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ABA
(American Banker’s Association) Routing Number
This 9-digit ABA-assigned number identifies
individual banks. This number is used to facilitate the
electronic routing of funds (ACH transfer) from one bank
account to another.
Access
Number
This is
the telephone number dialed by the modem that lets a
computer communicate with an online service or Internet
Service Provider (ISP).
ACH
(Automated Clearing House)
A
processing organization networked with others to
exchange (clear and settle) electronic debit/credit
transactions (no physical checks).
Acquiring
Bank
This is
the status of a Visa/Master Card member bank that
establishes and maintains the merchant relationship and
processes all merchant transactions. Humboldt Bank is an
acquiring bank. Contrast with "Issuing Bank."
Address
Verification Service (AVS):
AVS is a
tool for merchants to reduce the risk associated with
non-face-to-face transactions, such as mail order or
telephone order. A merchant using AVS (must have
equipment that is AVS-compatible).
Articles
of Incorporation
This
legal document identifies the terms under which a
corporation was created and identifies the principals.
Auth/Batch
Fee
This is
the amount of money we charge the merchant each time we
issue an authorization for a transaction, and each time
they "close" a batch of transactions.
Authorization
The
process whereby a transaction is approved by an issuing
bank, authorized agent, or Visa/MasterCard on behalf of
that issuer, before the transaction is completed by the
merchant via telephone or terminal.
Authorize.Net,
Inc.
Authorize.Net,
Inc. is the Utah-based vendor of Authorize.Net, a
popular Internet protocol. They also sell
eCheck.Net, an Internet-based protocol used to ACH
consumer checking ac-counts.
Average
Ticket Size (AVT)
The
average Visa/MasterCard dollar amount of each
transaction the merchant anticipates processing.
AVS
See
"Address Verification Service."
Bank
Identification Number (BIN)
Visa/MasterCard
assigns unique, identifying numbers to each member
acquiring or issuing bank. These numbers identify parts
of both credit card and merchant account numbers.
Basis
Points
A
"basis point" is 1/100 th of a percentage
point. With regard to merchant processing, there are 50
basis points separating the Qualified and Mid-Qualified
discount rates and 140 basis points separating the
Qualified and Non-Qualified discount rates. Example: a
merchant with a Qualified Discount Rate of 2.35% would
have Mid-Qualified and Non-Qualified Discount Rates of
2.85% and 3.75% respectively.
Batch
Processing
This
occurs when a merchant transmits the "batch"
of daily sales stored in the terminal for processing. An
"open" Batch is one that is not yet
"closed." To "close" a batch is to
transmit the information from the merchant’s location
(terminal or software) to our processor.
Browser
This is
the program used by a computer to navigate the Internet.
Two of the largest browsers in this country are
Microsoft’s Internet Explorer and Netscape’s
Netscape Navigator.
Business
Financials
The three
forms that are known collectively as "business
financials" are: Profit and Loss Statement, Balance
Statement, and Statement of Cash Flow. For the purposes
of Humboldt Bank merchant processing, we are only
concerned with a given merchant’s Profit and Loss
Statement and Balance Statement. (Refer to Exhibit
"K" in this manual.)
Business
Type
Business
type is determined by the way in which a business
processes transactions:
•
Retail – Merchants selling tangible goods in a
face-to-face environment who normally use conventional
terminals and swipe transactions.
•
Service – Merchants selling services like
plumbing or auto repair in a face-to-face environment,
who normally use conventional terminals and may key or
swipe trans-actions.
•
Restaurant – Merchants selling prepared foods
in a face-to-face environment, who normally use
conventional terminals and swipe their transactions.
•
Hotel – Merchants selling lodging and
hospitality services in a face-to-face environment, who
normally use conventional terminals and key or swipe
their transactions.
•
MOTO – Merchants selling tangible goods or
services in a non-face-to-face mail order, Internet or
telephone order environment, who normally use software
or conventional terminals and always key their
transactions.
•
Internet – An Internet Merchant is one who
processes transactions via the Internet. Processing
transactions via the Internet means that the cardholder
types their credit card information online and the
transaction is processed seconds later.
Buy
Rate
The
amount of money we charge an IC/ISO for services or
transactions that are paid by the merchant. If an IC/ISO
is able to sell a merchant at an amount higher than
their respective buy rate, we remit a portion (referred
to as "residuals) to the IC/ISO each month. The Buy
Rate does not give the IC/ISO free reign to charge
whatever they want over their Buy Rate; allowable
amounts for fees and rates are reflected in their
contract and in the User Grid.
Chargeback
A dispute
process initiated by the card issuer (usually in
response to the cardholder) after receipt of the initial
charge or presentment from the merchant via the
acquirer.
Checklister
The
Checklister is the "gatekeeper" of Merchant
Processing; all applications enter the system here, are
reviewed for completeness, and summarized so the rest of
the department can quickly figure out the status of a
file.
