Glossary of Terms

Index:

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

3-D Secure – This is an XML-based protocol, used as an added layer of security for online credit and debit card transactions. It was developed by Visa to improve the security of internet payments and offered to customers as the Verified by Visa service. 3-D Secure adds another authentication step for online payments. 3-D Secure should not be confused with the code which is a short numeric code that is printed on the card.

Acquirer – A financial institution, otherwise known as a merchant bank that is contracted with the merchant to collect funds from credit card issuers for goods sold that are settled by credit and debit card.

Amex – American Express

APACS – Formerly The Association for Payment and Clearing Services, now known as UK Payments Administration – the body responsible for matters relating to money transmission and payment clearing activities generally in the UK.

ATV – Average Transaction Value

Authorisation – A process whereby a credit or debit card transaction for a specified amount is approved, referred or declined by a card issuer or an acquirer on behalf of a card issuer.

Authorisation Call – A telephone call made from a point of sale to obtain authorisation for a transaction.

Authorisation Code – A code which is generated by a card issuer or by an acquirer on behalf of a card issuer, when an authorisation request is approved.

AVS – Address Verification Service – verification of the numeric elements in the cardholder’s billing address.

B

B2B – Business to business transactions.

BACS – Bank Automated Clearing System.

Banking Window – An allocated time set by some merchant acquirers where they will automatically batch your transactions.

Bespoke Solutions – At Chip & PIN Solutions, we work closely with some of our customers in developing comprehensive, bespoke services and support plans tailor-made for them. All you need to do is call us free on 0800 881 8104 and one of our bespoke payment team will be happy to talk you through and advise you on the most effective payment solution for your business.

Bluetooth Card Machine – Chip & PIN card machine that can only be used from a Bluetooth hub in an environment where the card machine needs to be portable but not fully mobile. Typically these terminals are used in the hospitality sector such as bars, clubs and restaurants.

Broadband Connection – A high data rate connection to the internet.

C

Card Issuer – Institution who issue the payment card to the cardholder such as MasterCard or Visa.

Card Scheme – MasterCard, Visa, AMEX and Diners to name but a few.

Cardholder – An individual to whom a card has been issued.

Cardholder Transaction – The use of a card by a customer in order to purchase goods or services from a merchant or to obtain cash from an ATM or financial institution.

Chargeback – The right, in defined circumstances (usually a disputed transaction), of a card issuer to charge part or all of the value of a transaction back to the acquirer. The acquirer may subsequently chargeback the value of the transaction to the merchant.

Chip & PIN – Secure method of undertaking a transaction – designed to fight fraud.

Chip Cards – New generation of credit and debit cards incorporating integrated circuitry. Replacing the magnetic swipe in an effort to combat fraud.

CNP – Cardholder Not Present – transaction undertaken via telephone or online where the merchant does not see the card.

Contactless – Contactless payment systems are credit cards, key fobs, smartcards or other devices, which use radio-frequency identification for making secure payments. The embedded chip and antenna enable consumers to wave their card or fob over a reader at the point of sale.

Corporate Card – A commercial card issued to businesses.

Countertop Card Machine – Chip & PIN card machine that can only be used from a fixed and static environment such as shops in the retail sector. Typically, they work via your telephone line.

Credit Card – A payment card (e.g. MasterCard, Visa) linked to an account which, under a revolving credit agreement, may be settled in full by a stipulated date or may be repaid over a period of time, subject to minimum monthly repayments being made. Interest will normally be charged on the outstanding balance by the card issuer.

Credit Card Machine – A Credit card machine is a device that can do transactions with a debit card or a credit card. Credit card machines securely transmit data over a standard telephone line or the internet. Wireless credit card machines can securely transmit credit card data using either cellular networks or satellite networks.

CSC – Card Security Code. The last three digits on the signature strip on the back of a credit card.

CVV – Cardholder Verification Value (CV2 for Visa) and Cardholder Verification Check (CVC2 for MasterCard). This data is included as the last three digits on the signature strip (CSC) and represents a unique card verification method.

D

Debit Card – A card (e.g. Maestro/Visa Debit), which is designed to enable a customer of the card issuer to pay for goods and services by transferring money from a current account.

Dynamic Currency Conversion – Dynamic Currency Conversion (DCC) is a financial service where holders of credit cards have the cost of a transaction converted to their local currency when making a payment in a foreign currency.

E

E-commerce – The supply of goods and services conducted electronically over the internet.

EFT – Electronic Fund Transfer

Electron – A Visa international debit card for use in online POS devices operating within a zero floor limit. Cards are not normally embossed. Participating merchants must meet electronic requirements. Issuers have the choice of branding cards Visa Electron or Electron, and are able to co-exist with domestic brands e.g. Delta, with the domestic brand taking precedence in the home market.

End of Day – A process which must be completed on a terminal to enable it to be polled. Depending upon terminal type and configuration parameters, many terminals are configured to perform the End of Day routine automatically.

EPoS – Electronic Point of Sale otherwise known as tills.

F

First Data – One of the world’s largest providers of merchant processing services.

Fixed Line Card Machine – Chip & PIN terminals that can only be used from a countertop or static environment, such as shops in the retail sector. Typically they work via your telephone line.

G

Gratuity – A facility that can be used on the terminal for tips and service charges, typically used in restaurants or taxis.

GPRS – General Packet Radio Service (GPRS) is a packet-oriented mobile data service on the 2G and 3G cellular communication systems global system for mobile communications (GSM).

