company names mentioned herein are for identification and educational purposes only and are the property of, and may be trademarks of, their respective owners.
This document provides definitions for common payment terms used in the payments industry. It defines key terms including acquirer, authorization, average transaction size, BIN, capture, cardholder, chargeback, credit card associations, interchange fee, merchant account, mobile payment, payment processor, POS, and transaction fee. Understanding these terms makes working with payment providers and understanding costs easier.
The document discusses chargebacks, which occur when a credit card transaction is reversed at the request of the cardholder or issuing bank. It provides information on the chargeback process and reasons for chargebacks such as fraudulent transactions or unsatisfactory purchases. The impacts on payment providers, merchants, and customers are described. Key steps in the chargeback process and what is required for merchants to reject a chargeback claim are outlined. The document also provides tips for merchants to avoid chargebacks by clarifying policies, order details, and responding promptly to issues or claims.
The document provides an overview of credit card processing and Advanced Merchant Group. It discusses why it is a good time to be in the processing industry due to rapid changes. It then summarizes Advanced Merchant Group's role in the transaction process, including underwriting merchant accounts and providing customer service.
Q 1. Write a detailed note on the credit card payment system and how many parties and involved in this process?
Q 2. What is the difference between E-cash, E-money, and E-wallets?
Q 3 what are the main challenges faced by developing countries in the implementation of E-business?
Q 4 How you will start E-business? explain with your own example.
Q 5 Explain the role and importance of Social Media in E-business
Q 6 write a note on the planning and designing of a website.
The document discusses various forms of e-payment systems:
1. Online credit card transactions allow customers to make purchases online using credit cards through a secure connection. Risks include potential disputes and fees for merchants.
2. Digital cash systems allow users to make small online payments by converting funds into digital "coins" through an intermediary like a bank. Coins are spent online and merchants redeem them for funds.
3. Online stored value systems allow users to pre-load funds from a credit card onto an online account, like Ecount, to make purchases from participating merchants through a secure connection.
Demystifying PCI DSS: Expert Tips and Explanations to Help You Gain PCI DSS C...Rapid7
The Payment Card Industry Data Security Standards (PCI DSS), with its over 200 requirements, can seem like a daunting set of regulations. Nonetheless, if your organization handles any kind of credit card information, you must be PCI DSS compliant. As difficult as this can seem, you can get expert help with our new eBook: Demystifying PCI DSS: Expert Tips and Explanations to Help You Gain PCI DSS Compliance.
PayEasy is a global provider of electronic payment solutions. It aims to become a leading provider in regions including the Middle East, North Africa, Europe, Asia, and North America. PayEasy offers secure payment processing services to financial institutions, retailers, and processors. Its solutions include credit card acquiring, payment processing, and robust risk management and fraud prevention tools.
This document provides definitions for common payment terms used in the payments industry. It defines key terms including acquirer, authorization, average transaction size, BIN, capture, cardholder, chargeback, credit card associations, interchange fee, merchant account, mobile payment, payment processor, POS, and transaction fee. Understanding these terms makes working with payment providers and understanding costs easier.
The document discusses chargebacks, which occur when a credit card transaction is reversed at the request of the cardholder or issuing bank. It provides information on the chargeback process and reasons for chargebacks such as fraudulent transactions or unsatisfactory purchases. The impacts on payment providers, merchants, and customers are described. Key steps in the chargeback process and what is required for merchants to reject a chargeback claim are outlined. The document also provides tips for merchants to avoid chargebacks by clarifying policies, order details, and responding promptly to issues or claims.
The document provides an overview of credit card processing and Advanced Merchant Group. It discusses why it is a good time to be in the processing industry due to rapid changes. It then summarizes Advanced Merchant Group's role in the transaction process, including underwriting merchant accounts and providing customer service.
Q 1. Write a detailed note on the credit card payment system and how many parties and involved in this process?
Q 2. What is the difference between E-cash, E-money, and E-wallets?
Q 3 what are the main challenges faced by developing countries in the implementation of E-business?
Q 4 How you will start E-business? explain with your own example.
Q 5 Explain the role and importance of Social Media in E-business
Q 6 write a note on the planning and designing of a website.
The document discusses various forms of e-payment systems:
1. Online credit card transactions allow customers to make purchases online using credit cards through a secure connection. Risks include potential disputes and fees for merchants.
2. Digital cash systems allow users to make small online payments by converting funds into digital "coins" through an intermediary like a bank. Coins are spent online and merchants redeem them for funds.
3. Online stored value systems allow users to pre-load funds from a credit card onto an online account, like Ecount, to make purchases from participating merchants through a secure connection.
Demystifying PCI DSS: Expert Tips and Explanations to Help You Gain PCI DSS C...Rapid7
The Payment Card Industry Data Security Standards (PCI DSS), with its over 200 requirements, can seem like a daunting set of regulations. Nonetheless, if your organization handles any kind of credit card information, you must be PCI DSS compliant. As difficult as this can seem, you can get expert help with our new eBook: Demystifying PCI DSS: Expert Tips and Explanations to Help You Gain PCI DSS Compliance.
PayEasy is a global provider of electronic payment solutions. It aims to become a leading provider in regions including the Middle East, North Africa, Europe, Asia, and North America. PayEasy offers secure payment processing services to financial institutions, retailers, and processors. Its solutions include credit card acquiring, payment processing, and robust risk management and fraud prevention tools.
PayEasy is a global provider of electronic payment solutions. It aims to be the leading payment services company in regions like the Middle East, Asia, and North America. PayEasy offers credit card acquiring, payment processing, and risk management and fraud prevention solutions. It has operations across multiple regions and works with banks, merchants, and payment processors to provide secure and reliable payment services.
Navigating Payment Processing | Jay WigdoreJayWigdore
A merchant account is a business account with a bank that allows an organization to accept credit card payments for donations or other products/services.
A credit card allows a cardholder to pay for goods and services based on a promise to pay. The issuer creates a revolving line of credit for the user. Credit cards involve a third party paying the seller and being reimbursed by the buyer. Credit cards come in different types like general purpose cards accepted by many merchants and private label cards only accepted by specific retailers. Credit cards offer convenience for payments and cash access as well as help users establish credit history.
Online Payment Services and the Role of BanksPaymentAsia
Payment service providers represent an essential link in the global financial chain. However, most consumers never give them a second thought. Payment service providers connect merchants to the broader financial system so that they can accept debit and credit card payments from their customers.
This document provides an overview of e-commerce payments, including the basics of payment systems and credit card processing. It discusses credit card transactions and the various parties involved, such as the cardholder, merchant, acquirer and issuer. It also outlines the credit card payment process flow and types of transactions like authorization, capture, sale and refund. Additionally, it examines the journey of card fees in a transaction and how different parties like the merchant, acquirer and issuer are charged at each step. It notes some key concepts to know, like liability shift, MOTO transactions and chargebacks.
Debit cards are linked directly to a checking account and use funds that have already been deposited, while credit cards allow purchases to be made without immediately paying and require repayment of balances over time. Debit cards provide access to cash from ATMs and require a PIN for transactions, while credit cards typically only require a signature. While debit cards avoid interest charges and do not require credit worthiness, they offer less fraud protection than credit cards and can incur overdraft fees if funds are insufficient.
Smart Card provides a pre-paid public transportation card that can be used across multiple transit systems in the Bay Area without needing exact change. The card has a built-in computer chip and can be used to pay for transit, parking, coffee, groceries and more. Smart Card aims to expand to new retail partners and cities in the next 3-5 years.
A credit card allows cardholders to pay for goods and services with the promise to pay later. It was invented in 1887 and the first credit cards emerged in the 1920s in the US. Key details include the card number structure, parties involved in transactions, and benefits to customers and merchants. Credit cards offer rewards but also risks like debt that debit cards do not. Merchants may pass on credit card transaction fees through higher prices for all customers. Different credit cards have varying interest rates, annual fees, rewards programs, and other features to consider.
This document provides an overview of various check writing procedures and payment methods, including how to properly write and record checks, stop payment on checks, and types of checks like certified, cashier's, traveler's checks, and money orders. It also discusses electronic fund transfers and direct deposits as alternatives to paper checks.
The document describes the online payment process for a merchant website. When a customer places an order, they are redirected from the merchant site to a payment gateway. The gateway then redirects the customer either to a credit/debit card payment page or to select a net banking option to provide payment details. The bank's payment module processes the transaction and sends a response back to the merchant site with a transaction reference and status code.
