processor and the merchant in the credit card transaction process.

Merchant Qualification Standards: The minimum standards established by Visa and MasterCard for merchant acceptance that requires the merchant to be financially responsible and of good repute.

MICR: The magnetic ink character read line encoded on a check that contains information about the checking account.

Minimum Discount Fee: The minimum discount fee a merchant agrees to pay each month based on his or her expected sales volume. A merchant will be charged the actual amount of fees generated or the minimum discount fee, whichever is greater.

MO/TO: Mail Order/ Telephone Order.

N:
National Debit Networks: Networks formed by groups of banks that allow debit cards from banks subscribing to these networks to be used all over the country at other subscribing banks and at subscribing retailers.

Network: An entire system of communication lines.

No-Show: A charge processed by a hotel or motel when a Cardholder either fails to arrive within a specified time or fails to cancel the guaranteed reservation within a specified time frame. The words “no-show” must be written on the signature line of the sale draft.

Non Face-to-Face Transaction: Any transaction where the card is not present, such as a mail or telephone order purchase.

Non-Bank Card: A card which is not issued by a financial institution and allows a balance to be carried from month to month, such as Discover.

Non-Qualified Rate: The discount rate level at which the transaction qualifies when it did not meet any of the qualifications for the other lower rates. All paper merchants will qualify at this level, as will all business cards.

NovaNet: The Elavon data processing systems, networks, and operations which support and provide authorization services, clearing and settlement services, exception file services, and other services. Off-Line Sale: Allows the merchant to enter a transaction if unable to process under the regular sale key. Also called a Force or Ticket Only.

O:
Operating Principles and Rules: A set of specifications, guidelines, and principles defined by Visa that govern the operation and flow of information for Electronic Check Service Transactions.

Off-Line Sale: Allows the merchant to enter a transaction if unable to process under the regular sale key. Also called a Force or Ticket Only.

Off-Line: An operating mode in which terminals are not connected to a central computer. Responses are determined by guidelines set by the Issuing Bank which are housed in the terminal or in a supporting device.

Off-Line Debit Card: A debit card that does not deduct funds from the checking account immediately. Transactions are processed like a regular credit card and funds are not deducted for 24-72 hours. No Personal Identification Number (PIN) is needed to process the transaction.

On-Line: An operating mode in which terminals are connected to a central computer and have access to the data base for authorization, questions, and file changes.

On-Line Debit Card: A debit card that deducts funds from the checking account immediately. A Personal Identification Number (PIN) is needed to process the transaction so the merchant must provide a PIN pad that faces the customer.

OPTIMA: A type of credit card issued by American Express that allows the balance to be carried over from month to month with an interest charge.

Over-The-Counter: Method of processing by which a merchant submits credit card sales slips to a local bank for immediate payment.

P:
Paper Processing: Sending the information about each credit card transaction to the Issuing Bank by sending the paper credit card slips to a paper processor.

Paper Processor: A company that keys in the information on paper credit slips so it can be sent on to the Issuing Banks electronically.

Partially Qualified Rate: The discount rate level at which the transaction qualifies when it did not met all requirements for the best (lowest) rate but met more requirements than needed to qualify for the non-qualified (highest) rate.

Payment Card Industry (PCI) Data Security Standard: The data security regulations, including maintaining Cardholder account data in a secure environment, and other data security best practices endorsed by the major card associations including Visa and MasterCard, as such may be amended from time to time. Visa requires that Merchants and their agents comply with CISP. MasterCard requires that Merchants and their agents comply with SDP.

Per-Transaction Fee: A fee than can be charged to a merchant for each transaction that is processed. Not all merchants are charged this fee, depending on their merchant agreements.

Personal Identification Number (PIN): A number that must be entered by the customer before an ATM will allow access to the customer’s bank accounts. Also used at a retail establishment when a customer pays for a purchase with an ATM or on-line debit card.

Personal Identification Number (PIN) Authorization Request: A procedure enabling the Issuing Bank to validate Cardholder identity by comparing the PIN to the account number.

Pick Up Card: A response to an authorization request. The Issuing Bank is asking the merchant to confiscate the card and return it to the Issuing Bank.

PIN: A Personal Identification Number.

PIN Pad: A secure device with an alphanumeric keyboard which conforms with the Laws, Payment Network Regulations, and requirements established from time to time by Servicer, and through which a Cardholder may enter a PIN.

Plus: A National ATM network

Point Of Sale (POS): The actual location where a transaction takes place. For example, when a retail purchase is made, the store is the point of sale.

Point Of Sale (POS) Terminal: A device at the merchant’s establishment that connects via telecommunication lines to a central computer. Authorization, recording, and transmitting of transactions is performed through the terminal.

Portfolio: The merchants who are under contract to a financial institution or processor for credit card processing services provided by that institution or processor.

Post Auth: Allows the merchant to enter a transaction if unable to process under the regular sale key. Also called a force or off-line sale.

Posting: The process of recording charges and credits to the Cardholder’s account.

Private Label: A card issued by a retailer and accepted only at that retailer’s establishment(s).

