Account number
A unique sequence of numbers assigned to a cardholder account that identifies the issuer and type of financial transaction card.
Acquirer
A licensed member that maintains the merchant relationship and acquires the data relating to a transaction from the merchant or card acceptor and submits that data into interchange, either directly or indirectly.
Acquiring bank
Bank used by merchants to accept credit card transactions; also known as a merchant bank.
Address verification
Security measure using billing information that helps prevent fraud in online credit card transactions.
Authorization
A process defined in operations regulations whereby a transaction is approved by or on behalf of an issuer; commonly understood to be receiving of a sales validation by the merchant, by telephone, or authorization terminal.
Automated Teller Machine (ATM)
An unattended, magnetic stripe-reading terminal that dispenses cash; accepts deposits and loan payments; enables a bank customer to order transfers among accounts and make account inquiries.
Backbone
A high-speed portion of a telecommunications network that connects different segments or nodes of the network.
Bandwidth
The capacity of a transmission link to carry information. Links with greater bandwidth can transmit data at a faster rate.
Bankcard
A debit or credit card issued by a bank or other financial institution.
bps
Bits Per Second, indicating speed of transmission. For example, 28,800 bps means that up to 28,800 bits (binary digits) are transmitted every second.
Broadband
Digital technology providing much greater bandwidth than a typical phone line. Examples include DSL and cable.
Browser
Software that enables users to search, view, and retrieve
information on the Internet. The two most popular browsers
are Netscape Navigator and Microsoft Internet Explorer.
Cardholder
The customer to whom a card has been issued or the individual
authorized to use the card.
Cash disbursement
A transaction that is posted to a cardholder's card account
in which the cardholder receives cash at an ATM, or cash or
travelers cheques at a branch of a member financial institution
or at a qualified and approved agent of a member financial
institution.
Certificate Authority
A third-party issuer of digital certificates used for Internet
security. The Certificate Authority (CA) acts as a trusted
guarantor that both parties exchanging information are who
they claim to be.
Clearing
The process of exchanging financial transaction details between
an acquirer and an issuer to facilitate posting of a cardholder's
account and reconciliation of a customer's settlement position.
Cookie
A string of code transmitted by a web site to visitors. It
is typically used to identify the user to the web site as
the user navigates through the site.
Credit card
A plastic card bearing an account number assigned to a cardholder
with a credit limit that can be used to purchase goods and
services and to obtain cash disbursements on credit, for which
a cardholder is subsequently billed by an issuer for repayment
of the credit extended at once or on an installment basis.
Currency conversion
The process by which the transaction currency is converted
into the currency of settlement or the currency of the issuer
for the purpose of facilitating transaction authorization,
clearing and settlement reporting. The currency of transaction
is determined by the acquirer; the currency of the issuer
is the preferred currency used by the issuer, and most often,
the currency in which the cardholder will be billed.
Debit
card
A plastic card used to initiate a debit transaction. In general,
these transactions are used primarily to purchase goods and
services and to obtain cash, for which the cardholder's asset
account is debited by the issuer.
Dial-up connection
Temporary connection to a network (such as the Internet) typically
using an ordinary telephone line. Contrast with dedicated
line or broadband connection, which provides full-time access.
Digital certificate
An attachment to an electronic message used to verify the
identity of the parties. In e-commerce, a digital certificate
is vital for maintaining a secure environment where encrypted
transmissions can be decrypted only by the authorized parties.
DNS
Domain Name System. A naming system for Internet communications
in which network names (which consist of numbers) are identified
by more easily remembered alphanumeric names.
Domain
The name of a computer or network of computers on the Internet.
DSL
Digital Subscriber Line. Technology that allows high-speed,
simultaneous voice and data transmission over the same phone
line.
E-commerce
The practice of marketing and selling products online and
receiving payments electronically.
E-mail
A text message sent electronically, usually via the Internet.
Other files can be "attached," or sent with, an
e-mail message.
Electronic draft capture (EDC)
A system in which the transaction data is captured at the
merchant location for processing and storage.
Electronic funds transfer (EFT)
A paperless transfer of funds initiated from a terminal, computer,
telephone instrument, or magnetic tape.
Encryption
The process of coding a data transmission so that it can be
read only by a recipient with the means of reversing the encryption
process. SSL is a common way to encrypt data for the purposes
of e-commerce.
Hacker
An individual who attempts to gain unauthorized access to
proprietary data and/or networks, usually via the Internet
and often for unscrupulous purposes.
HTML
Hypertext Markup Language, a page formatting language used
to display content on the World Wide Web.
