Glossary

ABA

American Bankers Association

ABA Routing Number

The 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.

Amex

See 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.

ACS

Access 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 Methods

Also 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.

APM

See "Alternative Payment Methods"

Application Service Provider

A third-party responsible for software management and distribution.

ASP

See "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 Code

The code assigned to the transaction once it has passed through the approval stage.

Bankcard

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

Bank Identification Number

A unique 6 digit number used to identify the issuing bank. This is the first string in the cardholder account number.

Basis Point

1/100th 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 Card

An issuer of credit cards in Korea. Cards are issued on all the major networks (Visa, MC, Diners, Discover).

BIN

See "Bank Identification Number"

Calforex Edge

Calforex 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 Tested

A 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.

Client

The contracted entity using Reach's services. Under the client level, there will be one or more merchant entities.

Client Project

Complete 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.

CVV

Card 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.

Data Security Standard

These 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 Wallets

See "Wallets"

Discount Rate

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

DSS

See "Data Security Standard."

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.

Encryption

A security measure that codes data with an algorithm to prevent unauthorized access.

Exotic Currency

A foreign exchange term for a thinly traded currency. This refers to any of the non-standard currencies GIP settles to.

Expiration Date

The date on a credit card after which the card is no longer valid.

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.

Fraud

Criminal act of stealing identity, credentials, goods, or money.

Friendly Fraud

An act of fraud whereby a consumer issues a chargeback while falsely claiming a failure to receive goods.

Gateway

See "Payment Gateway"

Reach Engine

• The Engine, Engine, Transaction Engine.* The component of Reach that processes payment transactions and foreign exchange settlements.

Hosted Checkout

An online service that allows merchants to accept payments online

IIN

See "Bank Identification Number"

In-Country Payments

Payments 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 Fee

A 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.

JCB

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

Liability Shift

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

Magnetic Stripe

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

Merchant

A 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 Provider

Also 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.

MCC

Seller 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 payments

Electronic payments that are based on the concept of using a mobile device to pay for goods.

MOTO

Mail Order and Telephone Order card sales. These typically involve card present transactions.

MSP

See "Merchant Service Provider."

Near Field Communications

Also 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.

NFC

See "Near Field Communications."

One-Time Password

See also OTP. This is security measure whereby a password only valid for a single login session or a single transaction.

Online Payments

Electronic exchange of money.

Order

A 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.

OTP

Please see "One-Time Password."

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 Method

The options by which a consumer may pay for their order. For example, Visa, MasterCard, PayPal.

Payment Processor

A 3rd Party that Reach connects to for the purposes of processing payment methods.

Payment Service Provider

See also "PSP." A third party that helps Merchants accept and facilitate payments.

PCI DSS

Payment 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.

POS

See "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.

Processor

A business entity that acts with the sanction of a sponsoring bank and accesses interchange networks and provide funds settlement.

PSP

See "Payment Service Provider.

Quagswagging

Shaking something back and forth.

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.

Recurring

This 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.

Representment

Re-submission of a previously charged back sales by an acquirer. Also known as "Reversal."

Retailer

Any ecommerce business that offers goods for sale in exchange for payment. Also known as a Merchant.

Reversal

See "Representment"

Routing Number

The number associated to a customer checking account that identifies the financial institution that holds the account.

SafeKey®

See "American Express SafeKey®"

SecureCode

MasterCard's 3D Secure protocol. SecureCode standardizes the data transport infrastructure for the passing of information from merchant to acquirer to issuer.

Seller Category Code

See "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.

SIC

Standard 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"

SLA

Service Level Agreement

Smart Card

Also known as a chip or EMV card, a smart card is a card containing a chip with memory capabilities.

Standard Industry Codes

See 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.

Third-party Processing

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

Tokenization

A security measure that encrypts a credit card number into a random sequence of numbers.

Transaction

A 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 Status

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

Under Review

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

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.

Wallets

Also 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.

YAGNI

Short 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.

3D Secure

This term is used to describe a group protocols that serve as an additional security layer for online transactions.