A slang phrase for credit cards, especially when such cards used to make purchases. The "plastic" portion of this term refers to the plastic construction of credit cards, as opposed to paper and metal of currency. The "money" portion is an erroneous reference to credit cards as a form of money, which they are not. Although credit cards do facilitate transactions, because they are a liability rather than an asset, they are not money and not part of the economy's money supply.
source:net
A credit card allows the holder to make purchases and pay for them later. The issuer grants the holder a line of credit that can be used to make purchases from merchants. Unlike charge cards, credit cards allow balances to be revolved over time with interest charged on outstanding balances. Most credit cards are issued by local banks and conform to international standards for size and shape.
The document summarizes IBM Payments Gateway, a payment processing solution that allows merchants to accept more payment options. It discusses how evolving customer preferences are changing payments and creating challenges for merchants. IBM Payments Gateway aims to help merchants overcome issues like cart abandonment by offering over 170 payment methods across devices and channels. It also helps streamline reconciliation and reduce costs through features like automated payment routing and fraud analysis. The solution is deployed globally and used by various industries to improve sales and customer experiences.
Factors to Consider While Choosing a Payment Gateway ProviderAlaina Carter
A payment gateway is a software that authorizes payment processing for e-businesses. With the help of these payment gateways, it becomes easy to accept several types of electronic payments. Read more to know what are the factors to consider while choosing a payment gateway provider.
Presentación de Amieto Montinari, de ChasePaymentech para el I Foro de Medios de Pago y Fraude Online organizado por adigital. (Madrid, 20 de diciembre de 2012).
Credit card chargebacks occur when a customer disputes a transaction and requests reimbursement from their credit card issuer. Merchants can receive chargeback fees of $20-100 per dispute. To prevent chargebacks, merchants should obtain proper customer verification, comply with PCI security standards, verify customer identities, reject expired or unsigned cards, and educate employees on card handling procedures. Understanding potential reasons for chargebacks like fraudulent use, unauthorized transactions, or undelivered goods allows merchants to dispute charges and potentially avoid fees.
Credit card chargebacks occur when a customer disputes a transaction and requests reimbursement from their credit card issuer. Merchants can receive chargeback fees of $20-100 per dispute. To reduce chargebacks, merchants should obtain proper customer verification, ensure transactions follow PCI standards, verify customer identities match credit cards, reject expired or unsigned cards, and educate customers on their policies. Understanding the chargeback process and top reasons for disputes helps merchants effectively respond to challenges and reverse charges when possible.
1. A credit card is pre-approved credit that allows individuals to purchase goods and services now and pay for them later. Credit limits are based on an individual's creditworthiness, or ability and willingness to repay debts.
2. Credit cards charge interest on unpaid balances and are primarily used for short-term financing. Holders can make purchases up to a pre-set credit limit and must make minimum monthly payments.
3. Credit card issuers, usually banks, set credit limits and reimburse merchants for purchases, while cardholders repay the issuer each month. Issuers make money through interest charges and fees.
A debit is an accounting entry that either increases an asset or expense account, or decreases a liability or equity account. It is positioned to the left in an accounting entry. A credit is an accounting entry that either increases a liability or equity account, or decreases an asset or expense account.
The document provides an overview of the credit/debit card transaction process in 7 steps: 1) initiation by the customer, 2) routing to the merchant bank and processor, 3) submission to the credit card interchange, 4) validation by the credit card issuer, 5) review of results, 6) processing by the merchant, and 7) completion with funds transfer. It explains the entities involved including the customer, merchant, merchant bank, payment gateway, and credit card issuer. The goal is to educate about how payment systems work for credit and debit cards.
Allied Wallet offers merchant transaction services in 196 countries and processed payments in 164 currencies. It provides ACH processing solutions as an alternative to an in-house system, which can save paper and costs. ACH is a common U.S. electronic funds transfer system that clears transactions between financial institutions in batches, holding payments for a short time before delivery. It is governed by NACHA and moves nearly $39 trillion annually, processing credit, debit, payroll and other transactions.
ACH, or Automated Clearing House, payments move money electronically from one bank account to another. Setting up your business to accept ACH payments gives you an alternative to credit cards, cash or checks.
PayEasy is a global provider of electronic payment solutions. It aims to be the leading payment services company in regions like the Middle East, Asia, and North America. PayEasy offers credit card acquiring, payment processing, and risk management and fraud prevention solutions. It has operations across multiple regions and works with banks, merchants, and payment processors to provide secure and reliable payment services.
Navigating Payment Processing | Jay WigdoreJayWigdore
A merchant account is a business account with a bank that allows an organization to accept credit card payments for donations or other products/services.
A credit card allows a cardholder to pay for goods and services based on a promise to pay. The issuer creates a revolving line of credit for the user. Credit cards involve a third party paying the seller and being reimbursed by the buyer. Credit cards come in different types like general purpose cards accepted by many merchants and private label cards only accepted by specific retailers. Credit cards offer convenience for payments and cash access as well as help users establish credit history.
Online Payment Services and the Role of BanksPaymentAsia
Payment service providers represent an essential link in the global financial chain. However, most consumers never give them a second thought. Payment service providers connect merchants to the broader financial system so that they can accept debit and credit card payments from their customers.
This document provides an overview of e-commerce payments, including the basics of payment systems and credit card processing. It discusses credit card transactions and the various parties involved, such as the cardholder, merchant, acquirer and issuer. It also outlines the credit card payment process flow and types of transactions like authorization, capture, sale and refund. Additionally, it examines the journey of card fees in a transaction and how different parties like the merchant, acquirer and issuer are charged at each step. It notes some key concepts to know, like liability shift, MOTO transactions and chargebacks.
Debit cards are linked directly to a checking account and use funds that have already been deposited, while credit cards allow purchases to be made without immediately paying and require repayment of balances over time. Debit cards provide access to cash from ATMs and require a PIN for transactions, while credit cards typically only require a signature. While debit cards avoid interest charges and do not require credit worthiness, they offer less fraud protection than credit cards and can incur overdraft fees if funds are insufficient.
Smart Card provides a pre-paid public transportation card that can be used across multiple transit systems in the Bay Area without needing exact change. The card has a built-in computer chip and can be used to pay for transit, parking, coffee, groceries and more. Smart Card aims to expand to new retail partners and cities in the next 3-5 years.
A credit card allows cardholders to pay for goods and services with the promise to pay later. It was invented in 1887 and the first credit cards emerged in the 1920s in the US. Key details include the card number structure, parties involved in transactions, and benefits to customers and merchants. Credit cards offer rewards but also risks like debt that debit cards do not. Merchants may pass on credit card transaction fees through higher prices for all customers. Different credit cards have varying interest rates, annual fees, rewards programs, and other features to consider.
This document provides an overview of various check writing procedures and payment methods, including how to properly write and record checks, stop payment on checks, and types of checks like certified, cashier's, traveler's checks, and money orders. It also discusses electronic fund transfers and direct deposits as alternatives to paper checks.
The document describes the online payment process for a merchant website. When a customer places an order, they are redirected from the merchant site to a payment gateway. The gateway then redirects the customer either to a credit/debit card payment page or to select a net banking option to provide payment details. The bank's payment module processes the transaction and sends a response back to the merchant site with a transaction reference and status code.
A slang phrase for credit cards, especially when such cards used to make purchases. The "plastic" portion of this term refers to the plastic construction of credit cards, as opposed to paper and metal of currency. The "money" portion is an erroneous reference to credit cards as a form of money, which they are not. Although credit cards do facilitate transactions, because they are a liability rather than an asset, they are not money and not part of the economy's money supply.
source:net
A credit card allows the holder to make purchases and pay for them later. The issuer grants the holder a line of credit that can be used to make purchases from merchants. Unlike charge cards, credit cards allow balances to be revolved over time with interest charged on outstanding balances. Most credit cards are issued by local banks and conform to international standards for size and shape.
The document summarizes IBM Payments Gateway, a payment processing solution that allows merchants to accept more payment options. It discusses how evolving customer preferences are changing payments and creating challenges for merchants. IBM Payments Gateway aims to help merchants overcome issues like cart abandonment by offering over 170 payment methods across devices and channels. It also helps streamline reconciliation and reduce costs through features like automated payment routing and fraud analysis. The solution is deployed globally and used by various industries to improve sales and customer experiences.
Factors to Consider While Choosing a Payment Gateway ProviderAlaina Carter
A payment gateway is a software that authorizes payment processing for e-businesses. With the help of these payment gateways, it becomes easy to accept several types of electronic payments. Read more to know what are the factors to consider while choosing a payment gateway provider.
