Access card
A card used in an automated teller machine for deposits, cash withdrawals, account transfers, and other related items. Referred to as an ATM card.

Account Number
Unique sequence of numbers identifying the issuer and credit card type. Also referred to as Personal Account Number (PAN).

Account Takeover
A source of credit card fraud in which criminals obtain valid credit cards by changing the address of the true cardholders. See “Change of address fraud”.

Acquirer
Financial institution that enters into agreements with merchants to accept Visa credit cards as payment for goods and services. Maintains the merchant relationship and receives all credit card transactions from the merchant. Commonly referred to as the merchant bank.

Altered credit card
A credit card that has been modified to reflect a different name, account number, expiration date and/or signature other than that of the original credit card.

ATM
See automated teller machine.

Authorisation
The process in which a sales transaction or cash advance for a specified amount is approved or declined by an issuer or by Visa standing in for an issuer.

Authorisation Centre
Facility established to authorise cash advances and merchant sales exceeding established floor limits.

Authorisation Code
Number assigned by the bank to a merchant sale or cash advance that has received specific approval. The code is used as proof that the transaction has been properly authorised.

Authorisation Monitoring
Computer based systems used by financial institutions to review authorised transactions on individual accounts over a given period of time for evidence of potential fraud.

Authorisation Request
A request for approval by the merchant to validate a cardholder sales transaction.

Automated Clearing House (ACH)
A service that electronically processes payments of funds and government securities among institutions and businesses.

Automated Teller Machine
A cardholder-operated terminal that performs basic teller functions, such as accepting deposits, cash withdrawals, account transfers, loan payments, and account balance enquiries.

Available Credit
The difference between the credit limits assigned to a cardholder account and the present balance, including authorisations outstanding (for which the actual transaction has not yet been received through interchange).

Average Balance
The average amount outstanding on a cardholder account within a specified period of time. This is calculated by adding all the monthly balances on an account within a specified time period and dividing the total by the number of months within that time period.

Bank credit card
Any credit card issued by any bank that accesses a customer's financial resources, including credit cards, ATM cards, debit cards, smart cards, and check guarantee cards.

Bank credit card Transaction
(see Transaction)

Bank Identification Number (BIN)
A unique number that identifies the bank that issued a credit card. In the Visa system the first six digits of the account number indicate which bank issued the credit card. All Visa accounts begin with a “4” and contain either 13 or 16 digits.

Billing Date
The month, day, and year when a periodic (or monthly) statement is generated.

Credit Card Activation
A method by which credit card issuers confirm a credit card has been received by the valid cardholder before activating the account on cards that are blocked at the time of mailing. The cardholder must call the issuer to confirm receipt and provide positive proof of identity. This prevents losses from cards stolen in the mail.

Credit Card Issuer
The financial institution that authorises issuing a bank credit card to an individual for which the institution carries the liability.

Credit Card Mailer
A carrier used in mailing a credit card to the cardholder. The mailer may contain specific instructions for the cardholder regarding the conditions of credit card use.

Credit Card Recovery Bulletin
A paper listing of credit card accounts on which transactions are restricted and not to be completed by merchants without authorisation.

Credit Card Re-issue
The process of preparing and distributing bank cards to cardholders whose cards have, or will soon expire.

Cardholder
The person or entity whose name is embossed on the face of a credit card or encoded on the magnetic stripe.

Cardholder Agreement
The written understanding stating the terms and conditions of using a credit card.

Cardholder Bank
The bank that has issued a credit card to an individual.

Cardholder Master File
The bank record of all cardholder accounts, including all information pertinent to the accounts (name, address, credit limit, payment history, etc.).

Cash Advance
A cash loan, obtained by a cardholder through presentation of a credit card at a bank office, at an ATM, or by mail request.

Cash Advance Draft
A document executed by a cardholder that evidences a cash advance obtained through the use of a bankcard.

Charge Back
A transaction, that is returned by an issuer to an acquirer because of a perceived rules or procedure violation.

Charge Card
A financial transaction card with no set limit on monthly charges, but usually must be paid in full at the end of each month. This is the type of credit card issued by American Express, Diners Club, and Carte Blanche where bills are payable when received.

Chip credit card
See smart credit card.

Clearing and Settlement
The process of delivering a transaction for posting to a cardholder's account, or for other internal processing.

Collusive Merchant
A merchant that knowingly perpetrates charge, credit or debit credit card fraud. May also be a merchant that compromises account numbers of cards.

