Liability shift

The liability for chargebacks resulting from fraudulent transactions moves from the merchant to the issuing financial institution when the merchant has authenticated the transaction. Without Consumer Authentication, merchants are liable for chargebacks.

MasterCard SecureCode

This is a program offered by MasterCard to increase security and reduce fraud on internet-initiated purchases. One of the 3-D Secure protocols. The merchant’s website interfaces with MasterCard to obtain the specified fields at the time of purchase. These values are then submitted with the authorization request to verify that this is an authentic cardholder purchase.


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MCC or SIC Codes

Special numbers assigned by the card companies to Seller types for identification and tracking purposes. MasterCard uses MCC (Merchant Category Code), while Visa uses SIC (Standard Industry Codes).


Also see Retailer. In eCommerce terms, any business that accepts credit or debit cards, alternative payment methods or digital wallets as a source of payment. Merchant is the party that offers goods for sale or provides services in exchange for payment.

Merchant Identification Number

A number each merchant is provided under the card acceptance agreement, which is unique to that merchant.

Merchant Plug-In (MPI)

A software module, used to provide an interface between a software service and merchants’ payment processing software. Some examples are the 3-D Secure protocols. The software also verifies Issuers’ digital signatures in the authentication responses returned to the merchant.

Merchant Service Provider (MSP)

Provides a merchant with an account, processing and report tools to enable that merchant to process online transactions. Each transaction is facilitated by the MSP on behalf of the Merchant.


Mail Order and Telephone Order card sales, typically authorized through a manual POS terminal.

Mobile Commerce

Business that is conducted on the internet with mobile phones or other wireless hand-held devices.

Mobile Payments

Using a mobile phone to pay for a wide range of services, digital and hard goods. Mobile payments can be made using direct operator billing (or WAP billing) allows the charges to be added to the user’s mobile bill. Mobile payments can also be made using a credit card or mobile wallet.


A computer network is a data communications system which interconnects computer systems at different sites or locations.

NFC (Near Field Communications)

Set of standards for smartphones and other devices to establish radio communications with each other by touching them together or bringing them into close proximity (usually no more than a few inches).

One-Time Password (OTP)

A password that is only good for one login session or transaction. OTPs avoid shortcomings associated with static passwords, in that they are not vulnerable to replay attacks. A potential fraudster using a one-time password that has previously been used will not be able to abuse it, since it will no longer be valid.

Online Payments

The process of exchanging money electronically to pay for goods or services, using the internet, computer networks and digital stored value systems

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