Magnetic Information Character Recognition (MICR)

A technology used to read and process the information encoded on the magnetic stripe of a credit or debit card. MICR involves the use of special font characters that are magnetically encoded on the card and can be read by a special reader.

Magnetic Stripe Reader

A device that is used to read the information encoded on the magnetic stripe of a credit or debit card. These devices are commonly found at pointofsale terminals and are used to process transactions by reading the card’s magnetic stripe and transmitting the information to the payment processor.


A platform or website that allows multiple merchants to sell their products or services to consumers in a single location. Marketplaces often provide a variety of payment options and may also handle logistics such as shipping and customer service on behalf of the merchants.

Markup Fees

Fees that are added to the cost of a product or service in order to increase the price. These fees are often used by merchants to cover the cost of doing business and to generate profit.

Mastercard Chargeback Monitoring Program

Also known as Excessive Chargeback Program (ECP) is a program created by Mastercard that monitors dispute activity and assesses penalties and fines to merchants that don’t get their chargebacks in order. This program closely monitors all Mastercard disputes and takes a tiered approach to dealing with merchants with excessive chargeback rates.

Mastercard Identity Check

A security feature offered by Mastercard that allows merchants to verify the identity of their customers before completing a transaction. This feature can be used to reduce the risk of fraud and protect against unauthorized charges. The user receives a secure one-time code via text message or email on file.

Mastercard Secure Code

A security feature offered by Mastercard that allows customers to create a unique, private code that they can use to authenticate their online transactions. This code helps to protect against unauthorized charges and ensure the security of online transactions.

Mastercard Send

A service offered by Mastercard that allows businesses and individuals to send and receive money electronically using their debit or credit cards. This service is often used for peer-to-peer payments, international money transfers, and business payments.


A global payment network that enables consumers and businesses to make electronic transactions using a variety of payment products, including credit, debit, and prepaid cards. Mastercard is accepted at millions of locations around the world and is known for its secure and reliable payment processing.

Member Alert to Control High-Risk Merchants (MATCH)

(aka Match List) is a database maintained by Mastercard that lists merchants that have been terminated or suspended from the Mastercard network due to high-risk activities or violations of the company’s rules and regulations. This database is used by Mastercard and its member banks to identify and monitor merchants who may pose a risk to the payment network.

Merchant Account

A special type of bank account that is used by merchants to receive and manage the proceeds from their credit and debit card transactions. Merchant accounts are typically provided by financial institutions or payment processors and are required for merchants to accept card payments. The merchant account is connected to the merchant’s business checking account to receive proceeds less processing fees.

Merchant Acquirer

A financial institution or payment processor that provides merchants with the ability to accept card payments and manages the processing of those payments on behalf of the merchant. The merchant acquirer is responsible for connecting the merchant to the payment network and handling the settlement of transactions.

Merchant Bank

A financial institution that provides merchant accounts and other services to merchants. Merchant banks may also offer credit card processing, fraud protection, and other services related to the acceptance of card payments.

Merchant Category Code (MCC)

A four-digit code assigned by the payment networks to classify merchants based on the products or services they sell. The MCC is used to determine the fees and other terms that apply to a merchant’s transactions, as well as to identify potential risk factors.

Merchant Hold/Freeze

The temporary suspension of a merchant’s ability to accept card payments, typically as a result of a violation of the merchant’s agreement or suspicious activity. A merchant hold or freeze may be imposed by the merchant’s payment processor or the payment network and may last until the issue has been resolved.

Merchant Identification Number (MID)

A unique number assigned to a merchant by their payment processor or acquirer that identifies the merchant in the payment network. The MID is used to track and process transactions and to identify the merchant in various reports and records. The merchant ID number is usually found on the top right corner of the processing statement.

Merchant of Record

The merchant that is responsible for the sale of a product or service to the customer and for the handling of any disputes or chargebacks that may arise. The merchant of record is typically the merchant whose MID is used to process the transaction.

