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Glossary
Glossary of Electronic Payment Processing Terms
Please select a letter to navigate to appropriate portions of the glossary
A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z |
A
ABA Routing Number
A unique, nine-digit number assigned to each banking institution, used to identify the bank and direct ACH debits and credits. The ABA routing number is usually found at the bottom of a personal or business check.
ACH
Automated Clearing House - group of processing institutions linked by a computer network to process electronic payment transactions between financial institutions.
Accounts Receivable Conversion (ARC)
An electronic debit created from a consumer check processed in a lockbox, drop box or other payment receivable processing environment.
Acquirer, Acquiring Bank
A financial institution that is a member of Visa® and/or MasterCard® and maintains the merchant credit card processing relationship. The acquirer receives all transactions from the merchant to be distributed to the issuing banks.
Address Verification Service (AVS)
A service supported by Visa, MasterCard, Discover and American Express® that verifies the cardholder's billing address against the one on file with the issuer. AVS is designed to help combat fraud in non-face-to-face transactions.
Advanced Programming Interface (API)
APIs allow users to program to a pre-constructed interface, instead of individually programming a device or piece of software.
Altered Card
A card on which the original embossed or encoded information has been altered for fraudulent purposes.
American Bankers Association (ABA)
The trade association of American bankers. This body also has the registration authority to assign identification numbers.
American Express
A company that specializes in the issuance of Travel and Entertainment (T&E) cards. American Express services the cards it issues, serving as its own transaction processor with its own processing network.
Application Service Provider (ASP)
An organization that hosts software applications on its own servers within its own facilities. Customers access the application via private lines or the Internet. Also called a "commercial service provider" (CSP).
Approval Response
An affirmative reply following a transaction authorization request.
Arbitration
A procedure used by an acquirer on behalf of the merchant to resolve a chargeback-related dispute with a card issuer.
Association
MasterCard International, Visa U.S.A. or Visa International, which are licensing regulatory agencies for bank card activities.
ATM (Automated Teller Machine)
An unattended computer terminal that performs basic teller functions when a cardholder inserts a card into the ATM and enters the correct PIN. Typical functions include dispensing cash, accepting deposits and loan payments and accepting account transfers and inquiries. Also used by credit cardholders for receiving cash advances.
Authorization
The process by which a transaction is approved by the issuer, or by Visa/MasterCard on behalf of the issuer. Permission is given to (or denied) the merchant, via the acquirer, to accept a specific transaction from the cardholder account. An authorization indicates only that the card is valid and that sufficient funds are available on the cardholder's credit limit at the time the request is made.
Authorization Approval Code
The numerical code designated by the issuer, assigned to a sales transaction as verification that the sale is authorized.
Authorization Only (Auth Only)
Used to reserve an amount against a credit card's available credit limit for intended purchases. Authorization Only is most frequently used in the lodging (check-in), restaurant (tab) and car rental (pick-up) industries, where an approval is received for an estimated amount prior to the finalization of the charge amount.
Authorization Request
A merchant's request for an authorization to accept a cardholder's sales transaction. An authorization request can occur electronically via a credit card processing terminal or via telephone as a voice authorization.
Auto Representment
Automatically sending information to resolve a chargeback on a merchant's behalf without the need for merchant intervention.
Average Ticket
The average dollar amount of sale for credit card transactions.
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B
B2B
Business to Business - refers to one business communicating with or selling to another.
Back-End Network
The settlement provider responsible for finalizing transactions, routing payment to a merchant's account and generating statements.
Balance Sheet
A financial statement that lists assets, liabilities and net worth as of a specific date.
Bank Identification Number (BIN)
A unique series of numbers assigned by Visa/MasterCard to a member institution, which identifies that institution in transaction processing. The BIN comprises the first six digits of a standard credit card number.
Bank Card
A card issued by a banking institution with a MasterCard or Visa brand.
Batch
A group of approved credit card transactions, usually accumulated during one business day.
Batch Deposit
The electronic depositing of a batch file transmitted to the transaction processor for settlement.
Batch Processing
The authorization of transactions offline when immediate approval is not required. Transactions are collected in a batch and sent as one transmission for authorization and/or settlement. Batch processing is generally used with mail order/telephone order (MOTO) transactions.
Bisynchronous Communication
A communication method that transmits continuously with no start and stop between the information bytes.
Browser
A software application used to locate and display Web pages
Business Card
A payment card typically issued to and used by owners of small businesses.
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C
Call Center
An authorization request response displayed on the credit card terminal screen, generated by the issuer or through stand-in processing. The merchant must then call for a voice authorization. If an approval is given, the user must enter the approval code manually into the POS device as a "force" or "post-authorization."
Capture
Receiving and storing transaction data at the processor's host computer, to be submitted later for processing and payment.
Card Identification Number/Card Identifier (CID)
An American Express and Discover verification process that utilizes a non-embossed three- or four-digit number printed when authorizing credit card transactions where the physical card is not present.

On American Express cards, the CID is a four-digit code printed on the front of the card. On Discover cards, the CID is a three-digit code printed next to the card number in the signature panel.

For a list of CID codes, click here.
Card-Not-Present
A type of card transaction in which the card is not present at the point of sale for the magnetic stripe to be read. These are considered higher risk transactions.
Card Present
A type of transaction in which the card is present and is swiped through an electronic device that reads the contents of the magnetic stripe on the back of the card.
Card Reader
Input device on a card terminal that translates the information stored on the magnetic stripe on the back of a card.
Cardholder
The person to whom a payment card is issued, or an additional person authorized by the original cardholder to use the card.
Cardholder Account Number
A sequence of numbers assigned specifically to a cardholder account that also identifies the issuer and type of payment card. The cardholder account number is the embossed number imprinted on the payment card.
