Acquirer/ Acquiring Bank

A financial institution that is a member of Visa and/or MasterCard and maintains the merchant credit card processing relationship. The acquirer receives all transactions from the merchant to be distributed to the issuing banks.

Affiliate Marketing/Program

An Internet-based marketing practice in which a business rewards one or more affiliates for each visitor or customer brought by the affiliate's marketing efforts.

Age Verification

The attempt to determine the age of the consumer at the time of purchase.

API

Advanced Programming Interface allows users to program a pre-constructed interface instead of individually programming a device or piece of software.

Authorization

The process by which a transaction is approved by the issuer, or by Visa/MasterCard on behalf of the issuer. Permission is given to (or denied) the merchant, via the acquirer, to accept a specific transaction from the cardholder account. An authorization indicates only that the card is valid and that sufficient funds are available on the cardholder's credit limit at the time the request is made.

Authorization Request

A merchant's request for an authorization to accept a cardholder's sales transaction. An authorization request can occur electronically via a credit card processing terminal or via telephone as a voice authorization.

AVS (Address Verification Service)

A service supported by Visa, MasterCard, Discover and American Express that verifies the cardholder's billing address against the one on file with the issuer. AVS is designed to help combat fraud in non-face-to-face transactions.

Batch

A group of approved credit card transactions, usually accumulated during one business day.

Batch processing

The authorization of transactions offline when immediate approval is not required. Transactions are collected in a batch and sent as one transmission for authorization and/or settlement. Batch processing is generally used with mail/telephone order transactions.

Billing Address

The address to which a Customer's credit card billing statement is mailed. It is used to help verify that the Customer is the actual owner of the credit card he/she is using. (See AVS)

BIN (Bank Identification Number)

A unique series of numbers assigned by Visa/MasterCard to a member institution, which identifies that institution in transaction processing. The BIN is comprised of the first six digits of a standard credit card number.

Card-Not-Present

A type of card transaction in which the card is not present at the point of sale for the magnetic stripe to be read. These are considered higher risk transactions.

Card Present

A type of transaction in which the card is present and is swiped through an electronic device that reads the contents of the magnetic stripe on the back of the card.

Cardholder

The person to whom a payment card is issued, or an additional person authorized by the original cardholder to use the card.

Card Associations

Parties responsible for setting up the guidelines on how transactions, services and disputes are to be handled. They interface with national banking laws and provide the money that covers some of the fraud that occurs within the membership.
Card associations: Visa, MasterCard International, American Express and Discover.

Chargeback

A challenge to a transaction initiated by the issuer or cardholder that is returned to the acquirer for resolution.

Chargeback Reason Code

A numerical code which identifies the specific reason for a chargeback. MasterCard and Visa each have their own chargeback codes.

Credit

A refund or price adjustment given for a previous purchase.

Credit Card

A plastic card with a credit limit used to purchase goods and services and to obtain cash advances on credit. The cardholder is then billed by the issuer for repayment of the credit extended.

CVV2 (Card Verification Value)

Visa term for the three-digit code printed next to the card number in the signature panel and used as part of the authorization process. For a list of CVV2 response codes, click here.

Decline

A response from the card issuer denying the use of the card for the attempted transaction. If a request for approval is declined, the merchant must ask the cardholder for another form of payment.

Device Identification /Device ID

A technique used to establish a "fingerprint" of a user’s computer or other web access device in order to track their activity and determine linkages between other devices.

Domain Name

The unique name given to every website. It is used to physically locate a website over the Internet.
A domain name consists of three different parts with each separated by a dot. These are host server name, the unique name of the website and the third defining the purpose/type of the website.

Expiration Date

The embossed date on a bankcard. After that date, the card becomes invalid and should no longer be accepted.

Gateway

Manages the electronic connection between consumers and their financial institutions and transmits data.

ISP (Internet Service Provider)

An organization that provides access to the Internet.

Issuer/Issuing Bank

The financial institution and member of Visa or MasterCard that holds contractual agreements with, and issues cards to, cardholders.

IP Address

A logical address of a network adapter. The IP address is unique and identifies computers on a network.

Manual Review

A technique in which merchants use staff members to perform manual checks on orders to determine which orders are fraudulent.

