Accepting payment cardsCard Terminology Dictionary

Card Terminology Dictionary

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3D-Secure

Latest innovative solution for on-line shopping based on cardholder authentication, SSL encryption and communication via Merchant Server Plug-in during on-line shopping. This solution protects payment card information as it is transmitted via Internet

Acquirer

A member that maintains the merchant relationship and acquires the data relating to a transaction from the merchant or card acceptor.

Altered Card

A card on which the original embossed or encoded information has been altered for fraudulent purposes.            

Association

An international company, which grants licenses to banks for issuing payment cards and processing payment card transactions (Visa, MasterCard, Diners Club, JCB, American Express).

Authentication

In security, ensuring that the message is genuine, that it has arrived exactly as it was sent, and that it comes from the stated source.

Authorization

Approval of a transaction by or on behalf of an issuer according to defined operation regulations. The merchant receives, via telephone or authorization terminal, this approval to process the transaction.

Authorization Code

A six-digit alphanumeric code assigned by the issuer to identify the approval for a specific authorization request. Also referred to as “issuer’s response code,”“authorization approval code,” or “authorization response code.”

Authorization Request

A request by an acquirer for issuer approval to complete a transaction involving a payment card.

Authorization Response

Answer to an authorization request, typically a code that advises the acquirer or merchant

how to proceed with the transaction. In case the authorization is declined, there is a reason provided.

Authorization Service

Authorization is a 24-hour service available to all members to route messages from acquirers to issuers and to provide authorization responses to acquirers for debit and credit card transactions, even when members’ systems are unavailable.

Automated Teller Machine

A cardholder-operated device that reads, captures, and transmits card information in an unattended environment and may offer additional services, such as mobile recharging, account balance information and money order.

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Business Partner

Party, which enters into a contract on acceptance of payment, cards at points of sale with ČS.

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Cancellation Number

A number provided by a merchant, such as auto rental or hotel/motel, to enable a cardholder to verify a cancellation of a reservation.

Cardholder

An individual to whom an issuer issues a payment card based on a contract and whose name and surname appear on the payment card.

Cardholder Name

A data element that indicates name of the cardholder

Card-Not-Present (CNP) Transaction

A transaction where the card, the cardholder, and/or the merchant representative is not present at the time of the transaction. Mail order, telephone order, unattended terminals, electronic commerce, and transponder are examples of non–face-to-face transactions.

Card Validation Code (CV, CVV2, CVC2, CVA2, Batch Code)

A card security feature. CVC 2 is indent-printed three-digit code into the tamper-evident signature panel on a card following the card number or last four digits of the card number. Batch Code is a four-digit code placed on the front . CV2 code is requested for card-not-present transactions.

Cashback Transaction

A purchase transaction in which the cardholder chooses to receive cash in addition to paying for goods, services, or both. The cash portion of a cash-back transaction appears as part of the purchase, with the transaction amount reflecting the total amount of goods, services, and cash received.

Cash Disbursement

A transaction that is posted to the cardholder’s card account in which the cardholder receives cash or travelers  cheques at a branch of a member financial institution or at a qualified and approved agent of a member financial institution.

Cash Disbursement Site

Member bank of the Visa, MasterCard associations or bank branch entitled to cash disbursement service (Cash Advance).

Cash Disbursement Slip

A form serving as an evidence of a cash disbursement transaction.

Chip

A microprocessor located on a card, which has the appearance of an oval, or rectangular metal plate situated on the front side of the payment card.

Chip Card

A credit or debit card containing a computer chip with memory and interactive capabilities used to identify and store additional data about the cardholder, cardholder account, or both. Also called an integrated circuit card. Previously referred to as a smart card.

Co-Branded Card

A card issued by a member in association with a commercial company, typically bearing the brand of both.

Confirmation Number

A number provided by a hotel or motel to verify a cardholder’s guaranteed reservation or advance resort deposit.