Counterfeit Credit Card
A payment device, which has been fraudulently printed, embossed and/or encoded to be used as a valid credit card.

Counterfeit Paper
A sales draft or other record of transaction arising from the fraudulent use of an altered or counterfeit credit card that shows either the purchase of goods or services rom a merchant or a cash disbursement.

Credit Balance
The amount of credit, available to a cardholder after the credits and debits have been posted in a billing cycle.

Credit Card
A financial transaction credit card, which allows the cardholder to obtain money, goods, or services under a line of credit established by the credit card issuer.

Credit Line
The established maximum amount that may be permissibly borrowed on the credit card at any given time. It is initially set by the bank at the time of credit card approval. Sometimes referred to as Credit Limit.

Credit Loss
The amount of lost (charged off) as a result of the failure of the cardholder to repay the amount owed on the account.

Credit Voucher
Credit transaction presented to the bank by the merchant. The merchant is crediting the cardholder's account for the return of goods or services.

Current Account
A cardholder account that has been paid up to date and on which no amount is past due.

Debit
A charge to a customer's bankcard account.

Debit Card
A financial transaction card issued by a financial institution that debits the cardholder's bank account. The card may be proprietary (issued solely by one institution), or it can be a regionally, nationally or internationally accepted card.

Delinquent Account
An account on which payment has not been made according to the terms and conditions of the cardholder agreement.

Deposit Account
A business or personal checking account designated by the merchant through which all bankcard transactions and adjustments will be processed by bank.

Derogatory Information
Data received by a lender indicating that an applicant or cardholder has not paid his or her accounts with other creditors.

Dial-Up Terminal
A merchant authorisation device that, like a telephone, dials the authorisation centre for validation of transaction.

Discount Rate
A fee paid by a merchant to an acquirer to process a transaction charged to a credit card system. Also referred to as the merchant service charge.

Draft
See Sales Draft .

Draft Laundering
A form of credit card fraud in which a merchant falsely submits to an acquirer credit card sales that come from an outside source and are not the merchant's own sales. See also Laundering.

Dual Dating
The practice of embossing two dates on the face of credit cards with the first date as the effective date and the second as the expiration date. The purpose is to deter the fraudulent use of cards.

Duality
Full or partial participation by any one bank in two competing bank credit card systems. Handling both MasterCard and Visa transactions by an issuer bank is an example of duality.

Electronic Commerce
The process of buying and selling goods and services over open, electronic networks such as the Internet.

Electronic Funds Transfer (EFT)
An electronically based system designed to eliminate the paper instruments that are normally associated with the movement of funds, such as a cash withdrawal from an ATM that eliminates the necessity of writing and processing a check.

Electronic Terminal
see POS terminal

Embossing
The process of placing identifying data on a bank credit card in the form of raised characters.

Emergency credit card Replacement
A service offered by credit card issuers whereby a cardholder can have his or her lost or stolen credit card replaced within 24 to 48 hours throughout the world.

Encoding
The recording of data on the magnetic stripe on the back of the bankcard.

Encryption
The use of algorithms to encode data, such as PIN's, to ensure that the data cannot be read by unauthorised persons.

Expired Credit Card
A credit card on which the expiration date embossed and/or encoded by the issuer has expired. A credit card that is no longer valid.

Expiry Date
The date the issued credit card expires. The expiration date is embossed on the credit card face.

Exception File (Negative File)
System file maintained by VISA consisting of accounts entered by issuers due to fraud or credit problems. During the authorisation process this file is checked, if the account is on file, the merchant is notified not to complete the transaction and in some cases is advised to pick up the credit card.

Floor Limit
The amount of purchase over which the merchant must obtain a transaction authorisation by telephone or authorisation terminal.

Forged Credit Card
Term sometimes used for either counterfeit or lost/stolen cards with forged cardholder name on signature panel.

Fraud Account
An account on which the cardholder has disputed the transaction and after review, the issuer carries as fraud.

Fraudulent Application
An instrument containing false cardholder information upon which an issuer of a payment device relies for the extension of credit or to open a debit account.

Hologram
A laser-produced image having a three dimensional appearance. Currently used as a security device on Visa and MasterCard cards to combat alteration and counterfeit.

Hot Credit Card
A credit card being used on an account on which excessive purchasing is taking place. This may indicate a lost or stolen or other fraudulently used credit card.

Imprinter
A device supplied to the merchant to produce an image of the embossed characters of the bankcard on all copies of a sales draft and credit slips.