Cardholder-Initiated Chargeback
A chargeback that results when a cardholder contacts the card issuer and refuses to accept a charge appearing on a monthly billing statement. A cardholder has 90 days to initiate a chargeback.
Cash Advance
A transaction in which a cardholder obtains cash in person at the branch of a member financial institution or ATM. This is the only method of receiving cash from a credit card that is approved by the payment brands.
CCD
A credit or debit entry, initiated by a merchant, to consolidate funds of that organization, from its branches, franchises or agents, or from other organizations; or to fund the accounts of its branches, franchises or agents or of another organization.
Chargeback
A challenge to a transaction initiated by the issuer or cardholder that is returned to the acquirer for resolution.
Chargeback Fee
The amount assessed by the acquirer for processing chargebacks.
Chargeback Reason Code
A numerical code that identifies the specific reason for a chargeback. MasterCard and Visa each have their own chargeback codes.
Check Card
A bank card that can be used with a PIN at an ATM or without a PIN at the point of sale, also known as an offline debit card. When used at the point of sale, the transaction is processed through interchange as a credit card transaction with the funds debited from the cardholder's checking account.
Check Digit Verification (MOD-10 check)
A check digit is the last position of a card account number, generated from an algorithm performed on a primary card account number. Verification of this number is referred to as a MOD-10 check and is used to validate a credit card number.
Check Guarantee
A service that guarantees check payment to a merchant up to a specified amount. However, merchants are required to perform correct authorization procedures.
Check Reader
A device that reads the numbers encrypted on the bottom of most checks.
Check Verification
A service that provides merchants with some security against bad checks. The person writing the check is matched against a national negative file database to flag outstanding or bad checks on record from other members of this service.
Ciphertext
The encrypted text of a message, which may be decrypted only by someone who has the correct key.
Close
Sending a merchant's completed transactions to the host for processing. (See also "Settlement")
Code 10 Authorization
If the POS device displays "Lost or Stolen Card," or "Pick Up Card" or a similar message, the merchant should call the authorization center for a Code 10 Authorization. The operator will ask questions to determine if the transaction is valid.
Commerce Service Provider (CSP)
An organization that hosts commerce software applications on its own servers within its own facilities.
Commercial Cards
Formal name for the following three types of cards:
  • Corporate Card – usually issued to the employees of a large corporation where the corporation assumes all liability for the card's usage.
  • Purchasing Card – issued to corporations. It allows the corporation numerous parameters to control daily and monthly spending limits, total credit limits and where the card may be used. Many employees may be issued the same card number.
  • Business Card – similar to the Corporate Card, but issued to a business with fewer employees. Each employee is responsible for his or her purchases.
Compliance
Compliance to the Visa and MasterCard regulatory bylaws. Also, a method of resolving a dispute between members if no chargeback reason code applies. The challenging member must prove financial loss due to a violation of MasterCard or Visa rules by the other member.
Counterfeit Card
A plastic card that has been fraudulently printed, embossed or encoded to appear to be a genuine bank card, but which has not been issued by a Visa or MasterCard member. It could also be a card which was originally issued by a member, but was subsequently altered without the issuer's knowledge or consent.
Credit
A refund or price adjustment given for a previous purchase.
Credit Card
A plastic card with a credit limit used to purchase goods and services and to obtain cash advances on credit. The cardholder is then billed by the issuer for repayment of the credit extended.
Credit Slip
A form stating a refund or price adjustment will be credited to a cardholder account. Also referred to as a credit voucher or credit draft.
Cryptography
The process of protecting information by transforming it into an unreadable format. The information is encrypted using a "key" that makes the data unreadable. It is later decrypted, making the information readable again.
CVC2
Card Validation Code - MasterCard term for the three-digit code printed next to the card number in the signature panel and used as part of the authorization process.
CVV2
Card Verification Value - Visa term for the three-digit code printed next to the card number in the signature panel and used as part of the authorization process.
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D
Data Encryption
The scrambling of data so only the intended users can read and understand the encrypted information.
DBA
Doing Business As - the name a business uses to operate.
Debit Card
A bankcard used to purchase goods and services and to obtain cash, which debits the cardholder's personal checking account. During online debit transactions, the cardholder must enter a PIN.
Debit Switch
A portal that transmits debit data between gateway banks and debit card issuers - also referred to as "Debit Network." Only financial institutions may be members of debit switches.
Decline
A response from the card issuer denying the use of the card for the attempted transaction. If a request for approval is declined, the merchant must ask the cardholder for another form of payment.
Demand Deposit Account (DDA)
A checking account.
Derived Unique Key Per Transaction (DUKPT)
A method of PIN pad encryption.
Dial-Up Terminal
An authorization terminal that uses a telephone line to communicate with the authorization center.
Digital Certificate
An encrypted attachment to an electronic message, used for security purposes. The most common use of a digital certificate is to verify that a user sending a message is who he or she claims to be. The receiver is also provided with a way to encode a reply.
DIP Switches
Dual In-Line Package Switches - a series of connected switches that determine the proper configuration for a payment card terminal printer.
Direct Response
Term used to describe a merchant processing primarily non-face-to-face or card-not-present transactions.
Discount Rate
The fees charged by the card acquirer to the merchant for processing payment card transactions.
Display
The backlit panel on a payment card device that shows characters on the screen.
Duality
The membership of a financial institution in both MasterCard and Visa associations.
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E
E-commerce
Electronic Commerce - the sale and purchase of goods or services over the Internet.
ECR
Electronic Cash Register - a cash register that also emulates a point-of-sale terminal for processing credit card transactions.
EDC
Electronic Draft Capture - the use of a point-of-sale device to authorize and settle credit card transactions.
