A financial institution that undertakes the total business and technical relationship with a merchant at any particular outlet on behalf of a card scheme. This includes marketing the card scheme, supporting the merchant and settlement of transactions. A financial institution that contracts with the merchant to collect funds from credit card issuers for goods sold that are settled by credit and debit card.

The process of recruiting new customers, i.e. cardholders for Issuers and merchants for Acquirers. It includes marketing, processing applications and agreeing a contract with the customer.

American Express.

The Association for Payment and Clearing Services – the body responsible for matters relating to money transmission and payment clearing activities generally in the UK.

Average Transaction Value or ticket value.

A process whereby a credit or debit card transaction for a specified amount is approved, referred or declined by a card issuer or an acquirer on behalf of a card issuer.

A telephone call made from a point of sale to obtain authorisation for a transaction.

A code which is generated by a card issuer or by an acquirer on behalf of a card issuer when an authorisation request is approved.

Address Verification Service – verification of the numeric elements in the cardholders billing address.

Business to business transactions.

Bank Automated Clearing System.

Any day other than a Saturday or Sunday or a Bank Holiday.

A term specific to merchants with on-line terminals. A merchant has a time period (say 16.00 – 19.00) allocated to them. During this time period, they may perform their End of Day reconciliation with the host system. If the merchant forgets, they are automatically “cutover” after the end time (19.00 in the above example). After the merchant or system banking window, subsequent transactions will be logged on the next trading day.

Institution who issues the payment card to the cardholder.

e.g. Visa, MasterCard, AMEX, Diners, etc.

An individual to whom a card has been issued.

The uses of a card by a customer in order to purchase goods or services from a merchant or obtain cash from an ATM or financial institution.

A payment card linked to an account that has to be settled in full by a stipulated date.

The right, in defined circumstances (usually a disputed transaction), of a card issuer to charge part or all of the value of a transaction back to the acquirer. The acquirer may subsequently chargeback the value of the transaction to the merchant.

Secure method of undertaking a transaction – designed to fight fraud.