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24 Cards in this Set
- Front
- Back
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Automated Clearing House
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One of several systems set up by bank or government agencies, such as the US FRB, that process high volumes of low dollar amount e fund transfers
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Back-end processor
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A banking service provider that takes transactions from the front-end processor and coordinates information flows through the interchange network to settle transactions. The back-end processor handles chargebacks and any other reconciliation items through the interchange network and the acquiring and issuing banks, including the ACH transfers.
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Card code verification, Card security code, Card verification data, Card verification value code, Verification code
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A three or four digit number that is printed on the credit card, but is not encoded in the card’s magnetic strip, which established that the purchaser has the card (or has seen the card) and is likely not using a stolen card number
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Charge card
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A payment card with no preset spending limit. The entire amount charged to the card must be paid in full each month.
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Chargeback
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The process in which a merchant bank retrieves the money it placed in a merchant account as a result of a cardholder successfully contesting a charge
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Check 21
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A US law that permits banks to replace the physical movement of checks with transmission of scanned images
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Client-side digital wallet
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An electronic or digital wallet that stores a consumer’s information on the consumer’s own computer
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Closed loop system
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A payment card arrangement involving a consumer, a merchant, and a payment card company that processes transaction between the consumer and merchant without involving banks
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Credit card
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A payment card that has a spending limit based on the cardholder’s credit limit. A minimum monthly payment must be made against the balance on the card, and interest is charged on the unpaid balance.
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Credit card association, Customer issuing bank
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Member-run organizations that issue credit cards to individual consumers
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Debit card
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A payment card that removes the amount of the charge from the cardholder’s bank account and transfers it to the seller’s bank account
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Digital wallet, Electronic wallet
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A software utility that holds credit card information, owner identification and address information, and provides this data automatically at electronic commerce sites; electronic wallets can store e cash
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Front-end processor
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A banking service provider that obtains authorization for a transaction by sending the transaction’s details to the interchange network and storing a record of the approval or denial
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Interchange fees
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Fees charged by a card association to an acquiring bank that are usually passed on to the merchant
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Interchange network
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A set of connections between banks that issue credit cards, the associations that own the credit cards and merchants’ banks
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Merchant account
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An account that a merchant must hold with a bank that allowed the merchant to process payment card transactions
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Near field communication
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Contactless wireless transmission of data over short distances
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Open loop system
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A payment card arrangement involving a consumer and his or her bank, and a third party that processes transactions between the consumer and merchant
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Payment processing service provider, Payment processor
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A third party company that handles payment card processing for online businesses
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Prepaid cards
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A purchased card that contains a limited value and that can be used for making purchases from retailers
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Server-side digital wallet
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A e wallet that stores a customer’s info on a remote server that belongs to a particular merchant or to the wallet’s publisher
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Single use card
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A payment card with disposable numbers, which gives consumers a unique card number that is valid for one transaction only
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Smart card
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A plastic card with an embedded microchip that contains information about the card owner
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Stored value card
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Either an elaborate smart card or a plastic card with a magnetic strip that records currency balance, such as a prepaid phone, copy, subway, or bus card
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