E
Early Termination Fee (ETF)
An Early Termination Fee is a charge that a credit card processing company may impose on a merchant if the merchant cancels their contract before the end of the agreedupon term. The fee is meant to compensate the processor for any costs associated with setting up and maintaining the merchant’s account.
EBT Fee
EBT, or Electronic Benefits Transfer, is a government-administered program that allows beneficiaries to access their benefits, such as SNAP (Supplemental Nutrition Assistance Program) or TANF (Temporary Assistance for Needy Families), using a debit card. An EBT Fee is a charge that a credit card processor may impose on a merchant for processing EBT transactions.
eCheck Refund
An eCheck Refund is a reversal of an eCheck payment, typically requested by the payee (the person or business receiving the payment) if the payment was made in error or if the goods or services were not delivered as promised.
eCheck Return
An eCheck Return is a reversal of an eCheck payment, typically requested by the payer (the person or business making the payment) if the payment was made in error or if the goods or services were not as described.
eCheck
An eCheck, also known as an electronic check, is an electronic version of a paper check that is used to make payments or transfer funds online. eChecks are typically used for recurring payments or to make payments to merchants or individuals who do not accept credit or debit card payments.
eCommerce Indicator (ECI)
An eCommerce Indicator (ECI) is a code that is included with an online credit card transaction to indicate the level of security that was used to process the transaction. ECI codes are used by credit card issuers and processors to determine whether additional fraud prevention measures may be necessary.
eCommerce Shopping Cart
An eCommerce Shopping Cart is a software application that allows online merchants to manage and track the items that a customer adds to their virtual “shopping cart” as they browse and purchase products on the merchant’s website. The shopping cart checkout integrates with a payment gateway.
eCommerce
eCommerce, short for electronic commerce, refers to the buying and selling of goods and services over the Internet. eCommerce typically involves the use of online marketplaces, such as Amazon and eBay, or the use of a merchant’s own website to facilitate transactions.
EDC Terminal
An EDC Terminal, or Electronic Data Capture Terminal, is a device used by merchants to process credit and debit card transactions. EDC Terminals typically include a card reader, a keypad for entering transaction information, and a display screen for displaying the transaction details and prompts for the merchant. EDC Terminals may be connected to a point-of-sale system or may be standalone devices.
Electronic Benefit Transfer (EBT)
Electronic Benefit Transfer (EBT) is a government-administered program that allows beneficiaries to access their benefits, such as SNAP (Supplemental Nutrition Assistance Program) or TANF (Temporary Assistance for Needy Families), using a debit card. EBT allows beneficiaries to use their benefits at participating retailers, online, or through ATM transactions.
Electronic Bill Payment (E-Pay)
Electronic Bill Payment (E-Pay) is a service that allows individuals and businesses to pay their bills electronically, typically through their bank’s online or mobile banking platform or through a third-party payment provider. E-Pay enables users to schedule recurring payments, pay multiple bills at once, and receive alerts when a payment is due.
Electronic Check Acceptance or ECA
Electronic Check Acceptance (ECA) is a service that allows merchants to accept electronic checks as a form of payment. ECA typically involves the use of a check scanner or other electronic device to capture the information from a paper check and convert it into an electronic payment.
Electronic Data Interchange (EDI)
Electronic Data Interchange (EDI) is a standardized method of electronically exchanging business documents, such as invoices and purchase orders, between organizations. EDI allows organizations to exchange information in a fast and efficient manner, reducing the need for paper documents and manual data entry.
Electronic Draft Capture (EDC)
Electronic Draft Capture (EDC) is a method of processing credit and debit card transactions using an electronic device, such as an EDC Terminal or a point-of-sale system. EDC enables merchants to accept card payments without the need for manual card imprints or carbon copies.
Electronic Funds Transfer (EFT)
Electronic Funds Transfer (EFT) is the electronic movement of money from one bank account to another, typically through the use of electronic payment systems, such as ACH (Automated Clearing House) or wire transfer. EFT allows individuals and businesses to make and receive payments quickly and efficiently.
Electronic Transactions Association (ETA)
The Electronic Transactions Association (ETA) is a trade association that represents companies involved in the electronic payment industry, including credit card processors, point-of-sale system providers, and payment gateway providers. The ETA provides education, networking opportunities, and advocacy for its members.
