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. TOP
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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). TOP
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ACH
(Automated Clearing House)
A processing organization networked with others to exchange
(clear and settle) electronic debit/credit transactions (no
physical checks). TOP
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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."
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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).
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Articles
of Incorporation
This legal document identifies the terms under which a corporation
was created and identifies the principals.
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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. TOP
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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. TOP
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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.
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Average
Ticket Size (AVT)
The average Visa/MasterCard dollar amount of each transaction
the merchant anticipates processing.
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AVS
See "Address Verification Service." TOP
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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. TOP
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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. TOP
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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. TOP
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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.
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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.) TOP
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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.
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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.TOP
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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.
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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. TOP
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Corporate
Resolution
This form is used by a corporation to designate an individual(s)
as a signer(s) on behalf of the company.
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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. TOP
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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. TOP
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Cyberspace
This is a term used to describe the Internet, originally coined
by science-fiction novelist William Gibson in his 1984 book,
Neuromancer. TOP
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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. TOP
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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. TOP
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Discount
Rate
This is percentage fee a merchant pays Humboldt Bank Merchant
Services to process a trans-action (See "Qualified Discount
Rate."). TOP
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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. TOP
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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. TOP
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eCheck.Net
See "Authorize.Net" TOP
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e-Commerce
This is a generic term denoting business done over the web
and/or processed electronically. TOP
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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. TOP
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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.")
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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. TOP
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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. TOP
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First
Data Resources (FDR)
See FDC. TOP
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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. TOP
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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. TOP
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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.
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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. TOP
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Host
This is the computer on which a web site is physically located,
normally the Internet Service Provider (ISP).
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Hotel
See "Business Type." TOP
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Hyperlink
See "Link." TOP
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Hypertext
See "Link." TOP
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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. TOP
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Hypertext
Transfer Protocol (http)
Hypertext Transfer Protocol tells computers how to communicate
with one another. TOP
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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.
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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. TOP
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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. TOP
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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. TOP
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Internet
This is a large computer network that links smaller computer
networks on a world-wide basis. TOP
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Internet
Service Provider (ISP)
Companies that charge a monthly fee for internet access. TOP
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Issuing
Bank
An Issuing Bank is any Visa/MasterCard member bank that enters
into contractual relation-ships with cardholders for the issuance
of cards. TOP
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Java
Java is an object-oriented, cross platform programming language,
similar to C++, that is de-signed for building applications
for the Internet. TOP
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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.
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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 TOP
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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 TOP
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Merchant
Category Code (MCC)
See "SIC Code." TOP
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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"). TOP
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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.)
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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. TOP
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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. TOP
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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 signa-ture.
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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). TOP
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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. TOP
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PTC
Software
This is an ETC type 7 software product. TOP
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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. TOP
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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. TOP
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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. TOP
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Routing
Number
See "ABA Routing Number." TOP
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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. TOP
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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." TOP
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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. TOP
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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. TOP
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T&E
See "Travel and Entertainment." TOP
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Terminal
Identification Number (TID)
A Terminal Identification Number is used to identify a specific
serial-numbered piece of equipment. TOP
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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. TOP
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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. TOP
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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. TOP
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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.
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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."
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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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