Proprietary Card

Proprietary card is a type of card that financial institutions or other organizations issue using the logo of the issuer instead of a national service mark or logo (such as MasterCard or Visa). A proprietary card allows the cardholder to access a credit or deposit account using ATM or POS terminals.

Promotion Code

Promotion code is a code assigned by the card issuer to identify transactions that apply to a promotional program run by the issuer to encourage card use.

Processing Fee

Processing fee is a compensation paid by card issuers or acquirers to a financial network organization for processing interchange transactions according to the business agreements established by that financial network. Fees are determined by each transaction type for issuers and acquirers participating within each individual financial network.

Prepaid Card

Prepaid card is a card that stores value and is used instead of cash to pay for a single service, such as pay telephones or public transportation. It cannot be reloaded and is a throw-away or collector card.

Point-of-Sale System

Point-of-sale system is an electronic system that accepts financial data at or near a retail location and transmits that data to a computer or authorization network for reporting activity, authorization, and transaction logging.

Point of Interaction (POI)

Point of Interaction (POI) is the location where a transaction occurs (also known as point of sale or point of service).

Personal Identification Number (PIN)

Personal Identification Number (PIN) is a four- to 12-character alphanumeric code that enables a card issuer to authenticate the cardholder to approve an ATM or terminal transaction occurring at a point-of-sale (POS) terminal.

Online Operating Mode

Online operating mode is an operating mode in which a card acceptance device is connected to a central computer system and has access to the database for authorization, inquiry, and file changes. Live files are accessed for each transaction. For authorization, an operating mode in which member banks are directly connected to the card network via a MIP or their host computer. Live files are accessed for each transaction.

Offline Operating Mode

Offline operating mode is an operating mode in which a card acceptance device is not connected to a central computer source. Responses are governed by the parameters or guidelines set within the terminal or supporting device as defined by the card issuer. The accessibility of information is not in a live environment, meaning that current active files are not being viewed during the time the transaction is conducted.

Merchant ID Number

Merchant ID number is unique number assigned by the acquirer to identify the merchant.

Merchant Authorization

Merchant authorization is the sales validation for the merchant, by telephone or authorization terminal, to guarantee payment to the merchant.

MasterCard SecureCode

MasterCard SecureCode is a program supporting cardholder authentication and guaranteed payments over the internet for MasterCard and Maestro transactions.

MasterCard Payment Gateway (MPG)

MasterCard Payment Gateway (MPG) is a gateway hosted by MasterCard and used for routing and settling commercial electronic payments between buyers and suppliers.

Interchange Program

Interchange program is a program that reimburses card issuers for specific costs related to an incoming interchange transaction. These costs include processing costs, financial carrying costs, and risk costs. Interchange fees are payable to the card issuer by the acquiring bank.

Interchange Fee

Interchange fee is a fee applied to an interchange transaction, applicable to the two members of the Credit Card Associations of Visa and MasterCard participating in the transaction as card issuer and acquirer.

Interchange

Interchange is the exchange of transaction data between acquirers and card issuers.

In-Flight Commerce

In-flight commerce are transactions such as shopping or gaming activity that a cardholder initiates during a flight. In MasterCard applications, these transaction types also are referred to as Cardholder- Activated Terminal (CAT) Level 4.

Independent Sales Organization (ISO)

Independent Sales Organization (ISO) is is an outside company (not a MasterCard and Visa member) that is contracted by a member bank (each member bank may be a member of MasterCard or Visa or both) to provide services other than transaction and cardholder processing to the member. Such services include, but are not limited to, merchant solicitation, cardholder solicitation, customer service, and ATM deployment.

Guest Folio

Guest folio is a lodging merchant's guest record that contains the cardholder's transaction information, including check-in and departure dates, rate, anticipated length of stay at check-in time, applicable charges, and taxes. The check-in date and the dated amount and authorization approval code of each authorization must be included on the folio if not on the sales draft.

Guaranteed Reservation

Guaranteed reservation is the use of a card account number to reserve accommodations at lodging merchants. For the cardholder, such reservations include a late arrival provision, penalties if cancellation rules are not met, and a provision for unavailable rooms upon arrival.

Fraudulent Merchant

Fraudulent merchant is a retailer, or any other person, firm, or corporation that agrees to accept credit cards, debit cards, or both, and engages in an unauthorized transaction occurring on any of the cards.

First Chargeback

First chargeback is a procedure in which a card issuer charges all or part of the amount of an interchange transaction back to the acquiring bank.

Financial Institution

Financial institution is any commercial bank, federal or state savings and loan association, federal or state savings bank, or credit union.

Emergency Card Replacement Service (ECR Service)

Emergency Card Replacement Service (ECR Service) is the MasterCard worldwide service designed to provide temporary cards to all MasterCard cardholders that do not have their cards in their possession. This card is issued to a cardholder that needs a temporary replacement card sooner than the typical five to 10 days that it takes to get a permanent card.

