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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