Interchange
The exchange of debit and credit transaction data between merchant banks and cardholder banks, based on an agreement between the participants. Also, the network systems operated by the bankcard associations, Visa and MasterCard, for authorisation, settlement, and the monetary and non-monetary information related to bankcard activities.

Interchange Fee
The amount paid by the acquirer to the credit card issuer on each transaction.

Issuer
Any organisation that issues a credit card. Usually a bank member of an interchange system that issues cards (i.e., a bank that is a member of Visa issues Visa cards). Also may be private organisation that issues proprietary cards.

Late charge
A financial penalty against the cardholder for failure to make the minimum payment.

Laundering
The deposit of sales drafts for a transaction that were not made directly between the merchant and the cardholder but rather by a third party for whom the merchant is depositing the draft.

Mail Order / Telephone Order Merchants (MO/TO)
Mail order/telephone order merchants are those who take orders for goods or services by mail or telephone. Such order taking is prone to credit card fraud.

Magnetic Stripe
A stripe of magnetic tape affixed to the back of a credit card. The magnetic stripe contains essential cardholder and account information. The stripe is applied above the laminate and can store about 130 characters or numbers.

Member
A financial institution such as a bank, participating in a payment credit card association or system as an acquirer and/or issuer.

Merchant
A principal or entity entering into a credit card acceptance agreement with a Visa member.

Merchant Agreement
A contract between a merchant and a Visa member bank containing respective rights, duties, and obligations with respect to participation in the VISA credit card program.

Merchant Authorisation
The means of receiving sales validation for the merchant, by telephone or authorisation terminal, to guarantee payment to the merchant.

Merchant Bank
The bank that has entered into an agreement with a merchant to accept (purchase) transactions generated by Visa cards.

Merchant File
A computer record of information on all merchants serviced by a merchant bank.

Merchant Deposit Account
A business checking account designated by the merchant through which all bankcard transactions and adjustments will be processed by the merchant bank.

Merchant Identification Number
A series or group of numbers that numerically identifies each merchant to the merchant bank for accounting and billing purposes.

Monthly Statement
An account summary mailed to cardholders monthly, reflecting the previous balance, new transactions, finance charges for the billing period, the new balance, and the minimum payment required.

Negative file
A file containing all account's which have been listed for fraud or credit reasons.

Neural network
Computer predictive models that “learn” from examples rather than following an analytical procedure set by the program.

Not Received Item (NRI)
Cards lost/stolen in shipment, usually the mail, from the issuer to the cardholder.

NRI
See Not Received Items.

Off-Line
An operating mode in which terminals (or ATMs) are not connected to a central computer source for an extended or brief period. Information is not accessible in a live environment, meaning that current active files are not able to be viewed as a transaction is conducted.

On-Line
An operating mode in which terminals (or ATMs) are connected to a central computer system and have access to the data base for authorisation, inquiry, and file changes. Live files are accessed for each transaction.

Open To Buy
see available credit

Over The Limit Account
An account on which the credit limit has been exceeded.

Paper
A sales draft, transaction record, order form, credit voucher, cash disbursement draft, call detail report, electronic record or other obligation arising from the use of a credit card, and bearing either the imprint or other reproduction of embossed or encoded information contained on such credit card.

Payment Coupon
The section of the billing statement containing payment information, which should be returned by the customer with the payment.

Payment Device
A credit card issued by a financial institution or other approved institution that gives a cardholder access to a credit or debit account.

Payment Due Date
The date by which payment must reach the bank to keep the account in a current status.

Payment system
System that accomplishes the transfer of money; provides settlement services between credit card issuer and acquirer.

Photo credit card
A bankcard containing a small picture of the cardholder. The photo is used as a security measure to discourage fraudulent use.

PIN (Personal Identification Number)
The unique individual number or code assigned to cardholders for identification when their cards are used at the point-of-sale or ATMs to confirm that the person using the credit card is the proper cardholder.

Point Of Compromise
A location where details of a legitimate credit card are compromised. May be either embossed characters or encoded magnetic stripe information.

Point Of Sale (POS)
The location at which the sale or transaction takes place.

POS Terminal
A device placed in a merchant location that is connected to the bank's system via telephone lines and is designed to authorise, record, and forward data by electronic means for each sale.

Positive Authorisation
An authorisation procedure in which every account on file in the computer system can be accessed to determine its status before an authorisation is granted or declined.

Positive File
A file containing, at a minimum, the current balance for each active cardholder account. A positive file may also include PIN and other cardholder information.

Posting
The process of recording debits and credits to individual cardholder account balances.