GSM – Global System for Mobile Communications.

H

Hospitality Solutions – Any payment solution that we offer in the hospitality sector such as clubs, bars and restaurants.

I

IVC – Identification Verification Certificate

J

JCB – Japan Credit Bureau – issuer of the JCB Card, the leading Japanese travel and entertainment card, accepted in over 100 countries world-wide.

K

KYC – Know Your Customer is the due diligence that financial institutions and other regulated companies must perform to identify their clients and ascertain relevant information pertinent to doing financial business with them. KYC policies have become increasingly important globally to prevent identity theft, fraud, money laundering and terrorist financing.

L

Liability Shift – From 1st January 2005 – failure by merchants to process a Chip & PIN transaction will lead to them becoming liable for any fraud committed.

M

Maestro – A domestic and international payment (debit card) scheme launched in 1993.

Mastercard – An international payment systems organisation controlled by its members.

MCC – Merchant Classification Code

Merchant – An organisation that accepts cards as settlement for goods and/or services provided to their customers.

Merchant Funding – Merchant Funding allows merchants to turn future credit card sales into cash. A fixed percentage is deducted from the Merchant Account automatically through credit card processing receipts for repayment.[/faq]

Merchant Services – A service offered to our customers by Chip & PIN Solutions, in order to organise a Merchant Account very quickly at market-beating card processing rates.

MID – Merchant Identification Number which is the reference for your merchant bank account.

Mobile Card Machine – Chip & PIN terminals that can be operated anywhere that work off the GPRS/GSM mobile data networks.

MOTO – Mail Order Telephone Order) Cardholder Not Present transactions. Where a merchant takes mail order or card details over the telephone.

MSC – Merchant Service Charge – a charge paid by a merchant to his acquirer, calculated as a percentage of credit card turnover for credit/charge card transactions or a fixed charge per transaction for debit cards.

N

NTC – Means New to Cards and refers to the definition of new merchants that at the time of recruitment, do not offer any payment services by card.

O

Online – This term is used to define a connection or data transmission via a data communication link.

Online Authorisation – This refers to a transaction that is approved or declined by a card issuer or an acquirer on behalf of a card issuer. The authorisation process includes an online dialogue between the merchant terminal and the acquirer’s host system.

Online Card Machine – A merchant card machine that generates an online authorisation request for each transaction and where data capture of a transaction by an outlet’s acquirer occurs during online authorisation processing.

P

Pan Key – A service which may be provided to a merchants card machine enabling card details to be keyed into the card machine as opposed to the card being swiped through the card machine.

Payment Card – A generic term for any plastic card, such as credit, debit or charge card which may be used on its own to pay for goods and services, or to withdraw cash.

PSP – A payment service provider (PSP) offers merchants online services for accepting electronic payments by a variety of payment methods including credit card, bank-based payments such as direct debit, bank transfer and real-time bank transfer based on online banking.

PCI DSS – Payment Card Industry Data Security Standard (PCI DSS) is an information security standard for organisations that handle cardholder information for the major debit, credit, prepaid, e-purse, ATM, and POS cards.

PDF – Personal Details Form.

PDQ Card Machine – PDQ stands for Process Data Quickly and refers to the electronic processing system used to process credit and debit card transactions.

PIN – Personal Identification Number – a set of characters, usually a four digit sequence, used to authenticate cash withdrawals or instructions initiated by a payment card through a customer activated terminal such as an ATM or Chip & Pin cards for transactions on terminals.

Polling – The collection of data stored in a terminal by a central computer or polling service. Data is collected in batches rather than in real-time.

POS – Point of Sale (service). The physical location at which a merchants card machine is sited and where card transactions are conducted.

Processing day settlement – Transactions performed by a merchant during non-banking days (i.e. Saturdays, Sundays and Bank Holidays) are consolidated with the transactions performed during the nearest immediately preceding banking day to produce single credits per card scheme.

PSTN – Public Switched Telephone Network – the standard voice telephone system which may also be used for data.

PWCB – Purchase with Cash Back – an optional transaction type offered within the Maestro and Visa Debit Card schemes allowing a merchant, with the approval of its acquirer, to allow a cardholder to draw cash up to a limit agreed with its acquirer (at a maximum of £50) within a standard sale transaction. Also known as ‘Cash Back’.

R

Reconciliation – The method by which a merchant compares the business undertaken at his/her electronic data capture card machine with that recorded by the acquirer and credited to his/her bank account.

Retail Solutions – Any payment solution that we offer in the retail sector or hospitality sector, such as shops and merchants working from fixed locations.

RFI – Request for Further Information – a request by either the card issuer or cardholder, wishing to obtain further information about a particular transaction.

S

Settlement – A transfer of funds from the acquirer to the merchant.

Short Term Rental – A service we offer where we can hire out our card machines on a short-term basis, typically for events or exhibitions.

T

Terminal – A hardware device that accepts and processes card payments.

TID – Your unique terminal identification number.

W

Wave & Pay – This is another term used for Contactless Payments. These are for payments up to £30.

WEBPOS – Point of Sale systems that can be used remotely online.

Wi-Fi Card Machines – Chip & PIN card machines that can only be used via a Wi-Fi connection.

V

Visa – An international payment systems organisation controlled by its members.

Voice Referral – The procedure which may follow an authorisation request involving the merchant being requested to contact his/her acquirer for further instructions or the communication of further information about the cardholder or transaction.