ABA
(American Banker's Association) Routing Number
This 9-digit ABA-assigned number identifies individual
banks. This number is used to facilitate the electronic routing
of funds (ACH transfer) from one bank account to another.
^ Top
Access
Number
This is the telephone number dialed by the modem that lets a computer
communicate with an online service or Internet Service Provider
(ISP).
^ Top
ACH
(Automated Clearing House)
A processing organization networked with others to exchange (clear
and settle) electronic debit/credit transactions (no physical checks).
^ Top
Acquiring
Bank
This is the status of a Visa/Master Card member bank that establishes
and maintains the merchant relationship and processes all merchant
transactions. Humboldt Bank is an acquiring bank. Contrast with
"Issuing Bank."
^ Top
Address
Verification Service (AVS)
AVS is a tool for merchants to reduce the risk associated with non-face-to-face
transactions, such as mail order or telephone order. A merchant
using AVS (must have equipment that is AVS-compatible).
^ Top
Articles
of Incorporation
This legal document identifies the terms under which a corporation
was created and identifies the principals.
^ Top
Auth/Batch
Fee
This is the amount of money we charge the merchant each time we
issue an authorization for a transaction, and each time they "close"
a batch of transactions.
^ Top
Authorization
The process whereby a transaction is approved by an issuing bank,
authorized agent, or Visa/MasterCard on behalf of that issuer, before
the transaction is completed by the merchant via telephone or terminal.
^ Top
Authorize.Net,
Inc.
Authorize.Net, Inc. is the Utah-based vendor of Authorize.Net, a
popular Internet protocol.Ê They also sell eCheck.Net, an Internet-based
protocol used to ACH consumer checking ac-counts.
^ Top
Average
Ticket Size (AVT)
The average Visa/MasterCard dollar amount of each transaction the
merchant anticipates processing.
^ Top
AVS
See "Address Verification Service."
^ Top
Bank
Identification Number (BIN)
Visa/MasterCard assigns unique, identifying numbers to each member
acquiring or issuing bank. These numbers identify parts of both
credit card and merchant account numbers.
^ Top
Basis
Points
A "basis point" is 1/100 th of a percentage point. With
regard to merchant processing, there are 50 basis points separating
the Qualified and Mid-Qualified discount rates and 140 basis points
separating the Qualified and Non-Qualified discount rates. Example:
a merchant with a Qualified Discount Rate of 2.35% would have Mid-Qualified
and Non-Qualified Discount Rates of 2.85% and 3.75% respectively.
^ Top
Batch
Processing
This occurs when a merchant transmits the "batch"
of daily sales stored in the terminal for processing. An "open"
Batch is one that is not yet "closed." To "close"
a batch is to transmit the information from the merchant's location
(terminal or software) to our processor.
^
Top
Business
Financials
The three forms that are known collectively as "business
financials" are: Profit and Loss Statement, Balance Statement,
and Statement of Cash Flow. For the purposes of Humboldt Bank merchant
processing, we are only concerned with a given merchant's Profit
and Loss Statement and Balance Statement. (Refer to Exhibit "K"
in this manual.)
^ Top
Business
Type
Business type is determined by the way in which a business processes
transactions:
- Retail
- Merchants selling tangible goods in a face-to-face environment
who normally use conventional terminals and swipe transactions.
- Service
- Merchants selling services like plumbing or auto repair
in a face-to-face environment, who normally use conventional terminals
and may key or swipe trans-actions.
- Restaurant
- Merchants selling prepared foods in a face-to-face environment,
who normally use conventional terminals and swipe their transactions.
- Hotel
- Merchants selling lodging and hospitality services in a
face-to-face environment, who normally use conventional terminals
and key or swipe their transactions.
- MOTO
- Merchants selling tangible goods or services in a non-face-to-face
mail order, Internet or telephone order environment, who normally
use software or conventional terminals and always key their transactions.
- Internet
- An Internet Merchant is one who processes transactions
via the Internet. Processing transactions via the Internet means
that the cardholder types their credit card information online
and the transaction is processed seconds later.
^ Top
Buy
Rate
The amount of money we charge an IC/ISO for services or transactions
that are paid by the merchant. If an IC/ISO is able to sell a merchant
at an amount higher than their respective buy rate, we remit a portion
(referred to as "residuals) to the IC/ISO each month. The Buy
Rate does not give the IC/ISO free reign to charge whatever they
want over their Buy Rate; allowable amounts for fees and rates are
reflected in their contract and in the User Grid.
^ Top
Chargeback
A dispute process initiated by the card issuer (usually in response
to the cardholder) after receipt of the initial charge or presentment
from the merchant via the acquirer.
^ Top
Checklister
The Checklister is the "gatekeeper" of Merchant Processing;
all applications enter the system here, are reviewed for completeness,
and summarized so the rest of the department can quickly figure
out the status of a file.
^ Top
Contingent
Liability
This is the term used by underwriters and sales people to identify
a situation that is created when merchants process transactions
in advance of the date cardholders can expect to receive the goods
or services they purchased. Travel agencies pose a contingent liability
risk. Similarly, all MOTO merchants pose contingent liability risks
to the bank. We limit this liability to a maximum of 90 days.
^ Top
Corporate
Resolution
This form is used by a corporation to designate an individual(s)
as a signer(s) on behalf of the company.
^
Top
Glossary of Terms continued -
- Credit Report through Internet
Merchant
- Issuing Bank through SIC
Codes
- Swipe through Verifone
Return to Merchant Account
Tutorial Articles Index
