Knowledge Base

 

A

TermDefinition
ABAAmerican Bankers Association
ABA Routing NumberThe number used to route ACH deposits to the correct financial institution.
ACH

Automated Clearing House. A regional organization used by member banks to electronically transfer funds between members. Maintained by the Federal Reserve or similar entities with large networks.

American Express

An organization that issues travel and entertainment cards and acquires transactions. 

AmexSee American Express
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

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. 

ACSAccess Control Server. A system to support cardholder authentication that utilizes a centralized identity framework. Credit card issuers are required to maintain an ACS
Alternative Payment MethodsAlso known as "APMs," this term refers to payment methods that are not credit card-based. Various types of alternative payment methods include digital wallets, stored value cards, and more.
American Express SafeKey®A 3D Secure protocol utilized by Amex to reduce fraud and confirm cardholder identity.
APMSee "Alternative Payment Methods"
Application Service ProviderA third-party responsible for software management and distribution.
ASPSee "Application Service Provider"
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 CodeThe code assigned to the transaction once it has passed through the approval stage.

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B

TermDefinition
Bankcard

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

Bank Identification NumberA unique 6 digit number used to identify the issuing bank. This is the first string in the cardholder account number.
Basis Point1/100th of a percentage point
Batch

The accumulation of captured (sale) transactions waiting to be settled. Multiple batches

may be settled throughout the day. 

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. 

BC CardAn issuer of credit cards in Korea. Cards are issued on all the major networks (Visa, MC, Diners, Discover).
BINSee "Bank Identification Number"

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C

TermDefinition
Calforex EdgeCalforex Edge is a web-based global payments and receivables platform that enables individuals and companies to see live foreign currency exchange rates and provides the ability to book transactions
Capture Date

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

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). 

Carl TestedA process by which Reach vets various internal and external processes. A process meets "Carl Tested" criteria when it is easy enough for a child to understand.
Chargeback

A transaction that is challenged by a cardholder or card issuing bank and is sent back through interchange to the merchant bank for resolution. 

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. 

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. 

ClientThe contracted entity using Reach's services. Under the client level, there will be one or more merchant entities.
Client ProjectComplete merchant implementation of new functionality from start to finish
CVC

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

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

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D

TermDefinition
Data Security StandardThese are Payment Card Industry Data Security Standards set by the Card Schemes to protect payment card account data where it is stored or transmitted.
Decline

The denial of an Authorization Request by, or on behalf of, an Issuer Member. 

Digital WalletsSee "Wallets"
Discount Rate

An amount charged a merchant for processing its daily credit card transactions. 

DSSSee "Data Security Standard."

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E

TermDefinition
ecommerce

The transacting of business electronically rather than via paper. 

EMV

EMV, or EuroPay, MasterCard and Visa, is a microchip-based technology designed to reduce fraud at the point-of-sale. Banks are beginning to issue payment cards with these embedded chips, which also support contactless payments. 

EncryptionA security measure that codes data with an algorithm to prevent unauthorized access.
Exotic CurrencyA foreign exchange term for a thinly traded currency. This refers to any of the non-standard currencies GIP settles to.
Expiration DateThe date on a credit card after which the card is no longer valid.

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F

TermDefinition
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. 

FraudCriminal act of stealing identity, credentials, goods, or money.
Friendly FraudAn act of fraud whereby a consumer issues a chargeback while falsely claiming a failure to receive goods.

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G

TermDefinition
GatewaySee "Payment Gateway"
Reach EngineThe Engine, Engine, Transaction Engine. The component of Reach that processes payment transactions and foreign exchange settlements.

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H

TermDefinition
Hosted CheckoutAn online service that allows merchants to accept payments online
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I

TermDefinition
IINSee "Bank Identification Number"
In-Country PaymentsPayments processed with local acquiring (i.e., where the consumer is located) vs. cross-border acquiring (i.e., where the merchant is located)
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 FeeA fee paid by the acquirer to the Card Schemes covering costs of fraud, risk, and processing.
Issuer/Issuing Bank

The financial institution (a licensed member of MasterCard or VISA) which holds contractual agreements with and issues cards to cardholders. 

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J

TermDefinition
JCB

Japanese Credit Bureau, which serves as issuer of the JCB card. Owned by American Express.

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K

TermDefinition
  

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L

TermDefinition
Liability ShiftWhen a merchant authenticates a transaction, the shift of chargeback responsibility moves from the merchant to the issuing bank.

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M

TermDefinition
Magnetic Stripe

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

MerchantA sub level of a client. This is the level at which GIP implements projects. Turning on a product or currency is accomplished at the "merchant" level.
Merchant Agreement

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

Merchant Service ProviderAlso known as an "MSP," this is a term for banks, processors, or other entities that provide businesses with the products and services necessary to accept electronic payments.
MCCSeller Category Code. This is MasterCard's terminology for special numbers assigned by the Card Schemes to sellers for the purpose of identifying the merchant industry. See also, "SIC"
Mobile paymentsElectronic payments that are based on the concept of using a mobile device to pay for goods.
MOTOMail Order and Telephone Order card sales. These typically involve card present transactions.
MSPSee "Merchant Service Provider."

