A-C


ABA (American Bankers Association) Routing Number

Also referred to as a Routing Transit Number. Directs electronic ACH deposits to the proper financial institution.

ACH (Automated Clearing House)

The paperless funds transfer system maintained by the Federal Reserve or other entities that have networks to exchange electronic funds transfer items.

Acquirer

A financial institution that maintains the merchant credit card processing relationship and receives all transactions from the merchant to be distributed to the Cardmember financial institutions.

ACS Access Control Server

Combines access security, authentication, user and administrator access and policy control in a centralized identity framework. Credit card issuers are required to maintain an ACS used to support cardholder authentication

Alternative Payments

Refers to payment methods that are used as an alternative to credit card payments. Most alternative payments have been developed specifically for eCommerce. They can be stored value cards, digital wallets, and other alternative payment methods that are specific to geographic regions and target audiences.

American Express

Provider of credit cards, charge cards and traveler’s check businesses.

American Express SafeKey

One of the 3-D Secure protocols that works to reduce online fraud by confirming the Cardmember’s identity with an additional password.

Application Service Provider ASP

A third-party entity that manages and distributes software-based services and solutions to customers across a wide area network from a central data center.

Arbitration

The process followed by the card companies to determine whether an Issuer or an Acquirer has ultimate responsibility for a chargeback. Either member initiates this process after the re-presentment process is completed.

Authentication

The process whereby the actual identity of a party is verified by means of providing secret information to the validating agent. The secret information is assumed to be known only to the party and the validating agent.

Authorization

The process of verifying that a credit card has sufficient funds to cover the amount of the transaction. An approval response code is sent to the merchant from the card issuer that verifies availability of credit or funds on the cardholder account.

Authorization Amount

The amount of a transaction that is submitted to the authorizer for approval. This amount is reserved against the available balance of a consumer’s credit card.

Authorization Code

The code assigned to the transaction once it has been approved by the processor.

Authorization Only

Transactions of this type are entered and submitted for authorization. These transactions will not be automatically submitted for settlement. In order to capture funds, you must first perform a capture action against the transaction.

Authorized Pending Capture

These transactions have been approved by the authorizer but have not yet settled. Transactions in this state have been authorized only and will not be settled until a capture action is performed against the transactions. These transactions will remain in an unsettled state until the capture action is performed.

AVS Address Verification Service

A service through which a merchant may verify a Cardholder’s billing address against the card issuer’s records during the authorization process and prior to completing a sale; helpful in preventing fraud when processing card-not-present transactions.

Back-end Processor

A data processing company that contracts with Acquirers to provide communication and processing systems that connect with the interchange systems for clearing and settlement services on behalf of those Acquirers. (In some cases the Acquirer may act as its own back-end processor.)

Bank Account Number

The number of a bank account provided for a given transaction. For any eCheck charge or refund transaction, a full bank account number must be provided.

Bank Account Type

This indicates the type of bank account provided by a customer for an eCheck transaction. The valid values for this field are Checking or Savings.

Bankcard

Any valid card issued by a card-issuing organization that is presented in payment for goods and services or to obtain cash advances.

Basis Points

A unit of measure used commonly in the financial industry when discussing interest rates and interchange rates where differences of less than one percent are common; one hundredth of a percentage point.

Batch Processing

Data communications transmission in which transactions are grouped together and transmitted for processing.

Billbacks

When a merchant processes a transaction, the transaction typically clears at an assigned interchange level (e.g., eCommerce Basic), which is usually the interchange level at which the merchant was priced or at the interchange level where the majority of the transactions typically clear. When a transaction clears at a different interchange level other than where the merchant is priced, they are charged or credited the difference between the clearing interchange rate and the priced interchange rate.

BIN Bank Identification Number

A unique six-digit number to identify processors, acquirers, issuers and other financial institutions involved in the interchange process; it is the first six digits of the cardholder’s account number. Also known as Issuer Identification Number (IIN).

Bitcoin

A decentralized digital currency.