Processing: The procedure by which the merchant sends the information about each credit card transaction to the Issuing Bank to that the Issuing Bank can pay the merchant for the transactions.

Processing Terminal: The terminal at the point of sale through which the credit card is swiped or keyed by the merchant.

Processor: A company that processes transactions through Interchange.

Purchasing Card: A card encoded with additional information that can be gathered and supplied to a company by the Issuing Bank. A bank that has a contract with the company issues the cards and they look just like a regular VISA or MasterCard. Purchasing Cards are used mainly by the government for food stamps and other government programs.

Q:
Qualification Level: Each transaction is assigned a Qualification Level at Interchange. The level assigned depends on how well the transaction met the requirements for the merchant’s industry. For example, for a retail merchant’s transaction to be assigned the Qualified level, the card must be swiped, the terminal must be settled each day, and all other criteria for that level must be met.

Qualified Rate: The discount rate level at which the transaction qualifies when it met all requirements for the best (lowest) rate.

R:
Reference Number: The number identifying each transaction on the monthly statement sent to the Cardholder. The reference number is used if a retrieval request becomes necessary.

Regional Debit Networks: Networks formed by groups of banks in certain regions of the country that allow debit cards from banks subscribing to these networks to be used within those regions at other subscribing banks and at subscribing retailers.

Retrieval: A request by the Issuing Bank to the Acquirer for a copy of the actual sales slip from a transaction. The initial step that the Issuing Bank takes when either the Issuing Bank or the Cardholder disputes a transaction.

Revolving Credit: Allows Cardholders to make regular payments on the balance owed rather than having to pay off the entire balance at one time.

Reward Card: This type of credit card offers some type of reward to the cardholder for using the card on a regular basis. Rewards can be a small percentage of cash back, discounts at local stores, gas cards, frequent flyer miles, or chances to earn points that can be used for gifts and services selected by the credit card company.

Routing Transit Number (RTN), routing number, or ABA number: Nine digit bank code, used in the United States, which appears on the bottom of negotiable instruments such as checks identifying the financial institution on which it was drawn. This code is also used by Federal Reserve Banks to process Fedwire funds transfers and by the Automated Clearing House to process direct deposits and other automated transfers. The routing number is derived from the bank's transit number originated by the American Bankers Association, which designed it in 1910.

S:
Service Establishment (SE) Number: Merchant numbers assigned by American Express, Discover, and some check companies to identify merchants who accept those cards or subscribe to those check services.

Settlement or Settling: The sending through the Interchange of the credit card transactions accumulated by the merchant in the terminal or Host so the merchant can be paid for them.

Standard Rate: The discount rate level at which the transaction qualifies when it did not meet any of the qualifications for the other lower rates. All paper merchants will qualify at this level, as will all business cards.

Swap Fee: What USBSI charges a merchant for replacing a piece of defective equipment.

Swipe: Running a credit card’s magnetic stripe through a reader that interprets the data encoded on it.

Switch: The method by which MAS separates transactions to be sent to the appropriate company to be authorized.

T:
T&E Card: See Travel and Entertainment Card.

Terminal Based: Software through which transactions are stored in the terminal until settlement.

Terminal Identification (TID) Number: The unique number assigned to each point of sale terminal that tells the processors Host which merchant a transaction came from and where an authorization is to be sent.

Terminal Provider: A company that supplies credit card hardware and software to a merchant

Third-Party Processor: A non-member agent contracted by a member to provide authorization, processing, and merchant services.

Transaction: Any action between a Cardholder and a merchant or member that results in activity on the account, such as a purchase, cash advance, debit or credit adjustment, etc.

Transaction Date: The actual date that a transaction occurs. Used in recording and tracking transactions.

Transmittal Slip: Documentation that should be filled out by any bank that accepts paper sales drafts from merchants. Show total sales, total credits, and net amount that is owed to the bank for all the bank’s merchants.

Travel & Entertainment Card: A card issued by a non-financial institution that requires the balance to be paid in full each month.

V:
Valid Date: The date, embossed on the card, prior to which the card may not be used.

Value-Added Reseller (VAR): A company that adds some feature(s) to an existing product(s), then resells it (usually to end-users) as an integrated product or complete "turn-key" solution. This practice is common in the electronics industry, where, for example, a software application might be added to existing hardware.

Visa: A national association, public company governed by a board of directors, that licenses its members to issue VISA cards and accept VISA sales drafts. VISA owns and operates an international processing system and provides a number of various services to its members, Cardholders and merchants.

VisaNet: The VISA data processing systems, networks, and operations which support and provide authorization services, clearing and settlement services, exception file services, and other services. This network is considered a “Foreign Network.”

Voice Authorization Center: The place where a merchant calls to get verbal approval from an Issuing Bank to accept a credit card. The Voice Authorization Center is used if the merchant does not use a terminal to process transactions or if the Issuing Bank informs the merchant through a message sent to the terminal that more information is needed on the Cardholder. Each processor has their own Voice Auth phone number for their merchants

W:
Wireless Terminal: A POS Device that allows wireless processing.