Re-presentment

Re-presentment is a chargeback that is rejected and returned to a card issuer by a merchant bank on the merchant's behalf. A chargeback may be re-presented, or redeposited, if the merchant or merchant bank can remedy the problem that led to the chargeback. To be valid, a re-presentment must be in accordance with regulations established by the Credit Card Associations.

Processor

Processor is a bank member of MasterCard or Visa, or an approved non-member acting as the agent of a member bank, that provides authorization, clearing, or settlement services for merchants and member banks.

Printed Number

Printed number is a four-digit number that is printed below the first four digits of the embossed number on all valid MasterCard and Visa cards. The printed number should begin with a "5" for all MasterCard cards and with a "4" for all Visa cards and be the same as the first four digits of the embossed number. The printed number is one of the card security features that merchants should check to ensure that a card-present transaction is valid.

Point-Of-Sale (POS) Terminal

Point-of-sale (POS) terminal is an electronic device used for authorizing and processing payment card transactions at the point of sale.

Pick-Up Response

Pick-up response is an authorization response instructing a card-present merchant to refuse a transaction and recover the card. In all circumstances, card recovery should only be attempted if it can be done by reasonable and peaceful means.

Payment Gateway

Payment gateway is an eCommerce application that provides services to Internet merchants for the authorization and clearing of online payment card transactions. It is the equivalent of a physical point of sale (POS) terminal located in most retail outlets. Payment gateways encrypt sensitive information, such as credit card numbers, to ensure that information passes securely between the customer and the merchant.

Merchant Chargeback Monitoring Program (MCMP)

Merchant Chargeback Monitoring Program (MCMP) is a Visa program that alerts merchant banks when one of their merchants has a chargeback-to-transaction rate of over one percent. Merchants then work with the bank to reduce their chargeback rates to acceptable levels. Failure to reduce chargebacks can result in fines for a merchant.

Merchant Bank

Merchant bank is a financial institution that enters into agreements with merchants to accept payment cards as payment for goods and services. Merchant banks are also called acquirers or acquiring banks.

Merchant Agreement

Merchant agreement is the contract between a merchant and a merchant bank under which the merchant accepts payment cards for payment of goods and services, and agrees to abide by certain rules governing the acceptance and processing of payment card transactions. Merchant agreements may stipulate merchant liability with regard to chargebacks and may specify time frames within which merchants are to deposit transactions and respond to requests for information.

Member

Member is an organization that is a member of Visa or MasterCard and which issues payment cards or signs merchants, or does both.

Mail Order/Telephone Order (MO/TO)

Mail order/telephone order (MO/TO) is a merchant, market, or sales environment in which mail or telephone sales are the primary or a major source of income. Such transactions are frequently charged to customers' payment card accounts. See also: Card-Not-Present.

Magnetic Stripe Reader

Magnetic stripe reader is the component of a point-of-sale (POS) device that electronically reads the information on a payment card's magnetic stripe.

Magnetic Stripe

Magnetic stripe is a strip of magnetic tape on the back of all payment cards that is "read" when a card is swiped through a point of sale (POS) terminal. The stripe is encoded with account information. On a valid card, the account number on the magnetic stripe matches the embossed number on the front of the card.

Key-Entered Transaction

Key-entered transaction is a transaction that is manually keyed into a point-of-sale (POS) device.

Card Issuer

Card issuer (also called Issuer or an issuing bank) is a financial institution that issues payment cards. The card issuer extends a line of credit to the consumer. Liability for non-payment is then shared by the issuing bank and the acquiring bank, according to rules established by the card association brand. However, the card issuer assumes primary liability for the consumer's capacity to pay off debts they incur with their card.

Internet Protocol Address

Internet Protocol (IP) address is a unique number that is used to represent individual computers in a network. All computers on the Internet have a unique IP address that is used to route messages to the correct destination.

High-Risk Merchant

High-risk merchant is a merchant that is at a high risk for chargebacks due to the nature of its business. As defined by Visa and MasterCard, high-risk merchants include direct marketers, travel services, outbound telemarketers, inbound teleservices, and betting establishments. See also: High-Risk Chargeback Monitoring Program.

