Industry Terms 3D Secure 3D Secure is a fraud prevention tool used by online merchants. It helps verify that…Jennifer MeredithSeptember 17, 2018
Industry Terms Acquirer An acquirer is a bank or financial institution that operates on the merchant’s behalf to…Jennifer MeredithSeptember 26, 2018
Industry Terms Address Verification Service (AVS) Address Verification Service (AVS) is an identity verification tool used by eCommerce merchants to reduce…adminSeptember 13, 2018
Industry Terms Arbitration If a transaction dispute can’t be resolved with the standard chargeback process, the issue can…adminSeptember 13, 2018
Industry Terms Authorization Request and Authorization Code Before finalizing a transaction, the merchant must submit an authorization request to the customer’s issuer.…Jennifer MeredithSeptember 17, 2018
Industry Terms Average Monthly Sales Volume The average monthly sales volume is calculated as the total value of sales processed in…Jennifer MeredithSeptember 17, 2018
Industry Terms Average Monthly Transaction Volume The average monthly transaction volume is calculated as the total number of transactions processed in…Jennifer MeredithSeptember 17, 2018
Industry Terms Average Ticket Amount The average ticket amount is calculated as the net value of sales divided by the…Jennifer MeredithSeptember 17, 2018
Industry Terms Bank Identification Number (BIN) A bank identification number (BIN) is used to uniquely identify each bank or financial institution…Jennifer MeredithSeptember 17, 2018
Industry Terms Billing Descriptor A billing descriptor is the short explanation of the transaction that appears on the cardholder’s…Jennifer MeredithSeptember 17, 2018
Industry Terms Card Associations or Card Networks Some card brands, like Visa and Mastercard, are part of a card network or association.…Jennifer MeredithSeptember 17, 2018
Industry Terms Card Brands Card brands facilitate credit and debit card payments. They essentially lend funds to merchants and…Jennifer MeredithSeptember 17, 2018
Industry Terms Card Security Code (CVC2, CVV2, CID) Every debit and credit card has a card security code (sometimes referred to as CVC2,…Jennifer MeredithSeptember 17, 2018
Industry Terms Card-Not-Present (CNP) or Card Absent Environment A card-not-present (CNP) transaction happens when the physical card is not read with a point-of-sales…Jennifer MeredithSeptember 17, 2018
Industry Terms Card-Present A card-present transaction happens when the physical card is read with a point-of-sales (POS) terminal.…Jennifer MeredithSeptember 17, 2018
Industry Terms CCPA Personal Information The California Consumer Privacy Act (CCPA) is legislation that regulates how businesses handle consumers' personal…Max JonesNovember 4, 2019
Industry Terms Chargeback A chargeback is a consumer protection mechanism. It ensures cardholders don’t have to pay for…Jennifer MeredithSeptember 17, 2018
Industry Terms Compelling Evidence Compelling evidence is certain documents that a merchant can submit with a chargeback response to…Jennifer MeredithSeptember 17, 2018
Industry Terms Credit Card Credit cards provide a line of credit to cardholders to purchase goods or services. Credit…Jennifer MeredithSeptember 17, 2018
Industry Terms Customer Relationship Management (CRM) Businesses use a customer relationship management (CRM) system to store information about their various contacts…Jennifer MeredithSeptember 17, 2018
Industry Terms Debit Card Debit cards withdraw funds directly from a checking or savings account so the cardholder can…Jennifer MeredithSeptember 17, 2018
Industry Terms Dispute or Payment Dispute A payment dispute is a consumer protection mechanism. Cardholders have the right to dispute a…Jennifer MeredithSeptember 17, 2018
Industry Terms Dispute Response Dispute responses allow merchants to challenge illegitimate disputes. The purpose of a dispute response is…Jennifer MeredithSeptember 17, 2018
Industry Terms Dual Message System Mastercard offers merchants two ways to process payment card transactions. With the dual message system,…Jennifer MeredithSeptember 17, 2018
Industry Terms Dynamic Currency Conversion (DCC) Dynamic Currency Conversion (DCC) is a service provided to cardholders when they shop with international…Jennifer MeredithSeptember 17, 2018
Industry Terms False Positive In regards to risk management, a false positive is a transaction that has been incorrectly…Jennifer MeredithSeptember 17, 2018
