A
Every cardholder’s account is identified by an account number. This number must be protected and never given out unless the merchant has initiated the call.
An electronic data file with instructions for the exchange and settlement of electronic payments passed between financial institutions. This file represents debits and credits to be deducted from an account automatically as they occur.
Part of RBS Lynk’s ACH Process system, used by the Risk department to:
· Set up and track a Customer Reserve fund goal for a “high-risk” customer to be collected from daily settlement.
· Collect monies due RBS Lynk that have not been collected through normal processes.
· Defer settlement deposits for a specified number of days.
· Release Reserve funds.
· Release transaction-level funds held in Risk Reserve.
Note that Help Desk and Customer Service can inquire into a customer record for purposes of viewing Risk activity related to settlement dollars.
RBS Lynk’s internal software that originates ACH direct deposits, collections, and disbursements for settlement and billing purposes. The ACH Filter, AMES, and ARS are part of the ACH Process System.
The act or process by which funds are transferred via the ACH system during billing and settlement cycles.
The acknowledgment character sent from one device to another to indicate that the message packet transmitted was received correctly.
A card association member that contracts with banks and merchants to enable payment card transactions. Acquirers initiate and maintain relationships with merchants that accept cards for payment. The acquirer deposits the daily credit card totals and periodically debits the processing fees from the merchants’ accounts.
Also referred to as Acquirer, the financial institution that contracts with the bank and merchants to enable credit card transactions. The acquirer deposits the daily credit card totals and debits the end-of-month processing fees from the merchants’ accounts.
Also referred to as Third-Party Processor, a company that provides bank/merchant services such as billing, reporting, customer service, authorization, and settlement on behalf of the acquiring financial institution (or merchant bank).
Activate
To prevent fraud, many card issuers require the cardholder to call when they receive a new card in the mail to verify that the correct person has received it. Until proper ownership is confirmed, the card may not be activated.
A specific set of address and contact information.
CIS contains many different address types in CIS. Some address types (such as Principal) may be set only at certain levels (customer, merchant, or terminal) while others (such as Shipping) may be established at multiple levels and contain different address and/or contact information at each level.
Address Verification Service (AVS)
A payment card service in the US that enables merchants to verify a cardholder’s billing address electronically in order to help prevent fraud in MO/TO transactions.
A type of transaction initiated by the acquirer to correct a processing error and/or an out-of-balance condition that was identified in the settlement process. The error could be a duplication of a transaction or the result of a cardholder dispute. The acquirer debits or credits the merchant DDA (Demand Deposit Account) for the dollar amount of the adjustment.
Affiliate Member (MasterCard)
Bankcard association members that must be sponsored by a principal member. They cannot sponsor other members. Affiliate members can solicit account holders and merchants and issue cards.
See Associate Member (Visa) for the comparable Visa category.
An issuing bank that is part of a processing or service organization.
See Agent Bank.
A card offered in conjunction with an organization and a credit card issuer. A certain percentage of the finance charges generated from cardholders are donated to the charity or organization featured on the card.
Agent Bank
A bank that, by agreement, participates in another bank’s card program, usually by turning over its applicants for bankcards to the bank administering the bankcard program and acting as a depository for merchants.
A MasterCard member that must be sponsored by a principal member. Agent members solicit account holders and/or merchants only on behalf of its sponsoring member.
Also referred to as Routing/Transit Number, a nine-digit number (eight digits plus a check digit) that identifies a specific financial institution. Routing numbers are administered by the Routing Number Administrative Board under the sponsorship of the American Bankers Association and are officially maintained and published by Thomson Financial Publishing.
A third-party charge card for which transactions may be settled by either RBS Lynk or American Express.
A non-American Express owned/processed terminal that authorizes and settles only American Express transactions directly to American Express. All other transactions (such as Visa and MasterCard) are routed to a different processor or acquirer.
American Express SIC
SIC used to classify and describe a merchant’s business (identical to the Visa/MasterCard SIC list with some deviations). This SIC is displayed on the Third Party Services tab of the CIS Merchant Profile.
A standards group in the United States that issues and maintains standards. This group is a nonprofit, nongovernmental body supported by more than 1,000 trade organizations, professional societies, and companies. ANSI is the U.S. member body to the International Organization for Standardization (ISO).
An optional fee charged by the issuer to the account holder to help cover the cost of maintaining individual accounts.
The percentage rate applied to outstanding balances on a credit card on an annual basis.
A mandatory, online course, identifying the signs of money laundering, that must completed by RBS Lynk colleagues each year. After completing the course, colleagues must print a certificate of completion and fax it to HR.
A procedure that card associations use to resolve chargeback disputes between their issuer and acquirer members. The chargeback dispute is over which member (the issuer or the acquirer) must accept financial responsibility for the disputed chargeback. After an arbitration chargeback occurs, the acquirer may submit a case to Visa/MasterCard committee. The committee’s decision is final.
A final chargeback from the issuer refuting a second presentment.
Associate Member (Visa)
A bankcard association member that must be sponsored by a principal member and cannot sponsor other members. Associate members can solicit account holders and merchants and issue cards.
See Affiliate Member (MasterCard) for the comparable MasterCard category.
One of two member-owned corporations (Visa and MasterCard) that license members to issue bankcards with the association’s brands and to sign merchants to accept cards with those brands.
Audio Response Unit (ARU)
Also referred to as an Interactive Voice Response (IVR) system, an electronic authorization and capture product that allows merchants to use a touch-tone telephone to process transactions.
A data security technique used to verify the identity of the professed sender of information or a payment order.
The act of insuring that a cardholder has adequate funds available against his or her line of credit. A positive authorization will generate an authorization code that sets aside the funds as the cardholder’s available credit limit is reduced by the authorized amount. Note that an authorization is not a guarantee of payment.
Authorization Center
A facility established to authorize cash advances and merchant sales.
An electronic numeric code (usually generated by an algorithm) that indicates transaction approval. The code is obtained from a credit card-issuing bank or authorization center by merchants using POS equipment. Merchants must always include the authorization code on the sales draft as proof the transaction was properly authorized by the issuer.
Network that provides dial or dedicated telecommunications to process authorizations and settlements with issuers and acquirers.
An issuing financial institution’s electronic message reply to an authorization request, which may include:
· Approval – The transaction was approved.
· Decline – The transaction was not approved.
· Referral – Pending more information, the merchant must call the toll-free authorization phone number.
Auto Close
A terminal feature that allows an end-of-day batch closing to occur automatically at a specified time, without having to be initiated by the merchant.
A nationwide batch-oriented electronic funds transfer system governed by NACHA operating rules for inter-bank electronic payments of deposits with member financial institutions. The financial industry developed the ACH network to improve its payment system (as an electronic alternative to the paper check system). The ACH network is one of a group of processing institutions that have networked together for purposes of exchanging electronic transactions; that is, it distributes and settles electronic credits and debits among a large number of financial institutions.
RBS Lynk’s ACH Process System (including the ACH Filter, AMES (ACH Manual Entry System), and ARS (ACH Reject System)) is software that originates ACH direct deposits, collections, and disbursements for settlement and billing purposes.
A computerized telecommunications device that provides access to financial transactions without the need for a human clerk or bank teller.
The amount of the account holder’s credit line after the current balance, as well as any outstanding authorizations for transactions that have not yet been posted but have been deducted.
The average dollar amount of a merchant’s typical sale (calculated by dividing the total sales volume by the total number of sales for the specified time period).
B
A bank account used for a specific ACH function, such as settlement, billing, and chargebacks. Normally, the same bank account and banking information is used for all three activity types; however, these may be changed and different accounts may be used at different levels in CIS (group, customer, merchant, and terminal).
A plan initiated by the bank to reimburse merchants for purchases made by the bank’s cardholders. The merchant and the cardholder both pay for this service.
The 9-digit routing number for a merchant or customer bank account.
A Visa or MasterCard payment card issued by a bank or other financial institution to a cardholder. Note that American Express, Discover, Diners Club, and JCB are issued directly from their respective operations instead of through banks.
A group of banks formed either for the purpose of sponsoring a single identity (i.e., Visa or MasterCard) or to jointly operate a credit or debit card plan through the use of common processing and administrative facilities.