Presentación de Amieto Montinari, de ChasePaymentech para el I Foro de Medios de Pago y Fraude Online organizado por adigital. (Madrid, 20 de diciembre de 2012).
Credit card chargebacks occur when a customer disputes a transaction and requests reimbursement from their credit card issuer. Merchants can receive chargeback fees of $20-100 per dispute. To prevent chargebacks, merchants should obtain proper customer verification, comply with PCI security standards, verify customer identities, reject expired or unsigned cards, and educate employees on card handling procedures. Understanding potential reasons for chargebacks like fraudulent use, unauthorized transactions, or undelivered goods allows merchants to dispute charges and potentially avoid fees.
Credit card chargebacks occur when a customer disputes a transaction and requests reimbursement from their credit card issuer. Merchants can receive chargeback fees of $20-100 per dispute. To reduce chargebacks, merchants should obtain proper customer verification, ensure transactions follow PCI standards, verify customer identities match credit cards, reject expired or unsigned cards, and educate customers on their policies. Understanding the chargeback process and top reasons for disputes helps merchants effectively respond to challenges and reverse charges when possible.
1. A credit card is pre-approved credit that allows individuals to purchase goods and services now and pay for them later. Credit limits are based on an individual's creditworthiness, or ability and willingness to repay debts.
2. Credit cards charge interest on unpaid balances and are primarily used for short-term financing. Holders can make purchases up to a pre-set credit limit and must make minimum monthly payments.
3. Credit card issuers, usually banks, set credit limits and reimburse merchants for purchases, while cardholders repay the issuer each month. Issuers make money through interest charges and fees.
A debit is an accounting entry that either increases an asset or expense account, or decreases a liability or equity account. It is positioned to the left in an accounting entry. A credit is an accounting entry that either increases a liability or equity account, or decreases an asset or expense account.
The document provides an overview of the credit/debit card transaction process in 7 steps: 1) initiation by the customer, 2) routing to the merchant bank and processor, 3) submission to the credit card interchange, 4) validation by the credit card issuer, 5) review of results, 6) processing by the merchant, and 7) completion with funds transfer. It explains the entities involved including the customer, merchant, merchant bank, payment gateway, and credit card issuer. The goal is to educate about how payment systems work for credit and debit cards.
Allied Wallet offers merchant transaction services in 196 countries and processed payments in 164 currencies. It provides ACH processing solutions as an alternative to an in-house system, which can save paper and costs. ACH is a common U.S. electronic funds transfer system that clears transactions between financial institutions in batches, holding payments for a short time before delivery. It is governed by NACHA and moves nearly $39 trillion annually, processing credit, debit, payroll and other transactions.
ACH, or Automated Clearing House, payments move money electronically from one bank account to another. Setting up your business to accept ACH payments gives you an alternative to credit cards, cash or checks.
The NACHA Automated Clearing House (ACH) network allows for digital payment transactions between banks. It uses a multi-step process where originating banks submit payment instructions to the ACH, which are then routed through the Federal Reserve or electronic payment networks to receiving banks. The ACH network is governed by NACHA rules and specifications regarding file formats, transaction codes, settlement types and other standards to facilitate electronic funds transfers.
http://isvinnovation.com/Directory/Description.aspx?EventId=444
Your customers are demanding new ways to accept payments. Do you understand the difference between credit card transactions (including debit and EBT) and ACH transactions? What about check conversion flows and gift vs. loyalty programs? Join us for an overview of the payments industry including a discussion of payment methods, major players, and what you need to know to develop the proper solution for your customer.
Bob authorizes his mortgage lender to make automatic ACH payments from his bank account. This starts an information flow as Bob's bank checks for sufficient funds and debits his account if funds are available, sending the payment details to the ACH operator. The ACH operator then debits the receiving bank and credits the mortgage lender's account, completing the multi-step process. While simple for users, the ACH system involves many institutions and can be inefficient, and international payments are even more complex. CoinPip aims to simplify international payments with their service.
Guide to Understanding Credit Card Processing for MerchantsChloeBeckham
How important are credit card sales to your business's growth? Our credit card processing guide will help you understand how to accept credit cards and what to look for in a credit card processor.
Plastic money refers to payment cards like debit cards, credit cards, prepaid cards, and store cards that are used instead of cash. Debit cards directly deduct funds from a linked bank account for purchases. Credit cards provide a line of credit and require monthly payments of balances. Prepaid cards are loaded with funds that can be spent until the balance reaches zero. Store cards can only be used at a specific retailer and are often used as marketing tools.
Credit cards allow users to make purchases and pay the balance later, with interest charged on unpaid balances. A credit card transaction involves several parties: the cardholder makes a purchase from a merchant, who is paid by an acquiring bank; the card-issuing bank then pays the acquiring bank and bills the cardholder. Key benefits of credit cards include convenience and fraud protection compared to debit cards. Customers have a grace period before interest is charged if they pay the monthly statement balance in full. Fees charged to customers can include late fees, over-limit fees, and fees for cash advances or foreign transactions.
It's easy to get overwhelmed or lost when navigating the world of top credit card processors and credit card processing. Why? Credit card processing can be a complex system with an even more complicated set of terms. Visit us at: https://webpays.com/credit-card-processing.html
This document outlines steps to test payment gateway functionality, including:
1. Gathering test credit card numbers and sandbox accounts for testing.
2. Understanding integration between payment gateway and application and testing parameters passed between them.
3. Checking successful retrieval of payment data by the application and error handling.
4. Verifying database entries for transactions, amounts, and errors.
5. Ensuring security measures are in place for transactions.
Esteve Camps has over 20 years of experience in technology fields including payments, fraud, banking, e-commerce, and digital transformation. He has leadership experience and is committed to meeting company needs by supporting its mission, vision, and values. The document defines key terms related to e-commerce payments such as payment service provider, acquirer, card-not-present transactions, and interchange fees.
With this Credit Card Processing presentation, you'll learn how to choose the right processor for your business in a clear, concise, and comprehensive manner. You'll learn how credit card payment processing works, how it secures your credit card transactions.
Everything You Need to Know About Taking PlasticBusiness.com
Consumers are so used to the convenience of credit and debit cards that it's no longer an option for a merchant to take plastic -- it's a necessity. Consumers expect to be able to use plastic to pay for everything, even small items. From their point of view, that's the end of the transaction but it's a whole different story for the merchant.
From credit card readers to securing the networks to transmitting information to the bank, there are multiple steps that must happen before the money is finally deposited into the merchant's account.
While the convenience and speed of card payments are undeniable, merchants must navigate a complex web of credit card payment processing fees and rates. Visit us at: https://webpays.com/best-credit-card-payment-companies.html
Merchant acquirers face increasing challenges in the rapidly changing global payments landscape, but these challenges also bring new opportunities. The key functions of acquirers include signing up merchants to accept card payments, authorizing transactions, and facilitating clearing and settlement of funds between merchants and card issuers. Acquirers also provide dispute management and information services to merchants. Major challenges for acquirers include regulatory pressures, compliance issues for small merchants, threats from non-traditional players, and fraud; however, opportunities exist in developing new pricing strategies, technological investments, and multichannel acquiring.
1) The credit card business in India is growing, with over 24 million cards in circulation, though only 28% of Indians have one. Non-payment rates rose 20% between 2008-2009.
2) Credit card transactions involve cardholders, merchants, acquirers, card associations, and issuers. Transactions are authorized, batched, cleared and settled through the card network before the merchant receives payment less fees.
3) There are various types of credit cards including cash back, premium, airline, business, and secured cards that have different benefits, requirements, and interest structures.
1) The credit card industry in India is growing, with over 24 million cards in circulation, though acceptance is still limited to about 28% of the population.
2) Credit card transactions involve cardholders, merchants, acquirers, card associations, and issuers, with information and funds flowing through the card associations.
3) The basic process includes authorization of transactions, batching of transactions, clearing and settlement between issuers and acquirers, and funding of merchants.
Credit card processing what is it and how does it workhighrisk gateways
Credit Card Processing What is it And How does it Work
https://www.highriskgateways.in/credit-card-processing-what-is-it-and-how-does-it-work/
Nowadays, it is especially true that most customers prefer to pay via debit and credit cards. So, it’s imperative to understand the concept of credit card processing. Keep reading to know…what credit card processing is? How does it work? And why it is necessary for your business?
