Browse 27 essential credit card processing terms and definitions used by professionals in Staten Island.
Term Index
Open any term below for a dedicated definition page.
Acquirer is a financial institution or entity that processes credit and debit card transactions on behalf of merchants. Acquirers maintain merchant accounts, facilitate payment authorization, And ensure funds are transferred from the cardholder’s issuing bank to the merchant’s account after settlement.
Address Verification Service is a fraud-prevention tool used by merchants and payment processors to confirm that the billing address provided by a cardholder matches the address on file with the card issuer. It compares numerical portions of the address, such as the street number and ZIP code, to reduce unauthorized transactions and chargebacks in card-not-present environments.
Batch Processing is a method in credit card transactions where merchants accumulate multiple transactions over a set period, typically a business day, And submit them together as a single group to the payment processor for settlement. This process reduces processing costs, simplifies reconciliation.
Card Brand is a payment network that establishes the rules, standards, And infrastructure for processing credit, debit, And prepaid card transactions. Card Brands issue card numbers, define interchange fees, govern security protocols, And ensure global acceptance through their branded payment rails, including Visa, Mastercard, American Express, And Discover.
Card Not Present refers to a credit or debit card transaction where the physical card is not swiped, dipped, Or tapped at a terminal. These transactions occur online, over the phone, via mail order, Or through recurring billing, requiring alternative methods like card numbers, CVV codes.
Card Present refers to a credit or debit card transaction in which the physical card is swiped, dipped, Or tapped at a payment terminal, allowing the merchant to capture card data directly from the card’s magnetic stripe, EMV chip, Or contactless NFC signal. These transactions typically occur in-person at retail stores, restaurants, Or service locations and carry lower fraud risk than card-not-present transactions.
Chargeback is chargebacks are forced refunds initiated by a cardholder’s bank when the cardholder disputes a transaction, claiming it was unauthorized, fraudulent, Or not as described. Chargebacks reverse the payment, returning funds to the cardholder while debiting the merchant’s account, often accompanied by fees and potential penalties for the merchant.
CVV is a three- or four-digit security code printed on credit and debit cards to verify that the cardholder physically possesses the card during a transaction. CVV stands for Card Verification Value and is also known as CVC, CSC, Or CVV2, depending on the card brand. It helps reduce fraud in card-not-present transactions, such as online or phone purchases.
Discount Rate is a percentage fee charged by payment processors to merchants for handling credit and debit card transactions. Discount Rate covers interchange fees, assessment fees.
EMV Chip is a small microprocessor embedded in payment cards that generates unique transaction codes for each purchase, replacing static magnetic-stripe data. EMV stands for Europay, Mastercard, And Visa—the three companies that developed the global standard. This technology reduces fraud by making card duplication nearly impossible and is now the dominant form of card-present payment worldwide.
Fraud Prevention is the systematic use of policies, procedures, And technologies designed to detect, deter, And mitigate unauthorized transactions, identity theft, And financial deception in payment processing. Fraud Prevention combines real-time monitoring, data analysis, authentication protocols, And compliance standards to protect merchants, cardholders.
Interchange Fee is a non-negotiable fee set by card networks like Visa, Mastercard, And Discover that merchants pay to the card-issuing bank for each credit or debit card transaction. This fee compensates the issuing bank for handling risk, fraud prevention, And the cost of funding the transaction until settlement occurs.
ISO is iSO (Independent Sales Organization) is an entity registered with card networks like Visa and Mastercard to solicit, sign, And support merchants in accepting credit and debit card payments. ISOs act as intermediaries between merchants and acquiring banks, facilitating merchant account setup, equipment provision, And ongoing transaction processing services.
Issuing Bank is a financial institution that provides credit or debit cards to consumers on behalf of card networks like Visa, Mastercard, American Express, Or Discover. Issuing Banks underwrite applicants, set credit limits, issue physical or virtual cards, bill cardholders, And assume the financial risk for transactions made with their cards.
Merchant Category Code is a four-digit number assigned by credit card networks to classify businesses by the type of goods or services they provide. Merchant Category Codes determine interchange fees, fraud monitoring rules, And eligibility for rewards programs, ensuring transactions are processed under the correct industry standards and pricing tiers.
Near Field Communication is a short-range wireless technology that enables secure, contactless data exchange between devices over distances of approximately 4 centimeters or less. Near Field Communication operates at 13.56 MHz and supports three modes: reader/writer, peer-to-peer, And card emulation, making it ideal for mobile payments, access control, And quick data transfers without physical connections.
Payment Card Industry Data Security Standard is a global information security framework created by major card brands (Visa, Mastercard, American Express, Discover, And JCB) to protect cardholder data from theft and fraud. It establishes 12 technical and operational requirements that merchants, processors.
Payment Processor is a financial technology company or service that facilitates electronic payment transactions between a merchant, the customer’s bank (issuing bank). And the merchant’s bank (acquiring bank). Payment Processors handle authorization, settlement, And funding of credit card, debit card, And other digital payments, ensuring secure and efficient transfer of funds while complying with industry standards like PCI DSS.
PCI Compliance is a set of security standards established by the Payment Card Industry Security Standards Council (PCI SSC) to protect cardholder data during credit and debit card transactions. PCI Compliance ensures businesses handling payment card information maintain a secure environment, reducing the risk of data breaches, fraud, And financial penalties. Compliance is mandatory for all merchants, processors, And service providers that store, process, Or transmit cardholder data.
Point of Sale is the physical or digital location where a customer completes a transaction by paying for goods or services. It encompasses the hardware, software, And processes that facilitate payment acceptance, including credit and debit card readers, cash registers, mobile devices, And integrated payment systems used in retail, hospitality, And service industries.
Recurring Billing is a payment model that automatically charges a customer’s credit or debit card at scheduled intervals for ongoing services or subscriptions. Recurring Billing eliminates manual payment collection by using stored payment details to process transactions on a fixed cycle, such as monthly, quarterly.
Retrieval Request is a formal inquiry initiated by a cardholder’s issuing bank to obtain transaction documentation from the merchant, typically before a chargeback is filed. Retrieval Requests are used to verify transaction details, such as receipts, invoices, Or proof of purchase, to resolve disputes or clarify unclear charges without escalating to a chargeback.
Secure Socket Layer is secure Socket Layer (SSL) is a cryptographic protocol designed to establish encrypted, authenticated communication channels between web clients and servers. Originally developed by Netscape in 1995, SSL ensures that sensitive data—such as credit card numbers, login credentials.
Settlement is the process by which funds from credit and debit card transactions are transferred from the cardholder’s issuing bank to the merchant’s acquiring bank, completing the payment cycle. Settlement finalizes the transaction, ensuring merchants receive payment for goods or services rendered. While card networks reconcile accounts between financial institutions.
Tokenization is a data security process that replaces sensitive payment card information, such as a 16-digit card number, with a unique, non-sensitive identifier called a token. This token can't be reverse-engineered to reveal the original data, reducing the risk of fraud during credit card transactions while maintaining the ability to process payments securely.
Transaction Fee is a per-transaction charge assessed by payment processors, merchant account providers, Or card networks each time a credit or debit card is used to complete a sale. Transaction Fees cover the cost of authorizing, processing, And settling card payments and typically include interchange fees, assessment fees, And processor markup.
Virtual Terminal is a web-based application that allows merchants to manually enter and process credit or debit card payments without requiring physical card readers or in-person transactions. Virtual Terminals function as secure, browser-accessible portals where businesses input payment details, verify transactions, And generate receipts, typically used for phone, mail.