Electronic Benefits Transfer (EBT)
The automation of government benefits through electronic authorization, data capture and settlement processes. Plastic cards with magnetic stripes are used, eliminating paper benefits and coupon distribution.
Electronic Check Acceptance/ Electronic Check Processing (ECA/ECP)
Process that converts a paper check into an electronic check at the point of sale. The check is electronically processed through the ACH network.
Electronic Funds Transfer (EFT)
An electronic system that automatically moves funds, e.g., an ATM withdrawal or pay-by-phone transaction.
Encryption
Method of scrambling data to protect a cardholder's personal information.
Entitlement
License or permission to accept a particular type of payment card or other payment vehicle.
Erasable Programmable Read Only Memory (EPROM)
Industry-initiated standards used to identify terminal types and components
Exceeded Timeliness
A transaction that is deposited too late to qualify for the best interchange rate.
Expiration Date
The embossed date on a bankcard. After that date, the card becomes invalid and should no longer be accepted.
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F
Factoring
When a legitimate merchant processes another merchant's transactions in return for payment. This practice is forbidden by the associations.
File Transfer Protocol (FTP)
A protocol used to transfer files over a TCP/IP network (Internet, UNIX, etc).
Financial Institution
Any organization in the business of moving, investing or lending money, dealing in financial instruments or providing financial services. This includes commercial banks, thrifts, federal and state savings banks, saving and loan associations and credit unions.
Fleet Card
Payment card designed mainly for fueling, maintenance and repairs of corporate motor vehicles. Fleet cards are normally used to provide specialized reporting.
Folio
A number assigned by a lodging merchant for tracking a guest's charges.
Force
The process by which a voice-authorized transaction is key-entered to be settled electronically with a batch of transactions. Also known as a post-auth.
Frame Relay
A TCP/IP link for data that has high transmission speeds, low network delay, high connectivity and efficient bandwidth use.
Fraud Investigation
The process of identifying suspicious merchant or cardholder activity.
Front-End Network
Network provider responsible for authorizing and capturing transactions and forwarding the information to the back-end network.
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G
Gateway
Manages the electronic connection between consumers and their financial institutions and transmits data.
Gift Card
A reusable, stored-value card that enables merchants to have an electronic alternative to paper gift certificates.
Good Faith
An attempt by a card association member to resolve a dispute with another member in writing. A good-faith attempt at resolution must be made before filing a compliance case.
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H
Hard Decline
A declined authorization attempt resulting from a lost or stolen card, pick-up card, etc. A Code 10 call should be made by the merchant to the authorization center.
Hologram
A laser-created photograph that uses a three-dimensional image that is difficult to duplicate. Used as an anti-counterfeiting measure on many payment cards.
Host Capture System (HCS)
A transaction is transmitted with an authorization request to the host computer at the front end, the information is captured at the host, then sent back to the POS device. Since the information is already stored at the host, it can be settled without the merchant performing a settlement function.
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I
Idle Prompt
The standard display on a payment card terminal waiting to process the next transaction.
Imprinter
A device used to imprint embossed card information onto a sales draft for payment card transactions. An imprinter is used if the card is present and the POS device cannot read the contents of the magnetic stripe.
Integrated Services Digital Network (ISDN)
A digital phone service link capable of supporting up to three types of communication devices simultaneously.
Interac
National debit card network in Canada.
Interchange
The exchange of transaction data between acquiring and issuing institutions.
Interchange Fees
Fees paid by the acquirer to the issuer to compensate for transaction-related costs. MasterCard and Visa establish interchange fee rates.
Internet Service Provider (ISP)
An organization that provides access to the Internet.
Issuer, Issuing Bank
The financial institution and member of Visa or MasterCard that holds contractual agreements with, and issues cards to, cardholders.
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L
Leased Line
A dedicated telecom connection with either point-to-point or multi-point configuration.
Level I Data
Level I purchasing card data includes the same information captured during a traditional credit card purchase transaction. This includes: total purchase amount, date, merchant category code and supplier/retailer name.
Level II Data
Level II purchasing card data includes the same information captured at Level I, plus the following: sales tax amount, customer's accounting code, merchant's tax ID number, applicable minority – and women-owned business status and sales outlet ZIP code.
Level III Data
Level III purchasing card data includes the same information captured at Levels I and II, plus the following: quantities, product codes, product descriptions, ship to ZIP, freight amount, duty amount, order/ticket number, unit of measure, extended item amount, discount indicator, discount amount, net/gross indicator, tax rate applied, tax type applied, debit or credit indicator and alternate tax identifier.
Line of Credit
The amount of credit a lender will extend to a borrower over a specified period of time.
Lockbox
A service that processes payments by check and credits the appropriate business.
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M
Magnetic Ink Character Recognition Number (MICR Number
The bank routing and transit, checking account number and check number encoded at the bottom of a check that can be used to authorize the check
Magnetic Stripe
A panel located on the back of a payment card containing magnetically encoded cardholder account information.
Magnetic Stripe Reader
A point-of-sale device that reads the encoded information from the magnetic stripe when the card is passed through the reader. Readers may read Track Two, which contains the cardholder account number and expiration date, or both Track Two and Track One, which contains the cardholder name.
MasterCard International Incorporated
A member-owned international bankcard association, governed by a board of directors, which licenses members to issue cards or accept merchant drafts under the MasterCard Program. MasterCard owns and operates its own international processing network.
Media
The documentation of monetary transactions (i.e., sales drafts, credit slips, computer printouts, etc.).
Media Retrieval Requests
Media retrieval is the process of obtaining paper documents from a centralized location. There are two types of media retrieval requests:
Member
A financial institution that is a member of Visa and/or MasterCard. A member is licensed to issue cards to cardholders (issuer) and/or accepts merchant drafts (acquirer).
Merchant
Store owner or seller of products.