High-Risk Chargeback Monitoring Program (HRCMP)

High-Risk Chargeback Monitoring Program (HRCMP) is a Visa program that notifies merchant banks when a high-risk merchant has a chargeback-to-transaction rate of over one percent. Fines of $100 per chargeback are imposed until the merchant reduces chargebacks to acceptable levels. See also: High-Risk Merchant.

Good Through Date

Good Through date (also written Good Thru date) is the date after which a payment card is no longer valid, embossed on the front of all valid cards. The Good Through date is one of the card security features that should be checked by merchants to ensure that a card-present transaction is valid. See also: Card expiration date.

"Flying V"

"Flying V" is the stylized, embossed "V" located to the right of the "Good Thru" date on all valid Visa cards. The "flying V" is one of the card security features that should be checked by merchants to ensure that a card-present transaction is valid.

Firewall

Firewall is a security tool that blocks access from the Internet to files on a merchant's or third-party processor's server and is used to ensure the safety of sensitive cardholder data stored on a server.

Exception File

Exception file is a list of lost, stolen, counterfeit, fraudulent, or otherwise invalid account numbers kept by individual merchants or their third-party payment processors. The exception file should be checked as part of the authorization process, particularly for transactions that are below a merchant's floor limit.

Embossed Number

Embossed number is the 16-digit account number that appears in raised print on the front of all valid major cards. The embossed number is one of the card security features that should be checked by merchants to ensure that a card-present transaction is valid.

Electron Card

Electron card is a Visa International debit card that is currently accepted, but not issued in the United States and can only be used for card-present transactions. Electron cards have slightly different security features than other Visa cards: the front of the card contains an Electron rather than dove hologram, and the 16-digit account number is printed, not embossed.

Dove Hologram

The dove hologram is a three-dimensional hologram of a dove in flight that appears on all valid Visa cards. When the card is tilted back and forth, the dove should appear to "fly." The dove hologram is one of the card security features that merchants should check to ensure a card-present transaction is valid.

"Doing Business As" (DBA)

"Doing Business As" (DBA) is a merchant's legal business name as differentiated from the names of a company's principals or other entity that owns or manages the business. DBA is the business name that must appear on the merchant's billing descriptor, which in turn will be the name that will appear on a cardholder's monthly statement. A DBA that is not clearly recognizable to cardholders can lead to potential transaction copy requests and chargebacks.

Disclosure

Disclosure is the process of conveying information about the merchant's policies for merchandise returns, service cancellations, and refunds. The procedures vary for card-present and card-not present merchants, but in general, disclosure must occur before a cardholder signs a receipt to complete the transaction.

CyberSource

CyberSource is a real-time fraud-detection service that examines eCommerce transactions. It estimates the level of risk associated with each transaction and provides merchants with risk scores, enabling them to more accurately identify potentially fraudulent orders.

Credit Receipt

Credit receipt is a receipt that documents a refund or price adjustment a merchant has made or is making to a cardholder's account. A credit receipt is also known as a credit voucher.

Copy Request

Transaction copy request, or simply copy request, is a request by a card issuer to a merchant bank for a copy of a sales receipt for a disputed transaction. If the merchant bank stores the transaction receipts that their merchants generate, the bank will fulfill the copy request. If, however, the merchant stores its own transaction receipts, the merchant bank will forward the copy request to the merchant. The merchant then must produce a legible copy of the transaction receipt and submit it to the merchant bank within a certain time frame. A copy request is also known as a retrieval request.

Code 10 Call

Code 10 is a call made by a sales associate to the merchant's voice authorization center when he or she is suspicious about the validity of the card or of the legitimacy of the cardholder. The term "Code 10" is used so calls can be made without arousing suspicion while the cardholder is present. The sales associate will be routed to the card issuer's call center, where he or she will be asked to answer, with a "yes" or "no", a series of questions to determine the legitimacy of the transaction. Upon reaching a conclusion, the sales associate will be given instructions on how to proceed.

Chargeback

Chargeback is a card transaction that a card issuer returns as a financial liability to a merchant bank, usually because of a disputed transaction. The merchant bank may then return or "charge back" the transaction to the merchant.

