Glossary of Terms

Negative Deposit

This occurs when the dollar amount of credit vouchers submitted for deposit to the deposit account exceeds the dollar amount of sales drafts submitted for deposit.

Non-face-to-face Transaction

This is a transaction where the card and cardholder are not present at the merchant's business location at the time of the sale. Mail order, telephone order, and electronic commerce transactions are examples of non-face-to-face transactions.

Other Fees

Other fees may be charged for merchant accounts, such as checking account changes, chargeback fees, batch header fees, etc.

Paper Draft

Sales slips, credit slips, cash disbursement slips, drafts, vouchers, and other obligations indicating use of a credit card or card account. (See sales drafts)

PIN (Personal Identification Number)

A four to twelve character secret alphanumeric code that enables an issuer to positively authenticate the cardholder for the purpose of approving an ATM or terminal transaction occurring at a point-of-interaction device.

Preauthorized Order

A cardholder's written authorization to make one or more charges to the cardholder's account at a future date.

Point-of-Sale

The merchant's location where a customer makes a purchase.

POS Terminal

A POS Terminal is a bankcard-processing device that communicates and transfers data via telecommunication lines. Authorizations and transaction transmittals are examples of transactions performed through the POS terminal.