Payment gateway/payment service providers and future trends in mobile payment...Danail Yotov
This document discusses payment gateways, processing of payments, and future trends in mobile payments. It provides an overview of how payment gateways facilitate transactions between merchants and banks. It describes how payments are processed, including encryption of data and authorization. It also discusses security measures like 3D Secure and PCI compliance. Finally, it outlines emerging technologies for mobile payments, including storing payment details on devices and using phones for contactless "tap and pay" transactions.
The document outlines the steps for processing a payment through Authorize.net. Authorize.net manages the routing of transaction data between the customer, merchant bank, payment processor, credit card network, and issuing bank. It passes secure transaction information to the processor, who submits it to the credit card network and issuing bank. The issuing bank then sends funds to the credit card network and merchant bank, who deposits the funds in the merchant's account within 2-4 business days, completing the settlement.
This document discusses consumer credit, credit cards, and debit cards. It defines consumer credit as money, goods, or services provided in lieu of payment for non-investment purchases that depreciate quickly, excluding real estate or investment debts. Credit cards allow cardholders to make purchases on credit and pay later, while debit cards provide electronic access to bank accounts. The key differences are that credit cards involve revolving balances and interest charges, while debit cards deduct funds directly from existing balances.
Software for Payment Cards: Choosing WiselyCognizant
As the use of card-based payments continues to grow, financial institutions must improve their response times, strengthen their security, hone their future-readiness and enrich their business value. When selecting a commercial off-the-shelf (COTS) solution, banks must verify that the product and its support services are equipped to accommodate short and long-term business and IT objectives.
The document provides an overview of the cards and payments industry. It discusses the different types of credit cards including purchasing cards, corporate travel and entertainment cards, small business cards, fleet cards, payroll/prepaid cards, and healthcare cards. It outlines the key parties involved in the industry including cardholders, issuing banks, merchants, acquiring banks, and credit card associations. It also describes how credit cards work, how online credit card processing works, and the payment processing settlement process. Finally, it provides data on the size of the US credit cards market and growth projections for different card types such as health savings accounts.
3-D Secure Payer Authentication provides verification to online merchants that the buyer is the authorized cardholder. It was introduced by credit card associations to reduce fraud-related chargebacks from unauthorized transactions. The process involves authentication between the cardholder, issuer, acquirer and merchant through secure connections and verification values. It shifts liability for chargebacks to the issuer if authentication is attempted, protecting merchants from fraudulent transactions.
Methods of payment
This document summarizes various methods of payment including cash, checks, bank transfers, debit/credit cards, and online payments. It discusses the key functions of money as a medium of exchange, unit of account, and store of value. Regarding payment instruments, it describes how checks, bank drafts, direct debits, and wire transfers work. The differences between debit and credit cards are outlined, noting that debit cards deduct funds from your bank account while credit cards provide a line of credit. Finally, it briefly discusses online payment options like PayPal and Bitcoin.
Similar to THE ABC'S of CREDIT CARD TERMINOLGY (20)
The document summarizes cyber threat trends in 2018 according to a Symantec report. It saw a rise in formjacking attacks that steal payment card data, though cryptojacking activity declined along with cryptocurrency values. Ransomware infections decreased overall but rose for enterprises. Living off the land attacks using tools like PowerShell increased substantially. Targeted attacks grew more sophisticated with groups targeting operational systems and destructive malware.
The FBI is the lead federal agency for investigating malicious cyber activity by criminals, nation-state adversaries, and terrorists. To fulfill this mission, the FBI often develops resources to enhance operations and collaboration. One such resource is the FBI’s Internet Crime Complaint Center (IC3) which provides the public with a trustworthy and convenient mechanism for reporting information concerning suspected Internet-facilitated criminal activity. At the end of every year, the IC3 collates information collected into an annual report.
Credit is due to all original authors and no financial gain was made from the blog, Simply sharing an interesting story for educational purposes,
This guide aims to help journalists understand their rights at protests and avoid arrest when reporting on these events. It summarizes the legal landscape and provides strategies and tools to help journalists avoid incidents with police and navigate them successfully should they arise. Credit RCFP.Org
Credit is due to all original authors and no financial gain was made from the blog, Simply sharing an interesting story for educational purposes,
Verizon Publishes 2020 Data Breach Investigation Report (DBIR) With Insights From Thousands of Confirmed Breaches. Verizon's 2020 Data Breach Investigations Report (DBIR) is the most extensive yet, with 81 contributing organizations, and more than 32,000 incidents analyzed (of which 3,950 were confirmed breaches). Credit:Verizon
Credit is due to all original authors and no financial gain was made from the report, Simply sharing an interesting story for educational purposes,
A Resource Guide to theU.S. Foreign Corrupt Practices Act
Credit is due to all original authors and no financial gain was made from the report, Simply sharing an interesting story for educational purposes,
The FTC takes in reports from consumers about problems they experience in the marketplace. The reportsare stored in the Consumer Sentinel Network (Sentinel), a secure online database available only to lawenforcement. While the FTC does not intervene in individual consumer disputes, its law enforcementpartners – whether they are down the street, across the nation, or around the world – can use informationin the database to spot trends, identify questionable business practices and targets, and enforce the law.
Credit is due to all original authors and no financial gain was made from the report, Simply sharing an interesting story for educational purposes,
Below is a list of consumer reporting companies updated for 2019.1 Consumer reporting companies collect information and provide reports to other companies about you. These companies use these reports to inform decisions about providing you with credit, employment, residential rental housing, insurance, and in other decision making situations. The list below includes the three nationwide consumer reporting companies and several other reporting companies that focus on certain market areas and consumer segments. The list gives you tips so you can determine which of these companies may be important to you. It also makes it easier for you to take advantage of your legal rights to (1) obtain the information in your consumer reports, and (2) dispute suspected inaccuracies in your reports with companies as needed.
Advisory to Financial Institutions on Illicit Financial Schemes and Methods R...- Mark - Fullbright
Transnational criminal organizations (TCOs), foreign fentanyl suppliers, and Internet purchasers located in the United States engage in the trafficking of fentanyl, fentanyl analogues, and other synthetic opioids and the subsequent laundering of the proceeds from such illegal sales.
The mission of the IC3 is to provide the public with a reliable and convenient reporting mechanism to submit information to the FBI concerning suspected Internet-facilitated criminal activity, and to develop effective alliances with industry partners. Information is analyzed and disseminated for investigative and intelligence purposes, for law enforcement, and for public awareness.
Credit is due to all original authors and no financial gain was made from the report, Simply sharing an interesting story for educational purposes,
This report is built upon analysis of 41,686 security incidents, of which 2,013 were confirmed data breaches. We will take a look at how results are changing (or not) over the years as well as digging into the overall threat landscape and the actors, actions, and assets that are present in breaches. Windows into the most common pairs of threat actions and affected assets also are provided.
The Federal Trade Commission (FTC or Commission) is an independent U.S. law enforcement agency charged with protecting consumers and enhancing competition across broad sectors of the economy. The FTC’s primary legal authority comes from Section 5 of the Federal Trade Commission Act, which prohibits unfair or deceptive practices in the marketplace. The FTC also has authority to enforce a variety of sector specific laws, including the Truth in Lending Act, the CAN-SPAM Act, the Children’s Online Privacy Protection Act, the Equal Credit Opportunity Act, the Fair Credit Reporting Act, the Fair Debt Collection Practices Act, and the Telemarketing and Consumer Fraud and Abuse Prevention Act. This broad authority allows the Commission
to address a wide array of practices affecting consumers, including those that emerge with the development of new technologies and business models.