Merchant Agreement
The written contract between the merchant and acquirer that details their respective rights, responsibilities and warranties.
Merchant Bank
See Acquirer.
Merchant Category Code (MCC)
A universal four-digit merchant classification code that identifies the merchant by type of processing, authorization and settlement. Similar to a Standard Industrial Classification (SIC), but more defined.
Merchant Discount
The fee an acquiring member charges the merchant to cover the costs of providing deposit credit and handling credit card sales transactions. See Discount Rate.
Merchant Identification (MID) Number
The identification number assigned to a merchant by the acquirer.
Method Of Payment (MOP)
The way a merchant chooses to accept payment for products or services. Examples include: MasterCard, Visa, American Express, Discover, Carte Blanche, Diners Club, JCB, Electronic Check and private label cards.
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N
NACHA
NACHA develops operating rules and business practices for the Automated Clearing House (ACH) Network and for electronic payments in the areas of Internet commerce, electronic bill and invoice presentment and payment (EBPP, EIPP), e-checks, financial electronic data interchange (EDI), international payments and electronic benefits services (EBS). Additional Information: http://www.nacha.org/
Network
An entire system of communication hardware and software used to transfer electronic information during the authorization and settlement process.
Non Face-to-Face Transaction
Any transaction in which the card is not presented, such as a phone, mail or Internet purchase. See Card-Not-Present.
No-Show
A charge to a cardholder account by a lodging merchant if the person either fails to arrive or fails to cancel the guaranteed reservation.
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O
Offline Debit
Debit transaction that occurs when a Visa/MasterCard check card is authorized through the credit card system and the amount is debited from the cardholder's checking (DDA) account.
Offline Transaction
A transaction that is authorized through a voice authorization and later keyed into a POS terminal prior to settlement.
OK Number
A validation number from the host computer confirming a successful batch deposit.
Online Transaction
A transaction that is authorized electronically from the front-end network.
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P
PBX Access Code
An access number that is dialed to reach an outside line.
Personal Identification Number (PIN)
A numeric code used as verification to complete a transaction via a payment card. The number is entered into a keypad and is encrypted to travel along with the authorization.
Pick Up Card
An issuer's electronic response to an authorization request, asking that the card be retained by the merchant and returned to the issuer.
Point-of-Purchase Conversion (POP)
A one-time ACH debit from a consumer's bank account for in-person purchases made at the point-of-sale; upon receipt of a check and signed authorization.
Point-of-Sale (POS)
The location at which a payment card transaction occurs, usually by way of a device such as a credit card terminal or cash register.
Point-of-Sale Terminal (POS Terminal)
A terminal at the point of sale, connected via telecommunication lines to a central computer. Authorization, recording and transmission of electronic transactions are performed through the terminal.
Posting
The process of recording debits and credits to an account.
PPD
A credit or debit entry, initiated by a merchant, pursuant to a standing, or one time authorization from a consumer, to effect an electronic funds transfer, to or from a consumer's bank account.
Prenote
In the electronic check-processing environment, a non-dollar transaction sent through the ACH network for the purpose of verifying the accuracy of the cardholder's account data.
Presentment Currency
The currency in which a purchase is authorized through Visa, MasterCard or American Express.
Private Label Card
A card issued by a merchant that can only be used in the issuing merchant's business. An example would be a department store credit card.
Processing Fees
The fees associated with the processing of credit card transactions.
Processor
A company responsible for processing interchange transactions - operated by an acquirer or acting on the acquirer's behalf.
Protocol
A set of rules that allow data communications to work.
Purchasing Card
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R
RAM (Random Access Memory)
Short-term memory for a computer or payment card terminal.
Reason Code
A two-digit code identifying the reason a chargeback was initiated.
Re-authorization (re-auth, add auth)
To request an additional amount to be authorized on an existing transaction. Used in the lodging industry when the original authorization is not sufficient to cover the charges.
Recurring Transaction
A transaction charged to a cardholder's account (with prior permission) on a periodic basis for recurring goods and services, i.e., health club memberships.
Referral
The message received from an issuing bank when an attempt for authorization requires a call to the Voice Authorization Center.
Refund
A refund occurs when the merchant rebates all, or a portion, of an original transaction amount to the cardholder. Refunds are made to the same card that was used for the original transaction. Similar to a Credit.
Representment
An attempt to reverse a chargeback initiated by a merchant or acquirer to the issuing bank that presented the chargeback, backed by supporting documentation.
Retail Transaction
A face-to-face transaction in which the cardholder presents a card to the merchant to pay for goods or services.
Retrieval Request
A request by the issuer to the acquirer for a copy of the original sales ticket.
Reversal
When an acquirer successfully represents a chargeback to the issuer, the chargeback is reversed and the funds are returned to the merchant.
ROM (Read-Only Memory)
Memory and information that cannot be changed.
RS232
The standard port on POS device used to support a wireless transmission via VSAT, Frame, VPN or Motient. May also be used with various peripheral devices i.e. Check Reader or Personal Computer.
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S
Sales Transaction Fee
The amount the financial institution charges a merchant for each sales transaction.
Settlement
The process in which a merchant transmits batches of transactions to the acquirer. In interchange, it is the process by which acquirers and issuers exchange financial data resulting from sales transactions, cash advances, merchandise credits, etc.
Settlement Currency
The currency in which a merchant receives funds after the completion of a foreign exchange conversion.
Smart Card
A payment card with a built-in microprocessor (chip) that stores information. Smart cards can be used for stored-value cards, credit cards, loyalty programs and security access.
Soft Decline
A declined authorization attempt that does not necessarily mean the card is bad (i.e., call referral, issuer unavailable or cardholder over limit). These transactions may be resubmitted a day or two later in an attempt to obtain a valid authorization.
