CPP Study Deck 2 Flashcards
Client Organization
A company or organization that sponsors a Commercial card program; such as Business; Corporate; Purchasing (including Fleet); and any other program combining the functionality of these cards; in which cards are provided to users for business-related purchases. Such companies or organizations may be public- or private-sector companies; including sole proprietors and self-employed individuals.
Client Reference Number
An eight-digit number supplied by the establishment for electronic draft capture; electronic cash register; or direct solutions transactions.
Click Rate
On a Web page menu item; especially an advertisement; the ratio of the number of times it is selected (∫clicked∫) to the number of times it is viewed.
Client-Server
Any hardware-software combination that generally adheres to client-server architecture; regardless of the type of application.
Client-Server Architecture
Any network -based software system that uses client software to request a specific service; and the corresponding server software to provide the service from another computer on the network
Close Batch
The end-of-day or end-of-shift process in which the merchant balances and submits transactions for clearing and settlement. This process occurs on a terminal-based capture system. On a host-based capture system the host automatically generates the process at a predetermined time of day.
Closed-Loop
A system using a prepaid card within a boundary or a select group of merchants or at one particular merchant; such as mall cards that can only be used in the issuing shopping mall; major retailers such as Best Buy and Home Depot and campus cards that can only be used on the issuing campus. This type of program uses a proprietary network.
Closed System
A payment card system in which one organization both issues cards and acquires merchants. American Express and closed loop gift cards are examples of closed systems.
Co-Branded Cards
A customized branded card product for a specific retailer or service provider; such as General Motors; that wishes to solicit its customers.
Code “10”
A call made by a sales associate to the merchantπs voice authorization center when the appearance of a card or the actions of a cardholder suggest the possibility of fraud. The term ∫Code 10∫ is used so calls can be made without arousing suspicion while the cardholder is present. Specially trained operators then provide assistance to point-of-sale staff on how to handle the transaction.
Code of Federal Regulations (CFR)
The compiled administrative procedures by which federal agencies administer the laws passed by the U.S. Congress.
Cohabitation
The ability of multiple technologies to reside on the same card and not interfere with each other. An example is a magnetic stripe card with a chip embedded.
Cold Call
A lead-generation technique in which a salesperson calls on new businesses either physically or by telephone.
Collateral
Savings; bonds; insurance policies; jewelry; property; or other items that are pledged to pay off a loan or other debt if payments are not made according to agreed upon terms. Synonym: Security.
Collateral Material
Printed; broadcast; or other communications regarding marketing; including solicitations; promotional materials; advertisements; statements; statement inserts; direct mail solicitations; brochures; and telemarketing operator scripts.
Collected Funds
Funds for which final payment has been received.
Collections
A status or process by which borrowers or clients/customers have defaulted on their debts. Many companies hire collection agencies that specialize in recovering all or a portion of these debts for a fee. The fee sometimes includes a portion of the recovered monies.
Combined Terminated Merchant File (CTMF)
A database maintained by the card companies that lists all merchants terminated for cause.
Combined Warning Bulletin
The printed list of blocked numbers published jointly by Visa U.S.A. and MasterCard International. This list was discontinued in April 1994.
Commercial Card
A credit or debit card issued to businesses and corporations for travel and entertainment; fleet; business-related expenses; and procurement.
Commercial Card Enhanced Data Transport
A service that enables issuers to provide their Visa Commercial card customers with optional enhanced reporting of transaction information provided by merchants and acquirers.
Commercial Credit
Short-term credit that a seller gives to a buyer to pay for a service or product.
Commercial Relationship
An agreement between parties to do business together for the purpose of EBPP/EIPP. It may or may not include a contract.
Commercially Reasonable Time Frame
A period of time generally considered acceptable for a process in a given industry; taking into consideration the circumstances of the parties to the transaction. (Source: Billing.org)
Commission-Only Sales
Sales personnel who are not employed by a company but receive commissions instead of a salary when they effect a sale. These personnel are also considered “1099” personnel because they are issued IRS Form 1099 as proof of wages and for tax filing purposes.
Communications Processor Unit (CPU)
A computer embedded in a communications system. CPU is also an abbreviation for the central processing unit of a computer.
