Common Payment and Processing Terms
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This is the nine-digit number that appears on checks and identifies the financial institution.
An electronic payment from one bank account to another.
A bank that provides merchant accounts and deposits funds.
Visa, Mastercard, American Express and Discover.
A card that withdraws funds directly from a bank account.
The process of requesting approval from the card issuer for a transaction.
A code returned by the issuer when a transaction is approved.
A fee charged each time a transaction is sent for approval.
Reserves funds on a card for later settlement.
The issuing bank’s approval, decline or call center message.
The average dollar amount of credit card sales.
A fraud control tool for verifying billing address information.
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One basis point equals 0.01%.
Submitting a group of transactions for settlement.
Coverage to offset costs of a suspected or actual data breach.
A classification based on a business’s model and payment environment, such as retail, restaurant, lodging, mail or telephone order, or e-commerce.
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The step that submits a previously authorized card transaction for settlement.
Fees established by payment card networks, such as Visa, Mastercard, Discover, or American Express, that may apply to the processing of card transactions.
Online or phone transactions where the card is not physically present.
A face to face transaction where the card is physically used.
A pricing approach where customers receive a discount for paying with cash rather than another payment method, when structured in accordance with applicable requirements.
A reversal of a card transaction following a dispute or other qualifying issue.
A payment card issued by a bank for credit purchases.
The electronic settlement of card transactions.
The entity that verifies and processes transactions.
A magnetic stripe or chip reader used at point of sale.
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A card that deducts funds directly from a bank account.
A challenge to a transaction initiated by a cardholder or issuing bank, which may lead to a review and potentially a chargeback.
The percentage fee charged for processing credit card payments.
A pricing model that displays separate prices based on payment method, such as one price for cash and another for card payments, subject to applicable laws and card brand requirements.
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Electronic Benefits Transfer for government assistance programs.
Electronic movement of funds between bank accounts.
A digital wallet used to store payment information.
Encoding information for secure transmission.
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A fee set by card networks and paid to issuing banks.
The financial institution that issues a payment card to the cardholder and approves or declines transactions.
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An account arrangement that enables a business to accept and settle card payments.
The company that provides card processing services.
A contract outlining credit card processing terms.
A unique identifier assigned to a business for processing and tracking payment transactions through its payment account.
Accepting payments via smartphone or tablet.
A minimum required monthly processing fee.
The maximum processing amount allowed per month.
Total monthly credit card sales.
Mail order or telephone order transactions.
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A fee charged when monthly processing exceeds approved limits.
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Includes credit, debit, prepaid and EBT cards.
Software that routes transactions to your processor.
Security standards for handling credit card data.
A fee for failing to submit proof of PCI compliance.
Personal Identification Number for debit purchases.
A debit card transaction authorized by the cardholder using a personal identification number (PIN), typically routed through a debit network.
Device used for entering debit card PIN numbers.
Point of Sale where payment occurs.
Device used to process card payments.
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A transaction charged automatically on a schedule.
Immediate approval or decline of transactions.
A request for transaction details during a dispute.
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Secure Sockets Layer, a legacy encryption protocol that has largely been replaced by Transport Layer Security (TLS).
An additional fee applied to certain card transactions to help offset payment acceptance costs, where permitted and implemented in accordance with applicable laws and card brand rules.
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A Mastercard-maintained database, commonly called MATCH, containing businesses terminated by acquirers for specified risk reasons.
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Website software allowing customers to add items before checkout.
Authorization obtained by phone instead of electronically.
Merchant services can do much more for a bank than add another line to its business product menu. When payments, deposits, reporting, and cash management work together, merchant services can become part of a much broader commercial banking relationship. The challenge is deciding how to build the program. A community bank may want […]
