GLOSSARY


A  B  C  D  E  F  G  H  I  J  K  L  M  N  O  P  Q  R  S  T  U  V  W  X  Y  Z 

A:

ABA Routing Number: Or Routing Transit Number (RTN), is a 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.

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

ACH: Automated Clearing House - is an electronic network for financial transactions in the United States. ACH processes large volumes of credit and debit transactions in batches and transfers electronic funds into and out of the merchant’s bank account.

Acquirer Or Acquiring Member: (or acquiring bank) is a member of a Card Association, for example MasterCard® and/or Visa®, which maintains merchant relationships and receives all bankcard transactions from the merchant.

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.

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 Terms Of Service, 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.

Altered Card: A card on which the original embossed or encoded information has been altered for fraudulent purposes.

AMEX: The normal abbreviation of American Express®.

Arbitration: The procedure a member can use to resolve a chargeback-related dispute between two members. MasterCard® or Visa® resolves the dispute between members and decides responsibility for the fines that may be assessed to the participating members.

Assessments: Fees charged to the Acquirer by Visa®/MasterCard® to maintain the Interchange system.

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.

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.

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.

Available Credit: The difference between a Cardholder’s credit limit and the present balance on the account, including outstanding transactions not yet received through Interchange.

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.

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B:

Balancing: A procedure to reconcile or account for transactions in a terminal.

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.

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.

Batch Number: A number identifying a group of credit card sales transactions that may have occurred in one day or multiple days.

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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 the Merchant 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 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.

Card Type: A description of the credit card, Visa®, MasterCard®, Discover®, American Express®, UnionPay®, Diners®, JCB®, etc.

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.

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 chargeback happens when the cardholder or the Issuing Bank disputes a charge. The funds for the disputed purchase are usually debited from the merchant’s account, or ’charged back’, and returned to the cardholder while the dispute is being resolved. The merchant must provide documentation that follows certain guidelines set up by VISA® and MasterCard® to prove that the charge is valid before the funds will be returned.

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.

Chargeback Reason Code: A numerical code that identifies the specific reason for the chargeback. MasterCard and Visa® each have their own chargeback codes.

Chargeback Reference Number: An unique number assigned by an Issuer in accordance with specifications in the appropriate VisaNet user’s manual to identify the source of an outgoing Chargeback.

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.

Chip Card: A card (debit or credit) that carries an embedded computer chip with memory and interactive capabilities so that it can be updated. Also called an integrated circuit card or a chip card.

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.

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.

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. Corporate Cards are VISA®, MasterCard®, American Express® or other types of cards that are issued to a company for use by its employees. A Corporate Card allows a company to better track and control employee spending. A Corporate Card is generally issued to a specific employee and has the name of that employee embossed on it as well as the name of the company. A Corporate Card can also be issued to the company in general for use by any authorized employee. Fees to merchants are a bit higher for processing Corporate Cards.

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 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.

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.

CVV2 / CID Code: The 3 or 4 digit Security Code that can be found on the back of a Visa®, MasterCard® or Discover® credit card. CVV stands for Card Verification Value. For American Express®, the Security Code can be found on the front of the card. At American Express®, CID stands for Card Identification number.

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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.’

Downgrades: A downgrade occurs when the merchant does not meet the Visa®/ MasterCard® qualification requirements for a transaction and as a result the transaction is moved to a lower level of interchange. The merchant pays a higher rate for downgrades.

Download: Function performed to get a software program into a POS device.

Dynamic Currency Conversion: The service provided by the associations that converts the transaction currency to the billing currency.

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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 Funds Transferred (EFT): example: Direct deposit of payroll checks

Electronic Gift Cards (EGC): A special card purchased by a customer or provided by Merchant to a customer that is redeemable only 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.

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F:

Factoring: The coercion or bribery of a legitimate merchant to process another merchant’s transactions (often fraudulent) in return for payment.

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.

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’ Ticket Only.

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

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G:

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

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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.

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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 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.

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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.

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M:

Maestro: A national debit network.

Magnetic Ink Character Read (MICR): The magnetic ink character read line encoded on a check that contains information about the checking account.

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.

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) – (aka: Merchant Service Provider): 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 provides 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: 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 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, including any additional location form(s) and any documents submitted by Merchant as a part of the bid process, if applicable.

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 paper and/or electronic 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 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.

Merchant Service Provider (MSP): (aka: Member Service Provider 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)

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.

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

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.

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O:

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.

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.

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.

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.

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.

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P:

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 that 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 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: (aka Processing Terminal) A device at the merchant’s establishment through which the credit card is swiped or keyed by the merchant that connects via telecommunication lines to a central computer. Authorization, recording, and transmitting of transactions are 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.

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.

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.

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Q:

Qualification Level: Each transaction is assigned a Qualification Level at Interchange. The level assigned depends on how closely 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.

Quick Dining: A USBSI proprietary online product that provides restaurant merchants with a fully functional, completely customizable, user and customer friendly tool that supports online orders, reservations and promotions.

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R:

Recurring Transaction: A transaction charged to the cardholder (with prior permission) on a periodic basis for recurring goods and services, i.e., health club membership, book-of-the-month clubs, etc.

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 (Request): 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 and a request to retrieve information is sent through the Acquirer to the merchant to provide the sales slip. A sales slip can be requested for a number of reasons, including:

  • The cardholder is questioning a sale
  • The cardholder needs a copy for tax purposes
  • The Issuing Bank is questioning a sale.

The merchant has a certain time frame in which to respond with the retrieval request. If the request was in support of a disputed sale and the merchant fails to respond within the allotted time, the dispute will be resolved in favor of the cardholder, resulting in a chargeback to the merchant. (A request for tax purposes cannot result in a chargeback.)

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.

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

Smart Cards: The Smart Card, also known as the Chip Card, contains a computer chip embedded in the plastic. When read by a special terminal designed to interact with the embedded chip, the card can perform a number of functions or access data stored in the chip. These cards can be used as cash cards or as credit cards with a preset credit limit.

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

Swipe: Running a credit card’s magnetic stripe through a POS Terminal 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.

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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

Terminated Merchant File: (aka TMF) A file listing of merchants’ names and their principals whose bankcard relationship has been terminated for some reason by an acquirer. Operated jointly by MasterCard® and Visa®.

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 typically requires the balance to be paid in full each month.

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U:

UnionPay®: Established in March 2002, UnionPay® is a bankcard association established under the approval of the State Council and the People’s Bank of China. UnionPay is also an issuer of its’ own card and works with issuers in over 17 countries and regions to issue worldwide.

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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.

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

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W:

Wireless Terminal: A POS Device that allows wireless processing.

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Z:

Zero Floor Limit: Requires that all cardholder transactions be authorized.

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. (USBSI) 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. Merchants should consult their respective processing center for specific guidance. This article is provided by USBSI for reference only. Please contact our customer service if you have any comments, or would like to receive more information.

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