Compliance
A process for resolving disputes between card companies arising from violations of the operating regulations and verification by the member that a financial loss has occurred.
Compliance Filing
A formal case filing (on a completed regulations/rules violation form) submitted following an unsuccessful good-faith attempt to resolve the dispute.
Computer-Based Training (CBT)
Lessons or classes designed for self-study from computer programs.
Concentrator
- In data transmission; a functional unit that permits a common path to handle more data sources than there are channels currently available within the path. A concentrator usually provides communication capability between many low-speed; usually asynchronous channels and one or more high-speed; usually synchronous channels. Usually different speeds; codes; and protocols can be accommodated on the low-speed side. 2. A device that connects a number of circuits; which are not all used at once; to a smaller group of circuits for economy. (Source: Federal Communications Commission)
Concentrator
A financial institution or third-party service provider that a biller retains to handle payment and/or remittance data.
Confidentiality
The guarantee that a message will be legible to no one other than the intended recipient.
Confirmation
The acquirer’s electronic acknowledgment of the retrieval request.
Confirmation Number
A number provided by a hotel; motel or auto rental to verify a cardholderπs guaranteed reservation or advance resort deposit.
Confirmed Fraud Transaction
A transaction; reported by an issuer to the card companies; involving a card that was lost; stolen; never received; issued on a fraudulent application; counterfeit; or used fraudulently.
Congestion
Density of traffic when the load exceeds the capacity of a data communication path. (Source: Federal Communications Commission)
Connection Endpoint (CE)
A terminating device at one end of a layer connection within a service access point. Within VisaNet (Visa’s network); Visa Access Point (VAP) serves as the connection endpoints. Within BankNet (MasterCard’s network); MasterCard Interface Processor (MIP) serves as the connection endpoints.
Consolidator
A bill service provider that consolidates bills from multiple billers or other bill service providers (BSPs) and delivers them for presentment to the customer service provider (CSP). (Source: Billing.org).
Consumer
A person not engaged in commercial transactions.
Consumer Cards
The term used to identify all personal credit and debit cards.
Consumer Fraud
The commission of fraudulent acts by a consumer against a merchant. Some examples include writing bad checks; closing an account or having no account for checks; or intentional chargebacks.
Consumer-Operated Terminal (COT)
A self-service; usually a freestanding device such as an ATM or kiosk where the consumer initiates and consummates a transaction without the aid of a clerk. See also Cardholder- Activated Terminal.
Contact Smart Card
A smart card that connects to the reading device through direct physical contact between the smart card chip and the smart card reader. See ISO/IEC 7816. (Source: Smart Card Alliance)
Contactless Smart Card
A smart card whose chip communicates with the reader using RF (Radio Frequency) and does not require physical contact with the card reader. (Source: Smart Card Alliance)
Contactless Chip with dCVV/CVC3
The dCVV (Visa) and CVC3 (MasterCard) technology is a unique transaction identifier that is generated based upon public key/private key technology in combination with use of a contactless chip (discussed in the Contactless Chip Payments section). This transaction code is transmitted to the issuer for decryption and comparison to authenticate that the transaction being generated came from a valid card.
Controller
The device that captures and consolidates transactions from a group of terminals to be transmitted to another node or entity. For example; the POS devices in all lanes of one store are first transmitted to one store controller and then transmitted to an acquirer.
Control Panel
The access control system component that connects to all door readers; door locks; and the access control server. The control panel validates the reader and accepts data. Depending on the overall system design; the control panel may next send the data to the access control server or may have enough local intelligence to determine the user’s rights and make the final access authorization. Also called the controller or panel. (Source: Smart Card Alliance)
Control Totals
The amounts—usually representing the number of items; their total or other key information—used to help verify that received files are unchanged from the original transmitted files.
Controlled Disbursement
A disbursement arrangement in which a company is notified early in the day of the dollar amount of the items waiting to clear the account later that day; so they can fund the account with the exact amount to clear the items.
Convenience Card
A closed-loop prepaid card that is used by consumers to replace cash. The most successful of these card programs is the Starbucks card.
Convenience Check
Checks issued by credit or prepaid card companies to allow the cardholder an additional access to their line of credit or prepaid card balance; mostly for use in situations that do not take physical credit cards. In the case of a prepaid convenience check; the consumer would call the issuer for a confirmation number to be placed on the check. The check is now valid at retailers for cash.