Software Development Kit (SDK)
A "kit" that is built to help a developer incorporate software into another program or system.
Split Dial
The capability of a card terminal to dial different telephone numbers to obtain an authorization or settlement of different card types.
Standard Industrial Code (SIC)
A universal four-digit code that designates a merchant's industry type. Similar to an MCC code.
Stored Value Card
A stored value card is used by a merchant to issue spending credit to their customers. The merchant's customers are given a magnetic stripe card in exchange for money received, merchandise returned or other considerations. The card represents a dollar value that the merchant's customer can either use or give to another individual. There is no security associated with the card itself. The actual record of the balance on the card is maintained on a stored value card database.
Submission
A file sent by the merchant that contains one or more transactions.
Summary Adjustment
A correction to a deposit, made by the acquirer, when there is an error in the submitted deposit.
Synchronous
Communication method that transmits continuously with no stops and start bytes between information bytes.
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T
T&E Cards
Cards that are developed for and used primarily in travel-related services.
T&E Merchant
An airline, car rental company or lodging establishment with a primary function of providing travel-related services.
TEL
An electronic debit from a consumer's bank account based on oral authorization by phone. A company can only initiate the telephone call when there is an existing relationship with the consumer.
Telemarketing
Selling goods or services over the phone, for payment by credit card.
Terminal Capture System (TCS)
The process in which transactions are stored in the terminal until the batch is settled to the host. Most often used in restaurant applications where tip adjustments need to be made.
Terminal Identification Number (TID)
Number identifying a merchant to the front-end network.
Track One
Track One information, stored on the magnetic stripe on the back of a card, has the cardholder's name in addition to the account number and expiration date stored in it.
Track Two
Track Two information, stored on the magnetic stripe on the back of a card, has the account number and expiration date.
Transaction
Any action between a cardholder and a merchant or member that results in activity on the account, such as a purchase, cash advance or credit.
Transaction Date
The actual date on which a transaction occurs.
Transaction Fee
The amount a merchant pays per transaction for processing.
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V
Valid Date
The date embossed on a payment card stating when the card may first be used.
Value Added Reseller (VAR)
A third-party that certifies their software to be used on a processor's system.
Visa USA
A member-owned national bankcard association, governed by a board of directors, which licenses members to issue cards and accept merchant drafts under the Visa Program. MasterCard owns and operates its own international processing network.
Voice Authorization
Transactions authorized by a voice operator. Voice-approved transactions must be "forced" into a terminal batch for settlement.
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W
WEB
An electronic debit from a consumer's bank account created during a secure Internet session between a company and consumer.
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Z
Zero Floor Limit
Requires that all transactions receive authorization.
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Compass Fleet and Merchant Services Solutions, LLC Privacy Statement
Compass Fleet and Merchant Services Solutions, LLC is committed to safeguarding the privacy and security of the information we collect. This statement explains the policies we follow with respect to the handling of customer information collected by Compass Fleet and Merchant Services.
Commitment to Privacy and Security
Compass Fleet and Merchant Services Solutions, LLC and its operating entity Paymentech, LLC, and its affiliates, (collectively, "Compass Fleet and Merchant Services") are committed to safeguarding the privacy and security of the information we collect. This Privacy Statement explains the policies we follow with respect to the handling of customer information collected by Compass Fleet and Merchant Services.
Information We Collect
Compass Fleet and Merchant Services's customers, the customers of its affiliates, and the customers of other third-parties for which Compass Fleet and Merchant Services may provide outsourced or subcontracted processing services, ("Merchants") are businesses and other legal entities desiring to accept credit or debit cards or other payment methods, as payment for goods or services. Compass Fleet and Merchant Services does not have direct relationships with, or collect information directly from, individual consumers other than in their capacity as owners or operators of a commercial enterprise. Compass Fleet and Merchant Services does not provide services for consumer, personal, family or household purposes. The information we receive and collect is strictly related to our business customers and the payment transactions that we assist them in executing, as well as from prospective or potential business customers or website visitors who may be interested in learning more about our services ("Customer Data"). The transaction information we receive from our Merchants may include personal financial information about their customers or applicants (e.g., name, address, credit or debit card account numbers and expiration dates, etc.) who may be individual consumers and other cardholders ("Cardholder Data"). Compass Fleet and Merchant Services understands that such information is sensitive and takes appropriate steps to protect the confidentiality and security of all information collected by Compass Fleet and Merchant Services in accordance with this Privacy Statemen.
Customer Data and Cardholder Data
Use and disclosure of Customer Data collected by Compass Fleet and Merchant Services varies based on the information source and type, as set forth below:
1. Browsing the Website. When you browse Compass Fleet and Merchant Services's website, we may collect information regarding the domain and host from which you access the Internet, the Internet Protocol address of the computer or Internet Service Provider you are using, and anonymous site statistical data. In addition, we may collect information that you voluntarily provide us via online forms and questionnaires, including information you may provide about your business in order to apply to become a Merchant, or thereafter if you use any of our online Merchant services. Compass Fleet and Merchant Services's website is intended for commercial use only, and we collect, retain and use information about visitors to our websites only for specific business purposes, including: (i) to respond to requests for information about our products and services (see "Your Inquiries" below), (ii) to administer the website or improve site performance, (iii) to provide customer support (e.g., to allow a prospective Merchant to complete an online account application, to allow a Merchant to view and manage records, accounts and funds, or to help enhance our products and services); (iv) for security purposes and to combat fraud (e.g., to protect against unauthorized access to Compass Fleet and Merchant Services systems, or Merchant accounts and information), (v) to generate broad statistical and demographic information, and (vi) to comply with certain laws, regulations, and card association rules and regulations. In addition, when you link to Compass Fleet and Merchant Services's website from the website of any third-party advertiser, we may receive information about you from such third-party, including your contact information and information stored in "cookies" on such third-party's website. Please check the privacy policy of these websites concerning what information may be collected by the third-party and shared with Compass Fleet and Merchant Services. Such information is used by us only for the purposes set forth above with respect to information collected directly from you at our own website.
