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transaction. the U.S. Census Bureau.)
carders – Criminals who buy, sell, steal and/or conspire to electronic check acceptance – Service that speeds check
purloin individuals' credit card account information. collection either by converting the payment to an ACH
chargeback – Credit/debit card transaction challenged by item for clearing or by using image check exchanges;
cardholder or issuing bank that gets returned to merchant some providers combine electronic check acceptance with
for resolution (in the form of a chargeback request). verification and/or guarantee services.
check guarantee – Service that, for a fee, guarantees EMV (Europay, Mastercard and Visa) – Global standard
merchants will receive payment for checks returned for for securing chip cards and POS devices; named for
insufficient funds or other reasons. Europay, Mastercard and Visa, the creators of the standard.
check verification – Fee-based service that provides encryption – Process of using special algorithms to
check-accepting merchants access to a national negative scramble data and render it indecipherable without access
file database of bad check writers and/or closed accounts. to a corresponding decryption key.
chip card – Credit or debit card with embedded computer F
chip containing account and other identifying information;
can communicate with EMV-compliant POS devices. factoring – One merchant submitting transactions
clearing account – See merchant account. initiated from another merchant who lacks an acquiring
relationship; sometimes called laundering.
CNP (card-not-present) – Transactions in which neither
the card nor the cardholder is physically present at the fintech (financial technology) – Sector of companies
POS. that leverage technology and innovations to compete
with traditional financial institutions in the delivery of
conversion bonus – Bonus paid by ISOs/acquirers to a payments and other financial services.
merchant level salesperson (MLS) that signs merchant
who has relationship with competitor, or for terminal floor limit – Maximum transaction amount a merchant
upgrades. may accept without an authorization.
CVV (card verification value) – Three- or four-digit card G
verification feature (depending on card brand) commonly
required in card-not-present transactions to validate gateway – Software application that facilitates ecommerce
customer is in possession of the card being used. authorizations and payments.

D gift cards – Single-use prepaid cards; typically branded
and distributed by retailers.
deposit account – Access account, other than a credit I
account, maintained by an acquirer for processing
transactions; different from a depository account, which is interchange – Card-issuer fee; generally assessed as
the merchant's local bank account. percentage of transaction plus per-transaction fee, and
digital wallet – See mobile wallet. based on card type (for example, rewards, commercial).
discount rate – All-in rate charged merchants for interchange plus – Pricing model in which acquirer
transaction processing (includes interchange and bundles interchange with network fees, and adds a set
processing costs). markup (usually a combination of basis points and cents-
dongle – Small device that can be plugged into a per-transaction); sometimes referred to as interchange
smartphone or tablet and used as a mobile credit/debit pass through.
card reader. interchange plus-plus – Relatively new variation on
downgrades – Surcharges assessed on certain interchange-plus that includes markups for additional
transactions; can be triggered by how a merchant enters fees and assessments.
card information, the type of card used, or for other issuer/issuing bank – Cardholder's financial institution.
reasons. issuer identification number – First six-digits in a
dynamic currency conversion – POS service that allows card account number; used for transaction routing;
cardholders to make purchases in foreign countries sometimes called BIN (bank identification number). ISOs
denominated in the currency of their home country, in pay sponsorship fees for IINs/BINs, typically based on
real time. portfolio volumes

E K

ecommerce – Commercial activities conducted via the knuckle busters – Traditional credit card imprinters;
Internet, which has become the fastest area of growth for sometimes called zip-zap machines for the noise they
retailers. (Ecommerce sales grew at a rate of 16 percent in made when operated.
2015, while all retail sales grew at 2 percent, according to
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