Convenience User
A cardholder who pays an account balance in full on or before each payment due date. These cardholders incur no interest rate charges and are said to be taking advantage of the float of their funds; which could be the maximum of 30 days usage of money; without a charge.
Cookie
A small chunk of information stored on a computer by a Web site the user has visited that reminds that site about the user on the next visit. (Source: Federal Communications Commission)
Corporate Executive Card
A card serving senior executives and VIPs of mid-to large-size corporations. It has many enhancements to accommodate their meetings and trips; such as an automated expense report.
Corporate Fleet Card
Designed especially for shipping companies; the Fleet Card is a payment system for fuel and maintenance expenses. Every major trucking company issues a fleet card. Any driver can use it; but it can be limited for use only on particular vehicles.
Corporate Purchasing Card
A card that provides an efficient management system for companies’ purchasing processes and includes enhancements such as vehicle rental insurance; medical insurance for travelers; and travel and legal referral services.
Correction
A transaction conducted to correct an error after the customer has left the point-of-sale. It results in a credit adjustment entered as an online reversal or; if the error is discovered after cutover; as an offline adjustment.
Correspondent Bank
A bank that accepts deposits and performs banking services for other banks. Correspondent banking arrangements exist between local banks and banks located throughout the world.
Co-Sign
To sign a credit agreement with someone and share the debt with that person. The co-signer has liability if the primary or other person defaults. This practice is common for first-time credit applicants; especially parents for their children.
Co-Signer
The individual who has shared in the responsibility for the credit debt.
Cost of Capital
A company’s overall cost of funding their business may be made up of a combination of debt and equity costs. (Source: American Express)
Cost of Debt
A company’s cost of borrowing funds. If a company uses 100 percent debt to finance receivables; then the cost of funds will be equal to the cost of debt. (Source: American Express)
Cost of Funds
The dollar cost of interest paid or accrued on funds from various sources within a bank or lending institution. (Source: American Express)
Cost of Goods Sold (COGS)
The cost of direct materials; direct labor; and overhead attached to the units sold. The amount of money required to produce and distribute products or goods; including the cost of sales personnel to solicit and consummate a contract with a merchant.
Counterfeit Card
A plastic card that has been fraudulently printed; embossed; or encoded to appear to be a genuine bank card but has not been authorized by the card companies or issued by a member. A card originally issued by a member but subsequently altered without the issuerπs knowledge or consent.
Counterfeit Paper
Paper originating from the use of counterfeit cards for transactions.
Credential
The general identification device (both the physical device and the data it holds); commonly referred to as the ID token in physical access control systems. (Source: Smart Card Alliance)
Credit or Return
The return of a purchased item that results in the adding of the amount back to the cardholder’s line of credit. In a debit card environment; the credit or return transaction is a deposit to the debit cardholder’s access account. The merchant is debited the amount of return or credit.
Credit Authorization
The process of accessing a network and a database to verify that the customer’s credit card is valid and that the credit balance is sufficient to cover the purchase.
Credit Balance
On a revolving line of credit; the amount that the cardholder currently owes.
Credit Bureau
A company that keeps records of credit history for any card or loan. Anyone with authority to approve loans or lines of credit will examine a credit for the individual or company to determine their risk. The most common credit bureau agencies in the United States are Equifax; Experian (TRW); and TransUnion.
Credit Cap
The limit on the dollar amount of credit transactions that a company can originate from an account or entity.
Credit Card
Plastic cards that allow payments to be offset against a special-purpose account associated with a revolving line of credit and requiring some form of installment-based payment.
Credit Card Processor
A financial institution or its agent or third party that processes credit card or debit card transactions.
Credit Card Protection Service
Card registration and protection services offered through an agent that records the names; numbers; and issuers of the cards that the cardholder wishes to register and protect. When a card is lost or stolen; the issuer calls the service; and the service in turn notifies the card issuers.
Credit Counseling
Companies with professional counselors that give advice about using credit responsibly and consolidating debt.
Credit Deposit
The value of a merchantπs credit card purchases that are credited to its bank account after the acquiring bank buys the merchantπs sales slips; also called deposit credit. The deposit is credited but not funded until the acquiring bank gets the monetary value from the issuer during settlement.
