AADS (Account Authority Digital Signature):
A payment mechanism where smart cards and PIN codes interact to generate a unique digital signature for each transaction. Removes the need for third-party authorization of payments, thereby reducing the risk of payment details being intercepted in transit.

ABA Routing Number:
Also referred to as Transit Routing Number. Directs electronic ACH deposits to the proper bank institution.

ACH Automated Clearing House:
A collection of 32 regional electronic interbank networks used to process transactions electronically with a guaranteed one-day bank collection float.

ACH Network:
A central distribution and settlement point for electronic items exchanged among depository financial institutions.

ACH Operator:
A central clearing facility, operated by a Federal Reserve Bank or a private sector organization on behalf of depository financial institutions, in which participating financial institutions transmit or receive ACH entries.

AMESA (Asia Mobile Electronic Services Alliance):
A Visa-backed initiative representing the first Asia-Pacific partnership to integrate the power of the smart card, mobile phone, public key infrastructure and open standards.

AMEX:
Abbreviation for American Express, an organization that issues travel and entertainment cards and acquires transactions.

API (Application Programmers Interface):
Interfaces that extend the capabilities of Web servers; used by programmers to write applications that can interact with other applications. A server API is a published interface that lets software developers write programs that become part of the Web server itself. Usually these are DLLs (Windows dynamic load libraries) that are loaded into memory and stay resident at all times.

ASP (Active Server Page):
An open, compile-free application environment in which you can combine HTML pages, scripts, and ActiveX server components to create powerful Web-based business solutions. (These pages use the extension .asp)

ASP (Application Service Provider):
A body which licenses, maintains and rents third-party software systems to business clients.

AVS:
See Address Verification.

Access Provider:
A company that provides its customers a service to access the Internet. The user normally connects to the access provider's server via a modem using a dial-up connection.

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 of MasterCard and/or VISA (or its agent) which maintains merchant relationships, receives all bankcard transactions from the merchant, and initiates that data into an interchange system.

Acquiring Bank/Merchant Bank:
The bank that does business with merchants enabling them to accept credit cards. A merchant has an account with this bank and each day deposits the value of the day's credit card sales.Acquirers buy (acquire) the merchant's sales slips and credit the tickets' value to the merchant's account.

Acquiring Processor:
The processor provides credit card processing, billing, reporting and settlement, and operational services to the acquirer. Many financial institutions hire a third party for more cost-effective bankcard processing.

Address Verification (AVS):
A service provided through merchant services in which the merchant verifies the cardholder's address. Primarily used by mail/telephone order merchants to combat fraud. Not a guarantee that a transaction is valid.

Affinity Card:
A credit card issued in conjunction with an organization or collective group; for example, profession, alumni, retired persons association. The card issuer often pays the organization a royalty.

Altered Card:
A card on which the original embossed or encoded information has been altered for fraudulent purposes.

Arbitration:
The procedure used to determine responsibility for a chargeback-related dispute between two members.

Assessments:
Fees paid quarterly by members to VISA and MasterCard to support marketing and operating activities.

Association:
An organization owned by members, which services and obtains processing services for members and functions as a principal/proprietary member of VISA or MasterCard.

Audit Trail:
For recording purposes, messages created as a by-product of data processing runs or mechanized operations.

Authentication:
A term describing the process of identification of individuals and businesses through the use of digital certificates.

Authorization:
The act of ensuring the cardholder has adequate funds available against his or her line of credit. A positive authorization results in an authorization code being generated, and those funds being set aside. The cardholder's available credit limit is reduced by the authorized amount.

Authorization Approval Card:
The numerical code designated by the issuer, given to a sales transaction as verification that the sale has been authorized. The authorization code is always included on the merchant sales draft.

Authorization Center:
A department within First Data that electronically communicates a merchant's request for authorization on credit card transactions to the cardholder's bank and transmits such authorization to the merchant via electronic equipment or by voice authorization.

Automated Bill Payment:
The crediting of funds from a consumer's account to a company's account for the payment of a consumer's bill or obligation.

Available Credit:
The difference between a cardholder's credit limit and the present balance on the account, including outstanding transactions not yet received through interchange.

Average Ticket:
The average size of a merchant bankcard transaction. Generally used in pricing decisions and calculations.

Bandwidth:
The amount of electronic data that can be transferred through an electronic connection in a given time. For modems connected by telephone to the Internet, the modem's "speed" represents the maximum possible bandwidth of the connection, such 56.6 Kps (kilobits per second). Competent Web site operators strive to keep the size of Web page files low to conserve bandwidth and speed downloading.

Bank Identification Number (BIN):
A unique series of numbers assigned by MasterCard or VISA to a principal member institution that identifies the member in transaction processing. It is the first three to six digits of a standard cardholder account number and can be used by the member's affiliates, if necessary.

Bank Routing Number:
The first nine digits that appear across the bottom of a personal check; they identify the financial institution.

Bankcard:
A financial transaction card (credit, debit, etc.) issued by a financial institution.

Bankcard Association:
A group of institutions formed for sponsoring a bankcard program, using a common processing and administrative center.

Banknet:
The primary data transport communications facility that links all MasterCard customers and MasterCard data processing centers into a single on-line financial network (also called a packet-switching network). Banknet separates communications processing from financial applications processing, allowing an unlimited variety of financial applications to transmit messages over a single communications network.

Bankwire Transfer:
Transfer of funds to any bank within the Federal Reserve System.

Base I:
The VISANet data processing systems, networks, and operations that provide authorization and authorization-related services to VISA members.

Base II:
The VISANet data processing systems, networks, and operations that provide clearing, settlement, and other interchange-related services to VISA members.

Batch:
A collection of credit card transactions saved for submitting at one time, usually each day. Merchants who do not have real-time verification systems must submit their transactions manually through a POS terminal. Batch fees are charged to encourage a merchant to submit his or her transactions at one time, rather than throughout the day.

Batch Header Ticket:
The identifying form used by the electronic submission merchant to indicate a batch of sales/credit slips (usually one day's work).

Batch Processing:
A type of data processing and data communications transmission in which related transactions are grouped together and transmitted for processing, usually by the same computer and under the same application.

Baud:
The number of electrical symbols per second that a modem sends down a phone line.

Bill Payment Provider (BPP):
An agent (usually a financial institution) of the biller that originates and accepts payments on behalf of the biller.

Bill Payment Service Provider (BPSP):
A financial institution or non-financial entity acting as an intermediary between the biller and consumer for the exchange of electronic bill payment information.

Bill Service Provider (BSP):
An agent of the biller that provides an electronic bill presentment and payment service for the biller.

Billback:
A means of recovering or reducing interchange fees for transactions clearing differently than planned. The processing company (FDC) passes through the charges to the merchant.

Biller:
A company or organization that sends a bill or statement to a consumer, usually requesting payment for a product or service.

Biller Direct:
One of four models of electronic bill presentment and payment (EBPP). A biller establishes an electronic billing capability on its own web site and provides its consumers with their billing information and the capability to make payments directly from the site. Other models include: Thick Consolidator, Thin Consolidator and Customer Consolidation.

Biometrics:
the measurement of a living trait used to control access. Refers to the interpretation of personal traits for access control purposes in place of password or ID verification systems.

Browser:
Short for 'Web Browser,' the tool (program) that allows users to surf the Web. The most popular Web browsers are Netscape Navigator and Microsoft Internet Explorer.