Credit Card

A plastic card bearing an account number assigned to a cardholder with a credit limit that can be used to purchase goods and services and to obtain cash disbursements on credit, for which a cardholder is subsequently billed by an issuer for repayment of the credit extended at once or on an installment basis.

Credit Slip (Voucher)

A form establishing a refund or price adjustment to be credited to a cardholder’s account for the sale of goods, services, or other items of value.

ČS

Česká spořitelna, a.s., Czech Savings Bank

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Debit Card

A plastic card used to initiate a debit transaction. In general, these transactions are used primarily to purchase goods and services and to obtain cash, for which the cardholder’s asset account is debited by the issuer.

Documents

General term for printed matter documenting a transaction (for example payment slip, summary statement, refund slip, pay slip, unconnected transaction slip, failed transaction slip, pre-authorization slip, transaction abandonment slip, gratuity slip, transaction cancellation slip.

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E-Commerce Transaction

The non–face-to-face payment for goods or services by use of electronic media over a public network (such as the Internet) or private network (such as an extranet).

Electronic Commerce (E-Commerce)

The exchange of goods and services for payment between the cardholder and merchant. The transaction is performed (completely or partially) via electronic communication.

Embossing

Embossed information on a payment card or the identification label of an imprinter.

Employee Of A Point Of Sale (Staff)

A person assigned by the Business Partner to accept payment cards and operate the devices outlined in the in the Contract.

EU

European Union

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Face-To-Face Transaction

A transaction where the card, the cardholder, and the merchant representative are all present at the time of the transaction.

Floor Limit

A maximum amount above which the merchant must obtain an online authorization from the issuer before completing the transaction.

Fraudulent Transaction

A transaction effected using a cardholder’s account number which is not engaged in or authorized by the cardholder. Such transactions are categorized as lost, stolen, not received, issued on a fraudulent application, counterfeit, fraudulent processing of transactions, account takeover, or other fraudulent conditions.

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Guaranteed Reservation

Use of a account number to reserve accommodations at lodging merchants. For the cardholder, such  reservations include a late arrival provision, penalties if cancellation rules are not met (No-show Charge), and a provision for unavailable rooms upon arrival.

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Identity Card

Identity card for Czech nationals. Proof of identity for citizens of EU member states. Citizens of other countries – passport, permanent or long-term residence permit. An identification card must bear the holder's photograph

Imprinter

A mechanical device used for imprinting identification information from a payment card and the identification label of the point of sale during a transaction.

Interest-Free Period

Advantage to credit and charge cards – when the whole debt is redeemed by the due date (stated on the card statement), Česká spořitelna does not charge any interest on card transactions.

Issuer

A member that issues cards

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Log

A record of everything pertinent to a system function. A collection of messages that provides a history of message traffic.

Lost And Stolen Fraud

A fraudulent transaction that occurred when a card was stolen/lost and subsequently used.

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Magnetic Stripe

The magnetically encoded stripe on the bankcard plastic that contains information pertinent to the cardholder account

Mail Order/Telephone Order (MO/TO)

A transaction initiated by mail or telephone to be debited or credited to a bankcard account; card-not-present transaction

MasterCard Secure Code

Trade mark association MasterCard for 3D-Secure solution.

Mechanic Transaction

A transaction completed using an imprinter

Merchant Agreement

A written agreement between a merchant and an acquirer containing their respective rights and performance obligations with respect to card acceptance

Merchant Reference Number

A unique transaction identification number allowing clear identification of a transaction between the merchant, ČS and the cardholder

Merchant Web Server

A World Wide Web server that contains pages representing a company’s catalog of items that can be purchased over the Internet. When the consumer initiates a purchase, a program on the server submits the transaction for authorization and captures transaction data to submit for payment processing.

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No-Show Charge

A charge processed by a hotel or motel due to a cardholder’s failure to arrive within a specified time or fails to cancel the guaranteed reservation within a specified period.