MCC (Merchant Category Code)

A universal four-digit merchant classification code that identifies the merchant by type of processing, authorization and settlement. Similar to a Standard Industrial Classification (SIC), but more defined.

Merchant

Store owner or seller of products.

MID (Merchant Identification Number)

The identification number assigned to a merchant by the acquirer.

Processor

A company responsible for processing interchange transactions - operated by an acquirer or acting on the acquirer's behalf.

Recurring Transaction

A transaction charged to a cardholder's account (with prior permission) on a periodic basis for recurring goods and services, i.e., health club memberships.

Referral

The message received from an issuing bank when an attempt for authorization requires a call to the Voice Authorization Center.

Refund

Occurs when the merchant rebates all, or a portion, of an original transaction amount to the cardholder. Refunds are made to the same card that was used for the original transaction. Similar to a Credit.

Representment

An attempt to reverse a chargeback initiated by a merchant or acquirer to the issuing bank that presented the chargeback, backed by supporting documentation.

Rules engine

A middleware application that allows the creation and prioritization of rules to be used in managing fraud. These engines allow merchants to create rules that will be evaluated on orders as they come in.

Reversal

When an acquirer successfully represents a chargeback to the issuer, the chargeback is reversed and the funds are returned to the merchant.

Transaction

Any action between a cardholder and a merchant or member that results in activity on the account, such as a purchase, cash advance or credit.

Transaction Date

The actual date on which a transaction occurs.

Velocity of Change

The intent is to look for suspicious behavior based on the number of changes between data elements on new transactions with previous transactions. It works based on counting the number of changes with associated data elements within a predefined timeframe. The theory is that the higher the number of changes on a set of data elements, such as the number of phone numbers or addresses associated with credit cards in a predefined timeframe, the higher the risk of taking an order.

VBV (Verified by Visa)

A Visa Internet payment authentication system that validates a cardholder’s ownership of an account in real-time during an online payment transaction.
When the cardholder clicks “Buy” at the checkout page of a participating merchant web site, a Verified by Visa screen automatically appears on the cardholder’s desktop. The cardholder enters a password that allows the card issuer to verify his or her identity.

Acquirer/ Acquiring Bank

A financial institution that is a member of Visa and/or MasterCard and maintains the merchant credit card processing relationship. The acquirer receives all transactions from the merchant to be distributed to the issuing banks.

Affiliate Marketing/Program

An Internet-based marketing practice in which a business rewards one or more affiliates for each visitor or customer brought by the affiliate's marketing efforts.

Age Verification

The attempt to determine the age of the consumer at the time of purchase.

API

Advanced Programming Interface allows users to program a pre-constructed interface instead of individually programming a device or piece of software.

Authorization

The process by which a transaction is approved by the issuer, or by Visa/MasterCard on behalf of the issuer. Permission is given to (or denied) the merchant, via the acquirer, to accept a specific transaction from the cardholder account. An authorization indicates only that the card is valid and that sufficient funds are available on the cardholder's credit limit at the time the request is made.

Authorization Request

A merchant's request for an authorization to accept a cardholder's sales transaction. An authorization request can occur electronically via a credit card processing terminal or via telephone as a voice authorization.

AVS (Address Verification Service)

A service supported by Visa, MasterCard, Discover and American Express that verifies the cardholder's billing address against the one on file with the issuer. AVS is designed to help combat fraud in non-face-to-face transactions.

Batch

A group of approved credit card transactions, usually accumulated during one business day.

Batch processing

The authorization of transactions offline when immediate approval is not required. Transactions are collected in a batch and sent as one transmission for authorization and/or settlement. Batch processing is generally used with mail/telephone order transactions.

Billing Address

The address to which a Customer's credit card billing statement is mailed. It is used to help verify that the Customer is the actual owner of the credit card he/she is using. (See AVS)

BIN (Bank Identification Number)

A unique series of numbers assigned by Visa/MasterCard to a member institution, which identifies that institution in transaction processing. The BIN is comprised of the first six digits of a standard credit card number.

Card-Not-Present

A type of card transaction in which the card is not present at the point of sale for the magnetic stripe to be read. These are considered higher risk transactions.

Card Present

A type of transaction in which the card is present and is swiped through an electronic device that reads the contents of the magnetic stripe on the back of the card.