Browser plug-in:
Additional software that is installed on your computer, which extends the functionality of your Web browser.

Bulletin Board System (BBS):
An electronic message system that you dial up directly on your computer to read and post messages or pull off files.

Business Card:
A bankcard issued to companies for use by company employees. The liability for abuse of the card typically rests with the company, not with the employee.

CARDnet:
A proprietary authorization and draft capture network owned and operated by FDC (also known as the 'North Platform').

CDMA (Code-Division Multiple Access):
A type of circuit-switched mobile network with a global user base of 30 million subscribers. Likely to upgrade to CDMA-2000 before reaching UMTS level.

CDPD (Cellular Digital Packet Data):
A standard capable of transmitting Web data to PDAs such as Palm Pilots. Whenever a lag occurs in data transmission, CDPD squeezes data into reserved spaces between analog cell channels. Although this data is low priority, carriers charge per packet.

Common Electronic Purse Specification (CEPS):
Initially developed by Visa before being handed over to the European Committee for Banking Standards (ECBS), this is a unique standard for the global interoperability of smart cards.

CFR (Cost and Freight):
Indicates that a quoted price includes the cost of the goods and transportation charges but not of insurance.

CSP (Commerce Service Provider):
Enterprises resembling utilities firms in functioning as server farms to host ASPs and eCommerce ventures.

CTMF:
Combined Terminated Merchant File

Call Center:
A functional area within an organization or an outsourced, separate facility that exists solely to answer inbound or place outbound telephone calls. Usually refers to a sophisticated voice operations center that provides a full range of high-volume, inbound or outbound call-handling services, including customer support, operator services, directory assistance, multilingual customer support, credit services, card services, inbound and outbound telemarketing, interactive voice response and web-based services.

Cancellation Number:
A number provided by a hotel/motel to verify a cardholder's notification to cancel a guaranteed reservation or advance resort deposit.

Capture:
The submission of a credit card transaction for processing and settlement. POS terminals and real-time processing software capture transactions to submit to merchant account providers or credit card processors.

Capture Date:
The date on which a transaction is processed by an acquirer.

Card Base:
A population of cardholders, especially in the context of a single-card family.

Card Issuer:
(1) The financial institution or retailer that authorizes the issuance of a card to a consumer (or another organization), and is liable for the use of the card. The issuer retains full authority over the use of the card by the person to whom the card is issued. (2) Any bank or organization that issues, or causes to be issued, bankcards to those who apply for them. (3) Any organization that uses or issues a personal identification number (PIN).

Card Verification Code (CVC):
A unique value calculated from the data encoded on the magnetic stripe of a MasterCard card, validating card information during the authorization process.

Card Verification Value (CVV):
A unique value calculated from the data encoded on the magnetic stripe of a VISA card, validating card information during the authorization process.

Cardholder:
The person to whom a financial transaction card is issued or an additional person authorized to use the card.

Cardholder Bank:
The bank that has issued a bankcard to an individual. The term is frequently used in conjunction with interchange arrangement to identify the card-issuing bank.

Cash Advance:
An amount advanced by a bank teller (or ATM) to a bankcard holder against the cardholder's line of credit.

Cash Bank:
A purchase for more than the amount of goods or services with the cardholder receiving the difference in cash.

Certificate Authority (CA):
This is the service a bank provides that digitally signs public keys sent to it by a web browser or by the merchant's server software. It issues and validates digital certificates associated with SET transactions.

Chain:
A series of merchant locations which are managed/owned by the same entity.

Challenge-Response:
A common authentication technique for smart cards whereby an individual is prompted (the challenge) to provide some private information (the response). The in-built security system presents a code (the challenge) to the user, which he or she enters into the smart card. This generates a new code (the response) that the user can present to log in.

Charge Per Transaction:
A fee charged on any authorized transaction to cover costs usually associated with delivery of the authorization.

Chargeback:
A fee charged by a merchant services provider against a merchant account for transactions that are successfully challenged by a credit card holder. After a charge is disputed and adjudicated in the cardholder's favor, the transaction total and chargeback fee are deducted from the merchant account.

Chargeback Period:
The number of calendar days (counted from the transaction processing date) during which the issuer has the right to charge the transaction back to the acquirer. The number of days varies according to the type of transaction from 45 to 180 days.

Chargeback Reason Code:
A numerical code which identifies the specific reasons for the chargeback. VISA and MasterCard each have their own chargeback codes.

Chargeback Reference Number:
A 10-digit number assigned to every chargeback, unique (in a 12-month period) for each individual chargeback. The first four digits of the chargeback reference number are the issuer's identification (BIN/ICA) number.

Check Card:
A bankcard that enables the user to purchase goods and services, obtain cash disbursements against his or her asset account, generally a checking account. The check card is also called an 'offline debit card' or 'deposit access card.'

Check Guarantee:
A service provided by a third party vendor who guarantees a customer's payment by check for a specified amount. Stipulations require that the merchant follow correct authorization procedures.

Check Verification:
A service provided in which a merchant accesses a national negative file database through their terminal/register to verify or authorize the person has no outstanding bad check complaints at any of the member merchants. This is not a guarantee of payment to the merchant.

Check and List Payment:
A paper-based processing method in which the biller is sent a single check representing multiple payments accompanied by a list of payments that it represents.

Checks By Phone(SM):
A system that allows consumers to provide their checking account information to a merchant over the phone and a duplicate check (paper draft or electronic check) is created for payment.

Chip:
A small square of thin semiconductor material, such as silicon, that has been chemically processed to have a specific set of electrical characteristics such as circuits storage, and/or logic elements.

Chip Card:
See Smart Card.

CIF:
Cost, Insurance, and Freight: A term indicating that a quoted price includes the cost of the goods, insurance, and transportation charges.

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.

Clearing Account:
An account at the clearing bank that will receive a member's credit or debit for net settlement.

Clearing Bank:
A bank designated by the member to receive the member's daily net settlement advisement. The clearing bank will also conduct funds transfer activities with the net settlement bank and maintain the member's clearing account. This bank may be the member itself.

Client:
A computer that requests and receives data over a network, including the Internet. The most common types of client on the Internet are computers running browsers or e-mail programs.

Client Reference Number:
An eight-digit number supplied by the establishment for Electronic Draft Capture, Electronic Cash Register, or Direct Solutions transactions. This number is given to the establishment by First Data along with a retrieval request.

Close (batch close):
The process of sending the batch for settlement.

Closed System:
A kind of payment card system in which one organization both issues cards and acquires merchants. American Express, Diners Club, and Discover are examples of closed systems.

Co-Branded Card:
A credit card issued jointly by a member bank and a merchant, bearing the 'brand' of both.

Commerce Server:
A Web server that contains the software necessary for processing customer orders via the Web, including shopping cart programs, dynamic inventory databases, and online payment systems. Commerce servers are usually also secure servers.

Compliance:
The procedure a VISA or MasterCard member may use to resolve a dispute between members when no chargeback reason code applies. The challenging member must prove financial loss due to a violation of MasterCard and/or VISA rules by the other member.

Concentrator:
A financial institution or a third party service provider that has been retained by a biller to handle payment and/or remittance data.

Confirmation Number:
A number provided by a hotel or motel to verify a cardholder's guaranteed reservation or advance resort deposit.