Primary Account Number (PAN)
The embossed and/or encoded number that identifies the credit card issuer to which a transaction is to be routed and the account that it is to be charged. The PAN consists of a major industry identifier, issuer identifier, individual account identifier, and check digit.

Proprietary Credit Card
A credit card issued by an organisation such as a department store for the exclusive benefit of customers at that store. Usually a revolving credit card. Also referred to as a specialised card.

Recovery Function
The activity involved in attempting to collect the balance owed after an account has been charged off.

Reference Number
The number assigned to each monetary transaction in a cardholder billing system. Each reference number is printed on the monthly statement to aid in the retrieval of the document should the cardholder question it.

Re-Issue
The process whereby cardholder accounts, on which bankcards have expired or will expire, are issued new cards.

Revolving Line Of Credit
An account the customer can repeatedly use and pay back without having to reapply every time credit is used.

Runaway Card
A cardholder account that has exceeded the limit for excessive purchases, may also have exceeded its credit limit, or continues to indicate other unauthorised use.

Sales Draft or Draft
A paper or electronic record of a sale or service that the merchant presents to the bank for processing. The card account can then be debited while the merchant account may be credited.

Security Interest
Interest in a property given to a creditor, which allows the property to be sold on default to satisfy the debt obligation for which the security interest is given.

Settlement
The process by which merchant and cardholder banks exchange financial data and value resulting from sales transactions, cash advances, merchandise credits, and the like.

Skimming
A technique used to counterfeit a card. The account information on the valid card is copied onto the stripe of a counterfeit card.

Smart Card
A plastic card with an integrated circuit (chip) embedded in it so that the card has greater data storage capacity. Chip cards with microprocessors are also capable of processing data on the chip.

Specialised Cards
see Proprietary cards

Split Sale
Preparation of two or more sales drafts for a single transaction on one card account, in order to avoid authorisation procedures.

Stand In Processing
Providing authorisation services on behalf of an issuer because the issuer cannot respond or has delegated the authorisation to a third party, usually the associations, at their own risk.

“Statused” account
A cardholder account to which a status code has been assigned indicating a condition under which the cardholder may not use the account.

Stored Value Card
Also known as a cash card, electronic purse, or prepaid card. A financial payment card that enables the purchase of goods or services through stored value. The value is either stored on the card (usually by use of an integrated circuit chip) or separately at a host. With each purchase, the amount is deducted from the total on the card. It is targeted to low-value transactions and is intended to displace coins and currency.

Suspense Account
A special classification for holding transactions until a problem is resolved. Suspense accounts must be funded by the bank on the balance sheet and therefore must bear a funding cost.

Swiped Transaction
A transaction in which the card is drawn through a merchant terminal connected with the bank card authorisation centre. The information on the magnetic stripe and the amount of the purchase is transmitted through the network to validate the transaction.

Switch
An electronic mechanism that routes transaction data from a POS terminal to the authorising data processor for approval of the card-issuing institution. The switch can also serve as an authorisation centre for financial institutions whose accounts are maintained on another computer in the network.

T & E card
“Travel and Entertainment” card that typically requires payment in full each month. Examples are American Express, Diner Club, and Carte Blanche.

Third Party Processor (Third Party Service Provider)
An organisation designated by a bank to process authorisations and/or settlement on its behalf (performs computer functions).

Tipping
The process whereby embossed characters on plastic cards are covered by metallic foil to highlight the characters.

Transaction
The act between the cardholder and merchant or cardholder and financial institution that results in the sale of goods or services.

Travel and Entertainment Card
see T & E card

Unique Embossed Character/Symbol
An embossed character controlled by the issuer or association which is used as a counterfeit deterrent. On Visa cards the unique character is the “flying V”. On MasterCard cards the unique characret is "M".

Unsecured credit extended without recourse to attach specific assets of the borrower in the event of default.

VisaNet
The data processing systems, networks and operations that are used to support and deliver authorisation services, exception file services, clearing and settlement services and any other services.

Valid Date
Date from which the card is valid; start date for the card.

Voice Authorisation
Authorisation obtained by contacting the authorisation centre by telephone and speaking with an operator.

Voice Response Unit
An automated telephone response system that presents a series of choices to the caller, and the caller responds by pushing buttons on the telephone.

White Plastic
Instances in which dishonest merchants create false drafts on real cardholder account numbers using plain plastic cards. It is accomplished by use of a credit card-sized piece of plastic embossed with a valid cardholder's name, account number and expiration date.