Contingent
Liability
This is
the term used by underwriters and sales people to
identify a situation that is created when merchants
process transactions in advance of the date cardholders
can expect to receive the goods or services they
purchased. Travel agencies pose a contingent liability
risk. Similarly, all MOTO merchants pose contingent
liability risks to the bank. We limit this liability to
a maximum of 90 days.
Corporate
Resolution
This form
is used by a corporation to designate an individual(s)
as a signer(s) on behalf of the company.
Credit
Report
A credit
report is ordered for every signing principal on the
application, and is used by under-writers to make
approval decisions. Humboldt Bank purchases Experian
Reports.
CVV2
CVV2 is a
three-digit security code that is printed on the back of
most credit cards. The CVV2 program is designed to
reduce fraud in the card-not-present environment by
validating that a genuine Visa/MasterCard credit card is
being used during a transaction.
CyberCash
CyberCash,
Inc., is the creator and vendor of CyberCash, a popular
Internet protocol.
Cyberspace
This is a
term used to describe the Internet, originally coined by
science-fiction novelist William Gibson in his 1984
book, Neuromancer.
Debit
Networks
The host
of companies that honor card transactions and at the
same time debit the card-holder’s checking account for
the amount of the purchase. They are smaller, more
numerous, and more likely to be only regionally accepted
than their credit-based counterparts.
Direct
Marketing
The
method by which a merchant solicits business to a
population that did not ask to be solicited (i.e.
"junk mail"). It is often mistakenly confused
with terms like, "mail order" and
"telephone order." A merchant that sends
catalogs or brochures to a mailing list of past
customers is not a direct marketer, but a merchant who
sends catalogs or brochures to everyone in a geographic
area is a direct marketer.
Discount
Rate
This is
percentage fee a merchant pays Humboldt Bank Merchant
Services to process a trans-action (See "Qualified
Discount Rate.").
Doing
Business As (DBA)
The DBA
is the name the public sees, whether on a physical
storefront or on the web. If the merchant has another
business, then we would need a separate application for
both.
Downloading
The
process of transferring software or data (pictures,
text, or sound) from the Internet to a computer. When
you retrieve e-mail from the Internet, you are
downloading it.
eCheck.Net
See
"Authorize.Net"
e-Commerce
This is a
generic term denoting business done over the web and/or
processed electronically.
Electronic
Ticket Capture (ETC)
An ETC
system reaches out and "grabs" sales ticket
information electronically. Buyer information is
contained on the magnetic strip on the back of the
credit card. The merchant "swipes" the card
through a terminal, and the buyer information is
"read" by the computer system and merged with
the sales information. It then processes the ticket just
as if the merchant was making a manual deposit at a
bank. This action is normally done in
"batches" of tickets, such as at the end of
the day.
Face-To-Face
A
face-to-face transaction is one at which the cardholder
was present. This is usually evidenced by the action of
swiping a card through a terminal but may also be
evidenced with a signed, imprinted draft. (See
"Imprinter.")
Federal
Tax ID Number
This
9-digit number is assigned by the IRS for tracking
business taxes. We absolutely require a Federal Tax ID
number from all applicants. Some smaller merchants that
are sole-proprietors may use their personal Social
Security Number in place of a Federal Tax ID number.
First
Data Corporation (FDC)
This
Omaha, Nebraska-based company processes all of our
merchant’s credit card transactions. This company used
to be called FDR (First Data Resources) and the two
names are now sometimes, if mistakenly, used
interchangeably.
First
Data Resources (FDR)
See FDC.
Frequently
Asked Questions (FAQ)
This
acronym is used extensively online to identify lists of
questions and corresponding answers. Clicking on a
link/icon labeled FAQ is a great source for problem
solving.
Full
Business Name
A
merchant may only apply for credit card processing under
a business name that corresponds to the tax ID number
written on the application.
Gateway
Just as a
customer must walk through a door or gate to enter a
business establishment, so must customers enter
electronic "gateways" before they can do
business electronically.
Guarantor
We
require that a personal guarantor sign almost every
merchant application. By signing, this person agrees to
personally guarantee (make good on) any processing
losses Humboldt Bank incurs as a result of our business
relationship with this merchant. This is the person or
per-sons for whom we order a personal credit report for
review by our underwriters. It is appropriate to think
of a personal guarantor as akin to a co-signer.
Host
This is
the computer on which a web site is physically located,
normally the Internet Service Provider (ISP).
Hotel
See
"Business Type."
Hypercom
This
company manufactures conventional processing terminals.
Models include the T77 and T7P terminal/printer
combinations and the S8 PinPad.
Hyperlink
See
"Link."
Hypertext
See
"Link."