Merchant Processing Agreement (MPA)

(aka merchant agreement) is a contract between a merchant and a payment processor or acquirer that outlines the terms and conditions under which the merchant can accept card payments. The MPA typically includes information on fees, chargebacks, liability, and other important terms related to the merchant’s use of the payment processing service. These agreements are either month-to-month or a specific term.

Merchant Service Provider (MSP)

A company that provides payment processing and other related services to merchants. MSPs may offer a variety of services, including credit and debit card processing, fraud protection, and payment gateway services.

Merchant Services

A broad term that refers to the various services and products offered to merchants by financial institutions, payment processors, and other companies that enable merchants to accept and process card payments. These services may include merchant accounts, payment gateway services, fraud protection, and other services.


A business that accepts payment for goods or services using a payment card or other electronic payment method. Merchants can range from small, independent businesses to large, multinational corporations and may sell a wide variety of products and services.

Method of Payment (MOP)/Payment Method

The way in which a customer pays for a product or service. Payment methods may include cash, check, credit or debit card, or electronic payment methods such as PayPal or Apple Pay.

MICR Number Method

A method of encoding and reading the information on the magnetic stripe of a credit or debit card using the Magnetic Information Character Recognition (MICR) system. The MICR number method involves the use of special font characters that are magnetically encoded on the card and can be read by a special reader.


A classification of credit card transactions that fall between the “qualified” and “non-qualified” categories. Mid-qualified transactions typically have higher fees than qualified transactions but lower fees than non-qualified transactions. These fees are based on the type of card used, the type of merchant, and other factors. This classification is used in a tiered pricing model.

Mobile Payments

The use of a mobile device, such as a smartphone or tablet, to make a payment for goods or services. Mobile payments can be made using a variety of technologies, including near field communication (NFC), QR codes, and mobile wallet apps.

Mobile Point of Sale (mPOS)

A portable point-of-sale terminal that can be used to process card transactions using a mobile device, such as a smartphone or tablet. mPOS systems typically include a card reader and other hardware accessories that allow merchants to accept card payments on the go.

Mobile Reader

A device that is used to read the information encoded on the magnetic stripe of a credit or debit card using a mobile device, such as a smartphone or tablet. Mobile readers are often used by small merchants and service providers to accept card payments on the go.

Mobile Wallet

A digital wallet that is stored on a mobile device and can be used to make payments using the device. Mobile wallets may store credit and debit card information, as well as other types of payment information, such as loyalty points or gift cards.

Money Laundering (ML)

The process of disguising the proceeds of illegal activity as legitimate funds. Money laundering can involve a variety of techniques, such as transferring money through multiple accounts or using shell companies to conceal the true owner of the funds.

Money Transmitter License (MTL)

A license that is required in some jurisdictions for companies that provide money transmission services, such as the transfer of funds between individuals or businesses. The MTL is typically issued by a state or federal regulatory agency and may have specific requirements and restrictions that the licensee must follow.

Monthly Fees

Fees that are charged on a monthly basis by a merchant’s payment processor or other service provider. These fees may include charges for services such as credit card processing, fraud protection, or payment gateway services.

Monthly Minimum Fee

A fee that is charged to a merchant if they fail to meet their monthly minimum volume requirement for credit card processing. The monthly minimum fee is typically a fixed amount and is meant to compensate the payment processor for the cost of providing processing services to the merchant. This is usually a fixed dollar amount but can be a percentage of total processing volume.

Monthly Minimum

The minimum amount of credit card processing volume that a merchant is required to meet in order to avoid paying additional fees. If a merchant does not meet the monthly minimum, they may be charged a fee. This requirement is typically outlined in the merchant’s processing agreement.

Monthly Volume (MV)

The total dollar amount of credit and debit card transactions that a merchant processes in a given month. Monthly volume is often used to determine the fees and other terms that apply to a merchant’s processing services, as well as to identify potential risk factors. Also, in order to set proper fraud parameters, MV is required.


Abbreviations for “mail order/telephone order,” which refers to transactions that are initiated over the phone or by mail rather than in person. Cardnotpresent MOTO transactions are typically considered higher risk than inperson transactions and may be subject to different fees and terms.

