| Acquiring Bank: Gives the merchant the capability for | | | | Gateway: Connects the shopping cart to the card |
| handling credit cards. It communicates with the | | | | processor during an online transaction. (see Payment |
| customer's card to permit payment and money | | | | Gateway) |
| transfer. | | | | Imprinter: A device that physically makes an embossed |
| Address Verification Service (AVS): Provides fraud | | | | imprint of a credit card on a transaction slip. |
| protection for the merchant by verifying the customers | | | | Interchange Fee: A fee charged to the merchant |
| billing address during a transaction where the card is | | | | account provider by the customer's card issuing bank |
| not physically swiped. | | | | for allowing the merchant to accept a credit |
| Authorization: Occurs when the merchant account | | | | Issuing Bank: Issues card to the cardholder, usually a |
| communicates with the card customer's bank to | | | | bank or financial institution. |
| ensure that the customer has enough credit to make | | | | Keyed: A method to enter credit card information by |
| the purchase. | | | | physically "keying" in the information rather than |
| Batch: Generally at the end of the business day, the | | | | "swiping" it. |
| authorized transactions that are stored in the merchant | | | | Merchant account: Allows the merchant to accept |
| account are processed in one group. | | | | paymentvia credit card. |
| Card network: Is the linkage between the customer's | | | | Merchant Bank: (See Acquiring Bank). |
| card issuing bank and the merchant's account. | | | | Point Of Sale (POS) terminal: Is a device used when |
| Cardholder: Is the person that has been issued credit | | | | the customer is physically present to magnetically read |
| by a credit card issuing bank, which allows them to use | | | | the magnetic strip on the back of a card. |
| this credit for purchases. | | | | Payment gateway: Permits the merchant to accept |
| CVV2 (Cardholder Verification Value) or CVV2 (Card | | | | online credit card payments. |
| Verification Value): Are numbers printed on the card (3 | | | | Shopping Cart: Used during online shopping to allow the |
| or 4 digits) for added security. | | | | customer to put a number of purchases together in |
| Chargeback: If a customer feels that they did not | | | | one group so that that group can be paid for with one |
| place the order or did not receive and good or service | | | | credit card payment. |
| they have the ability to bill the charge back to the | | | | Swipe: The method of getting a customer's card |
| merchant. | | | | information by reading the magnetic strip on the card |
| Discount Rate: Is a per transaction fee paid to the | | | | using a POS machine. |
| merchant account provider for handling the transaction. | | | | |