C
Cancellation Code
A cancellation code is a unique code that is used to cancel a transaction or reservation. It is typically provided by the merchant or service provider and is used to identify and cancel the specific transaction or reservation.
Capture (Clearing and Settlement)
Capture is the process of completing a transaction and transferring the funds from the cardholder’s account to the merchant’s account. In the context of clearing and settlement, capture refers to the process of transferring the funds from the card issuer’s account to the merchant’s account, which is typically done on the same day as the transaction.
Capture Date
The capture date is the date on which a transaction is captured, or completed, and the funds are transferred from the cardholder’s account to the merchant’s account.
Card Identification Number (Amex)
The card identification number (CID) is a four-digit number that is unique to each American Express card. It is used to verify the authenticity of the card and to protect against fraud. The CID is typically found on the front of the card, above the card number.
Card Networks (Card Schemes)
Card networks, also known as card schemes, are organizations that facilitate the use of debit and credit cards for payment. Some examples of card networks include Visa, Mastercard, American Express, and Discover.
Card Number (PAN)
The card number, also known as the primary account number (PAN), is the unique number that identifies a debit or credit card. It is typically a 16digit number that is printed on the front of the card.
Card on File (CoF)
Card on file (CoF) refers to the practice of storing a cardholder’s payment information on a merchant’s server so that it can be used for future transactions. This allows the cardholder to make purchases without having to enter their payment information each time.
Card Testing Fraud
Card testing fraud is a type of fraud that involves using stolen or fake credit card numbers to test whether they are valid and can be used for fraudulent purposes. This is often done by attempting to make small purchases with the stolen card numbers to see if the merchant accepts them.
Card Validation Code (Mastercard)
The card validation code (CVC) is a three-digit number that is unique to each Mastercard credit card. It is used to verify the authenticity of the card and to protect against fraud. The CVC is typically found on the back of the card, near the signature panel.
Card Verification Code (CVC)
The card verification code (CVC) is a three or four-digit number that is used to verify the authenticity of a credit or debit card. It is typically found on the back of the card, near the signature panel.
Card Verification Value (CVV) (Visa)
The card verification value (CVV) is a three-digit number that is unique to each Visa credit card. It is used to verify the authenticity of the card and to protect against fraud. The CVV is typically found on the back of the card, near the signature panel.
Card-Not-Present (CNP)
Card-not-present (CNP) transactions are transactions in which the card is not physically present at the time of the transaction. These types of transactions are common for online or phone orders.
Card-On-File Transactions
Card-on-file transactions are transactions in which the cardholder’s payment information is stored on the merchant’s server for future use. This allows the cardholder to make purchases without having to enter their payment information each time.
Card-Present
Card-present transactions are transactions in which the card is physically present at the time of the transaction. These types of transactions are common in brickand
Cardholder Dispute
A cardholder dispute is a situation in which a cardholder disputes a charge on their credit or debit card statement. This can occur when the cardholder believes that a charge was unauthorized, incorrect, or not received as promised.
Cardholder Verification Method (CVM)
Cardholder verification method (CVM) is a security measure used to verify the identity of a cardholder before a transaction is approved. CVMs can include methods such as signature, personal identification number (PIN), or biometric authentication.
Cardholder
A cardholder is the individual or entity that holds a credit or debit card and is responsible for making payments on the card. The cardholder is typically the person whose name is printed on the card.
Cart Abandonment
Cart abandonment (or shopping cart abandonment) refers to the practice of a customer adding items to their online shopping cart but not completing the purchase. This can occur for a variety of reasons, such as a change of mind, technical issues, or a lack of trust in the merchant.
Cash Advance
A cash advance is a type of loan that allows a credit cardholder to withdraw cash from their credit card account. Cash advances typically have higher interest rates and fees than regular credit card transactions.
Cash Back Debit Transaction
A cash back debit transaction is a type of debit card transaction that allows the cardholder to receive cash back when making a purchase. This is similar to a cash advance, but it is made with a debit card rather than a credit card.
