Glossary | Chase Paymentech Solutions

Chase Paymentech - merchant services and credit card processing

Glossary of Electronic Payment Processing Terms

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Call Center
An authorization request response displayed on the credit card terminal screen, generated by the issuer or through stand-in processing. The merchant must then call for a voice authorization. If an approval is given, the user must enter the approval code manually into the POS device as a "force" or "post-authorization."

Capture
Receiving and storing transaction data at the processor's host computer, to be submitted later for processing and payment.

Card-Not-Present
A type of card transaction in which the card is not present at the point of sale for the magnetic stripe to be read. These are considered higher risk transactions.

Card Present
A type of transaction in which the card is present and is swiped through an electronic device that reads the contents of the magnetic stripe on the back of the card.

Card Reader
Input device on a card terminal that translates the information stored on the magnetic stripe on the back of a card.

Cardholder
The person to whom a payment card is issued, or an additional person authorized by the original cardholder to use the card.

Cardholder Account Number
A sequence of numbers assigned specifically to a cardholder account that also identifies the issuer and type of payment card. The cardholder account number is the embossed number imprinted on the payment card.

Cardholder-Initiated Chargeback
A chargeback that results when a cardholder contacts the card issuer and refuses to accept a charge appearing on a monthly billing statement. A cardholder has 90 days to initiate a chargeback.

Cash Advance
A transaction in which a cardholder obtains cash in person at the branch of a member financial institution or ATM. This is the only method of receiving cash from a credit card that is approved by the bankcard associations.

CCD
A credit or debit entry, initiated by a merchant, to consolidate funds of that organization, from its branches, franchises or agents, or from other organizations; or to fund the accounts of its branches, franchises or agents, or of another organization.

CDPD
Cellular Digital Packet Data - a method of sending data through cellular networks. CDPD is used with wireless credit card terminals to transmit transactions and deposits in mobile environments.

Chargeback
A challenge to a transaction initiated by the issuer or cardholder that is returned to the acquirer for resolution.

Chargeback Fee
The amount assessed by the acquirer for processing chargebacks.

Chargeback Reason Code
A numerical code which identifies the specific reason for a chargeback. MasterCard and Visa each have their own chargeback codes.

Check Card
A bankcard that can be used with a PIN at an ATM or without a PIN at the point of sale, also known as an offline debit card. When used at the point of sale, the transaction is processed through interchange as a credit card transaction with the funds debited from the cardholder's checking account.

Check Digit Verification (MOD-10 check)
A check digit is the last position of a card account number, generated from an algorithm performed on a primary card account number. Verification of this number is referred to as a MOD-10 check and is used to validate a credit card number.

Check Guarantee
A service that guarantees check payment to a merchant up to a specified amount. However, merchants are required to perform correct authorization procedures.

Check Reader
A device that reads the numbers encrypted on the bottom of most checks.

Check Verification
A service that provides merchants with some security against bad checks. The person writing the check is matched against a national negative file database to flag outstanding or bad checks on record from other members of this service.

CID
Card Identification Number/Card Identifier - An American Express and Discover verification process that utilizes a non-embossed three- or four-digit number printed when authorizing credit card transactions where the physical card is not present.

On American Express cards, the CID is a four-digit code printed on the front of the card.

On Discover cards, the CID is a three-digit code printed next to the card number in the signature panel.

For a list of CID codes, click here.

Ciphertext
The encrypted text of a message, which may be decrypted only by someone who has the correct key.

Close
Sending a merchant's completed transactions to the host for processing. (See also "Settlement")

Code 10 Authorization
If the POS device reads "Lost or Stolen Card," or "Pick Up Card" or a similar message, the merchant should call the authorization center for a Code 10 Authorization. The operator will ask questions to determine if the transaction is valid.

Commercial Cards
Formal name for the following three types of cards:

	Corporate Card; usually issued to the employees of a large corporation where the corporation assumes all liability for the card's usage.
	Purchasing Card; issued to corporations. It allows the corporation numerous parameters to control daily and monthly spending limits, total credit limits and where the card may be used. Many employees may be issued the same card number.
	Business Card; similar to the Corporate Card, but issued to a business with fewer employees. Each employee is responsible for his or her purchases.

Compliance
Compliance to the Visa and MasterCard regulatory bylaws.

Also, a method of resolving a dispute between members if no chargeback reason code applies. The challenging member must prove financial loss due to a violation of MasterCard or Visa rules by the other member.

Counterfeit Card
A plastic card which has been fraudulently printed, embossed or encoded to appear to be a genuine bankcard, but which has not been issued by a Visa or MasterCard member. It could also be a card which was originally issued by a member, but was subsequently altered without the issuer's knowledge or consent.

Credit
A refund or price adjustment given for a previous purchase.

Credit Card
A plastic card with a credit limit used to purchase goods and services and to obtain cash advances on credit. The cardholder is then billed by the issuer for repayment of the credit extended.

Credit Slip
A form stating a refund or price adjustment will be credited to a cardholder account. Also referred to as a credit voucher or credit draft.

Cryptography
The process of protecting information by transforming it into an unreadable format. The information is encrypted using a "key" that makes the data unreadable. It is later decrypted, making the information readable again.

CSP
Commerce Service Provider - an organization that hosts commerce software applications on its own servers within its own facilities.

CVC2
Card Validation Code - MasterCard term for the three-digit code printed next to the card number in the signature panel and used as part of the authorization process. For a list of CVC2 response codes, click here.

CVV2
Card Verification Value - Visa term for the three-digit code printed next to the card number in the signature panel and used as part of the authorization process. For a list of CVV2 response codes, click here.

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