Merchant Account Glossary Terms

Accounts Payable
Financial obligations owed to your company’s lenders.

Accounts Receivable
Financial obligations various other people or businesses owe to your company.

Acquiring bank
A bank that provides charge card business accounts and accountables for sending bank card acquisition info to the bank card associations.

Address Verification Service (AVS).
A chargeback and also fraud-reduction solution, which validates the invoicing address supplied by the cardholder with the charge card firm prior to approving a purchase.

An inspection of economic accounts, records, as well as accounting procedures, which can be carried out either internally, or by an independent auditing organization.

Authorization from the bank card issuer which permits you to refine a purchase for the defined quantity.

Authorization Code
This code confirms that you have received authorization from the charge card issuer to refine a certain purchase. This number ought to be videotaped as well as except for future referral.

Automatic Bill Payment
Repeating, automatic charges to a credit or debit account for a specific service. Automatic payments must be set up and also certifieded by the client.

Automatic Check Handling (ACH)
A form of electronic payment, made to be a form of e-check or digital check repayment. ACH is usually made use of to refine higher quantities or small-dollar repayments for settlement issues within 1 to 2 company days. These purchases are taken care of much the same way that written checks are dealt with. The clearinghouse divides all ACH documents gotten from participant banks for the day and splits them baseding on coming from bank and also paying financial institution, totals the accounts, and also credit histories or debits all accounts appropriately. ACH could additionally imply Automatic Clearinghouse.

Bank card
A plastic card encoded with consumer account information that is allowed by merchants as well as utilized to charge account for handling sales purchases. Credit cards are one of the most common type of bank card.

A single day’s collection of credit card deals. Some terminals and real-time cpus collect all the deals and afterwards do a batch at the end of day. Others cpus batch them throughout the day. Some processors will certainly batch your transactions automatically for you, others might not produce this service.

Batch close
The process of sending a batch of bank card transaction information to a financial institution for settlement. Often also called “batching out”.

Batching out
Batching out is an industry term for the exchange of deal data between the merchant and also cardholder’s financial institutions, which leads to the down payment of funds into the business’s account. This usually happens at the end of each profession day.

Cancellation Code
A code provided by accommodations or automobile rental sellers to validate that the cardholder has terminated a reservation.

When a card deal is submitted to the vendor account owner for handling as well as to confirm the availability of funds on a credit card. A capture is simply a verification of funds, and does not in fact take out funds from the cardholder’s account. This will not occur till the deal is batched (see Batch).

Card Verification Code (CVC2)
A numerical safety and security code published on the back of MasterCard charge card. By needing this number on online order check outs, in addition to using AVS protection, business could lower credit card fraud and chargeback circumstances substantially.

Card Verification Value (CVV2)
A three-digit protection number printed astride most Visa charge card. By requesting this number on online order checkouts, in addition to utilizing AVS defense, a vendor could lower bank card scams and chargeback instances considerably.

Card-Not-Present (CNP) Transactions
Any kind of credit or debit card transaction refined without the card in hand, such as mail, phone or online purchases.

Any kind of specific or company with a well established credit history or debit card account. Cardholders are qualified making repayment card deals.

Cardholder Information Security Program (CISP)
A specified criterion of procedure and enforcement meant to secure cardholder info.

Cash Flow
Incoming cash vs. outgoing cash.

Certification Authority (CA)
A solution offered by financial institutions which digitally signs public keys sent by an internet browser or by a seller’s server software. The financial institution issues and verifies electronic certifications related to SET transactions.

Charge Back
A credit card fee that has actually been tested or refused by the credit card holder. The credit card issuer handles the charge back procedure, and will certainly call for evidence from business that asked for the card that the deal was certifieded and that the product or service was supplied as agreed. If a sector can not offer adequate proof, the money will be extracted from your account, frequently with a big charge. Charge backs can be specifically tough to refute when doing card-not-present purchases (see Card-not-present above), where professions do not have a client signature to sustain the charge as well as may not be able prove that product and services were obtained. An excessive variety of fee backs might cause greater business account charges, as well as in extreme cases, the cancellation of business accounts.

Code 10 Authorization
A voice authorization code which can be used when a transaction is thought to be illegal, such as a thought stolen card, or doubtful client.

Commercial property offered to protect credit history or a lending, which could be subject to seizure if the financing goes into default.

Commercial Credit
Short-term credit rating arrangement offered by a business making it possible for a customer to spend for a product or service.