Embedded Payments
Embedded Payments refer to the integration of payment processing functionality into a software application or website. Embedded Payments enable merchants to accept payments directly from their customers without the need for an external payment gateway or redirecting customers to a separate payment page.
Embossing
Embossing is the process of pressing raised letters or numbers onto a credit card or other plastic card using a special machine. Embossing is used to create a tactile, threedimensional effect on the card and is typically used for the cardholder’s name, account number, and expiration date. Embossing is often used in conjunction with other security measures, such as holograms, to prevent fraudulent use of the card.
EMV Liability Shift
The EMV Liability Shift refers to the shift in liability for fraudulent cardpresent transactions from the card issuer to the merchant if the merchant has not adopted EMV (Europay, Mastercard, Visa) technology. The EMV Liability Shift was implemented to encourage merchants to upgrade their payment systems to support EMV chip cards, which are more secure than traditional magnetic stripe cards.
EMV Terminals
EMV Terminals are payment terminals that are equipped to process transactions using EMV (Europay, Mastercard, Visa) chip cards. EMV Terminals use a chip reader to authenticate the chip on the card and complete the transaction. EMV Terminals are more secure than traditional magnetic stripe card readers because they use dynamic data, which is unique to each transaction, to verify the card’s authenticity.
Encryption
Encryption is the process of converting data into a coded format to protect it from unauthorized access. Encryption is used to secure data transmitted over the internet, as well as data stored on devices and servers. Encryption is an important security measure in the credit card processing industry to protect sensitive cardholder data.
End-to-End Encryption
End-to-End Encryption is a method of encrypting data so that it can only be read by the sender and the intended recipient. End-to-End Encryption is used to protect data transmitted over the internet, such as credit card transactions, from being intercepted and accessed by unauthorized parties.
Equifax
Equifax is one of the three major credit reporting agencies in the United States. Equifax collects and maintains credit information on individuals and businesses, including payment history, credit usage, and credit scores. Credit card issuers and other financial institutions use this information to make lending decisions.
Equipment Fees
Equipment Fees are charges that a credit card processor may impose on a merchant for providing payment processing equipment, such as pointofsale systems or credit card terminals. Equipment Fees may be a onetime charge or may be charged on a monthly or annual basis.
Europay Mastercard Visa (EMV)
Europay, Mastercard, Visa (EMV) is a global standard for credit and debit card payments that uses an embedded microchip to authenticate transactions. EMV cards are more secure than traditional magnetic stripe cards because they use dynamic data, which is unique to each transaction, to verify the card’s authenticity.
Events of Default
Events of Default are circumstances that allow a credit card processor to terminate a merchant’s contract or take other actions, such as withholding payment or increasing fees. Examples of Events of Default may include the merchant’s failure to make required payments, breach of contract, or fraud.
Experian
Experian is one of the three major credit reporting agencies in the United States. Experian collects and maintains credit information on individuals and businesses, including payment history, credit usage, and credit scores. Credit card issuers and other financial institutions use this information to make lending decisions.
Expiration Date
The Expiration Date is the date after which a credit card is no longer valid. The Expiration Date is typically printed on the front of the card and is typically a month and year. Credit card issuers typically send cardholders a new card with a new expiration date before the current one expires.
F
Face-To-Face
Face-To-Face refers to a credit card transaction that takes place in person, typically at a point-of-sale terminal or other card reader device. Face-To-Face transactions may be card-present or card-not-present, depending on whether the card is physically present at the time of the transaction.
Fair Credit Billing Act
The Fair Credit Billing Act is a federal law that provides protections for consumers in the event of billing errors on their credit card statements. The Act requires credit card issuers to investigate and resolve billing disputes within a certain timeframe and provides consumers with the right to dispute charges that they believe are incorrect.
False Decline
A False Decline, also known as a “false negative,” is a declined credit card transaction that is later determined to be legitimate. False Declines may occur due to incorrect or outdated cardholder information, insufficient funds, or other issues. False Declines can result in lost sales for merchants and can be frustrating for customers.
