Account number
A unique sequence of numbers assigned to a Cardholder account, which identifies the Credit Card issuer and type of financial transaction Card.

Acquire
The act of a bank receiving payment transaction information from a merchant and passing it on to the issuer of the Credit Card.

Acquirer
A financial institution that supports merchants by providing services for processing payment Card transactions.

Acquiring financial institution
A financial institution enables you to accept Credit Card transactions. You must maintain an account with an acquiring financial institution to be able to process credit for Credit Card transactions. The acquiring financial institution deposits the daily Credit Card sales into your account, minus applicable fees.

Active Server Pages
See ASP.

Address Verification Service
See AVS.

Agreement
A contract set forth to explain terms of business between a company and its customers.

American Express
An organization that issues Cards and acquires transactions (unlike Visa and MasterCard, which are bank associations).

API (Application Programming Interface)
An API is a program code used by Programmers to write applications that can interact with other applications.

Application Programming Interface
See API.

Approval
An acceptance of payment-a code is issued by a Card-issuing bank allowing a sale to be charged against a Cardholder's account. The amount is within the Cardholder's remaining credit limit and that the Card has not been reported lost or stolen. Approvals are requested via an authorization.

Arbitration
The procedure used to determine the responsibility for a chargeback related dispute between two members.

Archive
A collection of files that contains documents and other information of value.

ASP (Active Server Pages)
An open application environment that does not require compiling. ASP allows you to combine scripts, HTML pages, and ActiveX server components to build web pages.

Asynchronous
A method of transmitting data in which the data elements are identified with special start and stop characters. An asynchronous modem cannot communicate with a synchronous modem.

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Balance
Used as a noun, it's the adjusted total of differences between debits and credits within an account.
Used as a verb, it's to adjust the total of differences between debits and credits within an account.

Bank
An institution that handles savings and current accounts, issues loans and credit, and deals in government- and corporation-issued securities.

Bank account
An account that holds funds within a bank and is subject to additional deposits and withdrawals.

Bank Identification Number (BIN)
The digits of a Credit Card that identify the issuing bank. The first six digits of a Card number are often referred to as a BIN.

Banner
An advertisement, usually in the form of a clickable image, that is placed within a web page.

Batch
An accumulation of Credit Card transactions that are awaiting settlement.

A type of data processing where related transactions are transmitted as a group for processing.

Bit
A binary digit. This is the smallest unit of information and is valued at either zero or one.

Browser
A graphical-based software application that is used by computers and allows users to point and click to access information on the Web. Internet Explorer and Netscape Navigator are examples of commonly-used browsers.

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C/C++
A programming language developed in the late '70s, C became popular due to the development of UNIX, which was written almost entirely in C. C++ is an extension of the C programming language that adds object-oriented concepts.

Capture
A process in which a Credit Card sale or return transaction is submitted for financial settlement.
Authorized Credit Card sales must be captured and settled for you to receive the funds.

Card issuer
See issuing financial institution.

Chargeback
The act of taking back funds (for a disputed or improper Credit Card transaction) that have been paid to a merchant. The issuer initiates this procedure after the acquirer has begun the clearing process.

Chargeback period
The number of calendar days in which an issuer may charge sales back to the merchant, beginning the day after the date the record is first received by the merchant or bank, and continuing until the end of the day on which it is dispatched as a chargeback item.

Chargeback reason code
A two-digit code identifying the specific reason for the chargeback.

Clearing
The process of exchanging financial details between an acquirer and an issuer to facilitate posting of a Cardholder's account and reconciliation of a customer's settlement position.

Configuration
The specification of physical and/or functional items in the software or service. This can include the look of the user interface and the way information is processed and/or displayed.

Consumer
One who purchases goods and services.

Cookie
A general mechanism (token) that allows a web site to "recognize" and "remember" individual visitors by storing files on the visitor's computer with a record of the last visit. Cookies cannot be used to "see" any other data on the user's computer, nor can they determine the user's email address or identity. If you want to view your cookies, look for a file called "cookie.txt" on your hard drive.

Credit
The extension of funds issued by a bank that allows a consumer to buy goods or services. The consumer then pays back the bank either in full or in installments, at an interest rate determined by the bank.
Also referred to as the return of funds to a consumer for a Credit Card purchase. A credit transfers money from the merchant's account back to the customer. It is used to return funds to the customer's account after a transaction has been settled. A void does not work in this type of situation because it is designed to nullify an unsettled transaction (that is, a transaction that is still in the open batch awaiting settlement).