Sentinel sorts consumer reports into 29 top categories. Appendices B1 – B3 describe the categories,providing details, and three year figures. To reflect marketplace changes, new categories or subcategories are created or deleted over time.The Consumer Sentinel Network Data Book excludes the National Do Not Call Registry. A separate report about these complaint statistics is available at: https://www.ftc.gov/reports/national-do-not-call-registry-data-book-fiscal-year-2018. The Sentinel Data Book also excludes reports about unsolicited commercial email.Consumers can report as much or as little detail as they wish when they file a report. For the Sentinel Data Book graphics, percentages are based on the total number of Sentinel fraud, identity theft, and other report types in 2018 in which consumers provided the information displayed on each chart.Reports to Sentinel sometimes indicate money was lost, and sometimes indicate no money was lost.Often, people make these reports after they experience something problematic in the marketplace,avoid losing any money, and wish to alert others. Except where otherwise stated, numbers are based on reports both from people who indicated a loss and people who did not.Calculations of dollar amounts lost are based on reports in which consumers indicated they lost between $1 and $999,999. Prior to 2017, reported “amount paid” included values of $0 to $999,999.States and Metropolitan Areas are ranked based on the number of reports per 100,000 population.State rankings are based on 2017 U.S. Census population estimates (Annual Estimates of the Resident Population: April 1, 2010 to July 1, 2017). Metropolitan Area rankings are based on 2016 U.S. Census population estimates (Annual Estimates of the Resident Population: April 1, 2010 to July 1, 2016).This Sentinel Data Book identifies Metropolitan Areas (Metropolitan and Micropolitan Statistical Areas)with a population of 100,000 or more except where otherwise noted. Metropolitan areas are defined by Office of Management and Budget Bulletin No. 15-01, “Revised Delineations of Metropolitan Statistical Areas, Micropolitan Statistical Areas, and Combined Statistical Areas, and Guidance on Uses of the Delineations of These Areas” (July 15, 2015). Numbers change over time. The Sentinel Data Book sorts consumer reports by year, based on the date of the consumer’s report. Some data contributors transfer their complaints to Sentinel after the end of the calendar year, and new data providers often contribute reports from prior years. As a result, the total number of reports for 2018 will likely change during the next few months, and totals from previous years may differ from prior Consumer Sentinel Network Data Books. The most up to date information can be found online at ftc.gov/data
A credit score is a three -digit number that predicts how likely you are to pay back a loan on time, based on information from your credit reports.
Company names mentioned herein are the property of, and may be trademarks of, their respective owners and are for educational purposes only.
Company names mentioned herein are the property of, and may be trademarks of, their respective owners and are for educational purposes only. - Medical identity theft has existed in various forms for decades, but it was in 2006 that World Privacy Forum published the first major report about the crime. The report called for medical data breach notification laws and more research about medical identity theft and its impacts. Since that time, medical data breach notification laws have been enacted, and other progress has been made, particularly in the quality of consumer complaint datasets gathered around identity theft, including medical forms of the crime. This report uses new data arising from consumer medical identity theft complaint reporting and medical data breach reporting to analyze and document the geography of medical identity theft and its growth patterns. The report also discusses new aspects of consumer harm resulting from the crime that the data has brought to light
The FTC takes in reports from consumers about problems they experience in the marketplace. The reports are stored in the Consumer Sentinel Network (Sentinel), a secure online database available only to law enforcement. While the FTC does not intervene in individual consumer disputes, its law enforcement partners – whether they are down the street, across the nation, or around the world – can use information in the database to spot trends, identify questionable business practices and targets, and enforce the law.
Since 1997, Sentinel has collected tens of millions of reports from consumers about fraud, identity theft, and other consumer protection topics. During 2017, Sentinel received nearly 2.7 million consumer reports, which the FTC has sorted into 30 top categories. The 2017 Consumer Sentinel Network Data Book (Sentinel Data Book) has a vibrant new look, and a lot more information about what consumers told us last year. You'll know more about how much money people lost in the aggregate, the median amount they paid, and what frauds were most costly. And you'll know much more about complaints of identity theft, fraud, and other types of problems in each state, too. The Sentinel Data Book is based on unverified reports filed by consumers. The data is not based on a consumer survey. Sentinel has a five-year data retention policy, with reports older than five years purged biannually.
This guide addresses the steps to take once a
breach has occured. For advice on implementing a
plan to protect consumers’ personal information, to
prevent breaches and unauthorized access, check
out the FTC’s Protecting Personal Information: A
Guide for Business and Start with Security: A Guide
for Business.
*Company names mentioned herein are the property of, and may be trademarks of, their respective owners and are for educational purposes only.
Consumer Sentinel Network Data Book for January 2016 - December 2016- Mark - Fullbright
FTC Consumer Sentinel Network Law enforcement's source for consumer complaints.
All information, data, and material contained, presented, or provided on is for educational purposes only.
Company names mentioned herein are the property of, and may be trademarks of, their respective owners.
It is not to be construed or intended as providing legal advice.
How to Make a Field Mandatory in Odoo 17Celine George
In Odoo, making a field required can be done through both Python code and XML views. When you set the required attribute to True in Python code, it makes the field required across all views where it's used. Conversely, when you set the required attribute in XML views, it makes the field required only in the context of that particular view.
Main Java[All of the Base Concepts}.docxadhitya5119
This is part 1 of my Java Learning Journey. This Contains Custom methods, classes, constructors, packages, multithreading , try- catch block, finally block and more.
Beyond Degrees - Empowering the Workforce in the Context of Skills-First.pptxEduSkills OECD
Iván Bornacelly, Policy Analyst at the OECD Centre for Skills, OECD, presents at the webinar 'Tackling job market gaps with a skills-first approach' on 12 June 2024
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ISO/IEC 27001, ISO/IEC 42001, and GDPR: Best Practices for Implementation and...PECB
Denis is a dynamic and results-driven Chief Information Officer (CIO) with a distinguished career spanning information systems analysis and technical project management. With a proven track record of spearheading the design and delivery of cutting-edge Information Management solutions, he has consistently elevated business operations, streamlined reporting functions, and maximized process efficiency.
Certified as an ISO/IEC 27001: Information Security Management Systems (ISMS) Lead Implementer, Data Protection Officer, and Cyber Risks Analyst, Denis brings a heightened focus on data security, privacy, and cyber resilience to every endeavor.
His expertise extends across a diverse spectrum of reporting, database, and web development applications, underpinned by an exceptional grasp of data storage and virtualization technologies. His proficiency in application testing, database administration, and data cleansing ensures seamless execution of complex projects.
What sets Denis apart is his comprehensive understanding of Business and Systems Analysis technologies, honed through involvement in all phases of the Software Development Lifecycle (SDLC). From meticulous requirements gathering to precise analysis, innovative design, rigorous development, thorough testing, and successful implementation, he has consistently delivered exceptional results.
Throughout his career, he has taken on multifaceted roles, from leading technical project management teams to owning solutions that drive operational excellence. His conscientious and proactive approach is unwavering, whether he is working independently or collaboratively within a team. His ability to connect with colleagues on a personal level underscores his commitment to fostering a harmonious and productive workplace environment.
Date: May 29, 2024
Tags: Information Security, ISO/IEC 27001, ISO/IEC 42001, Artificial Intelligence, GDPR
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Strategies for Effective Upskilling is a presentation by Chinwendu Peace in a Your Skill Boost Masterclass organisation by the Excellence Foundation for South Sudan on 08th and 09th June 2024 from 1 PM to 3 PM on each day.
Communicating effectively and consistently with students can help them feel at ease during their learning experience and provide the instructor with a communication trail to track the course's progress. This workshop will take you through constructing an engaging course container to facilitate effective communication.
Temple of Asclepius in Thrace. Excavation resultsKrassimira Luka
The temple and the sanctuary around were dedicated to Asklepios Zmidrenus. This name has been known since 1875 when an inscription dedicated to him was discovered in Rome. The inscription is dated in 227 AD and was left by soldiers originating from the city of Philippopolis (modern Plovdiv).
2. ACH Credit
A transaction through the ACH network that results in money being placed in the receiver's
account at the destination financial institution.
Acquiring Bank
The acquiring bank is the financial institution that maintains a contractual relationship with
the merchant. Acting as a "middle man," the acquiring bank receives credit card
transactions from the merchant or from the card acceptor, and then settles those
transactions with the issuing banks.
The acquiring bank deposits funds into the merchant depository bank account, and recoups
those funds from the card issuers. The merchant must pay certain fees to the acquiring
bank for handling the credit card transactions.
Related Terms and Synonyms: Acquirer, Merchant Bank.
Acquiring Processor
See Processor.
Address Verification Service (AVS)
A service that is offered as a part of the credit card authorization procedure. Address
Verification Service (AVS) is intended to combat fraud in mail order, telephone order, and
Internet transactions by including cardholder billing address information in the
authorization request. The issuing bank compares the address information in the
authorization request message with its database of information about the cardholder. If the
address contained in the request message does not match the information in the database,
the authorization may be declined. Mail, telephone, and Internet transactions that do not
include cardholder AVS data are not eligible for the lowest interchange rates from the VISA
and MasterCard networks.
American Express
A company that specializes in the issuance of Travel and Entertainment (T&E) credit cards.
American Express competes with VISA, MasterCard, and other card issuing companies.
American Express services the cards that they issue, processing their transactions via their
own network.
