Glossary of Terms

Cancellation Fee

A fee assessed to a merchant following the closure of their merchant account (also referred to as a termination fee). Note: Not all processors charge a cancellation fee. Check your merchant agreement or call your processor to inquire.

Capture

Submission of an approved authorization for processing and settlement, after the services have been rendered or the product has been shipped.

Cardholder

Person who opens a card account for making purchases.

Card Identification Data (CID)

Discover® Network's equivalent of Card Security Codes. Please refer to Card Security Codes.

Card Imprint

Printing appearing on a sales draft, credit voucher, or cash advance draft. A mechanical device (Imprinter) is used to produce the imprint. It includes the embossed characters of the credit card. Imprints are valuable for protecting against possible chargebacks and cardholder disputes. (See Imprinter.)

Card Security Codes

A three-digit number laser-printed on the signature panel on the back the card. It follows either the complete account number or the last four digits of the account number.

Card Verification Code2 (CVC)

MasterCard's version of Card Security Codes. Please refer to Card Security Codes for additional information.

Card Verification Value2 (CVV2)

Visa's equivalent of Card Security Codes. Please refer to Card Security Codes.

Cash Advance

A cash loan obtained by cardholder through presentation of his/her credit card at a bank office or automated teller machine.

Cash Dispenser

The simplest form of ATM that permits only cash withdrawals.

Chargeback

A dispute by the cardholder of a transaction which is returned to the Acquirer.

Check Authorization

The process of determining whether a checking account balance is sufficient to cover a purchase or withdrawal of funds. Authorization can be obtained by telephone, credit card terminal, or automated teller machine (ATM).

Clearing and Settlement

The process of exchanging financial transaction details between an acquirer and an issuer to facilitate posting and reconciliation of a cardholder's account. (See ACH.)

Counterfeit Card

An instrument or device embossed, printed, or otherwise bearing Visa, MasterCard or Discover Network marks, so as to purport to be a Visa, MasterCard or Discover Network issued by a member affiliate; but that is not a Visa, MasterCard or Discover Network because the embossing or printing thereon was not authorized, or because the Visa, MasterCard or Discover Network has been altered or re-fabricated.

Credit

A transaction to reverse a previously authorized and settled charge placed against a cardholder's account.

Credit Slip

Document showing the return of merchandise by a cardholder to a merchant. Also known as credit voucher.

Credit Card Transaction

The action by which a merchant charges or credits a cardholder's card. At the same time, it provides details of funds acknowledged as payable by the acquirer, the card acceptor, or both to the issuer.

CTMF (Combined Terminated Merchant File)

A file maintained by MasterCard, reported to by members to identify merchants and businesses that have experienced financial loss, excessive cardholder disputes, or other problems related to the acceptance of credit cards.