Charge
A chargeoff is a financial term that refers to a debt that is considered unlikely to be collected. In the context of credit cards, a chargeoff occurs when a card issuer writes off a debt as a loss because the cardholder has not made payments on the account for an extended period of time.
Chargeback Alerts/Notifications
Chargeback alerts or notifications are notifications that merchants receive when a chargeback has been initiated on a transaction. These alerts can be sent by email, text, or through a merchant account portal and are used to inform merchants of the dispute and allow them to respond.
Chargeback Arbitration
Chargeback arbitration is a process in which a neutral third party reviews the evidence and makes a decision in a chargeback dispute. This process is typically used when the card issuer and the merchant are unable to reach a resolution through other means.
Chargeback Automation
Chargeback automation is the use of technology to automate the chargeback process. This can include the use of algorithms to detect and prevent chargebacks, as well as automating the submission of evidence and documentation in chargeback disputes.
Chargeback Fee
A chargeback fee is a fee that is charged to the merchant by the card issuer when a chargeback is initiated on a transaction. These fees are typically a percentage of the transaction amount and are used to cover the costs of processing the chargeback.
Chargeback Fraud
Chargeback fraud is the practice of intentionally initiating chargebacks for fraudulent purposes, such as obtaining goods or services without paying for them. This type of fraud can be costly for merchants, as they may lose both the merchandise and the transaction fees associated with the chargeback.
Chargeback Insurance
Chargeback insurance is a type of insurance that protects merchants against losses due to chargebacks. This insurance can cover the costs of merchandise and transaction fees lost as a result of chargebacks, as well as the fees associated with the chargeback process itself.
Chargeback Period
The chargeback period is the timeframe in which a cardholder can initiate a chargeback on a transaction. This period typically begins on the date of the transaction and varies by card issuer and type of transaction.
Chargeback Protection/Defense
Chargeback protection or defense refers to measures taken by merchants to prevent or reduce the number of chargebacks they receive. This can include implementing fraud prevention measures, providing clear terms of service and policies, and responding promptly to customer inquiries or complaints.
Chargeback Ratio
The chargeback ratio is a measure of the number of chargebacks a merchant receives compared to the total number of transactions they process. This ratio is used to evaluate the risk of doing business with a particular merchant and can affect the merchant’s ability to accept credit and debit cards.
Chargeback Reason Code
A chargeback reason code is a code that is assigned to a chargeback to indicate the reason for the dispute. These codes are standardized by the card networks and are used to help merchants understand the reason for the chargeback and how to prevent similar chargebacks in the future.
Chargeback Rebuttal Letter
A chargeback rebuttal letter is a letter written by a merchant in response to a chargeback. The letter is used to present evidence and arguments in support of the merchant’s position and to refute the cardholder’s claims.
Chargeback Reconciliation
Chargeback reconciliation is the process of reconciling chargeback transactions with the corresponding merchant account statements. This process involves comparing the chargeback information with the merchant’s records to ensure that all chargebacks are accurately reflected on the account.
Chargeback Reduction Plan
A chargeback reduction plan is a strategy implemented by merchants to reduce the number of chargebacks they receive. This can include updating proper descriptors, implementing fraud prevention measures, providing excellent customer service, and optimizing the checkout process to reduce cart abandonment.
Chargeback Threshold
The chargeback threshold is the maximum amount of chargebacks that a merchant can receive within a specific period of time (usually on a monthly basis) before their account is terminated or suspended by the processor. The chargeback threshold varies by processor and industry type.
Chargeback
A chargeback is a process in which a cardholder disputes a charge on their credit or debit card and requests a refund. Chargebacks are initiated by the cardholder and are typically used to resolve disputes about unauthorized, incorrect, or unfulfilled transactions. Once the issuing bank completes their investigation, they will refund the cardholder (if the chargeback reason is valid) for the amount of the disputed transaction.
Check 21
Check 21 is a federal law that allows banks to process checks electronically, rather than physically transporting them. This law was enacted to improve the efficiency and security of the check clearing process.