Bankcard Center
The physical facility where bankcard operations are conducted.
A unique number assigned by the bankcard association to its members. The BIN appears as the first six digits in an account holder’s account number. Visa BINs begin with a “4,” while MasterCard BINs begin with a “5.”
Also referred to as Discount Rate, the percentage of each sale that the bank charges per Visa and MasterCard rate requirements.
All banks are required to have at least three rate structures, including:
· Face-to-face retail rates – Usually the lowest (e.g., 1.49%)
· Phone, mail, and Internet rates – Usually higher (e.g., 2.24%)
· Imprinted or phone-authorized rates – Usually the highest (e.g., 2.62%)
Note that it is very important to classify the way merchants will accept credit cards correctly so they can achieve the best rate structure.
MasterCard’s authorization (Interbank National Authorization System (INAS)) and clearing and settlement (Interbank Network for Electronic Transfer (INET)) systems.
See VisaNet Integrated Payment (V.I.P. System).
See VisaNet Integrated Payment (V.I.P. System).
An accumulation of captured credit card transactions in the merchant’s terminal (or POS) waiting to be settled. Multiple batches may be settled throughout the day. Each batch (as well as each transaction in a batch) is assigned a sequential number.
The signaling speed equal to the number of signal events per second (not necessarily the same as bits per second).
Credit card processing fees that combine Visa and MasterCard interchange and assessment rates (blended rates) and the financial services provider’s fees (bundled fees) into a single rate.
A status code that restricts or prohibits the use of bankcards.
An electronic device within a POS terminal or computer that allows for the temporary storage of data.
Buffering
Also referred to as refreshing, a fraud scheme for bankcards containing usage information. The scheme consists of copying and storing magnetic stripe information, using the card, and then restoring the original information.
A payment card product designed specifically to meet the needs of small businesses and professionals.
Any day on which the offices of the consumer’s financial institution that are involved in an electronic fund transfer are open to the public for carrying on substantially all of its business functions.
C
Call Center
An authorization response indicating that a call needs to be made to the issuer’s security or credit officer.
Capture
The conversion of an authorization amount into a billable transaction record within a batch. Transactions cannot be captured (converted to a billable transaction) unless they have been authorized. Authorizations cannot be captured until the goods or services have been shipped or given to the purchaser. Credit card sales must be authorized, captured and settled in order for a merchant to receive funds for the sales.
See Settlement.
A security process developed to prevent losses from the fraudulent use of new and reissued bankcards stolen from the mail. The card cannot be used until the account holder calls a toll-free number and verifies his or her identity.
An entity (such as Visa or MasterCard) consisting of member financial institutions that provide credit, debit, prepaid, and other brand payment cards. Card Associations maintain transaction-clearing networks and facilitate the electronic authorization of transactions, clearing, and settlement among cardholders, merchants, and member banks (as well as other financial institutions).
Card Center
A financial institution’s primary location for the operation of its card program.
Information printed on a sales draft, credit voucher, or cash advance draft. A mechanical device (imprinter) is used to produce the imprint. The imprinter produces drafts and vouchers that display the characters embossed on a credit card, the merchant or bank name, and the merchant identification number.
Any bank or organization that issues, or causes to be issued, payment cards to those who apply and qualify.
An EFT network member-bank that operates a credit card or debit card “purchasing service” for its account holders (e.g., CitiBank issues CitiBank Visa cards).
The slot on the side of the terminal that automatically reads the magnetic stripe on the back of a payment, non-payment, or debit card.
Card Security Number (CSN)
A hidden or difficult-to-reproduce number on or in the plastic of a card for fraud-control purposes.
Bankcards, non-bankcards, and networks. Card types are related to Service Types and Business Types.
A unique value calculated from the data encoded on the magnetic stripe of a MasterCard card for the purpose of validating card information during the authorization process.
A unique value calculated from the data encoded on the magnetic stripe of a Visa card for the purpose of validating card information during the authorization process.
The authorized user of a payment card (i.e., any person who opens a credit card account and makes purchases with the card).
The bank that issues a bankcard (or payment card) to an individual.
The total number of cardholder accounts belonging to a specific bank.
Defined by Visa USA as a standard of due care and enforcement for protecting the sensitive information of both merchants and cardholders in the processing of electronic payments.
A record of all cardholder accounts with a bank or organization.
Cash Advance (Type of Capital)
Immediate working capital obtained by a merchant from an MFC, which purchases a percentage of a merchant’s future daily net settlement of acquirer-payable transaction proceeds.
See Merchant Funding Company (MFC) and Split Settlement.
A type of transaction in which a cardholder obtains cash in person at a branch of a member financial institution. The Cash Advance service, which is clerk-attended and available only at banks, allows the cardholder to obtain cash from his or her payment card account on a POS device (often a cash-dispensing terminal such as an ATM, SCRIP, or PO). The cardholder can withdraw cash by using a check or PIN, depending upon the available amount of the cardholder’s credit limit. The transaction is posted against the cardholder’s account.
A plastic card used to obtain cash from ATMs or POS systems that immediately credit store accounts and either debit or credit consumer accounts.
The currency paid out to an account holder through the use of a card. A manual cash disbursement generally occurs at a member branch and requires the account holder’s signature to be obtained on a cash disbursement draft. An automated cash disbursement occurs at an ATM and requires entry of a PIN as a substitute for the account holder’s signature.
The section of a bankcard operation where both alphabetic and numeric records of cardholder accounts are maintained.
A card type (such as American Express) for which the account balance must be paid in full every month (unlike revolving credit card accounts, which allow the cardholder to carry balances from month to month).
The removal of an account from an issuer’s books as an asset after it has been delinquent for a period of time (usually 180 days). When an account is charged off, the issuer absorbs the outstanding balance as a loss.
A credit card transaction that is billed back to the merchant after the sale has been settled. Chargebacks are initiated by the card issuer on behalf of the cardholder. All or part of a disputed interchange transaction may be charged back to the acquirer (merchant) in accordance with card association rules. Typical cardholder disputes involve failure to deliver the product or consumer dissatisfaction with the product or service.
The number of calendar days (counted from the transaction processing date) during which the issuer has the right to charge the transaction back to the acquirer. The number of days varies from 45-180 days according to the type of transaction.
A service that validates routing numbers and account information to determine the validity of a checking account.
Also referred to as a debit card or deposit access card, a bankcard that enables the user to purchase goods and services as well as obtain cash disbursements against his or her asset account (generally a checking account).
An EFT Network service through which a paper check, when presented to a merchant or other check acceptor, is converted into a real-time electronic transaction that debits funds for the amount of the check from the accountholder’s account and credits those funds to the merchant’s or check acceptor’s account (provided the account is valid and has sufficient funds to cover the transaction). Such funds are guaranteed for transactions accepted by the payer bank.
A check sum calculated to test data integrity. A check digit is a value that is computed according to the contents of a block of data and is transmitted or stored along with the data in order to detect any corruption. The receiving system re-computes the checksum based upon the received data and compares this value with the one sent with the data. If the two values are the same, the receiver has some confidence that the data was received correctly.
A bank service that guarantees check payment (up to a limit defined for account), provided the merchant follows correct procedures in accepting the check.
A system that provides merchants with varying degrees of insurance against bad check losses by performing the following functions:
· Verifying the authenticity of the check and/or its presenter.
· Guaranteeing payment of the check by the bank.
Refers to Cirrus System Incorporated, a wholly owned subsidiary of MasterCard International Incorporated, which operates the international ATM sharing association known as the Cirrus® ATM Network.
Also referred to as a standard card, a basic, general-purpose, member-issued credit card (usually with few or no enhancements).
The process of exchanging financial transaction details between an acquirer and an issuer in order to facilitate posting of a cardholder’s account (presentment) and reconciliation of a merchant's settlement position.
The process of sending the batch for settlement.
A partnership between an issuer and another entity that is not in the bankcard business but collaborates with the issuer in a credit card program. Account holders benefit through awards such as airline miles or telephone service points that accrue as they use the card.
The procedures and processes used by an issuer to minimize credit losses and obtain payment from an account holder whose account is delinquent.
See Recovery.