Congestion:
Density of traffic when the load exceeds the capacity of a data communication path.

Consolidator:
A bill service provider (BSP) that consolidates bills from other BSPs or billers and delivers them for presentment to the customer service provider. Also referred to as a Bill Consolidator.

Convenience User:
A cardholder who pays the balance in full on each payment due date.

Cookie:
A small chunk of information, stored on your computer by a Web site you have visited, that's used to remind that site about you the next time you visit it.

Corporate Card:
A bankcard issued to companies for use by company employees. The liability for abuse of the card typically rests with the company and not with the employee.

Correspondent Bank:
A bank that accepts deposits and performs banking services for other banks. Correspondent banking arrangements exist between local banks and banks located throughout the world.

Counterfeit Card:
A plastic card which has been fraudulently printed, embossed, or encoded to appear to be a genuine bankcard, but which has not been authorized by MasterCard or VISA or issued by a member. A card originally issued by a member but subsequently altered without the issuer's knowledge or consent.

Credit:
A transaction resulting in a credit to a cardholder's account.

Credit Deposit:
The value of a merchant's credit card purchases that are credited to its bank account after the acquiring bank buys the merchant's sales slips. The deposit is credited but is not funded until the acquiring bank gets the monetary value from the issuer during settlement. Also referred to as Deposit Credit.

Credit Limit:
The maximum amount the cardholder may owe to the issuer on the card account at any time.

Credit Loss:
The amount lost (charged off) as a result of failure of the cardholder to repay the amount owed on the account.

Credit Scoring:
A method for predicting the credit worthiness of applicants for credit.

Credit Transaction:
A claim for funds by a cardholder for credit against his or her account. At the same time, it provides details of funds acknowledged as payable by the acquirer, the card acceptor, or both, to the card issuer.

Current Risk:
The risk exposure presented in the given month projected from the prior month's processing volumes.

Customer Consolidation:
One of four models of electronic bill presentment and payment (EBPP). Bill content and payment instructions and/or a payment mechanism are sent to the customer via e-mail. Other models include: Biller Direct, Thick Consolidator and Thin Consolidator.

Cryptography:
The practice of digitally "scrambling" a message using a secret key or keys.

Cyberspace:
A term coined by the science-fiction novelist, William Gibson, in his fantasy novel, Neuromancer. Used to describe the 'world' of computers. Used as a reference to the 'Internet.'

Cycle:
The grouping of cardholder accounts to provide for a distribution of workload and easier account identification.

Cycle Billing:
The preparation of monthly cardholder statements by group (cycle) for the purpose of evenly distributing the workload and receipt of cardholder payments.

Cycle Period:
A specific period of time during which both debit and credit transactions are accumulated from billing.

DCS:
Destination Control Statement: A document that accompanies nearly all commercial shipments that declares the shipment's contents are licensed for export to a particular destination. The anti-diversion clause in the DCS precludes the diversion of the shipment to any other destination.

Data Capture (a/k/a Draft Capture):
The collection, formatting, and storage of information in computer memory. Some point-of-sale terminals perform data capture functions. See EDC Terminal.

Data Encryption Key (DEK):
Used for the encryption of message text and for the computation of message integrity checks (signatures).

Data Encryption Standard (DES):
A popular standard encryption scheme.

Database:
A file or file system containing organized information and, most commonly, a filing and retrieval system for storing information. Most database software also includes tools for data analysis. Examples of database software include Oracle, Sybase, and Microsoft Access.

Debit:
A charge to a customer's bankcard account.

Debit Card:
A financial instrument used by consumers in place of cash. Unlike a credit card, debit card purchases are deducted automatically from the cardholder's account, like a check. Visa and MasterCard now offer debit cards through banks and other financial institutions.

Debit Transaction:
A bankcard used to purchase goods and services and to obtain cash, which debits the cardholder's personal deposit account.

Demand Deposit Account (DDA):
Usually abbreviated as DDA, it refers to the merchant bank account First Data credits or debits for deposits, fees and adjustments.

Deposit Credit:
See Credit Deposit.

Dial-Up Line:
A communications medium described as a non-dedicated telephone line, in which a connection is established by dialing a destination number and broken when the call is complete. This is the same type of phone line that you use at home.

Dial-Up Terminal:
An authorization terminal that (like a telephone) dials the authorization center for validation of transactions.

Digital Cash:
Two main mechanisms in that "digital coins" can be downloaded to the user's PC from a participating bank, or the set up of a digital money account with a bank. Both (encrypted) forms of cash can be sent to merchants for payment.

Digital Certificate:
Online identification that authenticates a consumer, merchant and a financial institution. Digital certificates are used to encrypt information exchanged in SET transactions. A certificate is a public key that has been digitally signed by a trusted authority (the financial institution) to identify the user of the public key.

Digital Receipt Infrastructure (DRI):
Utilizing this infrastructure enables consumers and organizations to prove that electronic transactions and events actually took place. In legal terms, these serve as a digital trail, as opposed to a paper trail.

Digital Signatures:
An electronic signature, which cannot be forged. Instead it is generated from a computed digest of the text that is encrypted and sent with the text message. The recipient decrypts the signature and retrieves the digest from the received text. If the digests match, the message is authenticated and proved to be from the sender.

Digital Wallet:
A consumer account set up to allow e-commerce transactions through a particular credit card processing system. Before the consumer can make a purchase, he or she must first establish an account with the credit card processor, who provides an ID and password. These can then be used to make purchases at any Web site that supports that transaction system.

Direct Marketing:
A transaction category for providing customized services and procedures for merchants which offer merchandise or services via catalogs, telephone calls, mailings, and/or advertisements.

Direct Payment:
A method of collection used in the ACH network for certain claims, generally those that are repeated over a period of time, under which the debtor gives the originator a standing authorization to debit his or her account.

Disclosure:
The information required by federal or state law to be relayed to the cardholder concerning the terms of the credit agreement. Disclosure must be made by the issuer before the first use of the card by the cardholder, and must subsequently be included on all monthly statements and other documentation mentioning finance charges.

Discount Rate:
A percentage fee paid to the merchant account provider or ISO for handling an electronic transaction. Most Web merchants pay between two and 10 percent of their revenue from online credit card or electronic check orders.

Doing Business As (DBA):
Refers to the specific name and location of the merchant establishment where credit card purchases are made.

Domain:
A designation for particular location on the Internet. A domain, for example "transactive.ca," contains files that make up the content of Web pages under that address. transactive.ca/intro.htm and transactive.ca/tutorial.htm are different Web pages located within the same domain. Domain names are associated with IP addresses.

Domain Name System (DNS):
A general-purpose data query service whose principal use is the lookup of host addresses based on host names. Important domains are .com (commercial), .edu (educational), .net (network), .gov (U.S. government), .mil (U.S. military) and .org (organization).

Down Time:
A period when all or part of a system or network is not available to end users due to failure or maintenance.

Download:
To copy a file from a remote computer 'down' to your computer.

Duality:
The membership of a financial institution in both MasterCard and VISA. Legality outside of the U.S. varies according to nation.

E-Cash:
Electronic cash is a payment mechanism designed for the Internet. It is electronic money that can be passed along from person to person like cash. It is anonymous like cash, and has value immediately. It's cash, not a promise to pay later.