Cash Disbursement

In the Payment Card Industry cash disbursement is a bankcard transaction involving the payment of cash or travelers checks to a cardholder. In general, only financial institutions are allowed to make cash disbursements.

Cardholder Information Security Program (CISP)

The Cardholder Information Security Program (CISP) is a Visa program that establishes data security standards, procedures, and tools for all entities - merchants, service providers, card issuers, and merchant banks - that store Visa cardholder account information. CISP compliance is mandatory.

Card Verification Value 2 (CVV2)

Card Verification Value 2 (CVV2) is the three-digit number that is printed on the signature panel on the back of a Visa payment card, after the full account number or the last four digits of the account number. The number is generated when the card is issued, by hashing the card number and expiration date under a key known only to the card issuer. The CVV2 is used in card-not-present transactions to ensure that the card is valid. Card-not-present merchants ask the customer for the CVV2 and submit it as part of their authorization request. Merchants are prohibited from storing CVV2 information.

Card Security Features

The payment card industry defines the card security features as the alphanumeric, pictorial, and other design elements that appear on the front and back of all valid credit and debit cards. It is required that merchants operating in a face-to-face environment check these features when processing a card payment transaction at the point of sale to ensure that a card is valid.

Card Verification Code 2 (CVC2)

Card Verification Code 2 (CVC2) is the three-digit number that is printed on the signature panel on the back of a MasterCard payment card, after the full account number or the last four digits of the account number. The number is generated when the card is issued, by hashing the card number and expiration date under a key known only to the card issuer. The CVC2 is used in card-not-present transactions to ensure that the card is valid. Card-not-present merchants ask the customer for the CVC2 and submit it as part of their authorization request. Merchants are prohibited from storing CVC2 information.

Card-Present

Card-present is a merchant, market or sales environment in which transactions are completed only if both a valid payment card and cardholder are present. Card-present transactions include traditional retail outlets - department and grocery stores, electronics stores, etc. Card-present transactions also include cash disbursements and self-service situations, such as gas stations and grocery stores, where cardholders use unattended payment devices.

Card-Not-Present

Card-not-present is a merchant, market or sales environment in which transactions are completed without a valid payment card or cardholder being present. Card-not-present is used to refer to mail order, telephone order, and Internet merchants and sales environments.

Cardholder

Cardholder is a person to whom a payment card is issued. Upon the issuance of the card, the cardholder enters into a contract with the card issuer whereby the card issuer agrees to finance the purchases the cardholder has made with the card and to issue a monthly statement with a summary of the transactions that the the cardholder has participated in during the billing period. The cardholder, for his or her part, agrees to pay to the card issuer the monthly statement balance or another amount, including all applicable finance charges, as agreed to in the contract.

Card Expiration Date

Card expiration date is the date after which a payment card is no longer valid. The card expiration date is embossed on the front of all valid payment cards and is one of the card security features that must be checked by merchants to ensure that a card-present transaction is valid. Merchants operating in a card-not-present environment must always ask for the card expiration date and include it in the authorization request. See also: Good Through Date.

Card Acceptance Procedures

Card acceptance procedures are the procedures that merchants must follow at a physical point of sale or in a card-not-present environment to ensure that a card and cardholder are valid.

"Call" or "Call Center" Authorization Response

A "Call" or "Call Center" response to a merchant's authorization request indicates that the card issuer needs more information about the card or cardholder before a transaction can be approved. The merchant is required to call the card issuer's voice authorization center. It is also called a referral response.

Authorization

Authorization is the process by which a card issuer approves or declines a payment card transaction. In a card-present environment, the authorization occurs automatically when a card's magnetic stripe is swiped through a card reader. In a card-not-present environment, the authorization occurs when the card account's information is submitted online or over the phone. In both instances, the card information is routed to the card issuer through the respective Credit Card Association's network and then the card issuer's response is routed back through the same channel.

Address Verification Service (AVS)

AVS enables merchants that accept card-not-present transactions to compare the billing address (the address to which the card issuer sends its monthly statement for that account) provided by a customer with the billing address on the card issuer's file before processing a transaction. After comparing the provided address with the one they have on file for their cardholder, the card issuer responds by issuing an AVS Response code. Address verification and transaction authorization occur simultaneously and, within seconds, the merchant receives both results.