2. Your Inquiries When you complete and submit a form on our website, send us an e-mail, send us a fax, or contact us by telephone to solicit information about our services or the company in general, Compass Fleet and Merchant Services may store the inquiries and their contents. Information you submit via an inquiry is collected only with your knowledge and active participation, and may be used by Compass Fleet and Merchant Services to respond to your inquiries, to contact you, to inform you of services of Compass Fleet and Merchant Services or its partners that may be of use to you, and for similar business purposes. Information collected during the course of an inquiry will not be sold or otherwise disclosed to any third party; provided that such information may be shared internally with our affiliated entities for the business purposes set forth above.
3. Opening an Account or Using Compass Fleet and Merchant Services Services. When you submit an application to obtain a Merchant account and become a Merchant, you will be required to provide us with certain information about your business, and its owners and officers, which may also act as guarantors of the Merchant's obligations. Compass Fleet and Merchant Services may also obtain and store information about the Merchant, and its officers, owners and guarantors, from consumer reporting agencies, credit bureaus, relevant financial institutions, and other entities. Compass Fleet and Merchant Services may use, retain and disclose this information to (i) comply with any applicable federal legislation requiring Compass Fleet and Merchant Services to obtain, verify, and record information that identifies each entity with which it establishes a Merchant relationship, and (ii) evaluate your eligibility for a Merchant account, which may involve disclosure to consumer reporting agencies, commercial credit bureaus, and relevant financial institutions. Compass Fleet and Merchant Services may also use your information to contact you about other Compass Fleet and Merchant Services offerings and services. If you are, or become a Merchant, Compass Fleet and Merchant Services may disclose your information during the course of providing such services to card associations, banks and other financial institutions that are involved in the course of processing or screening the transaction, and to third parties that have contracted with Compass Fleet and Merchant Services to perform certain functions of our services on our behalf. In addition, Compass Fleet and Merchant Services may use, or disclose your information to third parties for the additional purposes of facilitating and completing merchant-initiated or authorized transactions, complying with federal, state and local laws, including credit reporting laws and card association rules, assisting in preventing fraud, or informing you about general company news, product updates and developments, card association rules, and industry trends, offering you products and services that may be of interest to you, or as otherwise may be permitted or required by applicable law.
4. Customers of Our Merchants. A customer who purchases a product or service from a Merchant using a credit or debit card, or any other method of payment for which we provide the Merchant with transaction processing services, is required to provide that Merchant with certain Cardholder Data in order to make the purchase, including the customer's name and credit card number. Our Merchants may transmit certain parts of this information to Compass Fleet and Merchant Services for the purpose of processing the transaction. During the course of providing processing services to our Merchants, we may disclose such Cardholder Data to banks, processors, credit and debit card organizations and associations, and other financial institutions that are involved in the course of effecting the transaction represented by the Cardholder Data. In addition, we may disclose some or all of the information we collect, to our affiliated companies or to non-affiliated third parties (subject to contractual confidentiality provisions to protect such information) such as a vendor or service company that we hire to prepare our Merchants' account statements or to provide support or services for one or more of our products. We will not disclose Cardholder Data to any third party, except to facilitate and complete transactions submitted to us by Merchants, or otherwise in the course of providing services to our Merchants, or to comply with federal, state and local laws or the rules and regulations of the respective card organizations or other payment entities (e.g. Visa, MasterCard, American Express, NACHA, etc.).
In addition, Compass Fleet and Merchant Services may share certain Customer Data (but not Cardholder Data) with its affiliated entities for marketing purposes and other business purposes.
Protection of Cardholder Data and Customer Data
Compass Fleet and Merchant Services has implemented various measures, including appropriate administrative, technical and physical safeguards, designed to ensure the security and confidentiality of Cardholder Data and Customer Data, protect against anticipated threats or hazards to the security or integrity of such information, and protect against unauthorized access to or use of such information. Such measures may include, among others, encryption, physical access security and other appropriate technologies. Compass Fleet and Merchant Services continually reviews and enhances its security systems, as necessary. Compass Fleet and Merchant Services is subject to the detailed rules and regulations of the various credit and debit card organizations and networks (i.e. VISA, MasterCard, American Express, NYCE, Star, etc.), relating to the security and safeguarding of Cardholder Data, including, but not limited to, the Payment Card Industry Data Security Standards ("PCI"), VISA Inc.'s Cardholder Information Security Program ("CISP") and MasterCard International's Site Data Protection Program ("SDP"). Compass Fleet and Merchant Services endeavors to comply with all such rules at all times. Pursuant to such rules and regulations, Compass Fleet and Merchant Services is required to undergo periodic third-party assessments and periodic network scans to ensure that, among other things, Compass Fleet and Merchant Services has installed and maintains a firewall configuration to protect data; does not use vendor-supplied defaults for system passwords and other security parameters; protects stored data; encrypts transmission of Cardholder Data and sensitive information across public networks; uses and regularly updates anti-virus software; develops and maintains secure systems and applications; restricts access to data to those with a business need-to-know; tracks and monitors all access to network resources and Cardholder Data; regularly tests security systems and processes; assigns a unique ID to each person with computer access; restricts physical access to Cardholder Data; and maintains a policy that addresses information security. Additional information regarding the requirements of VISA's CISP and Mastercard's Site Data Protection program (SDP) can be found on the VISA, Inc. and MasterCard International Web sites.