Hypertext
Mark-up Language (HTML)
Hypertext
Mark-up Language, commonly referred to as HTML is a
behind-the-scenes method of formatting text that is used
in most web pages.
Hypertext
Transfer Protocol (http)
Hypertext
Transfer Protocol tells computers how to communicate
with one another.
Hypertext
Transfer Protocol, Secure Connection (https)
This
allows for secure communication between computers. One
must have the proper pass-word (s) to get into a secure
site.
IC
Verify
This an
ETC type 7 software that is marketed by CyberCash. It is
widely used.
Imprinter
The now
old-fashioned manual, slide-type device used to produce
an image of the raised (embossed) characters on a credit
card, to a transaction slip. All merchants should have a
manual imprinter for cases that demand a physical
imprint.
Independent
Contractor/Independent Sales Organization (IC/ISO)
These
acronyms are usually attached to refer collectively to
all of our registered sales representatives. These
are the people we’ve contracted to sell our merchant
processing services nationwide.
Integrated
Point of Sale (IPOS)
This
acronym refers to conventional terminals that are
"smarter" and more sophisticated in that they
may be set-up to communicate with like terminals owned
by the same merchant –even if they are located at
different locations and with different merchant numbers.
Internet
This is a
large computer network that links smaller computer
networks on a world-wide basis.
Internet
Merchant
See
Business Type
Internet
Service Provider (ISP)
Companies
that charge a monthly fee for internet access.
Issuing
Bank
An
Issuing Bank is any Visa/MasterCard member bank that
enters into contractual relation-ships with cardholders
for the issuance of cards.
Java
Java is
an object-oriented, cross platform programming language,
similar to C++, that is de-signed for building
applications for the Internet.
Keyed
A transaction is "keyed" when the
information from a credit card is manually typed into a
terminal or computer (utilizing credit card processing
software like Tellan). A transaction is keyed because
either the card is not present at the time the
transaction is entered or the equipment being used to
process the transaction can’t read the card.
Lighthouse
Club
The
Lighthouse Club is a Humboldt Bank membership program
that terminal-using merchants may join. Membership is
available for a monthly fee and entitles the merchant to
discounts on supplies as well as a repair warranty on
their equipment.
Link
On the internet and intranets, links may be either
text or graphic/icons. Clicking on a link enables
transition from one Internet site to another by clicking
on the "link" with your mouse
MacAuthorize
See
Tellan.
Mail
Order/Telephone Order (MOTO)
See
"Business Type."
Member
Alert To Control High-Risk Merchants (MATCH)
MATCH is
an electronic bulletin board used to track people and
businesses whose merchant processing accounts are
reported "terminated" by acquiring banks
Merchant
Category Code (MCC)
See
"SIC Code."
Merchant
Identification Number (MID)
Do not
confuse the MID with the Humboldt Bank merchant
processing account number (the 16-digit number prefixed
by "419404"). This acronym refers to the FDC-assigned
number that identifies the merchant to the equipment
they use to process transactions. A merchant with a
Humboldt Bank merchant processing account number who
uses several terminals at his location would have one
MID and several TID’s (See "Terminal
Identification Number").
Monthly
Volume (MV)
The
maximum monthly dollar volume a merchant is approved to
process in Visa and Master-Card transactions. The MV is
important for underwriter consideration of the file and
also helps to determine what type of documentation will
be required with the file. (American Ex-press,
Discover or any other card processing volume is never
included in the calculated monthly volume.)
Modem
A modem
is a device used by computers to transmit information to
one another via an ordinary telephone line. Modems are
rated by their respective data-transfer speed
capabilities, referred to as "baud rates." A
common problem/limitation that computers face is modem
in-compatibility.
Online
This word
is used to associate things with having a presence on
the Internet or with having access to the Internet.
"Going Online" means sitting before a computer
and signing on to the Internet.
PC
Authorize
See
"Tellan."
Personal
Identification Number (PIN)
For
identification purposes, PIN numbers are assigned by
banks to cardholders. In this way, ATM transactions and
debit card transactions may take place without a
cardholder’s signature.
Pinpads
Pinpads
are small boxes with a 10-key pad on them. Connected to
a processing terminal, they are used by cardholders to
enter PIN numbers and debit card transactions.
Point
of Sale (POS)
The
physical location where a sale is completed. Usually
used as "POS terminal" to refer to the credit
card terminal (equipment).
Protocol
Protocol,
in "computerspeak," is a set of conventions
for formatting data in an electronic system. Quite
literally, it is the "language" that allows
one computer to speak with another.
PTC
Software
This is
an ETC type 7 software product.
Purchase
Cards
Purchase
Cards are credit cards for use by employees of
government agencies or corporations. What makes Purchase
Cards different from ordinary credit cards is that they
may only be used at certain types of merchant locations.