HTTP
Hypertext transfer protocol. Collection of commands used by
computers to exchange information on the World Wide Web.
Https
A URL prefix signalling that the data is to be transmitted
via a secure port on the server (SSL).
Hub
A networking device that connects two or more points on a
network. Data is sent to the hub and then on to other points
on the network.
Imprinter
A device supplied to the merchant to produce an image of the
embossed characters of the bankcard on all copies of sales
drafts and credit slips.
Internet
Worldwide network of computers. The Internet is actually a
network of networks using standard protocols such as HTTP,
telnet, and FTP to communicate between computers using different
operating systems.
ISDN
Integrated Services Digital Network. A network that can carry
both voice and data over a single line. ISDN service from
local phone companies can carry Internet traffic at up to
128 kbs.
ISP
Internet Service Provider. A company that provides access
to the Internet.
Issuer
A member that enters into a contractual agreement with one
of the card associations to issue credit cards.
LAN
Local Area Network. A private communications network linking
computers and peripherals within an organization at a single
location.
Magnetic
stripe
The magnetically encoded stripe on the bankcard plastic that
contains information pertinent to the cardholder account.
The physical and magnetic characteristics of the magnetic
stripe are specified in ISO Standards 7810, 7811, and 7813.
Magnetic stripe reader
A device that reads information recorded on the magnetic stripe
of a card.
Mail Order/Telephone Order (MO/TO)
A transaction initiated by mail or telephone to be debited
or credited to a bankcard account.
Member
An institution that participates in the programs offered by
MasterCard International Incorporated or VISA USA, Inc.
A retailer, or any other person, firm, or corporation that
(pursuant to a merchant agreement) agrees to accept credit
cards, debit cards, or both, when properly presented.
Merchant bank
A bank that has entered into an agreement with a merchant
to accept deposits generated by bankcard transactions; also
called the acquirer or acquiring bank.
Merchant category code (MCC)
Four-digit classification codes used in the warning bulletin,
authorization, clearing, and settlement systems to identify
the type of merchant business in various stages of transaction
processing.
Modem
Computer peripheral used to convert the digital data of computers
to analog for transmission over telephone networks. A modem
is needed for dial-up access to the Internet.
Offline
Term describing the status of not being connected to a network.
An offline transaction is one conducted in-person or by phone,
fax or mail.
Online
Term describing the status of being connected to a network,
usually the Internet. An online transaction is one conducted
electronically between two or more remote parties.
Payment Gateway
A financial service that translates electronic payment information
provided by online merchantÅfs shopping cart into a
form accessible to a merchant processor.
Personal identification number (PIN)
A four-to-12 character secret code that allows an issuer to
positively authenticate the cardholder for the purpose of
approving an ATM or terminal transaction occurring at a point-of-interaction
device.
Port
On the Internet, a port is a communication endpoint used to
specify which application is to be used for the communication.
Purchasing card
Designed to help companies maintain control of purchases while
reducing the administrative cost associated with authorizing,
tracking, paying, and reconciling those purchases.
Receipt
A hard-copy document representing a transaction that took
place at the point of sale, with a description that usually
includes: date, merchant name/location, primary account number,
amount and reference number.
Router
A networking device that connects different networks and determines
the next point on the network that data should be sent.
Server
A computer that responds to requests for data via a network.
A web server is used to host websites on the World Wide Web.
The term "server" may also refer to the software
that manages the flow of information on a web server or servers.
Settlement
The process by which merchant and cardholder banks exchange
financial data and value resulting from sales transactions,
cash disbursements and merchandise credits.
Server
A computer that responds to requests for data via a network.
A web server is used to host websites on the World Wide Web.
The term "server" may also refer to the software
that manages the flow of information on a web server or servers.
SSL
Secure Sockets Layer; a protocol for encrypting and transmitting
information securely via the Internet.
Third-party
processing
Processing of transactions by parties acting under contract
to issuers or acquirers.
Traffic
In Internet jargon, traffic refers to visitors to a website.
Transaction
Action between a cardholder and a merchant or a cardholder
and a member that results in activity on the cardholder account.
Transaction date
The date a cardholder effects a card purchase of goods, services,
or other things of value, or effects a cash disbursement.
URL
Uniform Resource Locator. An alphanumeric name that corresponds
uniquely to a DNS number, which is used to identify sites
on the Internet.
Web host
A computer system containing electronic files that make up
a website.
Website
File or collection of files ( web pages) on the World Wide
Web maintained by a single organization, usually under a single
domain name.
World Wide Web
Graphics-rich portion of the Internet accessible to users
with browser software.
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