Responsibility of Merchants
Merchants are also required to comply with various rules and regulations of the various credit and debit card organizations and networks relating to the security and safeguarding Cardholder Data, including, but not limited to, PCI, CISP and SDP. Merchants may be required to undergo periodic third-party data security assessments and periodic network scans to ensure that appropriate security measures are in place.
Additional Internet Privacy Policies
Cookies. The Compass Fleet and Merchant Services website may create a small data file, or "cookie", on the hard drive of your computer in order to retain information that is used by our website. Compass Fleet and Merchant Services uses cookies for a number of purposes, including to:
  • Access your information when you "sign in", so that we can provide you with customized content in online areas such as Compass Fleet and Merchant Services Online.
  • Display the most appropriate banners to Compass Fleet and Merchant Services and third party offerings based on your activity while on Compass Fleet and Merchant Services's site.
  • Conduct research to improve Compass Fleet and Merchant Services content and services.
  • Require you to re-enter your Compass Fleet and Merchant Services password after a certain period of time has elapsed to protect you against others accidentally accessing your account contents or otherwise accessing your account contents without authorization.
Third-Party Web Sites. Compass Fleet and Merchant Services may create links to third-party Web sites. In addition, Compass Fleet and Merchant Services may authorize third-parties to create links to Compass Fleet and Merchant Services websites. Compass Fleet and Merchant Services is not responsible for the content or privacy practices employed by third-party Web sites. Nor does Compass Fleet and Merchant Services control or warrant the utility, merchantability or workmanship of the products or services offered at third-party Web sites.
Web Optimization. Compass Fleet and Merchant Services also may use cookies to track advertising leads and campaigns from banner advertisements, third party advertisement services and third party web optimization services. Compass Fleet and Merchant Services may hire third party companies to track and report performance of advertising and marketing campaigns to and from Compass Fleet and Merchant Services and third party web sites. These companies may also set cookies and use related technology, such as tracking pixels.
Tracking pixels (also known as action tags, web beacons, or transparent GIF files) and other similar tracking technologies may be used to collect and store information about user visits, such as the user's anonymous cookie ID, page visits and duration, and the specific ad or link(s) that the user clicked on to visit the site. No personally identifiable information is stored on these cookies or web pixels. This user activity information is reported to us in the aggregate and is anonymous. We use this information in the aggregate to understand, for example, the effectiveness of our advertising and marketing.
Children. Compass Fleet and Merchant Services does not solicit or knowingly accept information from persons under the age of eighteen (18). Our web sites are not designed with the intent to attract or encourage viewing by children.
Safe Harbor Participation for EU Cardholder Data. Compass Fleet and Merchant Services recognizes that the European Union ("EU") has an "omnibus" data protection regime established pursuant to the European Commission Data Protection Directive (95/46/EC) (the "Directive"). The Directive generally restricts the transfer of personally identifiable information about individuals in the EU to the United States, unless there is "adequate protection" for such information when it is received in the United States. In addition to processing transactions for its own Merchants based in the United States, Compass Fleet and Merchant Services provides processing services in the U.S. for its European affiliate, Compass Fleet and Merchant Services Europe Limited, and its European customers. To address the restrictions in the Directive, Paymentech, LLC in the United States ("CPL") adheres to the EU Safe Harbor Privacy Principles published by the US Department of Commerce ("Safe Harbor") with respect to Cardholder Data about Merchants' customers in the European Union that we receive in the United States ("EU Cardholder Data"). We act as a data processor on behalf of Merchants with respect to EU Cardholder Data, and accordingly follow each Merchants' instructions with regard to the collection, processing and protection of EU Cardholder Data. Our Merchants act as the data controller for any EU Cardholder Data. If any consumers in the EU have any questions about our handling of their EU Cardholder Data, such consumers should first contact the Merchant as this may be the most efficient means of addressing such issues. Consumers in the EU may also reach out to the CPL Safe Harbor Privacy Contact in the Legal Department at Compass Fleet and Merchant Services Solutions, 14221 Dallas Parkway, Dallas, Texas, 75254. Questions that are not otherwise resolved with the Merchant and/or CPL may also be directed to local EU data protection authorities.
Paymentech, LLC, complies with the U.S.-EU Safe Harbor Framework and the U.S.-Swiss Safe Harbor Framework as set forth by the U.S. Department of Commerce regarding the collection, use, and retention of personal information from European Union member countries and Switzerland. Paymentech, LLC, has certified that it adheres to the Safe Harbor Privacy Principles of notice, choice, onward transfer, security, data integrity, access, and enforcement. To learn more about the Safe Harbor program, and to view Paymentech, LLC's certification, please visit http://www.export.gov/safeharbor/.
Modifications to Privacy Statement
We continue to review our policies and procedures to assure that they are effective in meeting our commitments to our Merchants. Compass Fleet and Merchant Services reserves the right to change this Privacy Statement without notice at any time and from time to time, including as needed to comply with the rules and regulations of the various debit and credit card organizations, or to comply with applicable local, state and federal laws and regulations.
Inquiries
If you have a question or comment regarding this Privacy Statement, please contact:
Compass Fleet and Merchant Services Solutions
Chief Compliance Officer
14221 Dallas Parkway
Dallas, Texas 75254
Compass Fleet and Merchant Services Solutions
Safe Harbor Privacy Contact
Legal Department
14221 Dallas Parkway
Dallas, Texas 75254
Terms of Use
PLEASE READ THESE TERMS AND CONDITIONS CAREFULLY.
By using a Compass Fleet and Merchant Services site, you are deemed to have agreed to all terms, conditions, use, and notices contained or referenced herein (the "Terms of Use"). Compass Fleet and Merchant Services reserves its right, at its discretion, to update or revise these Terms of Use. You should check these terms of use periodically for changes. By accessing a Compass Fleet and Merchant Services site after the posting of any changes to the terms of use, you acknowledge and agree to those changes, whether or not you have reviewed them.