3. Approval
When a point-of-sale terminal transmits an credit card authorization request, that request
will either be approved or declined. An approval response means that the amount of the
sale is within the cardholder's credit limit. When an approval code is returned, a hold will be
placed on cardholder funds in the amount of the sale for 3 to 21 days, depending on the
card issuing bank, and will guarantee funds to the merchant for up to 30 days.
Approval Code
When point-of-sale terminal transmits an authorization request, the terminal will receive a
response message that either approves or declines the request. When the transaction is
approved, the response message will include a number, the approval code, that confirms
the authorization. This code is issued to the merchant by the authorization center or standin processor, and is usually recorded on the transaction receipt as proof of authorization.
Sometimes called authorization code.
Approval Response
An authorization response message received at the point-of-sale terminal when a
transaction is approved.
Arbitration
The procedure used to determine responsibility for a chargeback-related dispute.
Authorization
When a customer uses a credit card to pay for goods or services, the point-of-sale terminal
transmits an authorization request message to the merchant's credit card processor.
Authorization is the act of ensuring that the cardholder has adequate funds available to
cover the amount of the purchase. The authorization procedure includes other safeguards.
For example, during the authorization attempt, lost or stolen cards may be identified. The
authorization request may be declined if the card is expired. Address Verification Service
may be used to match the cardholder address with records on file in the issuer's database.
A positive authorization results in an approval code being generated.
In the most typical scenario, the point-of-sale terminal dials out and transmits an
authorization request message. The terminal receives a response message from the credit
card network indicating whether the authorization was approved or declined.
An issuer, an authorizing processor, or a stand-in processor must approve or decline the
4. authorization request. For approved authorizations, a hold is placed against the
cardholder's credit limit for the dollar amount approved. The merchant should settle the
transaction before the hold is released.
Authorization Center
A department or organization, sometimes controlled by the processor, that can
electronically communicate a merchant's authorization requests on credit card transactions
to the cardholder's bank. See Processor.
Authorization Code
See Approval Code.
Authorization Only
A transaction type used to reserve an amount against a cardholder's available limit for
intended purchases. Auth Only transactions are most frequently used in the lodging,
restaurant, and car rental industries, where the transaction amount is finalized later and
entered via a Prior Authorized Sale transaction.
Authorization Processor
See Processor.
Authorization Reversal
A transaction for a specified dollar amount used to reverse an approved authorization
request.
Automated Clearing House (ACH)
A group of processing and financial institutions that are linked by a computer network.
Various types of electronic payment transactions, including credit card settlements, are
routed across this network. The Automated Clearing House network provides a means of
exchanging funds electronically. The National Automated Clearing House Association
(NACHA) is responsible for maintaining the ACH rules and standards governing the
exchange of ACH payments between financial institutions.
Average Ticket
The average dollar amount of a merchant credit card transaction that is generally used in
pricing decisions and calculations. For example, the Merchant Services Provider may use
the average ticket amount to determine the fee structure that will be charged to a
merchant for credit card processing.
5. Balance Inquiry
A debit card transaction that has no dollar amount and that permits the cardholder to
obtain the current balance of a checking or savings account.
Bank Identification Number (BIN)
A six-digit number assigned by VISA or MasterCard and used to identify a card issuing
institution. The issuer emblazons the plastic cards with its logo. The BIN is the first six
numbers embossed on the card.
Bank Settlement Percentage
The percentage fee an acquiring bank takes off the dollar amount of the ticket price as its
fee for a transaction.
Bankcard
A debit or credit card, such as a VISA or MasterCard, issued by a bank or other financial
institution.
Bankcard Association
A organization formed by a group of banks either for the purpose of sponsoring a singleidentity program (such as VISA or MasterCard) or to use common processing and
administrative facilities.
Banking Day
With reference to a participating depository financial institution, any day on which it is open
to the public during any part of the day, for carrying on substantially all of its financial
functions.
Batch
An accumulation of approved credit card transactions waiting to be settled. Typically,
approved credit card transactions are accumulated throughout the business day, and then
submitted to the processor at the end of the day. The batch may contain sales transactions,
credits, voids, and other credit card transaction types.
Batch File
A computer file containing credit card transaction data.
Batch Settlement
The process by which a batch file is electronically transmitted to a transaction processor.
6. Capture
See Electronic Draft Capture.
Card Issuer
See Issuing Bank.
Card Reader
Any device that is capable of reading data that is magnetically encoded on plastic cards.
See Magnetic Stripe Reader.
Card Verification Code (CVC)
A unique check value encoded on the magnetic stripe of a card to validate card information
during the authorization process. The Card Verification Code is used in fraud prevention.
See Card Verification Value.
Card Verification Value (CVV)
The Card Verification Value is calculated from the data encoded on the magnetic stripe called the Card Verification Code - using a secure cryptographic process. See Card
Verification Code.
Cardholder
An individual to whom a credit card is issued, or who is authorized to use an issued card.
The cardholder is able to make purchases using the credit card.
Cardholder Bank
The bank that has issued a credit card to an individual. The term is frequently used in
conjunction with interchange arrangements to identify the card-issuing bank. See Issuing
Bank.
Chargeback
A transaction returned through interchange by an issuing bank to an acquiring bank. A
transaction may be returned because of rules and regulations violations, because the sale is
disputed by a cardholder, or as a result of fraud. In the case of cardholder dispute, the
merchant has the opportunity to appeal and prove that the sale is valid.
7. Chargeback Period
The number of calendar days from the endorsement date of a transaction receipt (or
processing date, as applicable), during which time the issuing bank may exercise a
chargeback right. See Chargeback.
Chargeback Reason Code
Two-digit code identifying the reason for a chargeback. See Chargeback.
Clearing
The clearing process includes all of the functions necessary for the acquiring bank to
recover funds related to a transaction, in the transaction currency, from the issuing bank.
Clearing is part of the settlement process. In the clearing process, the acquirer and the
issuer exchange financial details so as to complete a sale. As a result of clearing, the
amount of the purchase is posted to the cardholder account. Related terms: Settlement,
Posting.
Closing
Printing daily reports, balancing, and settling a batch to the credit card network.
Compliance
Bankcard compliance programs define interchange requirements. These requirements are
intended to improve the quality of transaction data submitted by the point-of-sale terminal,
to combat fraud, to adjust the interchange value of non-compliant transactions, to provide
detailed adjustment data to the acquirer regarding any compliance adjustments, and to
ensure better chargeback protection. To receive the best interchange rates, the merchant
must adhere to rules set forth by the compliance programs.
Credit
A reversal of a purchase. That is, money debited from merchant account and paid back to
cardholder. Credit may be issued outside of the original batch.
Credit Card
MasterCard, VISA or other credit cards issued by a bank. A plastic card with a credit limit,
which is used to purchase goods and services and to obtain cash advances on credit, for
which a cardholder is subsequently billed by an issuing institution for repayment of the
credit extended.
8. Credit Card Association
VISA and MasterCard are the two largest credit card associations. The associations do not
directly issue credit cards. However, the associations develop the rules and regulations that
govern how these card types are processed.
In turn, how a credit card transaction is processed will determine the fees associated with
the transaction. The rules are designed to eliminate fraud, promote use of credit cards in
financial transactions, and to accommodate the various industries that desire to accept
credit cards as payment for good and services.
Credit Limit
This is a dollar amount assigned to a cardholder as the limit of credit that they are
approved to borrow. Credit card purchases are actually loans to the cardholder by the
issuer. Approved transactions will deduct the dollar amount from the cardholder's credit
limit.
Custom Payment Service (CPS)
VISA's regulations for the information that must be submitted with each transaction.
Transactions must meet CPS criteria in order to qualify for the lowest transaction
processing fees available.
Decline
A response to a transaction attempt that means the card-issuing bank will not accept the
charge, and the merchant must finalize the sale with another form of payment.
Demand Deposit Account
Demand deposits get their name from the terms of agreement on the account -- payable
on demand. By law, financial institutions may not pay interest on demand deposit accounts.
Discount Fee
The dollar amount paid by the merchant to the acquirer, or other contracted party, for
processing the merchant's credit card transactions.
Discount Rate
The percentage rate that an acquirer charges the merchant for handling credit card
transactions. The discount rate is a small percentage of the value of each credit card
purchase.
Electronic Authorization
9. Obtaining authorization for use of a credit card by electronic means, as via computer
equipment and telephone line. In an electronic authorization, the merchant's point-of-sale
device connects directly to the credit card network to obtain approval for the requested
transaction.
Electronic Authorization - Manually Keyed
An electronic authorization in which the customer credit number is entered manually into
the point-of-sale device using an attached keypad. The POS device then performs the
electronic authorization using the manually keyed data. Related Term: Electronic
Authorization - Swiped.