Electronic Point of Sale

Electronic point of sale is a point-of-sale merchant equipped with electronic equipment for pricing and recording transactions, but not necessarily incorporating functions for electronic funds transfer (EFT).

Electronic Funds Transfer System (EFTS)

Electronic Funds Transfer System (EFTS) is an electronically based system designed to eliminate the paper instruments that are normally associated with fund movement. For example, a cash withdrawal from an ATM that eliminates the check.

Electronic Funds Transfer (EFT)

Electronic funds transfer (EFT) is a paperless transfer of funds initiated from a terminal, computer, telephone instrument, or magnetic tape.

Electronic Draft Capture (EDC)

Electronic draft capture (EDC) is a system in which the transaction data is electronically captured at the merchant location for authorization and clearing processing.

Electronic Commerce

Electronic commerce is the exchange of goods and services for payment between the cardholder and merchant when the transaction is performed (completely or partially) via electronic communication.

eCommerce Transaction

ECommerce transaction is a non-face-to-face payment for goods or services by use of electronic media over a public network (such as the internet) or private network (such as an extranet).

Debit Transaction

Debit transaction is a transaction initiated when a card is presented as payment for goods and services or at an ATM for cash withdrawals. The transaction amount is automatically deducted from the cardholder's checking or other bank account.

Debit Card

Debit card is a plastic card used to initiate a debit transaction. In general, these transactions are used primarily to purchase goods and services and to obtain cash, for which the cardholder's checking account is debited by the card issuer.

Cross-Border Transaction

Cross-border transaction is any transaction on a payment card in which the country code of the merchant differs from the country code of the cardholder.

Credit Loss

Credit loss is the amount lost (charged off) as a result of failure of the cardholder to pay the amount owed on the account.

Credit Card

Credit card is a plastic card bearing an account number assigned to a cardholder with a credit limit that can be used to purchase goods and services and to obtain cash disbursements on credit, for which a cardholder is subsequently billed by the card issuer for repayment of the credit extended at once or on an installment basis.

Co-Branded Card

Co-branded card is a card issued by a member bank in association with a commercial company, typically bearing the brand of both.

Clearing

Clearing is the process of exchanging financial transaction details between an acquiring bank and a card issuer to facilitate posting of a cardholder's account and reconciliation of a customer's settlement position.

Cirrus

Cirrus System Incorporated, a wholly owned subsidiary of MasterCard International Incorporated, operates the international ATM sharing association known as the "MasterCard®ATM network," accepting MasterCard, Maestro®, and Cirrus®brands.

Chargeback Process

Chargeback process is a dispute resolution process that member banks use to determine the responsible party in a chargeback related dispute. This process has three cycles in which the member banks can resolve the dispute themselves. If the members do not resolve the case within three cycles, they must send the case to arbitration. These three cycles are:

• First chargeback (submitted by the card issuer).
  
• Second presentment (submitted by the acquiring bank).
  
• Arbitration chargeback (submitted by the card issuer).

Card Payment System

Card payment system is a payment system supporting payments made by financial transaction cards.

Card Account

Card account is a credit line for deposit facility accessed by a card issued to a cardholder that enables the cardholder to purchase goods and services or obtain cash.

Card Acceptor Business Code (MCC)

Card acceptor business code (MCC) is a numerical representation of the type of business in which the card acceptor (merchant) engages. Formerly merchant category code (MCC).

Card Acceptor

Card acceptor is a merchant or an Automatic Teller Machine (ATM) that accepts a card and presents transaction data to an acquiring bank.

Call Referral

Call referral is a generic term for the "refer to card issuer" authorization response. A call referral indicates that the acquiring bank or merchant must contact the card issuer for further instructions. The card issuer uses the call referral as a fraud prevention tool when it suspects or is attempting to prevent fraud at the point of sale. See also referral call.

Brand Mark or Mark

Brand mark or mark is the proprietary combination of names, symbols, and colors that visually conveys a brand's identity and personality.

Batch Processing

Batch processing is a type of data processing operation and data communications transmission where related transactions are grouped together and transmitted for processing, usually by the same computer and under the same application. It is generally regarded as non–real-time data traffic comprising large files, as a type of data traffic where response time is not critical.

Bankcard

Bankcard is a payment card issued by a bank or other financial institution, such as a MasterCard or Visa card.

Bank Identification Number (BIN)

Bank Identification Number (BIN) is a unique six-digit number assigned by the Credit Card Associations to identify acquiring banks.

Automated Fuel Dispenser (AFD)

Automated fuel dispenser (AFD) is a terminal device used to accept payment for fuel at a petroleum service station.

Automated Clearing House System (ACH)

Automated Clearing House System (ACH) is one of the group of processing institutions that have networked together to exchange (clear and settle) electronic transactions.