Scope of Use
These terms of use apply to your use of all of the sites and services owned or operated by Compass Fleet and Merchant Services, LLC, its operating entity Paymentch, LLC, and its affiliates (collectively referred to in these terms of use as "Compass Fleet and Merchant Services"). Unless we say otherwise, all references to the Compass Fleet and Merchant Services sites in these terms of use include all such sites. These terms of use do not apply to your use of unaffiliated sites to which any of the Compass Fleet and Merchant Services sites only links.
Restrictions on Use of Materials
The content of this site and any other Compass Fleet and Merchant Services site is protected by copyright and trademark laws, and is the property of Compass Fleet and Merchant Services. Materials located within Compass Fleet and Merchant Services sites may be accessed only for your business' use. You agree not to sell, license, rent, modify, distribute, copy, reproduce, transmit, publicly display, publicly perform, publish, adapt, edit or create works from such materials or content or in any way exploit the material or content of a Compass Fleet and Merchant Services site. This means, you may download copies of posted materials for business use only, so long as you neither change nor delete any author attribution, trademark, legend or copyright or other proprietary notices. When you download copyrighted material, you do not obtain any ownership rights in that material. As noted above, reproduction, copying, or redistribution of any material within a Compass Fleet and Merchant Services site is strictly prohibited without the express written permission of Compass Fleet and Merchant Services. You also may not, without Compass Fleet and Merchant Services's permission, "mirror" any materials contained within any Compass Fleet and Merchant Services site or any other service. Any unauthorized user of any material contained within any Compass Fleet and Merchant Services site may violate copyright laws, trademark laws, the laws of privacy and publicity, and communications regulations and statutes.
Products
The information, materials, products and services within Compass Fleet and Merchant Services websites are subject to change. Not all products and services are available in all geographic areas. Your eligibility for particular products or services is subject to determination by and approval of Compass Fleet and Merchant Services and/or affiliated companies.
Links
These terms of use apply only to the Compass Fleet and Merchant Services sites, and not to the sites of any other companies or organizations, including those to which any of the Compass Fleet and Merchant Services sites may link. We are not responsible for the availability of any other site to which any of the Compass Fleet and Merchant Services sites link. We do not endorse or take responsibility for the content, advertising, products or other materials made available through any other site. Under no circumstances will we be held responsible or liable, directly or indirectly, for any loss or damage that is caused or alleged to have been caused to you in connection with your use of, or reliance on, any content, goods or services available on any other site. You should direct any concerns to that site's administrator or web master. Permission must be granted by Compass Fleet and Merchant Services for any type of link to any Compass Fleet and Merchant Services site. To seek permission, submit your request in writing to: Web Marketing Manager, C/O Compass Fleet and Merchant Services, 14221 Dallas Parkway, Building Two, Dallas, TX 75254. We reserve the right, however, to rescind any permission granted by us and to require termination of any such link to any of the Compass Fleet and Merchant Services sites, in our sole discretion at any time.
Warranty
The services, products, information, materials, and functionality on any Compass Fleet and Merchant Services site are provided "AS IS" and without warranties of any kind, either express or implied, including but not limited to the warranties of non-infringement of third party rights, title, merchantability, fitness for a particular purpose and freedom from computer virus or other harmful components. Neither Compass Fleet and Merchant Services nor any of its affiliated companies warrant the accuracy, adequacy, completeness or timeliness of information, materials, products and services, or functionality on a Compass Fleet and Merchant Services site or the error free use of a Compass Fleet and Merchant Services site.
Neither Compass Fleet and Merchant Services nor any of its affiliated companies nor any of its or their respective licensors or suppliers warrant or make any representations regarding the use or the results of the use of the services, products, information, materials and functionality within a Compass Fleet and Merchant Services site in terms of correctness, accuracy, reliability or otherwise.
Compass Fleet and Merchant Services is not a party to, and does not monitor, any transaction between users and third party providers of products or services.
Limitations on Liability
We will, under no circumstances, be liable for any damages, losses, or liabilities including without limitation, direct or indirect, incidental or consequential damages, losses, or liabilities, in connection with your use of a Compass Fleet and Merchant Services site or your reliance on or use or inability to use the information, materials, products, services, or functionality on this site, or in connection with any failure of performance, error, omission, interruption, defect, delay in operation or transmission, computer virus or line or system failure, even if Compass Fleet and Merchant Services is advised of the possibility of such damages, losses, or expenses.
Security
Compass Fleet and Merchant Services is committed to protecting the security of our users. At Compass Fleet and Merchant Services sites, we always use industry-standard security technologies when transferring and receiving Customer Data exchanged within our website. Please keep in mind, however, that no data transmission over the Internet or any wireless network can be guaranteed to be 100% secure. As a result, we cannot guarantee the security of any information you transmit using our website and you transmit such information at your own risk. Compass Fleet and Merchant Services further does not assume responsibility for use or disclosure of your information that are the result of unauthorized or illegal access to our systems or those of our vendors or partners.
Hyperlinks
Compass Fleet and Merchant Services is not responsible for the content of third party sites hyperlinked from this page, nor does it guarantee the products or services offered on third party sites. Your use of the hyperlinks is at your own risk. You should review the privacy statement of a web site before you provide personal or confidential information.
Applicable Law
Your use of this web site is governed by the State of Texas and applicable federal laws.
Your Acceptance of These Terms By using any of the Compass Fleet and Merchant Services sites, you acknowledge that you have read, understood, and agree to be bound by the Terms of Use. Please review the site's Terms of Use, and if you do not agree to the terms, do not use this site. Your continued use of any Compass Fleet and Merchant Services sites following the posting of changes to these terms will mean that you accept those changes.