E-Check:
The electronic equivalent of a paper check.

EDC (Electronic Data Capture):
The use of a POS terminal for validating and submitting credit card transactions to a merchant account provider or other credit card processor. In online credit card processing, software takes the place of the POS terminal.

EDGE (Enhanced Data rate for Global Evolution):
Enhancement for GSM and TDMA networks, taking packet delivery to near-UMTS speeds of 384Kbits/s. Based on 2G standards but often classified as a 3G protocol.

EDI (Electronic Data Interchange):
EDI is a global computer network, separate from the Internet, used to handle financial transactions between banks and other institutions.

EMC (Export Management Company):
A firm that provides exporting services to other firms. The export management firm will either take title to act as an intermediary merchant or provide export management services in exchange for fees or a commission.

EMV:
Acronym for Europay, MasterCard, Visa. Usually refers to EMV 96, which is a set of three specifications covering debit/credit cards, terminals and applications. EMV supports applications enabling issuers, retailers and consumers to start using chip cards and terminals with added security. The term 'EMV compatible' is used when referring to terminals which meet level 1 of the EMV 96 specifications.

Electronic Banking:
A form of banking in which funds are transferred through an exchange of electronic signals between financial institutions, rather than an exchange of cash, checks or other negotiable instruments.

Electronic Bill Delivery:
A bill delivery system offered by Visa Interactive that allows banks to send consumers their bills through their personal computers or via telephone lines. This system now allows consumers to transfer funds through their bank to the billing agent itself.

Electronic Bill Payment (E-pay):
An alternative to paper checks for paying bills. Consumers can use PCs, telephones, screen phones or ATMs to send electronic instructions to their bank or bill payment provider to withdraw funds from their accounts and pay merchants. Payments may be made either electronically or by a paper check issued by the bill payment provider.

Electronic Bill Presentment (EBP):
The electronic delivery of vendor requests for payment. Vendors send consumers their bills via PCs, telephones or screen phones.

Electronic Cash Register (ECR):
A system which functions most efficiently and effectively for large businesses with many registers in single or multiple locations. Provides a direct, computer-to-computer linkup between the First Data host and the merchant's host.

Electronic Cheques (Checks):
Currently being tested by several companies, electronic checking systems take money from users' checking accounts to pay utility and phone bills.

Electronic Check Acceptance(SM) or ECA:
A system that captures banking information off a paper check and converts it into an electronic item processed through the Automated Clearing House network. With ECA, checks are processed similarly to credit cards, and the paper check is returned to the consumer at the point of sale.

Electronic commerce (ecommerce):
The processing of economic transactions, such as buying and selling, through electronic communication. E-commerce often refers to transactions occurring on the Internet, such as credit card purchases at Web sites.

Electronic Financial Services (EFS):
Financial services that are provided via electronic delivery channels (e.g. PCs, telephones, screen phones and ATMs). These services may be transaction and/or information oriented and may be provided by bank and non-bank providers.

Electronic Funds Transfer (EFT):
A transfer of funds between accounts by electronic means rather than conventional paper-based payment methods. EFT is any financial transaction originating from a telephone or electronic terminal, or from a computer or magnetic tape.

Electronic Funds Transfer at the Point of Sale:
The technology and practice of making payments for goods and services by means of electronic funds transfer initiated at the point where goods and services are purchased.

Electronic Mail (E-mail):
A system where a computer user can exchange messages with other computer users (or groups of users) via a communications network.

Electronic Point of Sale:
A point-of-sale merchant with electronic equipment for pricing and recording transactions, but not necessarily incorporating functions for electronic funds transfer.

Embossing:
The process of printing data, in the form of raised characters, on the bankcard. Provides identification of the card and allows the imprinting of sales drafts.

Encryption:
The technique of scrambling data automatically in the terminal or computer before data is transmitted for security/anti fraud purposes.

Enveloping:
A process whereby documents of the same type or purpose are grouped together, bound and sent to the same destination into an electronic envelope. This is done by an electronic data interchange management software function.

Euro:
The common currency shared by most of the members of the European Union (Britain, Greece, and Denmark are not participating). Introduced in January 1999, the euro will eventually replace national currencies such as the German mark, French franc, and Italian lira.

Expiration Date:
The date embossed on a bankcard, beyond which the card becomes invalid.

Export License:
Permission granted to ship a product to a foreign recipient. In the United States, export licenses are either general licenses or individual validated licenses (IVLs).

Extranet:
A Web site that links businesses to consumers, suppliers, etc., for electronic commerce. These sites usually provide more consumer-specific information than public sites and may have security devices such as passwords for a user to gain access to more sensitive information.

FTP (File Transfer Protocol):
A set of standard codes for transferring files over the Internet. FTP is usually used for retrieving large files or files that cannot be displayed through a browser. Windows FTP and Fetch are examples of FTP software.

Facsimile Draft:
A paper record that may be provided by an acquirer as a substitute for the sales draft. A substitute document.

Factoring:
The purchase of debts owed, or "accounts receivable," in exchange for immediate payment at a discount. In e-commerce, the term is often applied to ISOs that offer to process credit card transactions through their own merchant account rather than through an account established by the merchant, in exchange for a percentage of the transaction or other fee. Factoring of credit card debt is illegal.

Fiber Optic Cable:
A transmission medium composed of small strands of glass, providing a path for light rays that act as a carrier.

File Transfer:
The copying of a file from one computer to another over a computer network.

Financial EDI:
Electronic exchange of payments, payment information or financially related documents in standard formats between business partners.

Financial Institution:
Any organization in the business of moving, investing, or lending money, dealing in financial instruments, or providing financial services. Includes commercial banks, thrifts, federal and state savings banks, saving and loan associations, and credit unions.

Firewall:
A specially programmed computer that connects a local network to the Internet and for security reasons only allows certain types of messages through.

Floor Limit:
A dollar amount set by the acquirer in accordance with MasterCard and VISA rules and regulations. The merchant must obtain authorization for any transaction over the floor limit.

Folio:
A lodging merchant's guest file that contains the cardholder's transaction information, including check-in and out dates, rate, intended length of stay at check-in time, applicable charges and taxes.

Force / Offline Transaction:
The after-the-fact entry of a purchase resulting from a referral ('call Authorization Center') message or a downtime interruption of service from a Network which enables the merchant to enter (as a force/post authorization) the transaction and the approval code into the EDC batch.

Frame Relay:
An emerging network access protocol designed to accommodate data applications. It is characterized by four important features: 1.High transmission speeds 2.Low network delay 3.High connectivity 4.Efficient bandwidth use

Franchise:
An organization that grants a license to a group of merchants to market a company's goods or services in a particular territory, and wants to provide bankcard processing to its members from First Data.

Freight Forwarder:
A firm that handles export shipments for other firms.

Frequently Asked Questions(FAQ):
A term that refers to a list of questions/answers provided by companies relating to software products, Web site, etc.

Fulfillment:
The acquirer's response to an issuer's retrieval request for a sales draft. The acquirer supplies the issuer with the original draft or a clear reproduction. The fulfillment record confirms the response and initiates reimbursement to the acquirer for fulfilling the request.

Full Service Processing (FSP):
A relationship with a Bank whereby First Data provides a series of services on an outsourcing basis. First Data is paid fees for the services performed and does not hold the risk for Credit/Fraud losses.