Credit or charge cards (such as multiple payment card brands of purchasing cards, business cards, corporate cards, and multi-utility fleet cards) issued to businesses to cover expenses such as travel and entertainment and procurement.
Visa and Master Card have a program that promotes the use of credit cards for business purchases by providing purchase tracking to business users. This program has special procedures for passing billing information back to the card-issuing bank so that it can be displayed on cardholder statements. New regulations require that this billing information be passed back with the transactions; otherwise, a higher pass-through fee will be incurred.
A process that resolves a dispute between Visa or MasterCard members when no chargeback reason code applies.
The challenging member must prove the following as a result of the other member’s violation of operating regulations:
· A financial loss was or will be incurred.
· The loss would not have occurred if the rule had not been violated.
Technology that directs merchant calls to Call Center specialists and maintains records of merchant details. A call is presented to a specialist in a CTI pop-up screen.
The equipment (hardware) that provides physical management of electronic devices. Features include data transmission, monitoring, intelligent decision making, and error recovery.
Merchants that are part of a bank’s processing services portfolio and require reprogramming in order to be set up with RBS Lynk’s processing services (based on the Bank signing a LynkPartner Agreement).
A bankcard designed specifically to meet the travel, entertainment, and other payment needs of mid- to large-size corporations.
Sales or cash disbursement drafts resulting from the use of a counterfeit card.
A three-digit code used to identify the country to which the transaction data generated by the card should be routed.
A card that enables the user to purchase goods and services and obtain cash against a line of credit established by the issuer.
Credit Card Center
The physical facility where credit card operations are conducted.
The maximum balance the issuer has approved for the account holder to carry on a credit card account.
A non-fraud loss to the issuer resulting from an account that has been charged off.
The method of determining the credit worthiness of an applicant (based on statistical models that predict the probability that an account will perform well).
Also referred to as a refund slip or credit voucher, documentary evidence of the return of merchandise by a cardholder to a merchant or any other refund made by the merchant to the cardholder. A copy of this document is used by the bank to credit the cardholder’s account.
A display or printout of encrypted data.
The process by which the transaction currency is converted into the currency of settlement or the currency of the issuer for the purpose of facilitating transaction authorization, clearing, and settlement reporting. The acquirer determines the currency of transaction. The currency of the issuer is the preferred currency used by the issuer, and most often, the currency in which the cardholder will be billed.
A program (enacted as part of the USA Patriot Act) that requires all financial institutions to establish, document, and maintain procedures for the verification of all customers who open a new account.
The grouping of account holder accounts for purposes of distributing workload and identifying accounts more easily.
A specified period during which both debit and credit transactions are accumulated for billing.
D
Information that relates to a specific transaction or operation and is used by a terminal or peripheral.
In POS systems, the functions performed by a terminal or computer when capturing information relative to a sale (in addition to the authorization function of approving or not approving a sale). Captured information is stored and then forwarded to a host computer.
Standards that are set by a central committee to allow consistent encryption/decryption procedures.
Pieces of information transmitted between two communication devices.
A purchase or cash disbursement posted to a customer’s bankcard account.
A payment card for which funds are withdrawn directly from the cardholder’s checking account at either the time of sale (online debit) or after batch settlement (off-line debit).
Debit cards can be used in one of two ways:
· ATM card (when it does not display a Visa or MasterCard number) – A type of debit card that requires the consumer to key a PIN for debit purchases.
· Visa or MasterCard-issued card (when it displays a valid Visa or MasterCard card number) – A type of debit card that the consumer may used as either a debit card (by keying a PIN) or a credit card (without a PIN), though the money still comes directly out of a checking account. When a PIN is keyed, the merchant’s processing costs are lower.
A denial of an authorization request.
A technique whereby a previously scrambled (or encrypted) message and/or PIN is unscrambled for processing at the appropriate destination.
A bankcard account with a balance for which the account holder has not made the required minimum payment on or before the date indicated on the statement.
The procedure for detecting and isolating a problem with a terminal or peripheral.
A regular public telephone line. The switching equipment on a dial-up line requires a party to dial the other party before making a connection.
A merchant authorization device that, like a telephone, dials the authorization center for transaction validation.
A technology that provides a constant, high-speed Internet connection through an analog telephone line.
A type of charge card that is managed by MasterCard International. Diners Club cards that are issued in the USA and Canada display the MasterCard brand on the front of the card, allowing them to function as MasterCard cards.
Discount Rate
The fee (usually a small percentage of the purchase value) an acquiring member charges the merchant to cover the costs of providing deposit credit and handling the merchant’s bankcard sales transactions.
A third-party charge card for which transactions are settled by RBS Lynk.
A third-party charge card for which transactions are settled directly by Discover.
The specific name and location of the merchant’s store where a bankcard purchase is made.
A code identifying why a transaction’s interchange level was downgraded. Downgrades are automatically determined during the settlement process and depend on the quality and completeness of transactions.
The process of transferring data from one computer terminal to another.
A type of Internet connectivy that enables high-speed terminal processing speed at the point of sale. The Omni 3750 DC terminal offers this type of connectivity.
Full (or even partial) participation by any one bank in competing national bankcard programs (i.e., Visa and MasterCard).
E
The ability to conduct business through a virtual storefront.
Fee assessed to a merchant that terminates processing without providing a written notice to RBS Lynk within 90 days in advance of the contract renewal date.
Debit cards that support many government benefits and need programs (which require a merchant FNS number).
The process in which a receiving device retransmits or “echoes back” transmitted data so that the originating device can ensure the data was received correctly.
The first date on which a bankcard becomes valid.
A service that allows merchants to accept customer payments derived from government-funded benefits programs such as food stamps and Social Security benefits.
A catch-all term used loosely to refer to any attempt to initiate payment through PCs, the Internet, and computer systems.
This term may refer to several types of electronic transactions, such as:
· ACH-based electronic check – A payment that begins as a paper check and is converted into (or truncated to) an ACH debit entry so that the paper check is not processed.
· Electronic network electronic check – A payment that begins as a paper check and is converted into (or truncated to) an electronic network entry using networks (e.g., an ATM or credit card network) so that the paper check is not processed.
· Internet- or telephone-initiated payments – A transaction that is initiated over the Internet or via phone, with the debit carried out by an electronic (usually ACH) debit. Note that some users categorize payments as electronic checks if they are initiated via Internet or telephone but are paid by paper drafts, even though the debit is actually paper-based.
A POS terminal that reads the information encoded in the magnetic stripe of bankcards. This type of terminal electronically authorizes and captures transaction data, eliminating the need for a paper deposit.
The storage of information in a terminal’s memory. The information will be forwarded to a host computer at a later time.
An electronically-based system designed to eliminate the paper instruments that are normally associated with the movement of funds (e.g., a cash withdrawal from an ATM eliminates the writing and processing of a check).
A program (administered by Visa) that sets fees for electronically-initiated interchange transactions.
An online list of blocked account holder numbers (maintained jointly by Visa and MasterCard).
The process of printing identifying data on a bankcard in the form of raised characters.
A bankcard service that allows an account holder to request a replacement card in conjunction with the report of a lost or stolen card.
The process of encoding Internet transactions so that the information has no logical meaning, making it difficult or impossible to steal.
Also referred to as the end sentinel, stop character, or sentinel, a character used in data transmission to signal the end of a packet of information.
A control character sent from one device to another to indicate the end of a transmission.
A value-added service, feature, or other benefit (sometimes provided for an additional fee) that makes a card product more attractive to the account holder. Examples include travel accident insurance, purchase security or extended warranty protection, and car rental insurance.
A character used in data transmission to initiate the transfer of data.
Enterprise Risk
The RBS Lynk group that provides risk management tools, guidance, and oversight to the various business lines so that they can fully identify, assess, and mitigate any possible risks to the company from failures of internal processes and systems, or from external events.
An act requiring U.S. financial institutions and other creditors to make credit equally available to all creditworthy customers without regard to race, color, religion, national origin, sex, marital status, or age (e.g., a creditor cannot ask someone to reapply, close an account, or change the terms of a loan if he or she becomes widowed or divorced).