Cardholder

The person to whom a payment card is issued, or an additional person authorized by the original cardholder to use the card.

Card Associations

Parties responsible for setting up the guidelines on how transactions, services and disputes are to be handled. They interface with national banking laws and provide the money that covers some of the fraud that occurs within the membership.
Card associations: Visa, MasterCard International, American Express and Discover.

Chargeback

A challenge to a transaction initiated by the issuer or cardholder that is returned to the acquirer for resolution.

Chargeback Reason Code

A numerical code which identifies the specific reason for a chargeback. MasterCard and Visa each have their own chargeback codes.

Credit

A refund or price adjustment given for a previous purchase.

Credit Card

A plastic card with a credit limit used to purchase goods and services and to obtain cash advances on credit. The cardholder is then billed by the issuer for repayment of the credit extended.

CVV2 (Card Verification Value)

Visa term for the three-digit code printed next to the card number in the signature panel and used as part of the authorization process. For a list of CVV2 response codes, click here.

Decline

A response from the card issuer denying the use of the card for the attempted transaction. If a request for approval is declined, the merchant must ask the cardholder for another form of payment.

Device Identification /Device ID

A technique used to establish a "fingerprint" of a user’s computer or other web access device in order to track their activity and determine linkages between other devices.

Domain Name

The unique name given to every website. It is used to physically locate a website over the Internet.
A domain name consists of three different parts with each separated by a dot. These are host server name, the unique name of the website and the third defining the purpose/type of the website.

Expiration Date

The embossed date on a bankcard. After that date, the card becomes invalid and should no longer be accepted.

Gateway

Manages the electronic connection between consumers and their financial institutions and transmits data.

ISP (Internet Service Provider)

An organization that provides access to the Internet.

Issuer/Issuing Bank

The financial institution and member of Visa or MasterCard that holds contractual agreements with, and issues cards to, cardholders.

IP Address

A logical address of a network adapter. The IP address is unique and identifies computers on a network.

Manual Review

A technique in which merchants use staff members to perform manual checks on orders to determine which orders are fraudulent.

MCC (Merchant Category Code)

A universal four-digit merchant classification code that identifies the merchant by type of processing, authorization and settlement. Similar to a Standard Industrial Classification (SIC), but more defined.

Merchant

Store owner or seller of products.

MID (Merchant Identification Number)

The identification number assigned to a merchant by the acquirer.

Processor

A company responsible for processing interchange transactions - operated by an acquirer or acting on the acquirer's behalf.

Recurring Transaction

A transaction charged to a cardholder's account (with prior permission) on a periodic basis for recurring goods and services, i.e., health club memberships.

Referral

The message received from an issuing bank when an attempt for authorization requires a call to the Voice Authorization Center.

Refund

Occurs when the merchant rebates all, or a portion, of an original transaction amount to the cardholder. Refunds are made to the same card that was used for the original transaction. Similar to a Credit.

Representment

An attempt to reverse a chargeback initiated by a merchant or acquirer to the issuing bank that presented the chargeback, backed by supporting documentation.

Rules engine

A middleware application that allows the creation and prioritization of rules to be used in managing fraud. These engines allow merchants to create rules that will be evaluated on orders as they come in.

Reversal

When an acquirer successfully represents a chargeback to the issuer, the chargeback is reversed and the funds are returned to the merchant.

Transaction

Any action between a cardholder and a merchant or member that results in activity on the account, such as a purchase, cash advance or credit.

Transaction Date

The actual date on which a transaction occurs.

Velocity of Change

The intent is to look for suspicious behavior based on the number of changes between data elements on new transactions with previous transactions. It works based on counting the number of changes with associated data elements within a predefined timeframe. The theory is that the higher the number of changes on a set of data elements, such as the number of phone numbers or addresses associated with credit cards in a predefined timeframe, the higher the risk of taking an order.

VBV (Verified by Visa)

A Visa Internet payment authentication system that validates a cardholder’s ownership of an account in real-time during an online payment transaction.
When the cardholder clicks “Buy” at the checkout page of a participating merchant web site, a Verified by Visa screen automatically appears on the cardholder’s desktop. The cardholder enters a password that allows the card issuer to verify his or her identity.