Checkout Fee
A checkout fee is a fee that is charged to the cardholder at the time of purchase. This fee is typically a percentage of the transaction amount and is used to cover the costs of processing the transaction.
Chip Cards
Chip cards, also known as EMV cards (Europay, Mastercard, Visa), are credit and debit cards that contain a microchip that stores and processes cardholder data. Chip cards are considered more secure than traditional magnetic stripe cards, as the chip makes it more difficult for the card to be copied or counterfeited.
Clean Fraud
Clean Fraud is a type of credit card fraud that occurs when a criminal uses a stolen or fake card to make a purchase without the cardholder’s knowledge.
Clearing
Clearing is the process of verifying and settling financial transactions between banks and other financial institutions.
Co-Branded Card
A co-branded card is a credit card that is issued by a bank or financial institution in partnership with a specific brand or retailer. The card usually includes the branding and logo of both the financial institution and the partner brand.
Communication Error
A communication error refers to a problem or interruption in the transmission of data or information between two parties, such as a credit card processor and a merchant’s pointofsale system.
Complex Payment Models (CPM)
Complex Payment Models (CPM) are payment systems that involve multiple parties or steps in the payment process, such as intermediaries or payment gateways.
Compliance
Compliance refers to the adherence to laws, regulations, and industry standards in the credit card processing industry.
Concentration Risk
Concentration risk is the risk that a large portion of a financial institution’s assets or liabilities are concentrated in a single industry, geography, or type of customer.
Consumer Authentication
Consumer authentication is a process in which a cardholder is asked to provide additional information or verification to confirm their identity before a credit card transaction is completed.
Contactless Payment
Contactless payment is a type of credit card transaction that does not require physical contact between the card and the pointofsale terminal. Instead, the card is typically tapped or waved near a wireless reader.
Contingent Liability
Contingent liability is a potential financial obligation that may arise in the future based on the occurrence of a specific event, such as a credit card chargeback.
Control Number
A control number is a unique identification number assigned to a credit card transaction or other financial record for tracking and reference purposes.
Copy/Retrieval Request
A copy/retrieval request is a request by a credit card issuer or processor for a copy of a credit card transaction receipt or other supporting documentation. This is often done to verify or investigate a transaction that has been disputed or flagged for potential fraud.
Corporate Resolution
A corporate resolution is a formal document that outlines the decisions and actions taken by a company’s board of directors or other governing body. It may be required for certain financial transactions, such as applying for a credit card or obtaining a loan, or even a merchant account.
Credential Stuffing
Credential stuffing is a type of cyber attack in which a hacker uses a list of stolen login credentials (such as username and password pairs) to attempt to gain unauthorized access to various online accounts or systems.
Credit (Pending Settlement)
Credit (pending settlement) refers to a credit card transaction that has been completed but has not yet been fully processed and settled. This may occur if there is a delay in the transmission of transaction data or if the transaction requires additional review or verification.
Credit Bureau
A credit bureau is a company that collects and maintains financial information about individuals and businesses, including credit card transactions, loans, and other credit history data. Credit bureaus provide this information to lenders and other financial institutions to help them assess the creditworthiness of potential borrowers.
Credit Card (Charge Card)
A credit card (also known as a charge card) is a type of financial product that allows users to borrow money from a lender to make purchases or withdraw cash. Credit cards typically have a credit limit, interest rate, and other fees associated with their use.
Credit Card Associations
Credit card associations are organizations that oversee and regulate the credit card industry, such as Visa, Mastercard, and American Express. They establish the rules and standards that must be followed by credit card issuers and processors, and they provide the infrastructure and support needed to process credit card transactions.
Credit Card Authorization
Credit card authorization is the process of verifying that a credit card is valid and has sufficient available credit to cover a proposed transaction. This typically involves checking the cardholder’s name, card number, expiration date, and security code, as well as checking the card issuer’s records for any potential fraud alerts or other issues.
Credit Card Fraud
Credit card fraud is any unauthorized or illegal use of a credit card or credit card information to obtain goods, services, or cash. This can include using a stolen or fake credit card, making unauthorized charges on someone else’s card, or using a card that has been lost or compromised.