Credit Card
A bank-issued Card that allows consumers to purchase goods or services on credit.

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Database
A structured set of data where information is stored in records.

Debit
To subtract from the balance of an account.

Debit Card
An ATM bankCard used to purchase goods and services and to obtain cash, which debits the Cardholder's personal deposit account. Requires a PIN (Personal Identification Number) for use.

Decline
A response to a transaction request meaning that the issuing bank will not authorize the transaction.

Decrypt
To convert encrypted data or text back to plain data or text.

Denial
When permission to perform a particular action is declined.

Deposit
The aggregate of sales records and refunds submitted to a bank processor for processing.

DES (Data Encryption Standard)
A U.S. Government approved encryption method that has a 64-bit block size and uses a 56-bit key during encryption. DES has been extensively studied since its publication and is one of the best known and widely used secret-key crypto systems in the world.

Digital signature
A way to ensure that a message was actually sent by the person who claims to have sent it. The sender's private key encrypts the signature, and the recipient decrypts the signature with the sender's public key.

Discount rate
The percentage of Credit Card sales amounts the acquiring financial institution charges the merchant for the settlement of the transaction.

Domain name
The name of the location you are visiting on the Web (for example www.payseal.com). The domain names are issued by the National Science Foundation and come with different extensions, based on whether the domain belongs to a commercial enterprise (.com or.cc), an educational establishment (.edu), a government body (.gov), the military (.mil), a network (.net) or a nonprofit organization (.org). Some domains use a geographical notation too.

Download
The retrieval of files over a network from a remote computer to your local hard drive.

Draft capture
Refers to settlement.

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E-commerce (electronic commerce)
The conducting of business transactions via remote electronic means.

EFT (Electronic Funds Transfer)
A method of incrementing or decrementing an account through electronic means, eliminating the need for paper checks or withdrawal slips.

Electronic
Refers to actions that take place over, or items that can be transferred through, networks and computers.

Electronic commerce
See e-commerce.

Electronic Funds Transfer
See EFT.

Electronic mail
See email.

Email (electronic mail)
Messages generated and received by computers connected by networks. Using the example "yourname@Cardservice.com," an email address consists of three parts:

yourname your user name on the server hosting your email address

@Cardservice the name of the institution hosting your email address

.com the type of institution hosting your email address (.net, .edu, .gov, and so on).

Enable
To allow or give authorization to perform an action.

Encrypt
To scramble a message so that a key, held only by authorized recipients, is needed to unscramble and read the message. When the encrypted data is routed through a gateway, it is decrypted and processed. All processed information (approved/declined transactions) is then re-encrypted and sent securely back to the merchant's web site. Once at the web server, it is decrypted and displayed to the consumer.

Expire
To become void after a specified period of time.

Export
To back up a file or a group of files to another database.

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Failed transaction
A transaction that has been denied approval for completion.

File
An item used to store, transmit, or group data.

Financial institution
An institution that obtains capital from individuals, businesses, and other organizations and invests it in various financial assets.

Firewall
A software program set up between networks, such as between the Internet and a private or corporate network, that keeps unauthorized users from gaining access to the private network that filters Internet and intranet traffic, protecting against hackers, bad code, and computer viruses.

Future fulfillment
The sale of physical goods that do not always ship on the same day the order was received. Also referred to as delayed fulfillment. Contrast immediate fulfillment.

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Gateway
An interface that links the Internet shopper, the online merchant and banking systems in a secure environment.

The Gateway contains the bulk of the logic for handling processor business rules, processor time-outs, and so on.

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Hard goods
Tangible products that are distributed through the postal or other delivery service. Contrast soft goods.

Hardware
The physical parts of a computer system, such as a monitor, a keyboard, and electronic cables.

Home page
The first page displayed when a web site is accessed, it usually contains introductory text and a site directory.

Host
A computer connected to a network that can act as either a client or a server.

Host computer
The computer at the processor that is accessed for authorization and settlement.

HTML (HyperText Markup Language)
A collection of formatting commands that create hypertext documents (web pages). When you point your browser to a Uniform Resource Locator (URL), the browser interprets the HTML commands embedded in the page and uses them to format the text and graphic elements on the page.