Funding:
Refers to the payment to a merchant for his submitted deposits.

Funding Correction:
A payment made by First Data to a merchant to rectify an error made by First Data subsequent to clearing a merchant's bankcard deposit/transmission through the Associations and First Data receiving payment from the Associations for said bankcard deposit/transmission.

Funds Transfer System:
A wire transfer network, ACH, or other communication system or clearing house or association of banks in which First Data's Clearing/Funding Bank is a member and through which a payment order by a bank may be transmitted. Includes: SWIFT, CHIPS, Fedwire, the National Association of Clearing House Associations, MasterCard and VISA.

GPRS (General Packet Radio Services):
An extension of the GSM standard allowing the transmission of packet data to wireless devices at speeds of up to 150 kbps.

Gateway:
The interconnection between two networks with different communication protocols.

Good Faith:
An attempt to resolve a dispute regarding a violation of the Association Bylaws and Rules by written communication, before filing a compliance case.

Gross Deposit:
Submitting bankcard sales and credits at the face amount. The acquirer later deducts the discount.

HDML (Handheld Device Markup Language):
A markup language adapting Web content for display on mobile handheld devices such as cell phones, pagers or PDAs.

Handshake:
A preliminary procedure, usually part of a communications protocol, to establish a connection.

Hard Copy:
The original document of a transaction, such as sales drafts, credit slips, etc.

Headquarters / Head Office:
The main office of a retail chain through which all communication, supply orders and funding with First Data takes place.

Holdback:
A portion of the revenue from a merchant's credit card transactions, held in reserve by the merchant account provider to cover possible disputed charges, chargeback fees, and other expenses. After a predetermined time, holdbacks are turned over to the merchant. Note: Merchant account providers almost never pay interest on holdbacks.

Hologram:
A laser-created photograph that creates a three-dimensional image; used as an anti-counterfeiting measure on bankcards.

Home Page:
The page where a user normally enters a Web site. Also contains the major hotlinks to various features/contents of the site.

Host Computer:
The central computer in a data communications system that provides the primary data processing functions, such as computation and database access.

Hot Card:
A card account on which excessive use is occurring often an indication that the card (or account number) has been stolen.

Hyperlink:
A hypertext connection that can take you to another document or another part of the same document. On the World Wide Web, hyperlinks appear as text or pictures that are highlighted. To follow a hyperlink, click the highlighted material.

Hypertext:
A system of writing and displaying text that enables the text to be linked in multiple ways, be available at several levels of detail, and contain links to related documents.

Hypertext Mark-Up Language (HTML):
The language used to write pages for the World Wide Web. This language lets the text include codes that define fonts, layout, embedded graphics, and hypertext links.

Hypertext Transfer Porotocol (HTTP):
The way in which World Wide Web pages are transferred over the Internet.

Hypertext Transfer Protocol Secured (HTTPS):
A variant of HTTP that encrypts messages for security.

IMT-2000 (International Mobile Telecommunications-2000):
An ITU-approved standard, employing 3 wideband-CDMA (W-CDMA) specifications. The single carrier portion is intended as a 3G bridge for current GSM networks.

IP Address (Internet Protocol Address):
A designation for a particular location on the Internet, such as "140.23.719.6." IP addresses are associated with domain names.

ISO (Independent Service Organization):
A firm or organization that offers to process online credit card transactions, usually in exchange for transaction fees or a percentage of sales. Merchants must generally establish a merchant account before contracting for ISO services, although some ISOs claim not to require separate merchant accounts. See also factoring.

ISP (Internet Service Provider):
A firm that provides access to the Internet, including Web browsing and e-mail. ISPs often offer connections that can be accessed by dialing a telephone number through your computer's modem.

Imprinter:
A device used by merchants to imprint embossed card information onto the sales drafts for bankcard transactions.

Industry Server:
A computer that facilitates electronic financial transactions and information flows. Servers function either via private (Intranet) or public (Internet) communication networks. Servers can have three potentially complementary sets of capabilities: 'The gateway/switch function manages the connection between consumers and their financial institution(s). It also facilitates transfer of information between consumers and institutions. The transaction processor executes consumer requests for transactions by assembling information in an appropriate form or actually conducting transactions. Electronic bill payment is a good example of a transaction facilitated by servers. 'The settlement facilitator enables banks to settle transactions between themselves. Servers can prepare information for settlement as well as conduct settlement activities. The facilitator may use existing payment networks (e.g., Fedwire, ACH and ATM) or develop a new settlement approach.

Integrated Services Digital Network (ISDN):
A faster, digital phone service that operates at speeds as high as 128 kilobits per second.

Interactive Financial Exchange (IFX):
A standard for the exchange of financial data and instructions independent of a particular network technology or computing platform. It builds upon previous industry experience, including OFX and GOLD, two standards currently implemented by major financial institutions and service providers to enable electronic exchange of financial data between themselves and their consumers.

Interactive Voice Response (IVR):
The process in which the voice processing system prompts the caller for information which can then be used as a search key to a database. The result of the search is subsequently reported back to the caller. A typical and most common application of IVR is in the banking system. A caller calls the bank's IVR lines, enters an account number and receives information such as account balance, last check cleared, etc.

Interbank CardAssociation Number (ICA):
A four-digit number assigned by MasterCard to a financial institution, third party processor, or other member to identify the member in transactions.

Interchange:
The domestic and international systems operated by VISA and MasterCard for authorization, settlement and the passing through of interchange and other fees, as well as other monetary and non-monetary information related to bankcard activities.

Interchange Fee:
Fees paid by the acquirer to the issuer to compensate for transaction-related costs. VISA and MasterCard establish interchange fee rates.

Internet:
A system by which all the computers in the world talk to each other.

Internet Bill Delivery and Payment (IBDP):
An Internet-based service that securely andreliably delivers richly formatted bills, statements, invoices, notices and associated advertising to any online consumer or business, and returns payment, remittance instructions and related information to the biller and/or designated payee.

Internet Check Acceptance:
A payment system that allows consumers to enter their checking information on-line; electronic items are created and processed through the Automated Clearing House network.

Intranet:
A private version of the Internet that lets people within an organization exchange data using popular Internet tools, such as browsers.

Issuing Bank (Issuer):
The bank that maintains the consumer's credit card account and must pay out to the merchant's account in a credit card purchase. The issuing bank then bills the customer for the debt. JAVA: A computer language invented by Sun Microsystems. Because Java programs can run on any modern computer, Java is ideal for delivering application programs over the Internet.

Japanese Credit Bureau (JCB):
Issuers of the JCB card.

Java:
A programming language frequently used on Web sites. Some Java programs, or "applets" are downloaded from the Web server to the visitor's own computer, which then runs them. This distinguishes Java programs from other Web programming languages, such as PERL, that reside and run on the Web server (only the results are downloaded to the visitor's computer).

Kiting:
A scheme where a merchant submits a sales transaction on his/her personal bankcard account(s) to obtain cash advances through their business.

Leased Line:
A communications medium described as a dedicated telephone line reserved for the permanent use of communicating between two points.

Local Area Network (LAN):
A data communications network confined to a limited geographic area with moderate to high data rates. The area served may consist of a single building or a cluster of buildings. It is owned by its user, and does not use common carrier circuits, although it may have gateways or bridges to other public or private networks.

MCC: See Merchant Category Code.