Note that income from pensions, annuities, or part-time employment may not be excluded by a creditor in evaluating a consumer’s creditworthiness.
A computer chip that can be programmed with data. This type of memory, which is semi-permanent and does not require power to retain data, can be erased with ultra-violet light. VeriFone terminals use this type of ROM.
A file of account numbers that require a specific authorization response (e.g., “pick-up card” or “call-me”).
A transaction that requires special handling (such as a copy request or chargeback).
Systems that highlight unusual charging activities of cardholders and merchants.
Excessive Fraud Merchant Program
A Visa program that identifies and tracks merchants with fraud activity levels that exceed established monthly parameters.
The date (expressed as month and year) after which a bankcard is considered invalid.
F
An act passed by Congress in 1975 to help cardholders resolve billing problems with issuers, giving cardholders specific rights when dealing with credit card issuers.
Officially known as the Federal Reserve Wire Network, a communications network (operated by the Federal Reserve System) that electronically transfers funds and communicates securities transfers, economic statistics, and general administrative information.
A defined area within an information track of the magnetic stripe (or communications transmission) of fixed or variable length.
The character used to separate fields of information in a data packet.
The cost of consumer credit expressed as a dollar amount. Examples include the annual percentage rate, cash advance fee, and a minimum finance charge.
Any organization that provides financial services to businesses or individuals, including commercial banks, savings banks, savings and loan associations, and credit unions.
Also referred to as a charter number, a required number assigned to each financial institution.
This number can be obtained from the Web site of the governing body. If the institution is a State chartered entity, check sites for the Regulatory Agencies for that state (Department of Banking, State Banking Commission). If the institution is a federally-chartered entity, check with Federal Regulatory Agencies (FDIC, Office of Thrift Supervision).
A computer program (software) that is stored on a chip (hardware) or, put another way, software stored in non-volatile memory (such as EPROM).
The initial posting of a transaction to a cardholder’s account.
Private-label credit cards designed mainly for the repairs, maintenance, and fueling of business vehicles.
The time between the creation of a transaction (such as a credit card purchase) and the ultimate payment by the bank and debiting to the card user’s account (e.g., when a credit card is used for a $50 purchase, it may take a few days for the purchase to be processed and the $50 to be debited from the card user’s account. During this time, the card user enjoys a float of $50.).
A dollar amount established for a single transaction over which the merchant must obtain authorization from its authorizing member.
The agency of the USDA (United States Department of Agriculture) for which a specific number is required in the online message of all EBT transactions processed through the Quest network. The FNS number is assigned to authorized merchants who have applied with their state to accept EBT cards. Note that this number is required only for merchants participating in the federal Food Stamp Program (FSP).
Customized text printed at the bottom of a sales draft (e.g., “Have a Nice Day,” “No Refunds,” or “Thank You for Shopping With Us”).
A type of high-speed communication.
A wrongful or criminal deception intended to result in financial or personal gain.
See Address Verification Service (AVS), Activate, Buffering, Card Security Number (CSN), Excessive Fraud Merchant Program, Issuer’s Clearinghouse Service (ICS), Laundering, Luhn Check Digit, Merchant Fraud, Mail Order/Telephone Order (MO/TO), or Reserve Account.
Indicates the entity handling transaction processing for a selected card type.
The satisfaction of a retrieval request. The acquirer supplies the issuer with the original ticket or a legible copy. The fulfillment record confirms the completion of that action and effects reimbursements.
G
The interconnection between two networks that have different communication protocols.
A pre-paid card that is redeemable at participating stores. Purchase amounts are deducted from the card’s value.
RBS Lynk’s pre-paid card program that enables merchants to sell and redeem gift cards.
An optional GiftLynk service that automates reconciliation of gift card usage by and among customer locations. This service transfers funds via ACH for gift card transactions within a customer’s designated GiftLynk group.
An optional GiftLynk service that enables multiple RBS Lynk merchants to share gift cards interchangeably.
A MasterCard automated POS program that offers the capability to capture transactions through most POS terminals.
A credit or debit bankcard that offers qualified account holders a minimum spending line of $5,000 and expanded services.
The period of time between the statement date and the payment due date in which no interest is charged if the balance due is paid in full.
H
The input/output media for data (e.g., a sales draft, credit memo, payment slip, or computer printout).
A physical component (such as an electronic or electrical device) of a computer or device.
A six-digit numbering system that includes numerals 0-9 and characters A-F.
A laser-created, three-dimensional image that is imprinted on a bankcard as an anti-counterfeiting measure.
A switch on a telephone instrument that operates when the handset is removed from its cradle.
The computer with which a terminal communicates in order to authorize or settle transactions, or the computer that the terminal calls for a ZONTALK 2000 download.
The description of the process during which a transaction run through a terminal is captured at RBS Lynk’s host at the time of sale and batched out automatically (i.e., the merchant does not have to batch out the terminal).
Host Capture
A host-based software that automatically captures (at RBS Lynk’s host) each transaction run through the terminal at the time of the sale and processes it without the merchant needing to batch out his or her terminal.
See Terminal Capture.
Parameters related specifically to transactions with a host computer.
Exchanges of information that involve communication with a host computer.
A card used for an account for which excessive purchasing is taking place, which may indicate a lost or stolen card or other unauthorized purchasing.
A type of petroleum-dispensing device or pump (e.g., a Ruby terminal system) that has the ability to begin pumping fuel prior to receiving card authorization.
I
The information shown on a terminal’s display panel when the device is not performing any operations.
A device (supplied to the merchant) that produces an image of the embossed characters of the bankcard on all copies of sales drafts and credit slips.
A cardholder account for which there has never been any activity or no activity has occurred for a specified period of time.
Sales drafts received by a cardholder bank.
A non-member organization or individual that performs merchant solicitation, sales or service, and/or account holder solicitation functions for a member. In the payment industry, an ISO is a company that independently solicits prospective merchants for RBS Lynk’s transaction processing products and services. ISOs may assume either partial or shared financial liability for merchant activity. ISOs often own the terminal equipment.
RBS Lynk’s business category for a merchant location.
Credit cards sent out at the inception of a credit card plan.
The act of data entering (i.e., input) or leaving (i.e., output).
A system of digital phone connections that has been available for over a decade. The system allows data to be transmitted simultaneously across the world using end-to-end digital connectivity.
Interchange
The standardized, electronic exchange of information, transaction data, and money between merchant acquirers and card issuers for various types of MasterCard and Visa transactions.
Interchange also refers to the fee paid by the acquiring bank/merchant bank to the issuing bank. This fee compensates the issuer for the time frame between settlement with the acquiring bank/merchant bank and recoupment of the settlement value from the cardholder. In debit, this fee is called the Network Acquirer Fee.
See Interchange Fee and Network Acquirer Fee.
Interchange Fee
Also referred to as Interchange Reimbursement Fee, a percentage of the dollar value of each transaction entered into interchange. For purchases, the fee is charged to the acquirer and paid to the issuer. For cash disbursements, the fee is charged to the issuer and paid to the acquirer.
This fee is calculated according to Visa and MasterCard regulations. There are multiple categories of interchange, for which Visa and MasterCard each have specific criteria. A transaction must meet the specified criteria for a category in order for that category’s rate to be applied. Additionally, because each transaction is evaluated individually, various interchange rates may apply within one batch of merchant transactions.
A listing of all transactions that are exchanged between a merchant bank and a card issuing bank.
See Interchange Fee.
A charge levied by the bank on a cardholder account in accordance with the terms of a cardholder agreement.
The means by which communication between two systems (i.e., terminal to computer or computer to computer) takes place, often via a leased or dedicated line between such systems.
The international body that provides standards for financial transactions and telecommunication messages. ISO works in conjunction with the Consultive Committee for International Telephone and Telegraph (CCITT) to develop standards that impact telecommunications. ISO supports specific technical committees and work groups to promulgate and maintain financial services industry standards such as bank identification numbers and merchant category codes.
The daily issuance of credit cards for new accounts.
The financial institution (licensed as a member of the Visa or MasterCard associations) that extends a line of credit to customers via payment card accounts. An issuer may also be referred to as the issuing bank or cardholder bank. Issuing banks issue the payment cards and receive the cardholder payments at the end of the billing period.