HTTP (HyperText Transfer Protocol)
A protocol used to transmit and receive data over the Web. When you type a URL into your browser, you are actually sending an HTTP request to a web server for a page of information. This is why most URLs begin with "http://." The protocol "HTTPS" indicates that an SSL connection is being used.

HTTP proxy server
A server that forwards client requests over the Internet using HTTP.

Hyperlink
The underlined words or phrases you click in web documents to jump to another screen or page.

Hyper Text Markup Language
See HTML.

Hyper Text Transfer Protocol
See HTTP.

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Immediate fulfillment
The sale of digital goods, such as software, that is delivered to the consumer on the same day as the purchase. Contrast delayed fulfillment or future fulfillment.

Import
To restore files to their original or backed up states and bring them back into a current database.

Imprint
A form of proof that the Credit Card was present for the transaction. It can be electronic (by swiping a Card through a Card reader) or manual (by obtaining a physical imprint using an imprinter), but one of the two is always required.

Incentive
A reduction in price given to customers after a purchase has been made.

Installation
The act of putting software onto a computer.

Insufficient funds
The available and/or cash reserve balance is not sufficient to cover the debit entry.

Interchange
The flow of information between issuers and acquirers (for example, transactions, retrieval requests, and chargebacks).

Interchange fee
The fee that your bank pays the consumer's bank for each Credit Card transaction that is settled.

Internet
A global network of networks. The Internet supports many services such as email, updated news, remote login, and file transfers.

Internet merchant
A business owner who sells products or services over the Internet.

Internet Service Provider
See ISP.

Intranet
A restricted-access network that works like the Web, but is not a physical presence on the Web. Intranets are usually owned and managed by a corporation, enabling a company to share its resources with its employees without confidential information being made available to anyone with Internet access.

ISP (Internet Service Provider)
An organization that allows users to dial into its computers to connect to an Internet link for a fee. ISPs generally provide only an Internet connection, an email address, and perhaps web browsing software.

Issuing
Providing a bank Card to a Cardholder and authorizing that person to use it to complete financial transactions.

Issuing financial institution
The financial institution that extends credit to a consumer through Credit Card accounts. The financial institution issues a Credit Card and bills the consumer for purchases against the Credit Card account. Also referred to as the Cardholder's financial institution or issuer.

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Keyed entry
See manual entry.

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Live
(1) To be present and responsive.

(2) To have your business present and responsive online.

Login
The process of identifying yourself, usually with a valid user name (or user ID) and password, to gain access to a system as a legitimate user.

Logout
The process for formally ending a session with a system. Physically disconnecting or turning off a terminal without logging out does not necessarily result in a logout.

Logs
Records of network activities. Activities can include access records, errors, and financial transactions.

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Magnetic stripe
A stripe on the back of a bankCard that contains magnetically encoded Cardholder account information. The name of the Cardholder is stored on Track I, the account number and expiry date are stored on Track II. Also referred to as MAG stripe.

MAG stripe
See magnetic stripe.

MasterCard
An association of banks that governs the issuing and acquiring of MasterCard Credit Card transactions and Maestro debit transactions.

Member
A financial institution that is a member of Visa and/or MasterCard International. A member is licensed to issue Cards to holders and/or accept merchant drafts.

Merchant
A retailer, or any other entity (pursuant to a merchant agreement), that agrees to accept Credit Cards, debits Cards, or both, when properly presented.

Merchant account
An account that you have with an acquiring bank to enable you to accept Credit Cards. The account facilitates financial settlement of Credit Card transactions.

Merchant agreement
A written agreement between a merchant and a bank containing their respective rights, duties, and warranties with respect to acceptance of Credit Card and matters related to bank Card activity.

Merchant bank
A bank that has entered into an agreement with a merchant to process bank Card transactions.

Message
Information sent and received that communicates various parts of a transaction.

Modem
An electronic telecommunications hardware device that is used by the terminal or PC POS to dial-up the processor.

MOTO (Mail order/Telephone order)
An order placed over the telephone or through a mail order catalog.

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Network
The setup of hardware and software that allows multiple computers to connect and communicate with each other electronically or through the use of fiber optics. Glossary 18

Node
One of the many points connected together to form a network. The terminal dials the closest node and becomes connected to a nationwide telecommunications network.