MICR Number Method:
A check authorization procedure that uses the bank routing/transit numbers, checking account numbers and check number encoded along the bottom of the check.

MOTO (Mail order / telephone order) Discount Rate:
The discount rate charged by the merchant account provider for credit card transaction in which the actual credit card was not available to the merchant. MOTO discount rates are generally higher than swipe discount rates to account for the increased chance of fraud or nonpayment.

MTP (Micropayment Transfer Protocol):
A W3-defined software-based system for micropayments, this protocol is "optimized for use in low-value transfers between parties who have a relationship over a period of time."

MULTOS:
Abbreviation for Multiple Operating System, comprises a platform for smart card development. Favored by MasterCard, Mondex, Europay and Discover credit card brands

Magnetic Information Character Recognition (MICR):
Imprinted banking numbers (routing/transit number, checking account number, check number) at the bottom of the check.

Magnetic Stripe:
A stripe (on the bankcard) of magnetically encoded cardholder account information affixed to a plastic card.

Mail Order / Telephone Order (MO/TO):
The direct marketing catalog industry.

Media:
The documentation of monetary transactions (i.e. sales drafts, credit slips, computer printouts, etc.)

Member:
A financial institution which is a member of VISA USA and/or MasterCard International. A member is licensed to issue cards to cardholders and/or accept merchant drafts.

Merchant:
A retailer, or any other person, firm, or corporation that, according to a Merchant Agreement, agrees to accept credit cards, debit cards, or both, when properly presented.

Merchant Account:
A bank account established by a merchant to receive the proceeds of credit card purchases. By establishing a merchant account, the merchant bank agrees to pay the merchant for valid credit card purchases in exchange for the right to collect on the debt owed by the consumer.

Merchant Account Initiation (MAI):
A full-cycle credit management system that statistically credit scores and rates new merchant applications, tracks accounts from contract signing to achievement including an on-going profitability analysis, and retains a paperless credit file online.

Merchant Account Provider (MAP):
A bank or other institution that hosts merchant accounts and processes online credit card transactions. The term is also often used broadly to include any credit card processing service, including ISOs.

Merchant Acquirer:
A member that has entered into an agreement with a merchant to accept deposits generated by bankcard transactions; also called the acquirer or acquiring bank.

Merchant Agreement:
The written contract between merchant and acquirer who detail their respective rights, responsibilities, and warranties.

Merchant Bank:
A bank that holds a merchant account. After a consumer buys a product using a credit card, the merchant bank places funds into a merchant account in exchange for the right to collect on the debt owed by a consumer. See also merchant account provider.

Merchant Category Code (MCC):
Merchant classification code which identifies the merchant by type of processing, authorization and settlement.

Merchant Fraud:
The act of submitting sales drafts which are not the result of legitimate sales for the purpose of defrauding the services, the client bank, or individual cardholders. Fraud includes knowingly accepting lost, stolen, or counterfeit credit cards.

Merchant Number:
A number that numerically identifies each merchant to the merchant processor for accounting and billing purposes.

Merchant Outlet:
The physical premises of the merchant at which a transaction is consummated.

Merchant Sales Agreement:
The written contractual agreement between a merchant, First Data, and First Data's clearing/funding member bank. This agreement contains their respective rights, duties, and warranties with respect to the acceptance of credit, debit, or charge cards and payment system processing.

Merchant Service Charge:
The discount rate or other fees assessed by the acquirer.

Merchant Services:
A bank, ISO, or other firm that provides services for processing financial transactions, usually credit card sales. Many MSPs provide merchant accounts, while others require their clients to establish merchant accounts on their own. Some MSPs claim that they do not require merchant accounts; this may indicate factoring, which is illegal in many areas.

Merchant Settlement Amount:
The net dollar amount for each business day of card transactions processed, less chargebacks debited to the merchants and other debits or credits to the merchants.

Merchant Station Plate:
A metal embossed plate to be attached to the imprinter machine and used for imprinting sales slips and batch headers/summaries. Embossed data includes merchant name, account number, city, state, and may include service entitlement numbers or checking account number. Also known as a 'slug.'

Message digest:
The basis for Digital Signatures in providing a digest of the random message being transmitted. As a result, they are difficult to reverse.

Micropayment:
Very small charges, perhaps even less than a penny, processed through e-commerce systems. Until this time, e-commerce has been largely limited to purchases of $10 (U.S.) or more. With micropayments, however, e-commerce merchants can sell products for far lower prices, such as charging small fees for downloading documents or charging per click for online advertising. Micropayment systems are still largely experimental and not widely available.

Modem:
A device that converts serial digital data from a computer to a signal suitable for transmission over a telephone line and then reconverts the signal to serial digital data for the receiving PC.

Monthly Minimum:
The minimum amount in fees and percentages charged by a merchant services provider in a given month. If account activity does not generate the monthly minimum, the account holder must make up the difference.

National Automated Clearing House Association (NACHA):
The national association that establishes the standards, rules and procedures that enable depository financial institutions to exchange ACH payments on a national basis.

Negative File:
A collection of records (cardholder accounts) containing all accounts on which charge privileges have been revoked and/or require a voice authorization.

Net Payment:
Payment to the merchant for sales drafts less credits minus the appropriate discount fee.

Net Revenue:
Discount income less interchange expense.

Net Settlement:
The settlement, through an actual transfer of funds, of the net effect of a series of financial transactions involving customers of two or more banks.

Network:
Computers that are connected together.

Network Service Provider:
A terminal-centered system that allows the merchant to obtain authorization and/or data captured through the network. A third party vendor who provides authorization network services such as Banknet, VISANet, and NDC.

No Show:
A charge processed by a hotel or motel when a cardholder fails to arrive within a specified time or fails to cancel the guaranteed reservation within a specified period. The words 'no-show' must be written on the signature line of the sales draft.

Node:
The network telecommunication access point which can be accessed by the terminal dialing a 'local' telephone number, or a toll-free '950' or '800' telephone number for authorization.

Non Delivery Risk (NDX):
A processed and cleared transaction charged to a cardholder's account for full or partial payment for a product/service in advance of delivery/receipt of the product/service to the cardholder.

Non Face-to-Face Transaction:
Any transaction where the card is not presented, such as a mail order purchase.

Non-Bank:
In a payment system, a financial institution not offering retail banking services.

Non-repudiation:
Process by which a customer cannot deny having paid for an order after it is conducted.

North Platform:
See CARDnet.

Offline Debit:
Debit card transactions using a VISA/MasterCard branded card that looks like a credit card. The transaction must adhere to VISA/MasterCard debit regulations and the merchant is required to pay a discount fee. Cashback is not available.

Offline Transaction:
See Force.

On-Us Entries:
Financial institution debit and credit entries to accounts held at the same institution. Such entries are posted internally to the appropriate accounts.

On-Us Transaction:
Any electronic banking transaction in which the acquirer and the issuer are the same institution.

Online Debit:
Debit card transactions that are instantly debited from the cardholder's bank account. No signature is required. A pin pad is required at the point of sale. Cashback is available and the funds are guaranteed.

Online Storefront:
A Web site containing eCommerce software, available on a public network, such as the Internet, which offers goods and services for sale. An online storefront is the equivalent of a store or place of business that a customer would visit to purchase goods and services.

Open-to-Buy:
The difference between the credit limit assigned to a cardholder account and the present balance on the account.

