Definitions - MobilePhoneSwiper | MobilePhoneSwiper

Blog

Definitions

Sale
The transfer of funds from a cardholder’s account to the merchant’s account for services or products received.

Swiped Transaction
A transaction where the card is passed through a credit card terminal and the magnetic stripe is read by the terminal.

Manual Transaction (Keyed Transaction)
A transaction where the card information is manually entered into the terminal

CVV (Card Verification Value) or CVC (Card Security Code)
The three- or four-digit number typically following the account number, located on the signature panel on the back side of most credit cards. However, CVV numbers on American Express cards appear on the face of the card above the card number.

Refund
A transaction where money from the merchant account is transferred to the cardholder’s account; the reverse of a sale.

Pre-Authorization
Also called an authorization hold, pre-authorization occurs when the cardholder’s bank immediately authorizes a credit card transaction but holds the funds as unavailable from the merchant until he or she officially clears (settles) the transaction. This allows for changes in the sale amount that might occur between the time of authorization and settlement. Example: Hotel stays where last minute phone calls or room service use could affect the amount of the final bill after checkout.

Forced Authorization
An approval response that is obtained through interactive communication between an issuer and an acquirer, their authorizing processors or stand-in processing or through telephone, facsimile or telex communications.

Void
Cancels the completed transaction and removes it from the batch so it does not go out for settlement.

Merchant Account
An account established by a merchant for the purpose of accepting credit cards as a form of payment.

Reader Accessory, Terminal or Device
The hardware used to swipe a card. It attaches to your smart phone or iPad.

Top

Comments are closed.

Top