Electronic Authorization - Swiped
Most POS devices are equipped with a magnetic card reader. The card reader is able to
detect and decode the magnetic bits of information stored on the credit card. When swiped
in the card reader, data from the magnetic stripe on the credit card is included by the POS
device in the authorization request message that is electronically transmitted into the credit
card network. Related Term: Electronic Authorization - Manually Keyed.
Electronic Benefits Transfer (EBT)
A type of transaction initiated with an EBT card. This card may have a magnetic stripe or a
small microprocessor on it. The card is used to replace the paper distributed by the
government for programs like the Women, Infants, and Children program and food stamps.
The cardholder may use this card and have the charges deducted from their available
benefit dollars for the program that they are participating in. It is a card that is increasing
in popularity and use throughout the United States.
Electronic Commerce
In general, the sale of good or services over the Internet. Electronic commerce is a broad
term reflecting a wide range of commercial activities, and may include business-to-business
transactions, online retail, and the digitalization of the financial industry.
Electronic Credit Application
A application for credit that is transmitted electronically to a credit evaluation company for
approval recommendations.
Electronic Draft Capture (EDC)
Before the advent of electronic draft capture, credit card transactions were finalized using a
paper-based system. Today, most credit card transactions are processed via dial
10. connections, leased lines, the Internet, or other electronic means.
Electronic draft capture - that is, the electronic authorization and deposit of credit card
transactions - allows credit card transactions to be finalized without the submission of
paper drafts to bank for payment. With this method, transactions are routed to VISA,
MasterCard, American Express, Discover, third-party processors, or other card companies
for processing. Transactions cannot be captured unless previously authorized. For mail
order, telephone order, or Internet transactions, goods or services must also have been
shipped or transmitted to the consumer before settlement takes place.
Electronic Funds Transfer (EFT)
A paperless transfer of funds from one account to another that is initiated from a terminal,
computer, telephone instrument, or magnetic tape.
Electronic Warning Bulletin
A data file containing a list of the restricted VISA and MasterCard credit card accounts. This
file or ranges on the Account Management System. For example, when a credit card is
reported lost or stolen, the associated account number would be added to the list of
restricted accounts. The Electronic Warning Bulletin is updated daily and helps processors
determine which authorization requests should be declined.
Before the advent of electronic authorization technology, merchants received a paper
booklet containing similar information.
Encryption
The scrambling of a message or file to make it unreadable except by the intended receiver,
who unscrambles it.
Entry Mode
A code that describes how the cardholder account information was entered into the
terminal. For example, the Entry Mode may indicate whether the credit card account
number in the associated transaction was manually keyed, or whether the account number
was read from the magnetic stripe.
11. Floor Limit
A dollar amount limit that VISA and MasterCard has established for single transactions at
specific types of merchant outlets. If the purchase amount exceeds the floor limit, then
authorization is required. Many companies set their own floor limits and some merchants
have agreements with their acquirers that include floor limits.
Force Authorization
A force authorization is one that is not carried out via electronic communication. Rather,
the merchant contacts the call center by voice to obtain approval. Then, the force
authorization is added to the batch, along with the approval code provided by the call
center, so that it can be settled along with electronic authorizations. Force authorizations
may be used when an electronic authorization results in a referral message or when the
electronic network is experiencing an interruption to service.
Fraudulent Transaction
A fraudulent transaction is a transaction that takes place without the legitimate consent of
the cardholder. Such transactions might be derived from the use of lost, stolen, or
counterfeit cards, or other fraudulent conditions as defined by the card issuer.
Fraudulent User
An individual who is not the cardholder or designee and who uses a card (or, in a
mail/phone order or recurring transaction, an account number) to obtain goods or services
without the cardholder's consent.
Host-Based Processing
In a host-based system, credit card transactions are "captured" at the time they occur. In
the most common scenario for a host-based system, a merchant processes credit card
transactions throughout the business day using a point-of-sale device. The POS device
transmits transaction data to the host processor.
The host processor saves each transaction in a file. At the end of the business day, the POS
device sends a "batch close" command to the host processor. The "batch close" message
contains credit card totals.
If the credit card totals sent by the POS device match the totals calculated by the host
processor, then the batch file is closed and funds are transferred. If the POS totals do not
match the host totals, then the POS device uploads the complete batch.
12. In a host-based system, it is the host processor that is primarily responsible for storing
transaction data until a batch is closed. See also Terminal-Based Processing.
Synonym: Host-Capture.
Imprinter
A device used to imprint the embossed lines of a credit card on a paper transaction sales
draft. The sales draft also includes the merchant's name and ID.
Incremental Authorization
A request for an additional dollar amount on a prior authorization. An incremental
authorization is used when the final amount for a transaction is greater than the dollar
amount of the original authorization. Incremental authorizations are common in the lodging
industry. For example, a hotel guest might register for one night, but then decide to extend
the reservation for additional night. In that case, an incremental authorization might be
performed in order to get approval for additional charges pertaining to the second night.
Independent Sales Organization (ISO)
An independent sales organization sells credit card services to merchants on behalf of an
acquiring bank. The ISO is a separate organization, and is typically not affiliated with a
single acquiring bank.
Interchange
The domestic and international systems operated by the MasterCard and VISA associations
for authorization, settlement, and routing of interchange and other fees, as well as other
monetary and non-monetary information related to credit card activities.
Interchange Fee
A fee paid by the acquiring bank to the issuing bank for each transaction. The fee
compensates the issuer for the time lapsing after the acquiring bank has completed
settlement, but before the issuing bank has recouped the settlement value from the
cardholder. MasterCard International and VISA International independently establish
interchange fees for their respective networks.
Internet Service Provider (ISP)
An organization that provides access to the Internet in some form, usually for money.
13. IPOS System
An integrated point-of-sale system - that is, a system that combines the ability to process
credit card transactions with software or hardware manages other business-related
functions. For example, a restaurant management system might track menu items, server
clock in and clock out, and open tickets, while also interfacing with a credit card module
that would allow diners to pay for meals by credit card.
ISO
See Independent Sales Organization.
ISP
See Internet Service Provider.
Issuing Bank
Any VISA or MasterCard association member financial institution, bank, credit union, or
company that issues, or causes to be issued, credit cards to cardholders.
An individual desiring a credit card makes application to an issuing bank. The issuing bank
undertakes a review of the individual's credit history, current salary, and other such
factors. If the application is approved, the issuing bank provides the individual with a credit
card and associated account number.
The issuing bank transfers funds to acquiring banks to cover purchases made by the
cardholder, and receives the cardholder's payment at the end of the billing period.
Magnetic Ink Character Recognition (MICR)
The process used to read the numbers on a check. The MICR characters (0-9 and 4 special
characters) are printed in special toner or ink. When the check is passed through a
reader/sorter, it passes by two magnetic heads. The first one magnetizes the MICR
character and the second one reads the (now) magnetic MICR character. The character
does not retain its magnetic charge for a long period of time.
Magnetic Stripe
A stripe of magnetic information affixed to the back of a credit or debit card. The magnetic
stripe contains customer and account information required to complete electronic financial
transactions. The physical and magnetic characteristics of the magnetic stripe have been
standardized so that the encoded data can be read by commonly available magnetic stripe
reading devices.
14. Magnetic Stripe Data
Cardholder data is recorded on the magnetic stripe on the back of the credit card. Data
includes the primary account number, the credit card expiration date, and other
discretionary data.
Magnetic-Stripe Reader
A device that reads information from the magnetic stripe of a credit card and transmits that
information to a transaction processor or computer terminal. Also referred to as card
reader.
Magnetic-Stripe Terminal
A terminal that reads the magnetic stripe on a credit card.
Mail Order / Telephone Order Merchant (MOTO Merchant)
A merchant that transacts business by mail or phone.
Mail Order / Telephone Order Transaction (MOTO Transaction)
A transaction where a cardholder orders goods or services from a merchant by telephone,
by mail, or by other similar means, and neither the card nor the cardholder is present at
the merchant outlet.
Manual Authorization
In the early days of credit card processing, all authorizations were performed manually. A
merchant would use a "knuckle-buster," or imprinter, to take a manual imprint of the credit
card.
The merchant would contact a representative of the issuing bank by phone to obtain voice
approval for the authorization. Signed vouchers were delivered to the acquiring bank in
hard copy so that the transactions could be processed.