A portion of the PAN that, when combined with the major industry identifier, identifies the card issuer and/or primary processing endpoint.
Issuer’s Clearinghouse Service (ICS)
A service developed jointly by Visa USA and MasterCard International to reduce member losses from fraudulent or excessive credit applications.
ICS enables issuers to do the following:
· Check application information against a database of invalid addresses and Social Security numbers.
· Identify addresses or phone numbers associated with an excessive number of applications.
Also referred to as the cardholder's financial institution, the financial institution that extends credit to a cardholder through bankcard accounts. The financial institution issues a credit card and bills the cardholder for purchases against the bankcard account.
A recap of account activity for a designated period of time.
J
A third-party credit card for which transactions are settled by RBS Lynk. RBS Lynk automatically enables acceptance of JCB credit cards for all new merchants.
K
The panel of keys on a terminal.
L
Laundering
A type of bankcard fraud in which a merchant deposits a card transaction for another entity that does not have a merchant agreement.
A dedicated phone line that connects the terminal directly to the host.
A bank that has been granted the right to issue bankcards and operate a bankcard plan by a licensing authority (such as Visa or MasterCard).
A telephone-type cord with modular plugs for connecting devices to each other or to a network.
The amount of credit that a lender will extend to a borrower over a period of time.
A system of communications devices connected together for the purpose of sharing information and equipment.
Operations performed at the terminal location only and not with a host computer (i.e., offline transactions).
The procedure required for accessing a network computer.
A code (consisting of a network code, user name, and password) used to log into a network.
A method of testing in which a known data item is sent to a device and returned to be checked.
A dollar figure charged off to bad debt or fraud loss expense.
A bankcard reported to the credit card issuer as lost or misplaced by the cardholder.
Loyalty Card
A card issued by a merchant to customers that offers discounts after a certain number of purchases in order to encourage repeat business.
Luhn Check Digit
The algorithm used to check the validity of bank/credit card numbers, a fraud-control measure used in transactions.
A warranty service that guarantees overnight POS terminal replacement and the normal supplies associated with processing credit and debit cards (e.g., sales slips, credit slips, printer paper, and ribbon).
A free, 24x7 online tool that offers a range of online reports and exports, allowing merchants to instantly view account activity. The LynkAssist Web site can be accessed from any computer with Internet access and enables merchants to view transaction data at any level for 18 months or more.
Business opportunities (i.e., the names of merchants who may be interested in using RBS Lynk’s processing services) submitted to the Lead Management Group by LynkPartners, Customer Service, & Help Desk
A secure, browser-based application that enables businesses to authorize, process, and manage credit card transactions from any computer that has an Internet connection. Merchants access LynkVT (www.lynkvt.com) through a browser.
M
The encoding of data on ferromagnetic material by introducing the material to electronic impulses.
A technique for reading and processing data printed in machine-readable magnetic ink in a font devised for check reading.
A stripe of magnetic information (affixed to the back of a plastic credit or debit card) containing essential customer and account information.
A device that reads information recorded on the magnetic stripe of a card.
Mail Order/Telephone Order (MO/TO)
Also referred to as card-not-present transactions, written (received by mail) or verbal (received by phone) direction from a cardholder wishing to have a purchase amount charged to his or her account. Since the card is not present for imprinting and the cardholder’s signature is not present, special authorization procedures are usually required. This method of taking orders is prone to card fraud.
First digit of the PAN. This digit signifies the major industry issuing the plastic card (Visa = 4, MasterCard = 5, American Express = 3, and Discover = 6).
A batch close that must be initiated by the merchant on a daily basis (as opposed to an auto close at a pre-set time).
A transaction using account information entered from the keypad instead of an automatically-reading device (such as a card reader).
A file composed of records that have similar characteristics or relatively permanent data (e.g., a cardholder’s master file would contain such information as account numbers, names, addresses, credit limits, expiration dates, and number of cards issued).
Available for ATM terminals only, the communication key used to initialize an ATM terminal. The Terminal Profile displays a series of asterisks or “USE KEY PARTS” to represent an encrypted number generated from the left and right sequence numbers of the Master Key.
A type of credit card that is managed by MasterCard International and accepted by most merchants.
A private, SEC-registered share company whose shares are owned by the principal members or customers of MasterCard International.
A non-stock membership corporation formed to administer, promote, and further develop MasterCard card programs throughout the world.
A nationwide collection of merchants whose Visa and MasterCard privileges have been revoked.
Type of transaction in which funds are withdrawn from a deposit account similarly to conventional checks (instead of using a line of credit).
A financial institution that is a member of Visa USA or MasterCard International.
The storage of codes and data in the circuitry of a terminal or computer or other media (such as magnetic disk or tape).
The method of automatically dialing phone numbers stored in a device’s memory (rather than dialing manually).
The segments used to divide the terminal’s memory.
Any business that accepts Visa or MasterCard cards as a form of payment.
An affiliate that receives paper from a merchant.
A contract between a merchant and an acquirer that contains their respective rights, duties, and obligations for participation in the Visa and/or MasterCard program.
A bank that has entered into an agreement with a merchant to accept deposits generated by bankcard transactions.
The total number of merchants that have signed merchant agreements with a bankcard plan. This number may be expressed in terms of either the number of agreements or the number of merchant locations.
A code assigned by an acquirer to a merchant to identify the merchant’s principal trade, profession, or line of business.
Also referred to as an incoming chargeback, a transaction that is challenged by an account holder bank against a merchant bank and arrives at the merchant bank through interchange.
A demand deposit (such as checking) account established by a merchant with a bank for the purpose of receiving payment for sales drafts submitted to the bankcard plan.
Compensation received by a bank from a merchant for processing and accepting the credit risk on credit card sales.
See Discount Rate.
A computer record of information on all merchants participating in a bankcard plan.
Merchant Fraud
The process by which a merchant has submitted and received payment for sales drafts imprinted with lost, stolen, or revoked credit cards, knowing the card was invalid.
Merchant Funding Company (MFC)
A third-party company from which qualified merchants can receive a cash advance.
See Cash Advance (Type of Capital) and Split Settlement.
A number (generated by a processor/acquirer) that is specific to each merchant location. This number identifies the merchant during the processing of daily transactions, rejects, adjustments, chargebacks, end-of-month processing fees, etc.
A program that offers incentive payments to current RBS Lynk merchants that refer prospective merchants to RBS Lynk for their processing needs.
A summary produced and mailed at specified intervals (usually monthly) that details debits and credits to a merchant’s depository account.
Also referred to as batch header ticket, a multi-part form (imprinted with the merchant identification card) used to total daily merchant sales. Paper merchants submit this form, along with sales drafts, to the bank.
A number associated with one of the 16 standard control strings that comprise the standard application hard-coded in the terminal firmware.
A method of framing messages (rather than exact timing) that allows devices to recognize the beginning and end of each block or message.
The words and symbols that appear on a terminal’s display panel to communicate the kind of information required, the result of a process, or whether an error has occurred.
MICR characters (displayed on the bottom line of a paper check) that contain the following information:
· Routing/transit number of the financial institution on which the check is drawn
· Account number of the drawee (i.e., receiver)
· Check number
The device that reads the MICR line/number on the check.
A discount rate given to a merchant who has the following exceptions to the qualified discount rate:
· Uses voice authorization instead of electronic authorization.
· Keys (instead of swipes) card transactions.
· Has more than one authorization per transaction.
· Transmits/settles batch data for processing greater than 24 hours, but less than 48 hours, from the time of authorization.
Merchants that take orders for goods or services by mail or telephone.
Short for modulator/demodulator, a device that converts electronic data to audio signals (for transmission over telephone wires) and audio signals back to electronic data.
The formula for calculating a check digit for account numbers or any group of digits where a check digit is required. This term is derived from the fact that the result of the calculation is subtracted from the next higher multiple of ten in order to arrive at the check digit. Normally, the MOD 10 digit is the last digit of the account number.
Any transaction that has a dollar value and is posted to an account.
An account summary mailed monthly to cardholders reflecting previous balance, new transactions, finance charges to the billing period, new balance, and minimum payment required.
A merchant that has more than one store location.
