Merchant Account Glossary (D-G)

October 01, 2007

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D&B DUNS Number Dun & Bradstreet Data Universal Numbering System. A unique 9 digit code that identifies and links more than 57 million companies worldwide. Data Capture Also known as Electronic Draft Capture (EDC) or draft capture. A data processing term for collecting, formatting, and storing data in computer memory according to predefined fields, for example, customer name, account number, and dollar amount of purchase. When a terminal reads this information from a plastic card or from entries at a terminal, the information is stored in computer memory for later output as a hard copy printout or as soft copy on a CRT display. See Electronic Draft Capture. Data Integrity Measures to prevent unauthorized alteration of data. DBA (“Doing Business As”) This is the business name that the “public” sees. It is also the name a cardholder will see on their credit card statement so it’s important that it relates to the products sold, i.e.; cardholder can recognize where they made a purchase. The owner (principal) can be a corporation, proprietor or partnership of a different name. DCN Acronym for Deposit Correction Notice. Adjustments (debits or credits) made for an out-of-balance condition due to various problems in the transmittal. The correction is made by the merchant's acquirer at the time of capture prior to being sent out for interchange. DDA Account This is the merchants Demand Deposit Account, otherwise known as the merchant's home town bank account. Debit A charge to a customer's bankcard account. A transaction, such as a check, automated teller machine (ATM) withdrawal, or point-of-sale (POS) debit purchase that debits a demand deposit account. Debit Card Payment card whose funds are withdrawn directly from the cardholder's checking account at the time of sale (online debit on a Debit Network) or after batch settlement (off-line debit on a Credit Card Network). Debit Fee A fee charged to the merchant when processing a debit transaction in a POS terminal. Debit Networks Electronic connection to various banks by contract to honor debit card transactions. Deciphering Conversion of ciphertext back into plaintext Decryption Decryption is the process of transforming ciphertext back into plaintext. It is the reverse of encryption. Decryption Key See key. Deposit Process of transmitting a batch of transactions from the merchant to the acquiring institution in preparation for settlement. DES Acronym for Data Encryption Standard. A cryptographic algorithm adopted by the National Bureau of Standards for data security. The algorithm encrypts or decrypts 64 bits of data using a 56-bit key. Digital Signature A data element allowing the recipient of a message or transaction to verify the content and sender. Discount Fee Fee paid by the merchant to the merchant bank or other contracted party for processing the merchant's credit card sales (transactions). Discount Rate The percentage of sales amounts that the bankcard acquirer or T&E card issuer charges the merchant for the settlement of the transactions. Percentage is based on sales volume of transaction batches. Downgrade Discount rate that has been adjusted to allow for transactions that do not qualify for the best discount rate available. Downgrades may occur when transaction data is not transmitted through the authorization process, transaction batches are not closed and transmitted within the specific time frames or various other Visa/MasterCard mandated requirements. Draft Capture The act of electronically capturing transactions. See Electronic Draft Capture. DSA Acronym for Digital Signature Algorithm. The algorithm used in creating the digital signature for a given message or transaction EBT Acronym for Electronic Benefits Transactions. Government issued stored value credit card that is used redemption of foods stamps and other services. ECA Acronym for Electronic Check Acceptance. Replaces the paper processing of a bank check via an electronic check reader or imager. The check reader or imager processes check data electronically to the maker of the check’s bank and the merchant’s bank checking account, making it unnecessary to deposit the check manually. Also called “check conversion”. ECR Acronym for Electronic Cash Register. A device used for cash sales. Can also be integrated to accept credit cards. EDC Acronym for Electronic Data Capture. Process of electronically authorizing, capturing and settling a credit card transaction. EDI Acronym for Electronic Data Interchange. The process conducting business electronically using a set of standardized forms and data formatting Edit Rejects The rejection of a sales draft by Visa or MasterCard before a transaction processes through interchange, but after it has been paid by the acquirer. EFT Acronym for Electronic Funds Transfer. A method of transferring money from one bank account to another, using any of a wide variety of