My Merchant Account Blog

Response Code

Friday, July 29, 2011

A number provided by a card issuing bank to a merchant either verifying that a particular transaction was accepted or explaining why it was declined. Respose code is approved, declined, HV, CV, Etc. Exact Match 00 or 85 Approved transaction. There was an exact match on the zipcode and address that was provided.

Reserve

Saturday, July 23, 2011

The money set aside from a merchant's credit card receipts to cover potential chargebacks or other disputes. Typically, the amount is returned after a specified period. Also known as a hold back. Also known as: hold back . In asset-based lending, the difference between the value of the collateral and the amount lent. Also, funds set aside for emergencies or other future needs. In an auction, the minimum amount a seller is willing to sell at, known to the auction house but not the bidders. From the point of view of financial statements, reserves are provided as an estimate of liabilities that have a good probability of arising, such as bad debt reserve attempts to estimate what percentage of the firm's creditors will not pay (based on previous records and practical experience). Reserves are always a subjective estimate (since they reflect contingent liabilities).

Remote Deposit Capture

Tuesday, July 19, 2011

Electronic check services by which paper checks are converted into digital images for electronic clearing and settlement, through either electronic check or ACH systems. Remote deposit capture (RDC) is a system that allows a customer to scan checks remotely and transmit the check images to a bank for deposit, usually via an encrypted Internet connection. When the bank receives a check image from the customer, it posts the deposit to the customer's account and makes the funds available based upon the customer's particular availability schedule. Banks typically offer RDC to business customers rather than to individuals.

Remittance Card

Monday, July 18, 2011

A card that enables the user to transfer funds to another party, normally overseas, and often in another currency. No bank is required to transfer the money, and the recipient has instant access to the funds made available, either to spend in a retail outlet or to obtain cash through an ATM.

Qualified Security Assessor

Tuesday, July 12, 2011

An auditor, certified by the PCI SSC, who assesses the PCI compliance of payment systems to ensure they are properly protecting card data. The PCI DSS requires that all Level 1 merchants (those that process over 6 million card transactions a year) be evaluated annually by a QSA.

Program Manager

Saturday, July 09, 2011

The entity responsible for managing the core attributes of a prepaid card program. Program managers can either manage for other companies, or be responsible for issuing their own prepaid card products. For MasterCard Worldwide, entities are required to have an ISO /MSP license in order to become program managers.

Processor

Friday, July 08, 2011

The company that moves transactions on behalf of acquirers among merchants, banks and the card networks. Some, but not all acquirers are processors. Non-bank service firm which handles credit card transactions of the customers (merchants) of an acquiring bank.

Prepaid Card

Wednesday, July 06, 2011

A payment card with a set amount of money that has been preloaded onto it for future use by the consumer. It is not a credit card or debit card. Prepaid cards can be used in an open-loop (branded by Visa, MasterCard and so forth) or closed-loop (merchant or mallbranded). The most common type of prepaid card in use today is the gift card. It allows a person the convenience of a credit card without going into debt. You can use them to purchase items online or in person, but since you must load them with funds before using them, you never spend more money than you have.

Merchant

Monday, July 04, 2011

A merchant is a business / businessperson who sales products / services to other individuals or companies.

In the United States, "merchant" is defined (under the Uniform Commercial Code) as any person while engaged in a business or profession or a seller who deals regularly in the type of goods sold. Under the common law and the Uniform Commercial Code in the United States, merchants are held to a higher standard in the selling of products than those who are not engaged in the sale of goods as a profession.

Point Of Sale

The place where retail sales occur and payment transactions are initiated. Point of sale, or POS as it is more commonly abbreviated, refers to the capturing of data and customer payment information at a physical location when goods or services are bought and sold. The POS transaction is captured using a variety of devices which include computers, cash registers, optical and bar code scanners, magnetic card readers, or any combination of these devices.

PIN Transaction Security

Sunday, July 03, 2011

A special list of security requirements for PINenabled card acceptance modules. This was formerly called the PCI PIN Entry Device (PCI PED) requirements. To gain approval by PCI Security Standards Council, PIN transaction security must comply with the requirements and guidelines specified in the following documents. Vendors preferring to complete forms electronically should download the appropriate documents.

PIN Debit

Friday, July 01, 2011

A debit card transaction authorized by the cardholder using a personal identification number. A password that a person uses to access an ATM with one's debit card, though they are increasingly being used for all debit card transactions. A PIN protects the person who owns the card from identity theft as well as the risk that a thief can steal the card and then use it without limit.