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Offline
An operating mode in which the software or service is not connected to the processor in real time. This mode is often used when a merchant is batch-processing transactions.

Offline capture
A payment capture method used by merchants who ship an order one or more days after they receive it. The payment is captured when the merchant ships the order and sends a post-authorization message.

Online
A computer or user is online when connected to a network or server that allows communication flow between computers.

Online capture
A payment capture method used by merchants who ship an order on the same day that they receive it. The payment is captured when the Credit Card is authorized.

order ID
A unique identifier that you assign to each order for tracking purposes. An order represents one sale and all of the actions (transactions) associated with that sale.

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Password
A sequence of characters paired with a username that assures that only the user with that password can log on with the particular username associated with it. Passwords should be difficult to guess and kept secret by the user.

Pending transaction
A transaction that has not yet been settled.

PIN
A personal identification number, typically a short alphanumeric character string, used as a password to gain access to bank or credit accounts. A PIN is usually required when performing financial transactions using a debit or Credit Card.

Platform
A system's architecture. This can refer to hardware or an operating system.

Point-of-sale (POS)
The place and time at which a transaction occurs. This term also refers to the devices or software used to capture transactions.

Port
(1) A computer or network device interface.

(2) In TCP/IP, a 16-bit address that identifies an application level service so that data can pass between the transport layer of the protocol stack and the application.

Port number
The number that specifies the port on which a server should listen for communication from a client.

PostAuth
A transaction that has been submitted for completion and has completed a payment.

Posting
The process of recording debits and credits to individual Cardholder account balances.

Prior authorized sale
A transaction for which authorization was obtained at an earlier time (for example, a merchant had to call for authorization or a merchant authorized the Card before services were rendered).
See also Terminal Capture.

Private label Card
A bankCard that can be used only in a specific merchant's store. Typically, this is not a bankCard.

Processing
The act of completing a particular method or course of action, or preparing something for use, to reach a desired result.

Program
Coded instructions that a computer executes. See also software.

Protocols
Rules and guidelines that determine how computers and other network devices communicate.

Provider
See Internet Service Provider.

Purchase
To provide payment to receive a product or service.

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Queries
Inquiries about transactions, databases, or other records.

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Receipt
A hard copy description of the transaction that occurred at the point of sale. The minimum information contained on a receipt is as follows: date, merchant name and location, account number, type of account used (for example, Visa, MasterCard, AMEX, and so on), amount, reference number and/or authorization number, and action code.

Reconciliation
Balancing debits, credits, and totals between two systems.

Recurring transaction
A transaction, for which permission has been granted by a Cardholder to a merchant, that is charged at a specified interval to the Cardholder's account.

Refund
A return of funds to a consumer for a returned product.

Reseller
One who is authorized to sell someone else's goods and/or services.

Response
A reply, answer, or additional message returned to a sender.

Retrieval request
A request to a merchant for documentation concerning a transaction, usually a Cardholder dispute or suspicious sale or return. A retrieval request can lead to a chargeback.

Return
A transaction in which a consumer wants to return a purchase and receive his or her money back. Contrast void.

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Sale
The most commonly used transaction in a retail format, a sale charges a purchase to a customer's credit account. It places a "hold" on the customer's open-to-buy (or available credit) for the amount of the sale. Once a sale has been approved, the hold on the customer's credit will be valid for a limited time (three to 30 days, depending on the issuing bank) before expiring and releasing the hold on the funds in the customer's credit account.

Funds from an approved sale transaction will not be deposited into the merchant's account until they have been settled. This will occur automatically if the merchant is using a Terminal Capture processor which Auto-Settles transactions.

Script
A command that runs several commands (for example, a CGI script).

Secure
Protected or safe from viewing, destruction, or manipulation.

Secure HTTP
See SHHTP

Secure Sockets Layer
See SSL.

Security
Measures taken to keep something secure.

Security Certificate
Data (often stored as a text file) that is used by the SSL protocol to establish a secure connection. Security certificates contain information about who the certificate belongs to, who it was issued by, a unique serial number or other unique identification, valid dates, and an encrypted "fingerprint," which can be used to verify the contents of the certificate. In order for an SSL connection to be created, both sides must have a valid Security Certificate.