An authorization request that allows the transmission of more than one transaction without having to re-dial the host computer.
A terminal parameter that specifies the amount of time the terminal will wait between transactions before disconnecting the phone line.
An RBS Lynk Web-based service that enables business owners to charge recurring payments to a customer’s credit card in set intervals (www.lynkmultipay.com). Business owners define the amount and number of payments in any interval they choose.
RBS Lynk’s corporate Intranet site (www.myrbslynk.com), which consists of portals such as Marketing, Products, Training, etc.
N
A negative acknowledgment character sent from one device to another to indicate that the message packet transmitted was not received correctly.
A not-for-profit trade association that develops operating rules and business practices for the Automated Clearing House (ACH) network and other areas of electronic payments.
Additional page(s) attached to a regular merchant Contract Processing Agreement (CPA). RBS Lynk sets up additional features for National Account merchants based on this addendum.
An authorization system whereby only canceled, revoked, or suspended accounts on which there are to be no authorizations are filed or otherwise “loaded” into a system.
A record containing all accounts for which charge privileges have been revoked.
The gross dollar amount charged to bad debt, less recoveries received during a specified period of time.
Network Acquirer Fee
An interchange fee paid by the acquiring bank/merchant bank to the issuing bank. This fee compensates the issuer for the time frame between settlement with the acquiring bank/merchant bank and recoupment of the settlement value from the cardholder.
See Interchange Fee.
Used to route debit card transactions. Debit cards are widely accepted as a method of payment on POS devices, but are typically used to withdraw funds from ATM, Scrip, and POB (Point of Banking) terminals. The name of the debit network that the terminal is set up to route the transactions is considered a CIS Card Type.
Branches of the CIS (Customer Information System) Explorer tree that open up programs or windows (such as Banking, Profile, and Demographics) when clicked.
Non-Bankcards
Charge cards that are not issued by banks to a cardholder but are used as a method of payment. RBS Lynk supports a number of non-bank charge cards: American Express, Discover, JCB, Carte Blanche, and Diners Club. RBS Lynk does not debit a merchant’s account for these transactions; instead, the issuing card organization bills the merchant for the transactions while RBS Lynk bills the merchant a flat fee per transaction. The name of the card is a CIS Card Type.
See Reverse PIP and Third-Party Services.
See Non-Bankcards and Third-Party Services.
Rate resulting from penalties added to the qualified rate for each transaction not settled within 48 hours of authorization.
Payment card sales transactions that do not meet the criteria set by Visa/MasterCard for that particular merchant and are therefore downgraded and processed at a higher interchange rate (e.g., if a retail merchant with the card present manually keys card data instead of swiping the magnetic stripe through the terminal, the merchant will pay the difference between what should be paid for retail and what he or she actually qualified for with this transaction (which is card not present)).
See Interchange Fee.
O
An operating mode in which terminals do not have access to a positive file at the card issuing bank. On-line/off-host implies connection to negative files stored in the front-end processor of the card issuing bank.
Authorizations processed at a POS terminal without contacting the issuer, the issuer’s authorizing processor, or network. Voice authorizations are considered offline authorizations.
Debit card transactions using a Visa/MasterCard® branded card that looks like a credit card. The transaction must adhere to Visa/MasterCard® debit regulations and the merchant is required to pay a discount fee. Cash back is not available.
The dollar amount for which the merchant agrees to be responsible as a substitute pre-authorization amount in the event a petroleum terminal can not communicate online through normal channels.
An operating mode in which terminals have access to a positive file at the card issuing bank. On-line/Off-host implies connection to negative files stored in the front-end processor of the card issuing bank.
Transactions in which the issuing and acquiring banks are the same.
The system that captures transaction data and is used for interchange as the transaction occurs.
Debit card transactions that are instantly debited from the cardholder’s bank account. While no signature is required, a PIN pad is required at the point of sale. Cash back is available and the funds are guaranteed.
A bank that receives paperless deposits from participating businesses in an ACH system and forwards the entries to the ACH.
The process of interchange.
See Interchange.
Transactions deposited with an acquiring bank and sent to an issuing bank.
An account in which the assigned dollar amount has been exceeded.
P
A collection of data bits that contain both control characters (e.g. ENG and ACK) and data, or the basic unit of transmission in a packet-switched network.
The packet carries network-specific control information (along with the data) to provide for such functions as addressing, sequencing, flow control, and error control. A packet can be fixed or variable length, but generally has a specified length.
Networks that divide information into packets so that the host computer processing time is distributed evenly among different users.
The account number and its corresponding secret code.
Original documents, photocopies, or facsimiles of sales drafts, credit vouchers, cash advance drafts, and other obligations arising from the use of a card and bearing either the imprint or other reproduction of embossed information contained on the card.
The paper submission of credit card batch information instead of electronic submission through a POS terminal. Merchants write up the batches on paper and mail them directly to RBS Lynk for processing so that the appropriate sale funds may be transferred into their business account.
Information (generally specific to a particular merchant) stored in memory that configures the terminal for use with transactions and other operations.
A Visa member that must be sponsored by a principal member and can solicit account holders and/or merchants only on behalf of its sponsoring members.
A bank that does not perform its own bankcard plan processing and which participates by agreement with the processing bank in its cardholder portfolio.
A protected word or set of characters that identifies or authenticates a user.
Program to help merchants reduce their risk of exposure to data compromises.
An industry term used when referring to credit, charge, debit, and/or EBT cards.
A service administered by Visa to enhance the equality of the interchange process. Requirements include fully electronic authorization and the capture of transactions.
Devices such as PIN pads or printers that attach to POS terminals.
An IBM or compatible personal computer used to download applications and data to the terminal.
A confidential individual number or alphanumeric code (either system-generated or selected by the customer) used by a cardholder to authenticate card ownership for ATM, EBT, or POS terminal transactions.
The process of verifying an account holder’s identity when a PIN is used as a substitute for the account holder’s signature.
A card that has a minimum credit limit of $5,000 and may include member benefits (usually offered to people with higher incomes and a good credit history).
The process that routes (via an American Express terminal or software) Visa, MasterCard, and Discover transactions to a financial services provider and American Express transactions directly to American Express for both authorization and settlement.
See Reverse PIP and Split-Dial.
A clerk-attended POS device with ATM capabilities. A cardholder may withdraw cash or make deposits to their debit account using a PIN. These devices are typically found in remote areas inside store-front locations.
The merchant location where a transaction originates between an account holder and a merchant.
A non-US PEP is:
· A current or former non-US senior official in the executive, legislative, administrative, military or judicial branches of a foreign government (whether elected or not)
· A senior official of a major foreign political party, or a senior executive of a foreign government-owned corporation
· Any corporation, business or other entity that has been formed by, or for the benefit of, a PEP
· The immediate family of a PEP such as the official’s parents, siblings, spouse, children, and in-laws
· A close employee of a PEP: a person who is widely and publicly known to maintain an unusually close relationship with the PEP
· A person who is in a position to conduct substantial domestic and international financial transactions on behalf of the PEP
The process of communicating with individual terminals on a network where many other devices share the same wiring. Polling uses identification numbers (poll addresses) to indicate which devices will be polled. Typically, all devices are polled in sequential order.
Total holdings, as in RBS Lynk’s portfolio of services or processing accounts.
A financial transaction in which a cardholder performs a debit or ATM transaction as a means of payment on a credit card terminal or credit processing systems in a merchant location. This type of transaction uses credit interchange and does not require entry of a PIN.
A terminal used at the POS that can process transactions and communicate transaction information with a larger remote computer directly or through a network.
An authorization request that is forwarded to the issuing bank or their ISP (Internet Service Provider) and which accesses a positive file.
A file containing, at a minimum, the current balances for each active cardholder account. Depending on the specific system, it may contain cardholder privileges, PINs, etc.
A feature that dials the host computer after all of the account and transaction data is entered into the terminal.
The process of recording debits and credits to individual cardholder account balances to reflect merchandise sales, instant cash advances, adjustments, payments, and any other charges or credits.
The date a transaction is charged or credited to a cardholder account.
A unit that converts a voltage to a different level so that it can be used by a particular device.