Credit Card Issuer (Issuing Banks)
A credit card issuer (also known as an issuing bank) is a financial institution that issues credit cards to consumers and businesses. Credit card issuers are responsible for setting credit limits, establishing interest rates and fees, and managing the account and billing process for cardholders.
Credit Card Number
A credit card number is a unique identification number assigned to a credit card. It is typically 16 digits long and is printed on the front of the card. The first few digits of the card number identify the card issuer and the type of card, while the remaining digits are unique to the individual cardholder.
Credit Card Processing
Credit card processing is the process of verifying, approving, and completing a credit card transaction between a merchant and a cardholder. This typically involves a credit card processor (also known as an acquiring bank or acquirer), a credit card terminal, and a payment network (such as Visa or Mastercard).
Credit Card Processor (Acquiring Banks or Acquirers)
A credit card processor is a financial institution or service provider that processes credit card transactions on behalf of merchants. Credit card processors typically handle tasks such as verifying the validity of the credit card and the availability of credit, approving or declining the transaction, and settling the funds with the merchant’s bank. Credit card processors may work with multiple payment networks, such as Visa and Mastercard, and may offer a range of services to merchants, such as fraud protection, chargeback management, and online payment gateway integration. Credit card processors are also known as acquiring banks or acquirers.
Credit Card Terminal
A credit card terminal is a device that is used by merchants to accept and process credit card transactions. Credit card terminals are typically connected to a pointofsale system and may include features such as a card reader, a display screen, and a keypad for inputting information.
Credit Report
A credit report is a detailed record of an individual’s or business’s credit history, including information on credit card transactions, loans, and other financial accounts. Credit reports are maintained by credit bureaus and are used by lenders and other financial institutions to assess the creditworthiness of potential borrowers.
Credit Score
A credit score is a numerical rating that reflects an individual’s creditworthiness based on their credit history. Credit scores are typically calculated using algorithms that consider factors such as payment history, credit utilization, and the types and number of credit accounts an individual has.
Credited
Credited refers to the process of adding funds or credits to a financial account, such as a credit card account. This may occur as a result of a payment, a refund, or some other type of transaction.
Cross-border Payment
A cross-border payment is a financial transaction that involves the transfer of funds between two parties in different countries. Crossborder payments may be subject to additional fees, exchange rate fluctuations, and regulatory requirements.
Crowdfunding
Crowdfunding is a fundraising method in which a large number of individuals or organizations contribute small amounts of money to support a project or venture. Crowdfunding may be used to fund a wide range of projects, from creative endeavors to small businesses.
Cryptocurrency
Cryptocurrency is a digital or virtual currency that uses cryptography for secure financial transactions. Cryptocurrency is decentralized and not controlled by any government or financial institution. Examples of cryptocurrency include Bitcoin, Ethereum, and Litecoin.
Currency conversion
Currency conversion is the process of exchanging one currency for another, usually at a specific exchange rate. Currency conversion may be necessary when making international payments or when purchasing goods or services in a foreign currency.
Currency Transaction Report
A currency transaction report (CTR) is a form that financial institutions are required to file with the Financial Crimes Enforcement Network (FinCEN) in the United States for certain types of currency transactions. CTRs are used to detect and prevent money laundering and other financial crimes.
Currency
Currency is a medium of exchange that is used to facilitate the exchange of goods and services. Currency can be physical, such as paper money or coins, or digital, such as electronic funds transferred through a payment network.
Custodian
A custodian is a financial institution or other entity that holds and manages financial assets on behalf of others. Custodians may be responsible for tasks such as asset valuation, recordkeeping, and asset protection.
Custody
Custody refers to the holding or management of financial assets by a custodian on behalf of another party. Custody may involve the physical possession of assets or the administration of assets through a recordkeeping system.
Customer Due Diligence
Customer due diligence (CDD) is the process of verifying the identity and financial status of a customer or client in order to assess the risk of doing business with them. CDD may involve the collection of information on the customer’s background, business activities, and financial history.
