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M-Z

A device supplied to the Merchant to produce an image of the embossed characters of the bankcard on all copies of sales drafts and credit slips.

A retailer or any other person, firm, or corporation having met the qualifications of MasterCard/Visa that (pursuant to a Merchant Agreement) agrees to accept credit cards, debit cards, or both, when properly presented.

Merchant Agreement

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

Merchant Authorization

The means of receiving sales validation for the Merchant, by telephone or authorization terminal, to provide payment to the Merchant.

Merchant Bank

A bank that has entered into an agreement with a Merchant to accept deposits generated by bankcard transactions; also called the Acquirer or Acquiring bank.

Merchant Fraud

Fraud perpetrated by a card acceptor against other parties in a payment system.

Merchant Id Number

Number used by Merchants to identify themselves and their terminal to host computer at their bank or financial institution.

Merchant Qualification Standards

The minimum standards established by MasterCard and Visa for Merchant acceptance, requiring that the Merchant be financially responsible and of good repute.

Merchant Services Department

The department within each acquiring bank that assists Merchants with their questions.

Node

The network telecommunication access point which can be accessed by the terminal dialing a local telephone number, or a toll-free "950" or "800" telephone number for authorization.

Open-to-buy

The difference between the credit limit assigned to a Cardholder's account and the present balance on the account.

Original Draft

The actual bank copy of the forms used in the transaction. Also referred to as the "hard copy".

Paper

Sales slips, credit slips, cash advance slips, and other obligations indicating use of a card or a card account.

Pick-up Card

An Issuer's response to an authorization request stipulating that the card be confiscated by the Merchant and returned to the Issuer.

PIN (Personal identification number)

A four to 16 -digit confidential code or electronic signature used by Cardholders to identify themselves as the proper users of a credit or debit card to the host computer.

POS (point-of-sale)

The location in a Merchant establishment at which a sale is consummated.

POS Terminal

A device placed in a Merchant location which is connected to the bank's system via telephone lines and is designed to authorize, record and forward data by electronic means for each sale.

Posting

The process of recording debits and credits to individual Cardholders accounts balances.

Pre-authorization

A non-posted pre-approval for a future transaction, followed, within a specific time interval, by the actual financial transaction posted against the Cardholder's account. Pre authorizations are used primarily in P. O. S. situations where the Cardholder wishes to obtain "advance approval" or "verification" that sufficient funds are available to make a subsequent purchase using a debit card.

Product Coding

In the American Express Draft Capture environment, AMEX requires purchases to be labeled with specific product codes. Depending upon the type of business, AMEX will provide product codes for merchandise or service being sold. This field can also be utilized if the Merchant desires to enter additional information, i.e. rental agreement or invoice numbers.

Receipt

A hard copy description of the transaction that took place at the point of sale, which contains at a minimum: date, Merchant name/location, primary account number, type of account accessed, amount, reference number, and the action code.

Record

Information pertaining to a transaction. The data may be an item of paper, an electronic record, or a magnetic tape.

Retrieval Request

The request for either an original slip or legible reproduction of the slip as identified in the electronic record.

Roll Printer

Dot matrix printer used to print receipts and reports on carbon less roll papers. No separate transaction slips are required.

Sales Slip (draft)

The paper form given to a Cardholder as evidence of the purchase made with their credit card account; also called charge slip or sales draft.

Secure Transaction Technology (STT)

The STT specifications is a software technology designed to provide a secure method of credit card transactions across electronic network.

Settlement

The process by which the banks, representing the Merchant and Cardholder, exchange financial data and funds resulting from sales transactions, cash advances, merchandise credits, and the like.

Settlement Date

The day, on which settlement occurs, e.g., funds actually change hands as a result of an ACH entry.

Settlement Frequency

The frequency with which the client is credited for his/her credit card deposits.

Settlement Statement

A document issued to the Merchant, indicating the sales and credit activity, billing information, discount fee and chargebacks, if any occurring during a particular time frame (usually one week).

SIC Code

Standard Industrial Classification Code. Indicates the type of industry of a business establishment.

Slip Printer

Dot matrix printer used by a Merchant for printing sales slips and reports. The transaction slip must be manually inserted into the printer and the transaction and card information will be printed directly onto the slip.

Smart Card

A card that carries an embedded computer chip with memory and interactive capabilities so that it can be updated.

Soft Decline

A declined response in which authorization is not granted on a valid card not because it has been lost or stolen, but because the credit cards already exceeds the credit line.

Split Dial

Permitting the authorization terminal to dial directly to the company (e.g., AMEX) for authorization. In this instance, the Merchant cannot be both ED and Split Dial.

Support Documentation

The forms necessary to effect a chargeback processing cycle, and any additional material to uphold a dispute.

Switch

An electronic mechanism which routes transaction data from a POS terminal to the authorization data processor for approval of the card issuing institution. In addition, the switch can serve as an authorization center for financial institutions whose account files are maintained on another computer network.

T & E Card (Travel & Entertainment)

Travel & Entertainment card that typically requires payment in full each month. Examples are American Express, Diner Club and Carte Blanche.

T & E Merchant

An airline, car rental company, or lodging establishment whose primary function is to provide travel-related.

Terminal-based System

Using the dialup terminal as an intelligent device, which interacts with the host computer for authorizations, this system captures transactions in the terminal and later transmits them to the host for deposit.

Time-outs

When a system delivers an unable to process message for a transaction because a different response has not been received in a specific time frame.

Transaction

Action between a Cardholder and a Merchant, or a Cardholder and a Member, that results in activity on the Cardholder account; an origination message and all of its associated responses and acknowledgments, which together are used to execute a specific EFT or network management function.

Transaction Date

The date a Cardholder effects a card purchase of goods, services, or other things of value or effects a cash advance. For a credit slip, the transaction date is the date the Merchant allows a credit or price adjustment. For a no shows transaction, the transaction date is the date the Cardholder was expected to arrive at the hotel or motel and failed to appear.

Transaction Fee

A fee charged by the Acquirer for transaction activity at one of the Acquirers terminals.

T/R Number (Transit Routing Number)

Transit Routing Number. A nine digit number (eight digits and a check digit) that identifies a specific financial institution.

Zero Floor Limit

Requires that all Cardholder transactions be authorized.

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