Glossary of Terms: C
An authorization request response displayed on the credit card terminal screen, generated by the issuer or through stand-in processing. The merchant must then call for a voice authorization. If an approval is given, the user must enter the approval code manually into the POS device as a "forced transaction" or "post-authorization."
Receiving and storing transaction data at the processor's host computer, to be submitted later for processing and payment.
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.
Input device on a card terminal that translates the information stored on the magnetic stripe on the back of a card.
The person to whom a payment card is issued, or an additional person authorized by the original cardholder to use the card.
Cardholder Account Number
A sequence of numbers assigned specifically to a cardholder account that also identifies the issuer and type of payment card. The cardholder account number is the embossed number imprinted on the payment card.
A chargeback that results when a cardholder contacts the card issuer and refuses to accept a charge appearing on a monthly billing statement. A cardholder has 90 days to initiate a chargeback.
A transaction in which a cardholder obtains cash in person at the branch of a member financial institution or ATM. This is the only method of receiving cash from a credit card that is approved by the bankcard associations.
A challenge to a transaction initiated by the issuer or cardholder that is returned to the acquirer for resolution.
The amount assessed by the acquirer for processing chargebacks.
Chargeback Reason Code
A numerical code which identifies the specific reason for a chargeback. MasterCard and Visa each have their own chargeback codes.
A bankcard that can be used with a PIN at an ATM or without a PIN at the point of sale, also known as an offline debit card. When used at the point of sale, the transaction is processed through interchange as a credit card transaction with the funds debited from the cardholder's checking account.
A service that guarantees check payment to a merchant up to a specified amount. However, merchants are required to perform correct authorization procedures.
A device that reads the numbers encrypted on the bottom of most checks.
A service that provides merchants with some security against bad checks. The person writing the check is matched against a national negative file database to flag outstanding or bad checks on record from other members of this service.
Card Identification Number/Card Identifier - An American Express and Discover verification process that utilizes a non-embossed three- or four-digit number printed when authorizing credit card transactions where the physical card is not present. On American Express cards, the CID is a four-digit code printed on the front of the card. On Discover cards, the CID is a three-digit code printed next to the card number in the signature panel.
If the POS device reads "Lost or Stolen Card," or "Pick Up Card" or a similar message, the merchant should call the authorization center for a Code 10 Authorization. The operator will ask questions to determine if the transaction is valid.
Formal name for the following three types of cards:
- Corporate Card: usually issued to the employees of a large corporation where the corporation assumes all liability for the card's usage.
- Purchasing Card: issued to corporations. It allows the corporation numerous parameters to control daily and monthly spending limits, total credit limits and where the card may be used. Many employees may be issued the same card number.
- Business Card: similar to the Corporate Card, but issued to a business with fewer employees. Each employee is responsible for his or her purchases.
Compliance to the Visa and MasterCard regulatory bylaws. Also, a method of resolving a dispute between members if no chargeback reason code applies. The challenging member must prove financial loss due to a violation of MasterCard or Visa rules by the other member.
A plastic card which has been fraudulently printed, embossed or encoded to appear to be a genuine bankcard, but which has not been issued by a Visa or MasterCard member. It could also be a card which was originally issued by a member, but was subsequently altered without the issuer's knowledge or consent.
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.
Commerce Service Provider - an organization that hosts commerce software applications on its own servers within its own facilities.
Card Validation Code - MasterCard term for the three-digit code printed next to the card number in the signature panel and used as part of the authorization process.
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.