C D E F
G H I J K L
M N O P Q R S
T U V W X Y
Card acquirers, such as Barclaycard Business,Streamline,HSBC,Lloys TSB Cardnet are banks
or financial institutions which are members of card schemes such
as Visa or MasterCard. Acquirers enter into agreements with merchants
to process card transactions on their behalf.
Association for Payment Clearing Services. Set up in 1985 to
oversee and manage payment clearing and money transmission services
within the UK. APACS also sets industry standards for its members
to which they have to conform when processing data.
Authorisation confirms that the card number is valid and that
the funds were available at the time the transaction took place.
It is not a guarantee of payment.
A facility available on some PDQ terminals and EFTPoS
equipment. The terminal is connected to a telephone line and when
authorisation is required the terminal automatically makes a call
to the relevant authorisation centre.
BACS Limited is the world’s largest automated clearing
house, owned by the major UK banks and building societies. Put
simply, the BACS service is a computer system which sorts automated
payment instructions to allow the transfer of funds electronically.
See also Direct Credit and Direct Debit. Further information is
available at www.bacs.co.uk
Business to Business E-Commerce; a system that ties businesses
together and allows them to conduct transactions and share data
over the internet
Cardholder Not Present
This refers to card transactions that are requested by mail,
telephone or over the Internet when the cardholder is not present
at the point of sale.
Card schemes such as Visa or MasterCard promote the use of various
card types which carry their logos. Banks and financial institutions
have to apply for membership of the appropriate card scheme before
they can issue cards or acquire transactions.
There are different types of card:
Credit cards - cardholders can spend up to a limit agreed with
their card issuer, and have to repay at least the minimum required
Debit cards - a cardholder's bank account can be debited to the
limit of their balance or agreed overdraft.
Charge cards - cardholder spend has to be repaid in full when
a statement is received.
Purchasing cards - used by businesses, rather than individuals,
to purchase goods and services from their suppliers.
Occasionally, a cardholder will dispute a transaction shown on
his or her statement and take the matter up with the card issuer.
If the cardholders complaint is valid and the acquirer has been
unable to substantiate the transaction, the amount of the transaction
may be charged back to the retailer. Processing irregularities
and incomplete documentation can also result in a chargeback.
Chip and PIN
Face-to-face credit and debit card transactions at the point
of sale which are authorised by the customer keying in a Personal
Identification Number (PIN) rather than by signing a receipt.
These are the normal bank payment cards but with a computer
chip built into them. The chip provides a means of securely storing
cardholder information already held on the magnetic stripe on
the back of the card. Chip cards are currently being issued in
the UK and will help banks, retailers and cardholders in the fight
against counterfeit fraud.
Visa specified codes for categorising the actual comodity, (eg:
Nuts, Bolts). Approximately 300 codes.
Cost Allocation Codes (CAC)
Applying internal Code Coding to each Purchasing Card Cardholder
(eg: Cost Centre Number, Department Number, or Budget Number)
Customer Reference Code (CRC)
VAT Capable Suppliers can input a CRC at the point of sale up
to a maximum of 16 digits being alpha or numeric. An example would
be a Job Costing number.
The transaction file that includes all your Purchasing Card spend
for the previous 48 hours.
Electronic funds transfer point of sale equipment.
Electronic Funds Transfer at Point of Sale. See EPoS.
Electronic Point of Sale. An eletronic till that includes a facility
to inform the merchant whether the transaction has been accepted,
declined or referred.
ERP (Enterprise resource planning) is an industry term for the
broad set of activities supported by multi-module application
software that helps a manufacturer or other business manage the
important parts of its business, including product planning, parts
purchasing, maintaining inventories, interacting with suppliers,
providing customer service, and tracking orders.
Floor limits are set by acquiring banks and the
card schemes, and will be set according to the type of business,
fraud risk, and the average spend per customer transaction. When
a transaction is above your floor limit (which may also be called
a fallback limit), it is vital the transaction is authorised.
Same as VPC, but specifically aimed at Government
Agencies and Bodies.
Host Authorisation provides the most sophisticated, high speed
means of handling large volumes of authorisation requests. Integrating
with your existing Electronic Point of Sale (EPOS) equipment,
it operates via a direct telecommunications line to your acquiring bank and your central computer.