With the advent of the electronic credit card network, most authorizations are now
performed electronically. However, if the credit card network is experiencing an outage, the
merchant can still complete a manual authorization.
MasterCard Card
A card that bears the MasterCard symbol, enabling a MasterCard cardholder to obtain
goods, services, or cash from a MasterCard merchant or an acquirer.
15. MasterCard Issuer
A member of MasterCard International, Inc., that issues MasterCard cards.
Member
An entity or financial organization that is a member of VISA or MasterCard. Acquirers and
issuers may be members.
Merchant Agreement
A written agreement between a merchant and a bank or other organization containing their
respective rights, duties, and warranties with respect to acceptance of credit cards as a
form of payment.
Merchant Bank
See Acquiring Bank.
Merchant Category Code
Four-digit classification codes used to identify the type of merchant business in various
stages of transaction processing. For example 5999 is the code given to miscellaneous and
specialty retail stores.
Merchant Depository Account
Demand deposit account, or other bank account, established by a merchant to receive
payment for credit card transactions submitted to the acquirer. The merchant depository
account may be established with the acquiring bank, but this is not required. See also
Demand Deposit Account.
Merchant Fraud
Fraud perpetrated by a card acceptor against other parties in a payment system.
Merchant Identification Number (MID)
A unique number issued by the acquiring bank to identify a merchant and the merchant's
terminal(s) to a host computer in the credit card processing network.
Merchant Service Provider (MSP)
A merchant service provider is a business entity that provides transaction processing
services between merchants and settlement banks.
The MSP contracts to sell transaction processing services for one or several acquiring
16. institutions. The MSP signs up merchants with processing agreements as provided by the
acquirer. The MSP also relays to the merchant quote rates as provided by the acquirer, and
can sell or lease POS hardware to the merchant. In some cases, the MSP will continue to
service the merchant account on behalf of the acquiring bank. See also Independent Sales
Organization.
Merchant Services Department
The department within an acquiring bank that assists merchants with their questions.
Negative File
A file used for stand-in purposes that identifies those cardholders and accounts for which
charge privileges have been revoked or restricted by the issuer.
Paper Draft
Sales slips, credit slips, cash disbursement slips, drafts, vouchers, and other paper
documents indicating use of a credit card or a card account.
Per Transaction Fees
Fees paid by the merchant to the acquirer on a per transaction basis.
Pick-Up Card
An issuer's response to an authorization request stipulating that the card be confiscated by
the merchant and returned to the issuer.
Point-of-Sale (POS)
Location in a merchant establishment where a credit card transaction takes place. For retail
businesses, the point-of-sale typically refers to the cashier or check-out desk. For mail and
phone order businesses, the point-of-sale has a broader reference, encompassing the
customer's telephone, personal computer, or order form, as well as the catalog,
advertisement, or other "storefront" material.
POS Terminal
A device located at a merchant establishment that is connected to the credit card network
via telephone lines or other means. The POS terminal is designed to authorize, record, and
forward credit card data by electronic means for each purchase made by credit card.
Posting
The process of recording debits and credits to individual cardholder account balances.
17. Pre-Authorization
A pre-approval for a future transaction. The pre-authorization is usually followed, within a
specific time interval, by the actual financial transaction that will be settled by the
merchant. Pre-authorizations are used primarily in situations where the cardholder wishes
to obtain "advance approval" or "verification" that sufficient funds are available to make a
subsequent purchase using a credit card.
Prior Authorization
A previously authorized transaction that is manually entered into the terminal's open batch
for later settlement. For example, voice-authorized transactions need to be entered into the
terminal for payment to take place. This transaction type is also known as a force sale.
Processor
The processor is an organization that furnishes credit card processing, billing, reporting,
settlement, and operational services to acquiring banks. The processor provides the
computing facilities for routing credit card transactions over a network to the appropriate
issuer for authorization or settlement.
Some acquiring banks process their own credit card transactions. Merchant point-of-sale
terminals connect directly to computer systems owned and managed by the acquiring bank.
Other acquiring banks outsource the processing of their credit card transactions to a thirdparty processor. The third-party processor then owns and maintains the hardware and
software needed to process credit card transactions. In that case, merchant point-of-sale
terminals connect to the third-party processor to transmit credit card requests. The thirdparty processor provides transaction reporting to the acquiring bank.
Real-Time Transaction
An online transaction, such as an ATM withdrawal, that is usually settled immediately.
Referral
When a credit card processor receives an authorization request from a point-of-sale
terminal, the processor can either approve the request, decline the request, or issue a
referral. With a referral, the processor has declined the transaction, but the merchant can
contact the voice authorization center. If this the voice authorization accepts the
transaction, then the merchant will be given an approval code.
18. Retail Merchant
A merchant that provides goods or services in the retail industry, but is not a mail/phone
merchant, a recurring services merchant, or a T&E merchant.
Retrieval Request
A written request to a merchant from a card issuing bank, or from a cardholder, for a copy
of a particular sales draft or proof of sale. The merchant may provide the issuing bank with
a paper copy or facsimile of the sales draft, or an electronic version of the voucher.
Settlement
Settlement is the procedure that results in the dollar value of credit card transactions being
deposited in the merchant's depository account by the acquirer. Most merchants will
"settle" credit card transactions on a daily basis by transmitting a credit card batch file to
the credit card processor.
Settlement Statement
A document issued to the merchant, indicating the sales and credit activity, billing
information, fees and chargebacks occurring during a particular time period.
Soft Decline
A declined response in which authorization is not granted on a valid card not because it has
been lost or stolen, but because the credit card account already exceeds the credit limit.
Standard Floor Limit
A floor limit that varies by merchant type. This refers to a dollar limit on transactions above
which authorization requests are required.
Stand-In Processing
A backup system that provides authorization services on behalf of an issuer when the
issuer or its authorizing processor is unavailable.
Terminal-Based Processing
In a terminal-based system, transactions are not "captured" at the time that they occur.
Rather, the point-of-sale device retains all transaction data in a batch file. When the
merchant is ready to close a batch, the batch settlement procedure is initiated. The POS
device communicates with the host processor, uploading the complete batch file.
Only when the batch file is successfully uploaded to the host is the settlement considered
complete. The host returns a message to the POS device, indicating whether the batch was
19. accepted or rejected. Batches that are accepted by the host are processed and funds are
transferred to the merchant. (See also Host-Based Processing.)
Synonym: Terminal-Capture.
Ticket
Another name for the sales slip, or its monetary value, that results when a credit card
purchase is made.
Transaction
The most common example of a transaction is the process that takes place when a
cardholder makes a purchase with a credit card. The credit card is swiped at the POS
terminal. The terminal makes a dial connection to the credit card network, transmitting
information related to the sale as well as cardholder account information. Finally, the credit
card processor returns a response message indicating approval or denial of the request.
Transaction Date
The date a cardholder effects a credit card purchase of goods, services, or other things of
value.
Transaction Identifier
A unique 15 character value that VISA assigns to each transaction. The Transaction
Identifier is returned in the authorization response message. VISA uses this value to
maintain an audit trail throughout the life cycle of the transaction and all related
transactions, such as reversals, adjustments, confirmations, and chargebacks.
Travel & Entertainment Cards (T&E Cards)
Travel & Entertainment cards typically require payment in full each month by the
cardholder. Examples are American Express, Carte Blanche, and Diner's Club cards.
Travel & Entertainment Merchant
An airline, car rental company, hotel or other similar business establishment whose primary
function is to provide travel-related services.
20. Unbundled Fees
Other fees paid by the merchant to the merchant bank, acquirer, or other contracted party
for credit card transaction processing.
VISA
VISA International Service Association and all of its subsidiaries and affiliates.
VISA Card
A credit card that bears the VISA symbol, enabling a VISA cardholder to obtain goods,
services, or cash from a VISA merchant or an acquirer.
VISA Issuer
A financial institution that is a member of VISA International Service Association and that
issues VISA cards.
VISA Merchant
A merchant that displays the VISA symbol and accepts all VISA cards.
Voice Authorization
An approval response obtained through interactive communication between an issuer and
an acquirer, their authorizing processors, or stand-in processing, through telephone,
facsimile, or telex communications.
Most commonly, a voice authorization is obtained by a merchant from the authorization
center via telephone.
Void
A transaction that nullifies a previous sale that has not yet been settled. This transaction
can typically be completed only within the same batch. The original sale transaction is
effectively removed from the batch of transactions to be settled.
Zero Floor Limit
A floor limit with a currency amount of zero, effectively meaning that authorization is
required for all credit card transactions.