Cannibalization

A sale that would have occurred on one form of payment, but now occurs with a different form of payment offered to the shopper. Merchants prefer incremental sales over cannibalized sales.

Capture

An action in which an electronic credit card sale transaction is submitted for financial settlement. Authorized credit card sales must be captured and settled in order for a merchant to receive credit for their sales and a cardholder’s account to be debited/credited.

Captured/Pending Settlement

Transactions with this status have been approved, captured and are awaiting settlement. These transactions will be submitted for settlement according to the transaction cut off time associated with the merchant account.

Card Brands

Corporations that connect consumers, businesses and financial institutions to transact through electronic payments instead of cash and checks. Popular brands are MasterCard, Visa, American Express and Discover.

Cardholder

A person or entity that is issued a credit or debit account that is accessed through the use of a card.

Cardholder Authentication Verification Value CAVV

Cardholder Authentication Verification Value is generated by the credit card issuer using a complex mathematical algorithm. This value can only be generated by the credit card issuer and can be verified by Visa, MasterCard or by the issuer. The CAVV is used to detect any change in transaction data after the issuer has authorized the transaction

Cardinal Consumer Authentication

Cardinal’s proprietary rules-based Consumer Authentication solution, to allow merchants and banks to authenticate their consumers during transactions by using merchant-controlled rules. Merchants can balance the risk of each transaction with their consumers’ preferences and needs.

Card-not-Present Transactions

Credit or debit card transactions in which the card is not physically present, from the merchant’s perspective, at the time of the actual transaction; e.g. eCommerce (internet) and mail/phone order transactions.

Chargeback

A bankcard transaction that is under dispute. This action is initiated by the card issuing financial institution to settle a financial claim between the Issuer and Acquirer. This claim may be initiated by the issuing financial institution directly or by their consumer, the cardholder, and can result in the transaction being billed back to the merchant

Chip Cards

Also known as EMV cards. A type of credit/debit card with a computer chip embedded into it. Chip cards make in-person transactions more secure, but make card-not-present transactions more prone to fraud.

Clearing

The transfer of data between Issuers and Acquirers.

Communication Error

Transactions of this status experienced an error connecting to the processor. These transactions are not re-submitted or sent for settlement.

Consumer Authentication

The term used to describe tools intended to verify that the person making the transaction is actually the person authorized to do so, in both in-person and card-not-present transactions.

Contactless Payments

Devices that use radio frequency identification for making secure payments. Embedded chip and antenna enable consumers to wave a device over a reader at point of sale.

Control Number

Number that uniquely identifies a retrieval request or chargeback.

Cracker

Someone who breaks into someone else’s computer system, often on a network, bypassing passwords and licenses or otherwise breaches computer security.

Credit Card Number

The number on the credit card provided for a given transaction. For any charge or refund transactions against a credit card, the credit card number must be provided. In the case of refund transactions, the first four and last four digits may be provided in lieu of the full number.

Credit/Pending Settlement

Transactions of this status have been entered as credits, but have not yet been submitted for settlement. These transactions will remain in this unsettled state until they are submitted for settlement. Once a credit has been settled, the status changes to Credited.

Credited

Transactions with this status are refund transactions that have been successfully processed within the system. This refund has been successfully applied against the payment method. No further action may be taken against these transactions.

Currency

The currency associated with the amount of a transaction.

Customer ID

This is an internal identifier for a consumer that may be associated with the billing information of a transaction. This field may contain any format of information.

CVC2/CVV2 (Card Verification Code and Card Verification Value)

These are terms used by MasterCard and Visa respectively for the codes printed on the cardholder signature panel following the full or partial account number as a security feature. When provided by the cardholder and contained in the authorization record, it allows the issuer to verify the physical presence of the card. Merchant has re-presentment rights and additional protection for specific chargeback codes when issuer approval and authentication of this value occur. Applicable to card-not-present transactions.

CVV2 Status

This value indicates the level of match between the CVV2 code entered on a transaction and the value that is on file with a customer’s credit card company. A code and narrative description are provided indicating the results returned by the processor.

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