The maximum dollar amount for which a cardholder’s account must be pre-authorized in order to activate the pump.
An agreement that permits the cardholder to effect a transaction after signing an authorization with a merchant for purchases to be made at a future date or dates. The cardholder would not need to sign the resulting sales drafts.
A type of stored-value debit card card (e.g., a MasterCard or Visa debit card that is designed for consumers with poor or no credit and secured with a collateral savings account from which purchases are debited).
The acquirer’s act of sending a transaction to the issuer through interchange.
An embossed and/or encoded number (consisting of the major industry identifier, issuer identifier, individual account identifier and the check digit) that identifies the card issuer to which the transaction is to be routed and the account to which the transaction is to be applied.
Typically the sole owner or proprietor of a business. Contact information for this address type may be viewed in CIS Customer Demographics.
A Visa member that may participate in the full range of membership functions, including soliciting/signing account holders or merchants and sponsoring associate/affiliate members and participant members.
Also referred to as proprietary cards, credit, debit, or stored-value cards that can be used only within a specific merchant’s store.
The date on which the transaction is processed by the acquiring bank.
A type of charge for processing interchange transactions according to the business agreements established by that financial network. Fees are determined by each transaction type within each network.
A method or flag that affects the way billing, settlement and/or statement processing occurs. Processing options may be set at the customer, merchant, or terminal levels in CIS.
An organization that is connected to VisaNet and/or Banknet and provides authorization or clearing and settlement services on behalf of a member.
Charge cards used by businesses to cover purchasing expenses such as raw materials or office supplies.
A message appearing on the terminal’s display that prompts for a required action or entry of specific information.
The principal access device issued to customers for use in a financial institution’s own ATMs.
The rules and procedures defining the interactions between two devices.
An identification number used to route transactions through gateway processors.
A card program designed to help companies maintain control of purchases while reducing the administrative costs associated with authorizing, tracking, paying, and reconciling the purchases.
The date on which an account number will automatically be deleted from a file.
Q
The discount rate charged to a merchant who:
· Uses electronic authorization instead of voice authorization.
· Swipes (instead of keys) card transactions.
· Has only one authorization per transaction.
· Transmits/settles batch data for processing in less than 24 hours.
R
A type of memory used in some terminals to store customer applications and temporary data keyed during a transaction.
A type of memory used in some terminals to permanently store the standard applications, operating system, and fixed prompts.
A system application within CIS that displays read-only information about debit and credit transactions, terminal and ATM setup, and ATM status.
This system is used to verify all test transactions on new accounts. An account is not considered “installed” until test transactions appear in RTI.
A procedure used to display data in a memory location. Recall can also be used to change data.
A hardcopy document that represents a transaction that took place at the POS, with a description that usually includes date, merchant name/location, PAN, amount, and reference number.
A bank that receives paperless entries from the ACH following their entry by an originating bank.
The process of comparing and balancing one accounting record against another.
Recovery
The actions taken by an issuer’s collections department in an attempt to collect the monies owed after an account has been charged off (which could include legal action against the account holder).
A transaction for which written permission has been granted by an account holder to a merchant to periodically charge the account holder’s account for recurring goods or services (e.g., periodic membership fees (such as for a health club), magazine subscription renewals, and insurance premiums).
A number assigned to every transaction that appears on the account holder’s statement. The number is used to identify the transaction in case a retrieval request is necessary for disputes or inquiries.
An authorization response that asks the merchant to call the issuer.
Refers to merchants who are not part of the conversion portfolio that the bank refers to RBS Lynk as leads to be set up for processing. These merchants usually already have a business account and possibly other affiliations (such as a loan or with the bank).
A transaction that credits a customer’s account with a refunded amount. Note that the terms refund and return are used interchangeably
A network that processes debit transactions for financial institutions and retailers in a given geographic area. Regional networks are not part of the national interchange system.
An EFTS through which bank customers conduct banking business at a location other than a bank office.
A host computer connected to the LAN via a leased or dial-up telephone line.
A network that connects the LAN to a remote host computer.
An input and output device not at the immediate site of the computer.
The second stage in the chargeback process, during which the acquirer responds to an issuer’s chargeback by returning a disputed transaction to the issuer.
A request for information from a terminal to the host computer.
Reserve Account
An account in which an ACH processor requires a merchant to maintain funds at the processor’s sponsoring bank. This method of minimizing risk allows the processor to issue a “hold” on funds in this account if fraud is detected or an excessively large number of returns are received.
Merchants with good credit and history can usually meet the expectations of ACH processors for covering returns and thus are not always required to keep a reserve account. In cases where a reserve is required, the minimum reserve balance in the account is set at about 20% of the anticipated processing volume. New merchants are usually allowed to build up their reserve by sending transactions that are not withdrawn until the minimum reserve balance is achieved; subsequently, the merchant is allowed to withdraw the excess funds for transfer to his or her bank.
A reply to an authorization request received from an authorizing member and provided to a merchant.
The length of time required to complete an electronic transaction.
A cardholder record to which a status code has been posted indicating a condition under which the cardholder may not use his or her account.
The issuer’s request to the acquirer for a copy of the original sales draft or terminal receipt, usually for the purpose of resolving a disputed transaction.
A refund transaction that credits a customer’s account with the refunded amount.
Reverse PIP
A non-American Express owned/processed terminal that authorizes and settles only American Express transactions directly to American Express. All other transactions (such as Visa and MasterCard) are routed to a different processor or acquirer.
A TID assigned by American Express to identify transactions received by American Express from an RBS Lynk terminal.
The facility that enables account holders to access a line of credit continually without having to reapply for credit each time funds are needed.
An RBS Lynk-exclusive loyalty card program that helps merchants increase customer spending and repeat visits.
See Loyalty Card.
An organization that is committed to protecting and ensuring the success of RBS Lynk and is comprised of the following departments: Strategic Risk Management (Transaction Risk, Enterprise Risk, and Regulatory Risk) and Credit Risk.
The carrying forward of a portion of an outstanding balance on a cardholder account from month to month.
Also referred to as ABA number, a nine-digit number (eight digits plus a check digit) that identifies a specific financial institution. Routing numbers are administered by the Routing Number Administrative Board under the sponsorship of the American Bankers Association and are officially maintained and published by Thomson Financial Publishing.
A cardholder account that has exceeded the excessive number of purchases limitation, may have exceeded its credit limit, and on which charges continue to be received (indicating unauthorized use).
S
The paper form used by the merchant, and signed by the account holder, to document the transaction.
RBS Lynk’s Intranet Web site (www.saleslynk.com) that provides access to online reports and the Online Application (OLA).
A type of PIN-based cash advance terminal that is customer activated. Instead of dispensing currency, a scrip terminal prints a slip of paper (similar to a receipt or voucher) that is redeemable at the merchant’s cash register.
Occurs when the acquirer represents a financial transaction to recover funds partially or wholly, refuting a prior chargeback action by the issuer.
A company that uses Secure Socket Layer (SSL) encryption technology to enable other processors to conduct secure business (i.e., pass credit card data, authorization requests, and authorization responses) over the Internet.
A secure payment gateway server sends transaction information via leased line to the credit card network, where the validity of the card is checked and the availability of funds on that account is verified. An authorization code is returned via leased line to the payment gateway, which encrypts the authorization and transmits it (in encrypted form) to the merchant’s Web server, which triggers fulfillment of the order.
A member-issued credit card that is backed or secured by a deposit made by the account holder with the issuer.
Serial Port
A connector for communicating with download computers, other terminals, and printers.
A database that is RBS Lynk’s primary tool for reporting both merchant contact history and the changes that will affect a merchant account. STAR is part of the CIS (Customer Information System) database of customer and business information.
Different categories of transaction processing services offered by RBS Lynk. Current service types include credit, debit, check, feet, and cash advance. Services types relate card types to business types.
Settlement
The movement of funds between acquirer and issuer in the satisfaction of transactions (in accordance with interchange and network rules), and the process of electronically sending a merchant’s batch to the network for processing and payment.
For non-bankcards, the issuer pays the merchant directly (less applicable fees) and then bills the cardholder. For bankcards, the acquirer pays the merchant (less applicable fees) with funds from Visa/MasterCard. The bankcard issuer then bills the cardholder for the amount of the sale.