Federal Tax ID Number
A Federal Tax ID Number, also known as an Employer Identification Number (EIN), is a unique ninedigit number assigned by the Internal Revenue Service (IRS) to businesses for taxfiling purposes. Credit card processors and other financial institutions may request a business’s Federal Tax ID Number to verify its identity and comply with tax laws.
Financial Crimes Enforcement Network (FINCEN)
Financial Crimes Enforcement Network (FINCEN): The Financial Crimes Enforcement Network (FINCEN) is a bureau of the U.S. Department of the Treasury that is responsible for implementing and enforcing federal laws and regulations related to financial transactions and money laundering. FINCEN works with other federal, state, and local law enforcement agencies to combat financial crime and terrorism financing. In the credit card processing industry, FINCEN sets and enforces rules related to the reporting and tracking of suspicious transactions.
First Data Corporation (FDC)
First Data Corporation (FDC) is a financial technology company that provides payment processing and other financial services to merchants, financial institutions, and governments around the world. FDC offers a range of payment processing solutions, including credit card processing, debit card processing, and mobile payments.
Flat Rate Pricing
Flat Rate Pricing is a pricing model in which a credit card processor charges a fixed percentage of the transaction amount for each transaction, regardless of the type of card used or the transaction amount. Flat Rate Pricing is often used for low-volume or low-ticket merchants who do not process a large number of transactions.
Floor Limit
A floor limit is a predetermined dollar amount that a credit card processor sets for transactions processed without prior authorization. Transactions that exceed the floor limit may require additional authentication or may be declined. The floor limit is typically set to reduce the risk of fraud and to minimize the number of declined transactions.
Force Majeure Chargebacks
Force Majeure Chargebacks are chargebacks that are initiated by a credit card issuer or processor due to circumstances beyond the control of the merchant, such as natural disasters or other acts of God. Force Majeure Chargebacks may be triggered if a merchant is unable to fulfill an order or provide goods or services as a result of a force majeure event.
Forced Transaction
A forced transaction is a credit card transaction that is processed by a merchant without the cardholder’s authorization. Forced Transactions may occur due to technical errors, fraud, or other circumstances. Forced Transactions may result in chargebacks for the merchant and may also be subject to fines and penalties.
Fraud Filter
A fraud filter is a software tool that analyzes credit card transactions for signs of fraudulent activity. Fraud filters use algorithms and other data points to identify transactions that may be at high risk for fraud and may flag or decline those transactions. Fraud filters are often used by credit card processors and merchants to protect against fraudulent activity.
Fraud Ratio
The fraud ratio is a measure of the percentage of fraudulent transactions compared to total transactions processed by a merchant or credit card processor. A high fraud ratio may indicate that a merchant or processor is at risk for fraudulent activity and may need to implement additional security measures.
Fraud
Fraud is the intentional use of deception to obtain financial or other benefits. In the credit card processing industry, fraud may involve the unauthorized use of a credit card or other payment instrument, such as a debit card or check. Fraud can result in significant financial losses for merchants and card issuers.
Fraudulent Transaction
A fraudulent transaction is a credit card transaction that is unauthorized or made with the intent to deceive. Fraudulent transactions may result in chargebacks for the merchant and may also be subject to fines and penalties.
Freeze
A freeze is a temporary hold on a credit card account or payment processing activity. A freeze may be initiated by a credit card issuer, a credit card processor, or a merchant in order to prevent unauthorized transactions or to investigate suspicious activity.
Front-End Processor
A frontend processor is a company that handles the processing of credit card transactions on behalf of merchants and credit card issuers. Frontend processors typically handle the communication between merchants and credit card networks, as well as the authorization and settlement of transactions.
Fulfillment Agreement
A fulfillment agreement is a contract between a merchant and a fulfillment company that outlines the terms and conditions for the fulfillment company to store, pick, pack, and ship products on behalf of the merchant. Fulfillment agreements may also include provisions for returns, damages, and other aspects of the fulfillment process.
Fulfillment House
A fulfillment house is a company that specializes in storing, picking, packing, and shipping products on behalf of merchants. Fulfillment houses often offer a range of services, including inventory management, returns processing, and customer service, to help merchants streamline their ecommerce operations.