electronic methods currently available. EIPP Acronym for Electronic Invoice Presentment and Payment. A term that refers to the ability to electronically submit an invoice from supplier to the buyer and effect payment. Electronic Authorization Obtaining authorization for use of a credit card by electronic means, as via computer equipment and telephone line. Electronic Commerce A system of integrated communications, data management, and security services that allow business applications within different organizations to automatically interchange information. Enciphering Conversion of plain data into encrypted data (plaintext into ciphertext) Encryption Used for security of a cardholder’s PIN number when used in a POS pin pad, terminal or ATM. Encryption must be done via a vendor authorized by the processing bank. Encryption Key When used in the context of encryption, a series of numbers which are used by an encryption algorithm to transform plaintext data into encrypted (ciphertext) data, and vice versa. End-To-End Security Application of security measures consistently across a whole data system or process, leaving no weak points. E-P3 (Or Ep3) A MasterCard initiative to combine EIPP offerings with their Corporate Purchasing Card as the method of settlement. E-Procurement (Or Eprocurement) Electronic procurement, or electronic purchasing, refers broadly to the technology that automates some or all of the processes related to creating a requisition document, obtaining purchase approval, locating or sourcing a supplier, creating a Purchase Order (PO), and delivering the PO to the supplier. ETC Type Acronym for Electronic Transaction Capture. Various code types available for input to designate methods of processing credit cards. Expired Card A card on which the embossed, encoded, or printed expiration date has passed. Factoring Using a merchant’s credit card processing account for processing another merchant or business organization credit card transactions. This is a serious violation of the Visa/MasterCard Rules and Regulations and is subject to severe penalties. Federal Mall A generic term for a centralized buying site for the Federal Government. Federal Supply Schedule A Federal Supply Schedule (FSS) is a pre-established contractual vehicle that a supplier can establish with the General Services Administration (GSA) to allow government agencies to purchase from it under established prices. Fleet Card Fleet Cards are a specific type of commercial card (or corporate card) used to purchase goods and services for automobile/vehicle, aviation, or marine fleets. Floor Limit An amount that Visa and MasterCard have established for single transactions at specific types of merchant outlets and branches, above which authorization is required. Footer Text printed at the bottom of a sales draft. A merchant can customize the footer (i.e., Have a Nice Day,No Refunds, Thank You for Shopping With Us, etc.). Fraudulent Transaction A transaction unauthorized by the cardholder of a bankcard. Such transactions are categorized as lost, stolen, not received, issued on a fraudulent application, counterfeit, fraudulent processing of transactions, account takeover, or other fraudulent conditions as defined by the card company or the member company. Fraudulent User An individual who is not the cardholder or designee and who uses a card (or, in a mail/phone order or recurring transaction, an account number) to obtain goods or services without the cardholder's consent. Front End Term used to describe the application used in a POS terminal or software. Gateway An Internet device that processes cards via the Internet. Provides secure passage to enter credit card and personal data for processing of the credit card transaction. Acts like a terminal by obtaining an authorization for the transaction and completes the order process for the merchant Government Card A generic term for commercial purchasing cards (purchase cards) issued to federal, state, or local government agencies. It can refer to a Purchase, Travel, or Fleet card. Government Payments An inexact term used to describe either payment received from citizens or businesses by the government, or payments from a government agency to a supplier. Government Purchase Card G+B200 GSA Advantage GSA advantage is the name of the central federal sourcing website sponsored by the General Services Administration. Gsasmartpay GSASmartpay (GSA-Smartpay) is the name of the current U.S. Government Purchase card (procurement card) program. The GSA-Smartpay cards are provided by five banks including Bank of America, USBank, CitiBank, Mellon Bank, and BankOne. A master contract was established in 1998 and runs for 10 years.  <a href="http://www.offshoremerchantexperts.com/offshore_merchant_account_terminologies_a_to_c_.html" target="_blank">previous</a> <a href="http://www.offshoremerchantexperts.com/offshore_merchant_account_terminologies_h_to_i.html">next </a>

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