Qualified
Discount Rate
Discount
rates are tiered. Following is a breakdown of these
tiers and examples of corresponding situations. A
Qualified Discount Rate is the rate a merchant is
charged when all conditions are optimum – that is,
when a retail transaction is card-swiped and the
merchant batches-out electronically at the end of the
day. (Keyed/Internet merchants can still archive
Qualified rates by obtaining an AVS response plus order
number, plus batching out.) A Mid-Qualified Discount
Rate is charged when a retail merchant keys a
transaction or does not batch-out at the end of
the day. A Non-Qualified Discount Rate is charged when a
merchant keys a transaction and does not
batch-out at the end of the day.
Refund
Policy
This is
straightforward: how will the merchant – and to what
extent will the merchant – guarantee products or
services sold to a cardholder? We require a refund
policy of each applicant, as a liberal refund/return
policy may go a long ways towards reducing the number of
charge-backs that a merchant receives. A separate field
on the Humboldt Bank Bankcard Application/ Agreement is
labeled, "Refund Policy." When filled in, this
requirement is satisfied.
Retail
See
"Business Type."
Routing
Number
See
"ABA Routing Number."
Scroll
Scrolling
is the action of moving the computer mouse to click on
arrows along side and at the bottom of the computer
screen in such a fashion as to view different portions
of a document on a computer monitor. It is possible to
scroll up, down, and sideways.
Search
Engine
Internet
browsers feature several Search Engines to choose from.
These are programs (Such as Yahoo and Northern Light)
that "search" the Internet for web pages that
contain information similar to that which you used to
define the search parameter. In other words, typing,
"blue dogs," will prompt the Search Engine to
find and display a list of all of the web sites that
contain information about, or references to, "blue
dogs."
Shopping
Cart
As used
on the internet, a shopping cart is analogous to
choosing items in a grocery store and placing them in a
shopping cart for eventual purchase. Chosen items are
grouped into a single purchase (Shopping Cart) so that
only one electronic purchase need be completed.
Standard
Industry Code/Merchant Category Code
(SIC/MCC Code)
The SIC
code is a four-digit, numeric identifier of merchant
business types. There are thou-sands of these codes, all
of them defined by VISA International in the VISA USA
Merchant Data Manual.
Swipe
This is
the action of physically sliding a credit card through a
terminal or magnetic stripe reader that
"reads" the magnetic strip on the back of all
credit and debit cards. The alternate method of getting
this information into the terminal is by manually keying
it in. The value of swiping cannot be overstated in that
it documents the physical presence of the card at the
point-of-sale. By definition, all swiped transactions
are face-to-face transactions.
T&E
See "Travel and Entertainment."
T77
– T7P
See "Hypercom."
Tellan
Software
This is a non-Internet software that works exactly like
a "regular" terminal in terms of how it
processes (via land-phone lines). It is a versatile
program that works with any PC or MacIntosh computer via
PCAuthorize and MacAuthorize, their two respective
products.
Terminal
Identification Number (TID)
A Terminal Identification
Number is used to identify a specific serial-numbered
piece of equipment.
Test
Transaction
A test transaction is a means
for the merchant to test a terminal that has been
freshly down-loaded or changed in some way. When asking
a merchant to complete a test transaction, re-member the
following points:
•
The amount of a test transaction should never exceed
$0.10.
•
The transaction should be voided (as opposed to
credited) immediately after it is completed (or at the
very latest, before the merchant batches out).
•
The merchant should be advised that this is the only
condition/time in which they are permitted to use their
own credit card in their terminal.
Trade Reference
A trade reference is a business that extends credit
or otherwise has a business relationship with the
applicant. Put bluntly, we need to know that the
applicant pays bills on time and does indeed purchase
goods or services from an outside source. A trade
reference is re-quested of all applicants.
Tranz
See "VeriFone."
Travel
and Entertainment (T&E)
Properly used, this phrase
refers to American Express (Amex) and Diners Club cards
where a cardholder normally pays off the card each
month. This is to differentiate these programs from pure
credit cards. Discover is commonly lumped-in with the
other T&E card types, al-though it is not
technically a T&E card type.
Upload
This is the process of transferring data from one
computer to another via the Internet. By definition,
every time you send e-mail to someone, you are uploading
it. By contrast, each time e-mail is received and read
it, it has been downloaded.
URL
Uniform
Resource Locator; this term describes the location and
access method of a resource on the Internet. All web
sites have URL’s and are commonly thought of as
Internet "addresses." Most begin with,
"http."
VeriFone
This company manufactures
conventional processing terminals. Model names include:
Tranz 380, Tranz 330, Tranz 460, the P250 Printer and
the PinPad 1000.
World
Wide Web (www)
The World Wide Web is a
collection of electronic documents loosely knit by a
concept called "hypertext." Documents connect
to each other by clickable "hyperlinks." It is
necessary to run a browser program to access the web.
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