Industry Terms High-Risk Merchant and High-Risk Merchant Accounts Some merchants are considered high-risk because they have the potential to be a financial liability…Jennifer MeredithSeptember 17, 2018
Industry Terms Independent Sales Organization (ISO) Rather than maintain their own in-house teams for sales, customer support, etc., many acquirers and…Jennifer MeredithSeptember 17, 2018
Industry Terms Interchange Fee Each credit or debit card transaction a merchant processes is accompanied by an interchange fee,…Jennifer MeredithSeptember 17, 2018
Industry Terms ISO Agent An ISO agent is essentially a salesperson, an individual contracted to sell services provided by…Jennifer MeredithSeptember 17, 2018
Industry Terms Issuer or Issuing Bank An issuing bank is the cardholder’s bank. As a member of the card associations, issuing…Jennifer MeredithSeptember 17, 2018
Industry Terms Mastercard Excessive Chargeback Program A simplified explanation of the rules regulating the Mastercard Excessive Chargeback Program.Jennifer MeredithOctober 25, 2018
Industry Terms Mastercard SecureCode Mastercard SecureCode is a fraud prevention tool used by online merchants. It helps verify that…Jennifer MeredithSeptember 17, 2018
Industry Terms MATCH List The Member Alert to Control High-Risk Merchants (MATCH) List is a database of merchants who…Jennifer MeredithSeptember 17, 2018
Industry Terms Member Card associations have two different types of members. Members can be licensed to issue cards…Jennifer MeredithSeptember 17, 2018
Industry Terms Merchant Account An acquirer provides a merchant account so a business can accept and process payment card…Jennifer MeredithSeptember 17, 2018
Industry Terms Merchant Account Reserve The merchant’s acquirer will create a merchant account reserve to withhold a portion of the…Jennifer MeredithSeptember 17, 2018
Industry Terms Merchant Category Codes (MCC) A merchant category code (MCC) is a four-digit classification code use to describe a merchant’s…Jennifer MeredithSeptember 17, 2018
Industry Terms Merchant Identification Number (MID) The merchant identification number (MID) is a unique alphanumeric identifier assigned to a merchant account.…Jennifer MeredithSeptember 17, 2018
Industry Terms Merchant Service Agreement A merchant service agreement is a contract between a merchant and acquirer. Service agreements establish…Jennifer MeredithSeptember 17, 2018
Industry Terms Payment Gateway A payment gateway is a software or device-based service that receives, protects, and shares transaction…Jennifer MeredithSeptember 17, 2018
Industry Terms Payment Processor A payment processor shares and receives data from the card associations, acquirer, and gateway in…Jennifer MeredithSeptember 17, 2018
Industry Terms Recurring Billing or Recurring Transactions If a cardholder agrees to pay recurring transactions, the merchant is authorized to charge the…Jennifer MeredithSeptember 26, 2018
Industry Terms Representment The representment process allows merchants to respond to chargebacks. The purpose of representment is to…Jennifer MeredithSeptember 17, 2018
Industry Terms Single Message System Mastercard offers merchants two ways to process payment card transactions. With the single message system,…Jennifer MeredithSeptember 18, 2018
Industry Terms Transaction Settlement Transaction settlement is the process of moving funds from the cardholder’s account to the merchant’s…Jennifer MeredithSeptember 18, 2018
Industry Terms VAR Sheet A Value-Added Reseller (VAR) sheet is a file that contains important payment processing information, such…Jennifer MeredithSeptember 24, 2018
Industry Terms Visa Chargeback Monitoring Program (VCMP) A simplified explanation of the rules regulating the Visa Chargeback Monitoring Program (VCMP)Jennifer MeredithOctober 25, 2018
Industry Terms Visa Claims Resolution (VCR) Visa Claims Resolution (VCR) is an initiative to streamline workflows and standardize rules for chargeback…Jennifer MeredithSeptember 18, 2018
Industry Terms Visa Secure (formerly Verified by Visa) Visa Secure is a fraud prevention tool used by online merchants. It helps verify that…Jennifer MeredithSeptember 18, 2018
Industry Terms Win Rate Win rate is a calculation that compares the number of successful chargeback responses against the…Jennifer MeredithSeptember 18, 2018