Operating Procedures:
The current manual prepared by an acquiring processor, containing operational procedures, instructions and other directives relating to card transactions.

Operating Risk:
The sum total of cumulative chargeback risk exposure plus the cumulative credit risk exposure with a given merchant.

Operating Rules:
Rules and business practices meant to increase consistency and interoperability among the various financial service providers that will interact with each other and end-users. Examples of operating rules include: authorization procedures, settlement timing requirements, audit and accounting rules, and credit limits.

Original Draft:
The actual bank copy of the form used in the transaction. Also referred to as the 'hard copy.'

Originator:
A financial institution that initiates a wire transfer or automated clearing house (ACH) payment.

Outlet:
One location of a chain.

PDF File:
A method for distributing formatted documents over the Internet. You need a special reader program called Acrobat, and you can get it at http://www.adobe.com.

PIN (Personal Identification Number):
An alphanumeric or numeric code used to verify the identity of an individual attempting to use a credit card, debit card, or other account

PIN Authorization Request:
A procedure enabling the issuer to validate cardholder identity by comparing the PIN to the account numbers.

POS Terminal (Point of Sale Terminal):
An electronic device used for verifying and processing credit card transactions. If the credit card is available, the merchant can swipe the card through the terminal. See also swipe discount rate and MOTO discount rate.

POS2000:
A client database (entitlements and equipment) and terminal tracking system (shipment status and serial numbers). This sub-system uploads to the First Data terminal billing information system.

Packet:
A chunk of information sent over a network. Each packet contains the address that it's going to and the address from which it came.

Paper:
Sales slips, credit slips, cash disbursement slips, and other obligations indicating use of a card or a card account. Also referred to as 'media.'

Paper / Voice:
The oldest, yet most familiar bankcard process mode whereby a merchant must call the authorization center for approval of a credit card transaction and then submit their sales slips to First Data for processing.

Pass Through:
Transactions that are processed by First Data for statement purposes, but are not funded by First Data (i.e., American Express).

Payment System:
A set of instructions and procedures used for the transfer of ownership and settlement of obligations arising from the exchange of goods and services.

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):
The location of a merchant where the customer makes a purchase.

Point-of-Sale System:
An electronic system that accepts financial data at or near a retail selling location and transmits that data to a computer or authorization network for reporting activity, authorization and transaction logging.

Port:
Generally, port refers to the hardware through which computer data is transmitted; the plugs on the back of computers are ports. On the Internet, port often refers to a particular application. For instance, one might telnet to a particular port on a particular host. The port is actually an application.

Positive File:
A file listing the current balance and available credit for each active cardholder account. PIN and other cardholder information may also be included.

Posting:
The process of recording debits and credits to the cardholder's credit or deposit account.

Presentment:
The process by which the acquirer sends the transaction to the issuer for reimbursement.

Principal Member:
A financial institution that directly participates as an issuing and/or acquiring member of MasterCard International.

Private Label:
A retailer's proprietary card. Accepted only at that merchant's retail establishments.

Processing Date:
The earliest date stamped on the transmittal summary and draft by the member or its processor. The date on the 603 transmission header record for electronic transactions.

Processor:
An organization that is connected to VISANet and or Banknet and provides authorization and/or clearing and settlement services on behalf of a member.

Proprietary Card:
A card issued by a financial institution to its customers for access to their credit or deposit accounts.

Protocol:
The agreed-on rules that computers rely on to talk among themselves. A set of signals that mean 'go ahead,' 'got it,' 'didn't get it, please resend,' 'all done,' and so on.

Public Key:
A method of encrypting electronic data. Developed to account for weaknesses in symmetric encryption, public key encryption does not require the transmission of decoding keys themselves.

Purchasing Card:
Designed to help companies maintain control of small purchases while reducing the administrative cost associated with authorizing, tracking, paying and reconciling those purchases.

Real-time:
The verification and processing of credit card transactions immediately following a purchase. Real-time verification on the Web usually takes less than five minutes. Real-time verification is especially important for Web sites that sell products and services that consumers expect immediately, such as memberships to the site or software downloads.

Reason Code:
A code used to provide additional information to the receiving clearing member regarding the nature of a chargeback, subsequent presentment, fee collection, funds disbursement, or request for a source document.

Receipt:
A hard copy description of the transaction that took place at the point-of-sale, containing at minimum: date, merchant name/location, primary account number, type of account accessed, amount, reference number, and an action code.

Recurring Fees:
Regular, usually monthly, charges for maintaining a merchant account. Recurring fees include the discount rate, transaction fees, statement fee, and monthly minimum.

Recurring Transaction:
A transaction charged to the cardholder (with prior permission) on a periodic basis for recurring goods and services, i.e., health club memberships, book-of-the-month clubs, etc.

Reference Number:
A twenty-three (23) position number assigned by the acquiring member and used to identify a transaction.

Referral:
The message received from an issuing bank when an attempt for authorization requires a call to the Voice Authorization Center or Voice Response Unit (VRU).

Regional Network:
A network which processes debit transactions for financial institutions and retailers in a given geographic area. Regional networks are not part of the national interchange system.

Remittance Information:
Information required by the biller to post customer bill payments effectively.

Remittance Processing Service:
An electronic routing and settlement service that accepts previously captured and authorized payment transactions from members for delivery to other financial institutions.

Rental Agreement:
A detailed contract with the cardholder indicating all charges the cardholder is responsible for.

Representment:
A transaction presented to the issuer by the acquirer, when the merchant requests a reversal of a chargeback.

Reserve Account:
See holdback.

Retention Period:
The minimum time the member must retain microfilm or other reproduction of interchange paper and chargeback documentation.

Retrieval Request:
A request by the issuer to the acquirer for a copy of the actual ticket of a transaction. The initial step that the issuer takes in the event that either the issuer or the cardholder disputes a transaction.

Roll Printer:
A dot matrix printer connected to a POS terminal and used to print receipts and reports on carbonless roll paper. Not an imprinter.

SET (Secure Electronic Transaction):
A system for encrypting e-commerce transactions, such as online credit card purchases. Developed by Visa, MasterCard, Microsoft, and several major banks, SET combines 1,024-bit encryption with digital certificates to ensure security. SET is still in development.

SNA:
A communications protocol describing a terminal-to-mainframe type connection.

SSL (Secure Socket Layer):
A system for encrypting data sent over the Internet, including e-commerce transactions and passwords. With SSL, client and server computers exchange public keys, allowing them to encode and decode their communication.

Sales Draft:
A receipt that is sent to the customer, in case of Skipjack Merchant Services it is the email the is sent depending on the options set in the merchant account setup.

Secure HyperText Transfer Protocol (S-HTTP):
A secure version of HTTP, providing general transaction security services over the Web.

Secure Server:
A Web server or other computer connected to the Internet that is capable of establishing encrypted communication with clients, generally using SSL or SET.

Security:
The area within Credit/Risk Management tasked with monitoring the performance of the entire active First Data portfolio by means of exception reports identifying, investigating ad monitoring suspect accounts for fraud related activities.

Serial Port:
The place on the back of your computer where you plug in your modem. Also called a communications port or comm port.

Server:
A computer that provides a service to other computers (known as clients) on a network.

Service Entitlement Number (SE NUMBER):
Assigned by and required for processing American Express, Discover, Diners Club, and JCB.