Customer ID
Customer ID is a unique identification number or code that is assigned to a customer or client for the purpose of identifying and tracking their transactions and account activity. Customer IDs may be used by financial institutions, merchants, or other organizations to identify and authenticate customers.
Customer IP Address
A customer IP address is a unique numerical code assigned to a device that is connected to the internet. An IP address can be used to identify and locate a device, as well as to track online activities and transactions.
Customer Service Fee
A customer service fee is a charge that is assessed to a customer for the use of a service or for the support and assistance provided by a company or organization. In the credit card processing industry, customer service fees may be charged for things like account maintenance, technical support, or dispute resolution.
CVV1
CVV1 (Card Verification Value 1) is a security code that is used to help protect against credit card fraud. CVV1 is a threedigit code that is printed on the signature panel on the back of a credit card.
CVV2
CVV2 (Card Verification Value 2) are security codes that are used to help protect against credit card fraud. It is a four-digit code that is printed on the front of the card above the card number.
D
Data Capture
Data capture refers to the process of collecting, storing, and organizing data from various sources. In the credit card processing industry, data capture may involve collecting and storing information on credit card transactions, customer details, and other financial data.
Data Security Standard (DSS)
The Data Security Standard (DSS) is a set of guidelines and requirements established by the Payment Card Industry (PCI) to ensure the secure handling of credit card data by merchants and other organizations. DSS requires merchants to implement specific measures to protect credit card data, such as encryption and secure storage, and to regularly assess and validate their security systems.
DBA
DBA (Doing Business As) is a term that is used to identify a business that operates under a name other than its legal or registered name. A DBA may be used to create a separate brand or identity for a business, or to distinguish the business from its owners or operators.
DDA Account
A DDA account (Demand Deposit Account) is a type of bank account that allows for the withdrawal of funds on demand, such as a checking account. DDA accounts may be used for everyday financial transactions, such as paying bills and making purchases, and may also be used to connect the merchant account to accept the proceeds from credit card transactions.
Debit Card
A debit card is a type of financial product that allows users to access and spend the funds in their checking or savings account. Debit cards are linked to a bank account and can be used to make purchases, withdraw cash, and perform other financial transactions. Unlike credit cards, which allow users to borrow money, debit cards do not have a credit limit and do not accrue interest on unpaid balances.
Debit Networks
Debit networks are networks or systems that facilitate the processing of debit card transactions. Debit networks may include payment networks such as Visa Debit, Mastercard Debit, and Interac, as well as regional or national debit networks that are specific to certain countries or regions.
Debit
Debit refers to the process of deducting funds from a financial account, such as a bank account or credit card account. Debit transactions typically involve the transfer of funds from the account to another party, such as a merchant or a lender. Debit transactions may also be referred to as “withdrawals” or “debits to account.”
Decline Code
A decline code is a numerical or alphanumeric code that is used to indicate the reason for a declined credit card transaction. Decline codes may be provided by the credit card issuer or processor and may be used to help merchants and cardholders understand why a transaction was declined and how to resolve the issue.
Decline
Decline refers to the rejection of a credit card transaction or other financial request. Credit card transactions may be declined for a variety of reasons, such as insufficient credit, an expired card, or suspected fraud.
Demand Deposit Account
A demand deposit account (DDA) is a type of bank account that allows for the withdrawal of funds on demand, such as a checking account. DDA accounts may be used for everyday financial transactions, such as paying bills and making purchases, and may also be used to process credit card transactions.
Deposit Account
A deposit account is a type of financial account that is used for the purpose of depositing and saving money. Deposit accounts may include savings accounts, checking accounts, money market accounts, and certificates of deposit (CDs).
Deposit Correction Notice
A deposit correction notice is a document or notification that is used to correct or adjust a deposit or other financial transaction. Deposit correction notices may be issued by banks, credit card processors, or other financial institutions to correct errors or discrepancies in account balances or transaction records.
Deposit
Deposit refers to the act of placing funds or assets into a financial account, such as a bank account or investment account. Deposits may be made in the form of cash, checks, or electronic transfers.