Multi-Currency Conversion

The process of converting one currency to another in order to facilitate international transactions. Multi-currency conversion can be done by merchants, payment processors, or financial institutions and may involve a variety of exchange rates and fees.

Multi-Currency Processing

The ability of a payment processor or merchant to accept and process transactions in multiple currencies. This capability is often important for merchants who sell products or services internationally and want to offer their customers the ability to pay in their local currency.

Multi-Factor Authentication (MFA)

A security process that requires the use of multiple methods to verify a user’s identity. MFA typically involves the use of something the user knows (such as a password or PIN), something the user has (such as a security token or smartphone), and something the user is (such as a fingerprint or facial recognition). MFA is often used to enhance the security of online transactions and other sensitive activities.


National Automated Clearing House Association (NACHA)

A non-profit organization that operates and manages the Automated Clearing House (ACH) network, a secure, electronic network for the exchange of financial transactions between banks and other financial institutions. NACHA is responsible for establishing the rules and guidelines that govern the use of the ACH network and for ensuring the security and reliability of the network.

Near Field Communication (NFC)

A wireless technology that allows devices to communicate with each other over short distances. NFC is often used for contactless payment systems, such as mobile wallet apps, and can be used to make payments by simply holding the device near a payment terminal.

Negative Option Billing

A billing practice in which a customer is automatically enrolled in a service or subscription and is charged for it unless they take specific steps to opt out. Negative option billing can be used for a variety of products and services, including magazines, memberships, and recurring payments.

Net Payment

The amount of money that a merchant receives from a transaction after all fees and charges have been deducted. The net payment is the amount that the merchant actually receives and is often used to calculate the merchant’s profit or revenue from the transaction.

Net Revenue

The amount of money that a merchant receives from a transaction after deducting all costs and expenses. Net revenue is often used to measure the profitability of a business and can be calculated by subtracting the cost of goods sold, operating expenses, and other costs from the total revenue.

Net Settlement

The process of settling a payment or transaction by transferring the funds from one party to another. Net settlement typically involves the use of a clearinghouse or other intermediaries to facilitate the transfer of funds and ensure that all parties receive the correct amount.

Network Fees

Fees that are charged by payment networks, such as Visa or Mastercard, to merchants for the use of their payment processing services. Network fees are typically a percentage of the transaction amount and may vary based on the type of merchant, the type of card used, and other factors.

Next Day Funding

A feature offered by payment processors that allows merchants to receive their credit card settlement funds on the next business day after the transaction is processed. This can be helpful for merchants who need access to their funds quickly and can save them time and money compared to waiting for a regular settlement period.


A financial institution or company that is not a traditional bank, but that offers financial services such as loans, investment products, or payment processing. Non-banks may include financial technology companies, alternative lenders, and other types of financial services providers.

Non-Governmental Organization (NGO)

An organization that is not affiliated with a government, but that works to address social, economic, or environmental issues. NGOs may be charitable organizations, advocacy groups, or other types of nonprofit organizations that operate independently of the government.

Non-Qualified Rate

A higher fee or rate that is charged for certain types of credit card transactions that do not meet the requirements for the standard, or “qualified,” rate. Nonqualified transactions may include transactions that involve a reward or loyalty program, or transactions that are made using a corporate or business card. This is considered the 3rd tier of a tiered pricing model.

Non-Sufficient Funds Fee (NSF)

A fee that is charged by a bank or other financial institution when a customer attempts to make a payment or withdraw funds from their account and there are insufficient funds available. NSF fees are meant to compensate the financial institution for the cost of processing the transaction and can vary depending on the institution and the specific circumstances.

Notice of Change

A notification that is provided to a merchant by their payment processor or acquirer when there is a change to the terms and conditions of their merchant agreement. The notice of change may include information on new fees, changes to chargeback policies, or other important updates that may affect the merchant’s ability to accept card payments. It is important for merchants to carefully review and understand any changes to their merchant agreement and to make sure they are in compliance with the new terms.


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