See Capture.
The daily net amount resulting from VisaNet or Banknet interchange due to/from a member.
The date on which Visa or MasterCard initiates a transfer of funds in settlement for interchange.
In interchange, a bank or bankcard association that pays by draft or draws against another bank or association for payment of interchange transactions.
A small, elongated rectangular strip (affixed to either side of a bankcard during manufacturing) that permits the cardholder to write his or her signature on the card.
Each transaction requires its own complete telephone call to the host computer.
An offer by the issuer to permit the account holder to omit a monthly minimum payment, although interest on the balance continues to accrue.
A card containing a central processing unit (CPU) that stores and secures information and makes decisions (as required by the card issuer’s specific application needs).
Split-Dial
Type of device that routes transactions directly to another organization for processing.
Split Sale
A condition in which one purchase is written up on two sales drafts (normally to avoid authorization), or dollar amounts that exceed the capacity for the number of digits allowed in an electronic message.
Split Settlement
The arrangement in which an RBS Lynk merchant agrees to pay a percentage of his or her daily credit settlement to an MFC.
See Cash Advance and Merchant Funding Company (MFC).
A member that sponsors other members. The member is responsible for the sponsored member’s compliance with the association’s by-laws and operating regulations.
A member that is able to participate in the bankcard association under the sponsorship of another member.
A chartered bank or financial institution that has obtained membership in Visa or MasterCard in order to provide a processor with access to the Visa and MasterCard networks for purposes of process these types of transactions.
Because only a financial institution may join Visa or MasterCard, many processors make deals with a sponsoring bank in order to gain access to the Visa and MasterCard networks. Because these sponsoring agreements are usually like a partnership, the line between the sponsoring banks and their processors is not always clear; the partnership may be referred to by the name of either the bank or processor.
A service that provides authorization responses on behalf of an issuer.
The application provided with each terminal. You can override the standard application by downloading a custom application into the terminal.
Established by the card associations to classify and describe a merchant’s business. The SIC is comprised of a four-five digit number and short description and may be found on the Merchant Profile.
See American Express SIC.
The password supplied with each terminal.
The start-of-text character that signals the start of data encoded on an information track of a magnetic stripe or in a data transmission message.
The summary of account information sent by an issuer to an account holder at the end of each billing cycle (usually 30 days) that lists all activity on the account in the past month, as well as the current balance, available credit, and minimum payment due.
An alphanumeric code assigned to an account (through either manual input or computer-system generation) that indicates the account is in a restricted condition or requires special handling.
A hardcopy record of the status of all cardholder accounts or group of accounts on which there has been activity.
An account-holder account to which a status code indicating a condition under which the account holder may not use the account has been assigned.
An information storage card that contains a stored value that the user can “spend” in a pay phone, retail, vending, or related transaction.
A computer system used by RBS Lynk to process transactions. Each of RBS Lynk’s processing centers has two Stratus systems that co-process 50% of the daily transaction volume.
A special classification for holding transactions until a problem is resolved. Suspense accounts must be funded by the bank on the balance sheet and therefore must bear a funding cost.
A transaction in which the card is drawn through a merchant terminal connected with the bankcard authorization center. The information on the magnetic stripe and the amount of the purchase is transmitted through the network to validate the transaction.
A routing mechanism used to communicate information and transactions between participating institutions in a shared system.
A facility that performs the rapid communications required in POS systems.
T
A device used to capture, transmit, and store credit card transactions.
Terminal Capture
Terminal-based capture software in which all transactions made throughout the day are stored in the terminal. At the end of the day, or at the end of a shift, the merchant is required to batch out the terminal after reviewing the sales activity reports, thereby submitting a group of transactions to RBS Lynk’s host. At that point, the transactions are processed and deposited into the merchant’s bank.
See Host Capture.
A unique identifier assigned to each POS terminal. RBS Lynk TIDs are comprised of eight characters that begin with either LK or LYK followed by numbers. RBS Lynk TIDs are automatically assigned during data entry.
Programming that determines the characteristics and features of the terminal. Both host-based and terminal-based capture software options are offered for the processing and daily deposit of all transactions.
See Host Capture and Terminal Capture.
The internal costs of using third-party technology order to process transactions (e.g., the communications costs of using gateway processors to route transactions and not the same as Third-Party Services). These costs appear as additional costs on the Tran Fee Maintenance window in CIS.
Networks consisting of various pieces of communications equipment that provide long-distance communications between terminals and mainframe hosts.
An organization that is not an association member (and may or may not be directly connected to VisaNet or Banknet) but provides processing services such as authorizations, embossing, and statement generation for members.
Third-Party Services
Services offered by third parties such as American Express, Discover, Japanese Credit Bank, Diners Club, and Carte Blanche. RBS Lynk acts as a liaison between the third-party card issuers and merchants by re-routing these transactions to the appropriate card association for processing and handling customer service. However, in some cases, RBS Lynk does not ever see the transactions and they are routed to the issuer directly. Third-party costs are also involved, which merchants will see these on their statement.
See Auto Close.
A condition that occurs when an electronic transaction is initiated but a response is not received within a specified period of time. Depending on the circumstances, a time-out response may be an error message, a referral, or a stand-in authorization.
A card that has a credit limit above the Platinum level and may include member benefits (usually offered to people with higher incomes and a good credit history).
Data that is comprised of International Air Transportation Association standard information and stored on track 1 of the credit card’s magnetic stripe.
Data that is comprised of American Bankers Association information and stored on track 2 of the credit card’s magnetic stripe.
Any activity, either between an account holder and a merchant (for a sale or credit) or an account holder and a member (such as a payment on the account, a cash disbursement, or a credit to the account), that is posted to the account holder’s account.
The actual date on which a transaction occurred (may be different from the settlement date).
Also referred to as working key, a software key used by the terminal to encrypt PINs before they are sent to the host computer. The terminal first receives the encrypted transaction keys from the host and decrypts them using a master key.
Usually refers to a Visa or MasterCard corporate card, or an American Express, Diners Club, or Carte Blanche card.
The PIN used as a reference as opposed to the code remembered by the cardholder. The TPIN is related to the PIN by its offset on the card.
A cable to which all components of a LAN are connected.
U
The RBS Lynk group that performs a risk evaluation and credit assessment of each merchant in order to ensure the stability of the merchant and profitability for RBS Lynk.
A device chip that provides the connection of the PIN pad (a serial I/O device) to the microprocessor.
A credit card that is not secured by collateral (the majority of cards issued).
Credit extended without recourse to attach specific assets of the borrower in the event of default.
An increase in the credit limit, or, as it relates to computers, the changing of software or a piece of hardware for purposes of improving options or performance.
V
A third-party vendor that enhances or modifies existing hardware or software, adding value to the services provided by the processor or acquirer.
A type of transaction in which funds are withdrawn from a deposit account (much like a conventional check) instead of a line of credit.
A type of credit card that is managed by Visa International/USA and accepted by most merchants.
A non-stock membership corporation formed to administer, promote, and further develop Visa card programs throughout the world.
A non-stock membership corporation formed to administer, promote, and further develop Visa card programs in the United States. Also a group member of Visa International.
VisaNet Integrated Payment (V.I.P) System
VisaNet data processing systems, networks, and operations that are used to deliver authorization, clearing, and settlement services in support of issuer and acquirer card programs.
The V.I.P. system consists of three components:
· Base I – The data processing systems, networks, and operations that are used to support and deliver authorization-related services.
· Base II – The data processing systems, networks, and operations that are used to clear and settle transactions.
· Single Message System – The data processing systems, networks, and operations that are used to support and deliver authorization, clearing, and settlement services for full financial transactions.
The data processing systems, networks, and operations that are used to support and deliver Visa authorization (Base I) and clearing and settlement (Base II) services.
The verbal approval given from a customer service representative over the telephone to a merchant in response to a request for a manual transaction.
An automated telephone response system that presents a series of choices to the caller to which the caller responds by pushing buttons on the telephone.
W
Call monitoring software utilized by the RBS Lynk Call Center.
Z
A limit requiring the authorization of all account holder transactions.
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