Descriptor
A descriptor is a short, written description of a credit card transaction that appears on a cardholder’s statement. Descriptors typically include the name and phone number of the merchant, as well as the date and amount of the transaction. Descriptors are used to help cardholders identify and track their transactions, and may also be used to help prevent fraud.
Device Fingerprinting
Device fingerprinting is a technique used to identify and track devices, such as computers or mobile phones, based on their unique characteristics and behavior. In the credit card processing industry, device fingerprinting may be used to detect and prevent fraud by identifying devices that have been used in suspicious or fraudulent transactions, or merchant applications.
Digital Customer Recognition (DCR)
Digital Customer Recognition (DCR) is a process in which a customer’s identity is verified using digital methods, such as facial recognition, biometric authentication, or online identity verification services. Financial institutions or other organizations may use DCR to help authenticate customers and prevent fraud in online transactions.
Digital Wallet
A digital wallet is a software application or platform that allows users to store, manage, and make payments with their credit cards, debit cards, or other financial accounts. Digital wallets may be used to make online or instore purchases, pay bills, and transfer funds, and may also provide features such as budgeting tools and rewards programs.
Direct Deposit
Direct deposit is a method of transferring funds electronically from an employer or other payer to a recipient’s bank account. Direct deposit is often used to pay salaries, pensions, and other types of recurring payments, and can be faster and more convenient than receiving a paper check.
Disbursement
Disbursement refers to the act of paying out or distributing funds, such as the distribution of money from a bank account or investment account. Disbursements may be made to pay bills, make purchases, or cover other expenses.
Discount Rate
The discount rate is a fee that is charged by a credit card processor or acquiring bank for processing credit card transactions on behalf of a merchant. The discount rate is typically a percentage of the transaction amount and may vary based on factors such as the type of card, the merchant’s industry, and the processor’s fees and costs.
Discover Card
Discover Card is a type of credit card that is issued by Discover Financial Services, a financial services company based in the United States. Discover Card offers a range of credit card products, including cash back rewards cards, travel rewards cards, and student credit cards.
Dispute
A dispute is a formal request by a credit card holder to challenge or question a credit card transaction that they believe is incorrect, unauthorized, or fraudulent. Disputes may be filed with the credit card issuer or processor, and may involve the investigation and resolution of the issue by the issuer or a third party.
Double Refund Chargeback
A double refund chargeback is a type of chargeback that occurs when a merchant processes a refund for a credit card transaction, but the credit card issuer or processor also initiates a chargeback for the same transaction. Double refund chargebacks may be caused by errors or discrepancies in the refund process, or by fraudulent activity.
Downgrades
Downgrades refer to the process of reducing or lowering the credit limit, interest rate, or other terms of a credit card account. Credit card issuers may downgrade accounts for a variety of reasons, such as a decline in the creditworthiness of the cardholder or a change in the issuer’s risk appetite.
Draft Retrieval
Draft retrieval is the process of obtaining a copy of a credit card transaction receipt or other supporting documentation for the purpose of verifying or investigating a transaction. Draft retrieval may be requested by a credit card issuer or processor, or by a merchant or cardholder.
Dues & Assessments
Dues and assessments are fees or charges that are assessed to credit card holders for the use of certain services or the maintenance of their account. Dues and assessments may include fees for account maintenance, balance transfers, cash advances, or other accountrelated services.
Dynamic Currency Conversion (DCC)
Dynamic Currency Conversion (DCC) is a service that allows merchants or other organizations to offer customers the option to pay for goods or services in their home currency, rather than the local currency, when making international transactions. DCC is typically offered through a thirdparty provider and may involve the conversion of the transaction amount at an exchange rate that is determined at the time of the transaction.
Dynamic Descriptor
A dynamic descriptor is a short, written description of a credit card transaction that is displayed to the cardholder at the time of the transaction. Dynamic descriptors may include information such as the merchant’s name, location, and contact information, as well as the transaction amount and date. Dynamic descriptors are used to help cardholders identify and track their transactions, and may also be used to help prevent fraud.