Hot cards are cards which, due to fraudulent use or cardholder
overspending, the card issuer has decided to prohibit from further
transactions. When records show a hot card has been used in a
certain outlet, a warning notice is issued to the acquiring bank customer in question.
Interchange is the fee paid by acquirers to card issuers for
each transaction. The fee is determined by the nature of the business
and the processing procedures followed. Rates are determined by
the card schemes who assess the level of risk and expense involved
in processing a transaction.
An issuer is a bank, building society or financial institution
which issues plastic cards.
Suppliers with LID capabilties have software installed at their
premises that will provide an individual line or detail of every
Level 1 Supplier
Visa Capable Suppliers (accept Purchasing Cards but are non-VAT
enabled otherwise Referred to as NVE supplier.
Level 2 Supplier
VAT capable suppliers (accept Purchasing Cards and provide the
facility for a customer Reference Code and summerised VAT totals.
Level 3 Supplier
VAT Capable supplier with Line Item Detail (accept Purchasing
Card as VAT Capable Supplier, but in addition they will provide
line item detail description for the goods/services provided with
individual VAT accounts)
Low Value Goods
Typical comodities bought using a Purchase Card would be a LVG.
Visa specified codes for categorising vendors (eg: Stationery).
Approximately 250 codes.
Merchant Category Groups (MCG)
Visa specified groups for categorising types of spend. (eg: Airlines,
Cash Advance). Approximately 35 groups.
Merchant Service Charge
The merchant service charge is a fee payable by merchants on
each transaction processed. This fee is agreed individually between
the business and acquiring bank.
Reports and expenditure analysis for monitoring Purchase Card
PDQ is the electronic processing system used by Barclaycard
Business customers. There are various types of PDQ terminals,
and different services, including on line processing, where transactions
go through the system as they are undertaken, and off-line processing,
where transactions are stored for a period of time and then released
During the night provided you have completed the 'end of day'
procedure correctly, details of card payments will be collected
via your equipment through a phone line. This process is known
as polling, and relates to off-line terminals only.
Purchasing cards are issued to employees to make purchases on
behalf of their company. The company guarantees the card and pays
the administration costs.
Comprehensive management reporting is possible with purchasing
cards because the card issuer produces a detailed statement. This
electronic invoice can be used to detail, reconcile and report
on transactions and is also acceptable to HM Customs and Excise
for VAT reclamation purposes.
Mutual agreement between card companies for the initialising
of card types such as American Express and Diners, onto PDQ terminals
An authorisation request results in a referral when the card
company's computer recognises that there is something wrong. For
example, the card is stolen or the cardholder has exceeded their
A retrieval is a request for information that has been issued
by an acquirer because a card issuer has disputed a transaction
that has been entered into with one of their cardholders. It is
not a chargeback as no money has been debited.
Software Development Kit
SSL is a transaction security standard developed by Netscape
Communications to enable commercial transactions to take place
over the otherwise notoriously nonsecure Internet. It's one of
a few competing security standards.
Data Encryption standard (FIPS 46). Operates on 64-bit blocks
by successively modifying half of the bits with a function of
the other half.
* DES encrypts one block in 16 rounds.
* DES uses 56-bit keys.
Triple DES or 3DES is three - pass DES modification. Triple DES
is approved by NIST as encryption standard FIPS 46-3.
Tax that is added to each commodity at the appropriate
rate depending on the commodity purchased.
Visa International have specified a new data format - the Visa
Global Invoice Specification (VGIS) - that holds merchant invoice
information, tax information and market-specific information relating
to, for example, hotel and car rental transactions. The data format
is based on XML (eXtensible Mark-up Language) message structures
and applies to both the physical and the ecommerce worlds.
Visa Purchasing Card
Charge card usually used for Low Value, High Volume
One of the main global payment schemes.
XML is the Extensible Markup Language, a system for defining
specialized markup languages that are used to transmit formatted
data. XML is conceptually related to HTML, but XML is not itself
a markup language. Rather it's a metalanguage, a language used
to create other specialized languages.