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Payment Advice

A document sent to the merchant on regularly agreed base after each processing of transaction in CS, can be in paper or electronic form. All data about processed transactions are listed.

Payment Slip

A document showing completion of a transaction issued by the Business Partner and signed by the cardholder.

Payment Card

A plastic card whose appearance, layout of information, and protective elements on the front and rear sides meet the requirements of an Association. A payment card can be used to make cash free payments for goods and services as well as cash withdrawals. A payment card is the property of the issuer

Payment System

System that accomplishes the transfer of money.

Payment Terminal

(POS terminal) A device that allows accepting and processing payment card transactions by electronic means.

Personal Identification Number (PIN)

A four- to 12-character alphanumeric code that enables an issuer to authenticate the cardholder to approve an ATM or terminal transaction occurring at a point-of-interaction (POI) device

PIN-Based Transactions

Transactions verified by the use of a cardholder’s PIN.

PIN PAD

A small keyboard device attached to an electronic payment terminal on which a cardholder enters his PIN to authenticate his identity.

PIN Verification

A procedure that enables the issuer to validate the cardholder identity when making a comparison with the PIN and cardholder account number.

Point Of Sale

A place where merchant accepts payment cards for cash free payment for goods and services, that is decaled with marks of card acceptance based on the brand accepted. Merchant is obliged to provide a sale slip for cardholder to sign or to enable cardholder to verify transaction by entering PIN (when requested) to express his agreement for payment. Cardholder is provided with one copy of the slip.

Prepaid Card

A card that stores value and is used to pay for goods or services, and in some cases, to procure cash disbursements.

Preauthorization

A preauthorization is a non-posting authorization transaction that will subsequently be followed by a separate financial transaction within a specific time interval. The subsequent financial transaction will be a posting transaction against the cardholder’s account. Preauthorization is used primarily in POI situations where the cardholder wishes to obtain “advance approval” or “verification” that sufficient funds are available to make a subsequent purchase using a debit card.

Primary Account Number (PAN)

The number that is embossed, encoded, or both, on a card that identifies the issuer and the particular cardholder account. The PAN consists of a major industry identifier, issuer identifier, individual account identifier, and check digit.

Priority Check-Out Service

A service provided by hotels or cruise lines that allows a cardholder to authorize the use of his card for payment of his total obligation to the merchant, with or without prior knowledge of the total amount, by signing a completed Priority Check-out Agreement.

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Recurring Payments

Payments by an issuer to an acquirer on behalf of a cardholder who authorizes a merchant to bill the cardholder's account on a recurring basis (such as monthly or quarterly). The amount of each payment may be the same or may fluctuate.

Refund

Opposite of a purchase transaction, namely, the cardholder returns goods to the merchant and is credited for their value. Positive interchange and merchant service charge are reversed.

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Signature Strip

Strip placed on the back of the card with the cardholder’s signature.

Skimming

Replication of electronically transmitted full track data to allow or enable valid authorization to occur.

Summary Slip

A summary accounting document (summary statement) showing completed transactions submitted to ČS for settlement.

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Transaction Amount

The amount of funds the cardholder requested in the currency appearing on the transaction information document (TID).

Transaction Documents

A general term for all documents concerning a transaction, especially the copy of the payment slip intended for the Business Partner, confirmation of obtained pre-authorizations, confirmation of acceptance of a transaction printed by a terminal after the transaction is successfully sent to ČS, confirmation of cancellation of a transaction, confirmation of crediting gratuity, written or faxed order for goods or services, confirmation of delivery of goods to a cardholder, confirmation of acceptance of goods by a cardholder, etc.

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Unattended Terminal

A terminal where a cardholder performs all payment functions with a card and without the presence of a merchant representative, such as at an automated fuel dispenser.

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Valid Date

A date embossed on the card after which the card must be honored. This date is used in conjunction with the required expiration date.

Verified By VISA

The trademark of the VISA Association for the 3-D Secure technical solution

 

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