Page 1 - GS170102
P. 1

January 23, 2017  •  Issue 17:01:02

        Talking the talk                                        authorization  – Process of ensuring cardholder has

                                                                adequate funds to cover a transaction; if cardholder does,
                                                                authorization code is generated and funds are set aside.
        By Patti Murphy                                         average ticket – Average value of bankcard transactions;
                                                                often used in pricing calculations.
                                                                AVS (address verification service) – Authorization service
                                                                in which cardholder is asked to input code at the point of
                                                                purchase that is then compared to the address on file.
                                                                B

                                                                B2B (business-to-business) – Exchange of goods or
                                                                services between two businesses.
                                                                B2C/C2B (business-to-consumer/consumer-to-business)
                                                                – Exchange of goods or services between a business and a
                                                                consumer.
                                                                billback  –  Pricing  structure  that  charges  merchants  an
                                                                initial fee per transaction and bills the other fees (like
                                                                downgrades) at a later date; also known as "enhanced
                 ike all lines of business, card acquiring has its   billback" and "blended" pricing.
                 own vernacular. The  Electronic Transactions   blockchain – Method of structuring data that underlies
                 Association published the Encyclopedia of      crypto-currencies, like bitcoin.
        L Terminology for the Acquiring Industry in 2008,
        and The Green Sheet regularly publishes glossaries specific   buyout multiples – Used by ISOs and acquirers to value
        to payments and other acquiring activities. We culled our   agent residual streams; prices for portfolios are quoted as
        resources, updated and added terms, and present here    multiples of monthly/annual residual streams.
        our latest industry glossary. Letters that do not appear as   C
        headers have no items beginning with those letters.

        A                                                       C2C (consumer-to-consumer) – Consumer-to-consumer
                                                                transactions; sometimes called person-to-person or peer-
        ACH (automated clearing house)  – Bank-to-bank          to-peer (P2P) payments.
        electronic payment network used for transactions such   capture date – Date on which acquirer processes a
        as direct deposit, automatic bill payment and acquirer to
        merchant net settlement payments.
        acquirer – Bank or other company that accepts merchant
        card payments for processing and settlement.             Contributed articles inside by:
        acquirer processing fee  – Transaction fee assessed by
        Visa.                                                    Steven Feldshuh ...................................................................................28
        activation bonus – Fee paid to an agent once a signed    John Tucker .............................................................................................37
        merchant begins accepting card payments.                 Chris O'Donnell .....................................................................................40
        agent  risk  reserve  –  Pool  of  money,  funded  out of   Adam Atlas ..............................................................................................42
        agent residuals, held by an acquirer/ISO to offset future   Evi Triantafyllides ..................................................................................44
        merchant losses.
        authentication – Act of verifying that a credit/debit card                                      TOC on page 3
        number is legitimate.
                                                                              Continued on page 34
   1   2   3   4   5   6