Merchant Account Glossary – Credit Report to IPOS

Merchant Account Glossary of Credit Card Terms

Credit Report
A credit report is ordered for every signing principal on the application, and is used by under-writers to make approval decisions. Humboldt Bank purchases Experian Reports.

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CVV2
CVV2 is a three-digit security code that is printed on the back of most credit cards. The CVV2 program is designed to reduce fraud in the card-not-present environment by validating that a genuine Visa/MasterCard credit card is being used during a transaction.

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CyberCash
CyberCash, Inc., is the creator and vendor of CyberCash, a popular Internet protocol.

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Debit Networks
The host of companies that honor card transactions and at the same time debit the card-holder’s checking account for the amount of the purchase. They are smaller, more numerous, and more likely to be only regionally accepted than their credit-based counterparts.

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Direct Marketing
The method by which a merchant solicits business to a population that did not ask to be solicited (i.e. "junk mail"). It is often mistakenly confused with terms like, "mail order" and "telephone order." A merchant that sends catalogs or brochures to a mailing list of past customers is not a direct marketer, but a merchant who sends catalogs or brochures to everyone in a geographic area is a direct marketer.

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Discount Rate
This is percentage fee a merchant pays Humboldt Bank Merchant Services to process a trans-action (See "Qualified Discount Rate.").

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Doing Business As (DBA)
The DBA is the name the public sees, whether on a physical storefront or on the web. If the merchant has another business, then we would need a separate application for both.

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eCheck.Net
See "Authorize.Net"

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e-Commerce
This is a generic term denoting business done over the web and/or processed electronically.

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Electronic Ticket Capture (ETC)
An ETC system reaches out and "grabs" sales ticket information electronically. Buyer information is contained on the magnetic strip on the back of the credit card. The merchant "swipes" the card through a terminal, and the buyer information is "read" by the computer system and merged with the sales information. It then processes the ticket just as if the merchant was making a manual deposit at a bank. This action is normally done in "batches" of tickets, such as at the end of the day.

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Face-To-Face
A face-to-face transaction is one at which the cardholder was present. This is usually evidenced by the action of swiping a card through a terminal but may also be evidenced with a signed, imprinted draft. (See "Imprinter.")

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Federal Tax ID Number
This 9-digit number is assigned by the IRS for tracking business taxes. We absolutely require a Federal Tax ID number from all applicants. Some smaller merchants that are sole-proprietors may use their personal Social Security Number in place of a Federal Tax ID number.

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First Data Corporation (FDC)
This Omaha, Nebraska-based company processes all of our merchant’s credit card transactions. This company used to be called FDR (First Data Resources) and the two names are now sometimes, if mistakenly, used interchangeably.

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First Data Resources (FDR)
See FDC.

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Full Business Name
A merchant may only apply for credit card processing under a business name that corresponds to the tax ID number written on the application.

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Gateway
Just as a customer must walk through a door or gate to enter a business establishment, so must customers enter electronic "gateways" before they can do business electronically.

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Guarantor
We require that a personal guarantor sign almost every merchant application. By signing, this person agrees to personally guarantee (make good on) any processing losses Humboldt Bank incurs as a result of our business relationship with this merchant. This is the person or per-sons for whom we order a personal credit report for review by our underwriters. It is appropriate to think of a personal guarantor as akin to a co-signer.

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Host
This is the computer on which a web site is physically located, normally the Internet Service Provider (ISP).

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Hypercom
This company manufactures conventional processing terminals. Models include the T77 and T7P terminal/printer combinations and the S8 PinPad.

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H ypertext Transfer Protocol, Secure Connection (https)
This allows for secure communication between computers. One must have the proper pass-word (s) to get into a secure site.

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IC Verify
This an ETC type 7 software that is marketed by CyberCash. It is widely used.

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Imprinter
The now old-fashioned manual, slide-type device used to produce an image of the raised (embossed) characters on a credit card, to a transaction slip. All merchants should have a manual imprinter for cases that demand a physical imprint.

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Independent Contractor/Independent Sales Organization (IC/ISO)
These acronyms are usually attached to refer collectively to all of our registered sales representatives.?? These are the people we’ve contracted to sell our merchant processing services nationwide.

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Integrated Point of Sale (IPOS)
This acronym refers to conventional terminals that are "smarter" and more sophisticated in that they may be set-up to communicate with like terminals owned by the same merchant -even if they are located at different locations and with different merchant numbers.

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Internet Merchant
See Business Type

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