Server
A computer or software program that provides services such as email and web access to clients on a network.

Session
In terms of the payment system, a session manages the exchange of money.

Settlement
A process in which a Credit Card transaction is settled financially between your acquiring financial institution and the consumer's Credit Card issuing financial institution. The acquiring Bank credits the merchant's account for the Credit Card sale and the sale is posted to the consumer's Credit Card account. See also capture.

Set up
To make ready for use.

Ship
A transaction used to complete a book transaction. Once a book transaction has been shipped, it is eligible for settlement. See also book.

SHTTP (Secure HTTP)
An Enterprise Integration Technologies development that enables spontaneous, flexible, and secure commercial transactions on the Web by supporting encapsulated messages and the negotiation of encrypted algorithms and other parameters between clients and servers.

SIC (Standard Industry Classification) code
A four-digit code assigned to a merchant to identify the merchant's principle line of business.

Slid entry
See swiped Card. Compare manual entry.

Soft goods
Products that can be distributed electronically, such as a text file or a graphic. Contrast hard goods.

Software
Coded instructions that run a computer system or program.

Software license
A document that verifies permission to use a software program.

SSL (Secure Sockets Layer)
A protocol designed by Netscape to enable encrypted, authenticated communications across the Internet. URLs that begin with "https" indicate that an SSL connection will be used. Since most browsers are SSL capable, Cardholders simply need to look for the "key" or "closed lock" on the bottom left-hand corner of their browsers to see that they are on a secure page before making a Credit Card transaction.

Standards
The protocols, rules, and/or specifications that govern the way an activity is completed.

Status
A transaction's position or standing. A transaction can be rated a success, a failure, or a pending transaction. See also successful transaction, failed transaction, and pending transaction.

Storefront
The web page on the "merchant's" site where the consumer shopping experience begins.

Stripe read
See swiped Card.

Successful transaction
A transaction that has been authorized, submitted, and cleared without problems.

Support desk
Provides technical support for users of a good or service.

Surcharges
Any additional charges to a merchant's standard processing fees. They are a result of non-qualified transactions of different communications methods.

Swiped entry
Credit Card information that is read into the software directly as a result of swiping (or sliding) the Credit Card through a Card reader. The information magnetically encoded in the magnetic stripe is transmitted. This information includes secret data that helps validate the Card. See also manual entry.

Synchronous
A method of transmitting data in which the data elements are sent at a specific rate so that start and stop characters are not needed. This is used by older modems, AMEX PIP terminals etc. on. Contrast asynchronous.

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TCP/IP (Transmission Control Protocol/Internet Protocol)
A suite of protocols that connects networks and lets them communicate with each other. TCP verifies data transmission between a client and a server. IP moves data to the appropriate node on a network. A network communication protocol, which is used as a standard for the Internet, wide area networks (WANs) or local area networks (LANs).

Test
A process to verify that a procedure, device, or software application works correctly.

Transaction fee
A "per transaction" charge incurred by merchants who are on scale pricing. This is in addition to the percentage discount fees.

Transaction flow
The process of completing a transaction.

Transmission Control Protocol/Internet Protocol
See TCP/IP.

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Uniform Resource Locator
See URL.

UNIX
A computer operating system which is compatible with a wide range of computer systems, and allows multiple users and multiple tasks on the same network.

Unzip
To expand a compressed file. Contrast zip.

Upload
To send files from your local hard drive to another computer over a network.

URL (Uniform Resource Locator)
The Internet equivalent of addresses. In the example

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Visa
An association of banks that governs the issuing and acquiring of Visa Card transactions.

Void
A correction transaction used by a merchant. There is only a small period of time in which a purchase can be canceled. Voids are typically handled by issuing credit to the consumer's account.

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Web server
A computer or software program that provides services to clients over a network upon request. A server delivers interactive text, graphics, digital audio, or video over the Web.

Web site
A group of web pages that are linked to a home page and are controlled by an individual or an organization.

World Wide Web
A global group of servers that use HTTP to distribute text, graphics, and other media over the Internet to clients running web browsers.

Written authorization
The authorization provided to the merchant by a consumer to electronically debit his or her account.

WWW
See World Wide Web.

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Zip
To compress a file to take up less disk space and allow for faster electronic transmission.

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