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N

TermDefinition
Near Field CommunicationsAlso known as "NFC," this is a radio communication standard for phones and other devices, activated by proximity or physical contact.
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. 

NFCSee "Near Field Communications."

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O

TermDefinition
One-Time PasswordSee also OTP. This is security measure whereby a password only valid for a single login session or a single transaction.
Online PaymentsElectronic exchange of money.
OrderA single shopping cart checkout submitted to a merchant site by a consumer. An order includes all pricing, addressing, item and payment information.
Originator

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

OTPPlease see "One-Time Password."

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P

TermDefinition
Payment Gateway

An e-commerce application service provider service that authorizes payments for e-businesses, online retailers, or traditional brick and mortar businesses. It is equivalent to a physical point of sale terminal located in most retail outlets. 

Payment MethodThe options by which a consumer may pay for their order. For example, Visa, MasterCard, PayPal.
Payment ProcessorA 3rd Party that Reach connects to for the purposes of processing payment methods.
Payment Service ProviderSee also "PSP." A third party that helps Merchants accept and facilitate payments.
PCI DSSPayment Card Industry Data Security Standards. These are Standards set by the Card Schemes to protect payment card account data where it is stored or transmitted.
PIN Personal Identification Number. A number used with some debit cards or credit cards to authenticate a customer account.
Point of Sale

See also "POS." The location of a merchant where the customer makes a purchase. 

POSSee "Point of Sale."
POS Terminal

A device placed in a merchant location that is connected to the bank’s system or authorization service provider via telephone lines and is designed to authorize, record and forward data by electronic means for each sale. 

ProcessorA business entity that acts with the sanction of a sponsoring bank and accesses interchange networks and provide funds settlement.
PSPSee "Payment Service Provider.

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Q

TermDefinition

Quagswagging

Shaking something back and forth.

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R

TermDefinition
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. 

RecurringThis term is used when similar transactions are sent multiple times over a period of time.
Reference Number

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

RepresentmentRe-submission of a previously charged back sales by an acquirer. Also known as "Reversal."
RetailerAny ecommerce business that offers goods for sale in exchange for payment. Also known as a Merchant.
ReversalSee "Representment"
Routing NumberThe number associated to a customer checking account that identifies the financial institution that holds the account.

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S

TermDefinitionFurther Reading
SafeKey®

See "American Express SafeKey®"

 
SecureCodeMasterCard's 3D Secure protocol. SecureCode standardizes the data transport infrastructure for the passing of information from merchant to acquirer to issuer. 
Seller Category CodeSee "MCC" 
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. 

 
SICStandard Industry Codes. This is Visa's terminology for special numbers assigned by the Card Schemes to sellers for the purpose of identifying the merchant industry. See also, "MCC" 
SLAService Level Agreement 
Smart CardAlso known as a chip or EMV card, a smart card is a card containing a chip with memory capabilities. 
Standard Industry CodesSee also "SIC" 

Store Currency

The monetary currency which is defined for the Shopify store typically when the store is initially setup. The Store Currency is most likely to reflect the home country of the store and where the majority of the customers of the store are located. Simple example: if the store's owner is based in the UK and intends to sell most of their goods to other residents of the UK, shoppers will want to see prices in GBP, and the store owner will want to be paid in GBP. For these reasons, the Store Currency will likely be set in GBP.Shopify
Support Documentation

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

 

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T

TermDefinition
Third-party Processing

Processing of transactions by service providers acting under contract to card issuers or acquirers. 

TokenizationA security measure that encrypts a credit card number into a random sequence of numbers.
TransactionA single payment attempt. Orders may have multiple transactions but only one of them will be successful.
Transaction Fees

Service costs charged to a merchant on a per-transaction basis. 

Transaction StatusThe term by which we define where a transaction is in its lifecycle. Statuses include: Authorized, Cancelled, Completed, etc.
  

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U

TermDefinition

Under Review

This is a transaction status indicating the order is being reviewed by our teams before being sent for processing.

  

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V

TermDefinition
Verified by

 Visa®

A 3D Secure protocol whereby the merchant's website interfaces with Visa to obtain the a number of pieces of information used to verify cardholder identity.
  

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W

TermDefinition
WalletsAlso known as "Digital Wallets," this type of alternative payment method uses a wallet system rather than a credit card. Wallets typically utilize username and PIN to authenticate transactions.

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X

TermDefinition
  

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Y

TermDefinition
YAGNIShort for "You Aren't Going to Need It", typically used when we don't have a solid requirement for something, and therefore aren't going to build it.

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Z

TermDefinition
  

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#

TermDefinition
3D SecureThis term is used to describe a group protocols that serve as an additional security layer for online transactions.

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