CREDIT AND CREDIT CARDS

An owner or “holder” of a credit or debit card or the person

who is using a credit card to pay for goods

or services

CARDHOLDER

The institution that provides credit or a card to a customer

Examples: American Express, MasterCard,

Visa

ISSUING BANK

The “go-between” account that acts as

an intermediary between your

business bank account and your customers’

credit accounts.

MERCHANT ACCOUNT

Returns from a merchant account or funds that are

“charged back” to a purchaser. Chargebacks

are usually associated with fraudulent or

unauthorized transactions

CHARGEBACKS

The penalties or fees associated with

processing a chargeback. Fees are usually calculated per-

occurrence or according to the

merchant account’s policies

CHARGEBACK FEES

Processing a credit card transaction using a magnetic terminal. (When you use your

credit card to pay for things in person)

MAGNETIC TRANSACTIONS

Software needed to process cards online.

Processes your information similar to that if you had swiped your card and sends

the copy to the merchant account

PROCESSING TRANSACTIONS

The total dollar amount transferred

after a series of sales has been processed, usually at the end of

the business day

NET SETTLEMENT

A fee assessed when a transaction fails, typically because

account information cannot be verified

PASS-THROUGH FEE