Settlement:
As the sales transaction value moves from the merchant to the acquiring bank to the issuer, each party buys and sells the sales ticket. Settlement is what occurs when the acquiring bank and the issuer exchange data or funds during that function.

Settlement Statement:
A document issued to the merchant, indicating the sales and credit activity, billing information, discount fee and chargebacks (if any) occurring during a particular time frame (one week, one month).

Setup Fees:
Fees charged for establishing a merchant account, including application fees, software licensing fees, and equipment purchases.

Shopping Cart Software:
Shopping cart software allows the cardholder to select items from an online store and place them in a 'virtual shopping basket or shopping cart.' The shopping cart remembers which items are selected while the cardholder views other items within the 'virtual storefront,' keeps a running total, and may calculate taxes and shipping. The items in the shopping cart are eventually ordered if the cardholder chooses.

Singleton:
A merchant operation consisting of one location with no future plans to open another.

Slug:
See Merchant Station Plate.

Smart Card:
A plastic card containing a computer chip that can store electronic "money." Unlike a credit card, a smart card can only spend out the dollar amount its owner has already put into the card account. It's similar in function to a prepaid calling card but is available for all purchases.

Soft Decline:
A declined response in which authorization is not granted on a valid card, not because it has been stolen or lost, but because the credit card already exceeds the credit line.

Split Dial/Capture:
Process which allows the authorization terminal to dial directly to different card processors (e.g. Amex) for authorization and 'Electronic Draft Capture.'

Split Dial Authorization:
A process allowing the authorization terminal to dial directly to different card processors (e.g. American Express) for 'authorization.' In this instance, the merchant cannot be both EDC and Split Dial. Split Dial is also utilized for Check Guarantee companies.

Start Up Kit:
Supplies shipped to new merchants including sales slips, credit slips, batch header tickets, return envelopes, VISA/MasterCard decals, merchant plastics, imprinter slugs and instructional materials.

Status Change:
A non-monetary change such as an account change or update, i.e., new merchant address.

Stored-Value Card:
A pre-paid payment card that stores a monetary value from which the purchase amount is deducted from the card each time the card is used.

Strip Off: The process of separating transactions during submission of a batch for settlement. For example, First Data strips off American Express transactions and sends them directly to Amex for processing.

Swipe Discount:
The discount rate charged by a merchant account provider for transactions in which a credit card is available for inspection by the merchant. Swipe discount rates are generally lower than MOTO discount rates because the merchant can match signatures and perform other checks for fraud or misuse.

Submission:
The process of sending batch deposits to Merchant Services for processing. This may be done electronically or by mail.

Support Documentation:
The forms necessary to effect a chargeback processing cycle, and any additional material to uphold a dispute.

Suspect Transaction:
A transaction that occurs one-day prior to or following the account number being listed in the combined Warning Bulletin or listed as pickup card.

Switch:
An electronic mechanism that routes transaction data from a point-of-sale terminal to the authorizing data processor for approval of the card-issuing institution.

T&E CARD:
Travel and Entertainment card issued by a private, non-bank company which deals directly with the cardholder and merchant and which generally requires payment in full monthly.

T&E MERCHANT:
An airline, car rental company, lodging, or restaurant establishment whose primary function is to provide travel/entertainment-related services.

TCP/IP:
The system networks use to communicate with each other on the Internet. It stands for Transmission Control Protocol/Internet Protocol.

TDMA (Time Division Multiple Access):
Circuit-switching mobile data network transferring data between a mobile device and a base station. Involves GSM capabilities, hence likely to upgrade to GPRS. Has 210 million subscribers worldwide.

Telephone Bill Payment:
A service that permits a customer to pay bills electronically. The customer gives a corporation the authority to debit his or her account for a specific amount or within a specified range of amounts.

Terminal:
Equipment used to capture, transmit and store credit card transactions.

Terminal Based:
A system that captures card transactions and holds them until settlement.

Terminated Merchant File (TMF):
A file listing the names of merchants and their principals whose bankcard relationships have been terminated for some reason by an acquirer. Operated jointly by VISA and MasterCard.

Thick Consolidator:
One of four models of electronic bill presentment and payment (EBPP). The biller sends all of its billing data to a central service provider that consolidates electronic bills from different billers so that the consumer has a single site of access for viewing billing information and making payments electronically. Other models include: Biller Direct, Thin Consolidator and Customer Consolidation.

Thin Consolidator:
One of four models of electronic bill presentment and payment (EBPP). The biller sends summary billing data to a central service provider that consolidates electronic bills from different billers so that the customer has a single site of access for viewing billing information and making payments electronically. The customer may access full billing data through the billers web site. Other models include: Biller Direct, Thick Consolidator and Customer Consolidation.

Third-Party Processing:
Processing of transactions by service providers acting under contract to card issuers or acquirers. First Data is a third-party processor.

Ticket:
Another name for the sales slip 'or its monetary value' that results when a credit card purchase is made.

Transaction:
Any event that causes a change in an organization's financial position or net worth, resulting from normal activity. Advance of funds, purchase of goods at a retailer or when a borrower activates a revolving line of credit. Activities affecting a deposit account carried out at the request of the account owner. One example of a transaction is the process that takes place when a cardholder makes a purchase with a credit card.

Transaction Date:
The actual date on which a transaction occurs. Used in recording and tracking transactions.

Transaction Fee:
A charge for each credit card transaction, collected by the merchant account provider or ISO. Transaction fees usually fall between $0.20 and $1.

Turnkey Application:
Software that requires little or no modification when inserted into a Web site. In e-commerce, many merchant account providers and ISOs offer turnkey applications for processing credit card orders online.

URL (Uniform Resource Locator):
An address for a file (or page) located on the Internet, usually the Web (e.g. www.transactive.ca).

Upload:
To transfer data/files from your computer to another computer.

Valid Date:
The date embossed by the card issuer on the credit card. An establishment cannot accept a card for payment of goods or services prior to this date.

Virtual Reality:
A 3-D visual computer simulation that responds to your inputs so realistically that you feel you're inside another world.

Virtual Sales Slip:
Detailed information on a financial transaction, which is generated by the merchant's online store and downloaded to your digital wallet. Typical items contained in the virtual sales slip are confirmation of your order, shipping details, and total amount of sale.

Visanet:
The data processing systems, networks, and operations used to support and deliver authorization services, exception file services, and clearing and settlement services.

Voice Response Unit (VRU):
An automated authorization support system for touch-tone telephones.

WAP (Wireless Application Protocol):
An emerging protocol whereby Web-coded information is adapted for use in mobile access devices such as cellphones, pagers or alternative means.

W-CDMA (Wideband Code Division Multiple Access):
A standard facilitating the delivery of high-speed data to compatible mobile phone handsets.

WML (Wireless Markup Language):
A markup language providing a 'light' version of a Web site for viewing on handheld devices.

Wang:
A stand-alone system developed to handle chargeback processing with First Data. Also called the Chargeback Image Processing System (CIPS).

Web Server:
A computer dedicated to storing the various files that make up Web pages and the protocols needed for communicating with other computers via the Internet.

Wide Area Network (WAN):
A network using common carrier provided lines (in contrast to LAN).

World Wide Web (WWW):
A hypermedia system that lets you browse through an unlimited amount of interesting information.