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Credit card(Visa, Master) glossary terms to know for first-time card client
Posted by Melika Tajbakhsh ( LEENYX ) on 12 September 2012 06:10 AM
Accounts Payable:

Debts your business owes to creditors.

Accounts Receivable:

Debts owed to your business.

Account Information Security (AIS):

Account Information Security is a standards-based compliance validation program designed to protect Visa Account and Transaction Information. It helps anyone who stores, transmits or processes Visa account data — financial institutions, merchants, Acquirers and Payment Processors — to assess whether cardholder data is secure within their organization.

Acquirer:

The financial institution that initiates and maintains contractual agreements with merchants for accepting and processing Visa card transactions.

Address Verification Service (AVS):

AVS matches the billing address of the purchaser against the address that the Visa card issuer has on file. This helps ensure the person making the purchase with their Visa card online, by mail or by phone is the correct card holder.

Audit:

An inspection and verification of financial accounts, records, and accounting procedures.

Authorization:

The approval from the financial institution that issued the credit card, allowing the merchant to accept the transaction.

Authorization Code:

Informs merchants that they have obtained the authorization for a specific Visa card transaction.

Automatic Bill Payment:

Arrangement between a merchant or service provider and a customer that allows recurring automatic charges for a service to an agreed-upon credit or debit account.

Cancellation Code:

The code that a lodging or car rental merchant gives to a cardholder. The code confirms that the cardholder cancelled a reservation.

Cardholder:

An individual to whom a card is issued.

Card-Not-Present (CNP) Transactions:

Credit or debit card transactions that take place online, over the phone or through the mail.

Card Verification Value 2, CVV2 (Three-digit Code):

CVV2 is a security requirement on all Visa cards. It is found on the back of cards, printed at the end of the signature panel or in a white box outside the signature panel. When a merchant asks their customers for this unique Three-digit Code, Visa and the card issuers can provide a real-time check to help ensure that the person making the purchase has the physical card in hand.

Chargeback:

Also known as a "Debit Memo", a chargeback is a reversal of a sales transaction. So if you deposited a $50 transaction in your merchant bank account, a chargeback for that transaction means that the $50 has now been debited from your merchant account.

Chip & PIN:

A chip card is a plastic payment card with an embedded chip containing a micro computer. The chip stores encrypted confidential information such as the cardholder's account number and Personal Identification Number (PIN).

"Code 10" Authorization:

This is a voice authorization code you might initiate when you suspect a card is stolen or fake, or when a customer is acting suspiciously.

Debit Memo:

 

Disclosure:

The terms or conditions for refunds, cancellations, or modifications made to reservations, etc.

Draft/Sales Draft:

A record (usually paper) used to document that a good or service was purchased.

Financial Institution:

Any organization that provides financial services to merchants or individuals, including commercial banks, credit card banks, savings banks and credit unions.

Floor Limit:

A specific dollar limit used to determine which Visa card transactions you must authorize. If your business has a floor limit of $100, you must obtain authorization for any transaction over that amount.

Note

All airline, telephone, and mail order transactions must be authorized, even if the amount is under your floor limit. It should also be noted that a floor limit is not utilized for most transactions processed through point of sale terminals, as typically all transactions are authorized.

Imprint:

The physical impression made from a customer's card on a sales draft, proving that the card was present when the sale was made. Electronic imprints can be made with a magnetic-stripe-reading terminal that includes the correct point-of-sale (POS) entry code.

Internet Payment Gateway Service (IPGS):

Provides a standard Internet connection for merchants and merchant aggregators (businesses that provide hosting and other e-commerce processing services for multiple merchants) to securely and reliably send and receive payment transaction messages.

Internet Payment Service Provider (IPSP):

An online entity that contracts with an Acquirer/Payment Processor to provide payment-related services to Sponsored Merchants. The IPSP interfaces with an Acquirer/Payment Processor on behalf of its Sponsored Merchants and must ensure that its Sponsored Merchants are contractually obligated to operate in accordance with Visa requirements.

Issuer:

A financial institution that issues Visa cards and maintains a contract with cardholders for repayment.

Merchant:

An authorized acceptor of Visa cards for the payment of goods and services.

Merchant Bank:

A financial institution that helps the merchant fulfill Visa card payments from customers.

Merchant Identification Number:

The number a financial institution assigns to a merchant to identify their business.

MO/TO:

Short for mail order (MO) or telephone order (TO).

Near Field Communication (NFC):

A short-range, high frequency wireless communication technology that enables the exchange of data between devices over about a decimetre’s distance.

Overhead:

Business expenses such as property taxes, utilities, and insurance that are not directly connected to the goods or services you produce.

Visa payWave:

Our contactless payment solution. Your customers wave their Visa card with the Visa payWave feature in front of a secure contactless reader at checkout and the transaction is completed in less than a second. With no signature to check or PIN to enter and cardholder receipt optional, expect faster transactions, shorter lines and happier customers.

POS Terminal:

A computerized point-of-sale terminal that processes payment cards and is connected to other systems in a network.

Visa Prepaid Cards:

A payment card containing a preset amount of funds that can be used anywhere in the world Visa cards are accepted.

Radio-frequency identification (RFID):

An automatic identification method that relies on storing and remotely retrieving data using devices called RFID tags or transponders.
An RFID tag is an object that can be applied to or incorporated into a product for the purpose of identification using radiowaves. Some tags can be read from several meters away, beyond the line of sight of the reader. This technology has a variety of potential uses in the payment industry including payment via mobile phones.

Secure Sockets Layer (SSL):

A security standard that many merchants use to keep their Web sites secure – and to protect the safety, privacy, and reliability of payment data traveling over the Internet. SSL encrypts the channel between browser and Web server so only the intended parties can read certain data, such as payment or customer information.

Sponsored Merchant:

An online business that contracts with an IPSP to perform some or all of its payment-related operations on its behalf.

Verified by Visa®

Verified by Visa (VbV) is a global online authentication service that makes online shopping more secure for both Visa merchants and cardholders.
VbV provides your business with added protection against fraudulent transactions and chargebacks for online sales, while providing your customers with added confidence when shopping online – helping to turn “browsers” into “purchasers.” Learn more about Verified by Visa.

VisaNet®

A global network that acts as an Authorization service for Visa transactions, as well as a Clearing and Settlement service to transfer payment information between parties.

Zero Liability Policy:

A Visa policy that protects cardholders from unauthorized use of their Visa cards†.
† Visa cardholders must establish that the transaction is not their responsibility as per all applicable agreements of the issuing financial institution. Commercial cards are excluded from the program.


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