Credit Draft Transaction
An offline manual food stamp transaction used to credit the cardholder’s account for the refund of a food stamp purchase.
Credit Life Insurance
Insurance that covers accounts with outstanding balances in the case of the death of the cardholder or a serious illness that makes the cardholder unable to pay the bill.
Credit Limit
The maximum amount the cardholder may owe to the issuer on the card account at any time.
Credit Loss
The amount lost (charged off) as a result of the cardholder’s failure to repay the amount owed on the account.
Credit Policy
The risk management guidelines detailing criteria to be evaluated before the issuance of a card to a cardholder or the approval of a merchant for card acceptance. The policy defines the acceptable level of risk for the portfolio.
Credit Rating/Grade
The measurement of a consumer’s or business’s credit worthiness. Normal grades are A through E.
Credit Record
An individual’s credit history.
Credit Report
A summary of an individual’s credit history. This report also includes facts such as age; address; marital status; employment history; and other information used to help a potential creditor evaluate credit worthiness.
Credit Risk
A party to a transaction is unable to meet its financial obligations either when due or at any time in the future.
Credit Scoring
A method for predicting the credit worthiness of a credit card applicant through statistical analysis.
Credit Schemes
A type of fraud that occurs when merchants or collusive employees deposit what appear to be legitimate transactions and then issue one or more credits to their personal Visa or MasterCard accounts. The credits zero out the sales; making such scams more difficult to detect.
Credit Slip
A paper or electronic representation of credit; issued to a cardholder on a prior credit card sale. Also called a credit voucher.
Credit Transaction
A payment transaction that pushes funds from the CSP or CPP to the BPP. (Source: Billing.org)
Credit Union
A democratically owned and controlled nonprofit financial cooperative that offers a variety of savings and lending services to members. Typically associated with a corporation or employer; such as the federal credit union used by Postal Service workers.
Creditworthy
Qualified to have credit.
Cross-Border Payments
ACH payments made between accounts in different countries; from the payment system of the country of origin through a gateway operator to the payment system of the country of receipt.
Cryptographic Algorithm
The formulas and key management processes used to encrypt and decrypt data and messages.
Cryptography
The science of ensuring that messages are secure.
C-Store
A term referring to a convenience store; such as 7-Eleven.
CTO (Corporate Travel Online)
An American Express travel reservation tool that allows users to book air; hotel; and car reservations online; 24 hours a day; 7 days a week. (Source: American Express)
CTX (Corporate Trade Exchange)
ACH entry format for corporate payments that include ANSI X12 or UN/EDIFACT payment-related records.
Current Account
A cardholder account on which payment is up to date and no amount is overdue.
Currency Conversion
The act of converting the dollar amount of the currency of the cardholder’s issuing country to the merchant’s acquiring country’s currency at the time of purchase. See Dynamic Currency Conversion.
Custom Payment Services (CPS)
Visa interchange rate structure that began in 2000 as PaymentService; designed to meet the special card acceptance and operating procedures of different types of merchants and cards.
Customer
An individual or entity that receives goods or services subject to bills; invoices; or statements.
Customer Identification Program (CIP)
A rule as a result of the USA Patriot Act of 2001 that requires financial institutions to implement procedures to collect identifying information on new accounts; verify customer identity; maintain identification records; and determine if the customer appears on any list of suspected terrorists or terrorist organizations.
Customer-Initiated Entry (CIE)
An automated consumer transaction that allows consumers to originate an ACH bill payment through their financial institution or a third-party bill payment service.
Customer Payment Provider (CPP)
An agent of the customer that originates payments on behalf of the customer.
Customer Relationship Management (CRM)
A formal program for the management of relationships. Also called client relationship management.
Customer Service
The operational department that services the cardholder and the merchant. The customer can write; call; or go online with questions about billing; payments; processing; and disputes. This department services or supports the client on processing issues and typically is separated from the help desk; which is a technical support group.
Customer Service Provider (CSP)
An agent of the customer that provides an interface directly to customers; businesses; or others for bill presentment. Among the CSP’s functions are enrolling customers; enabling presentment; and providing customer care. (Source: Billing.org)
CVC—(Card Validation Code)
A MasterCard tool used to prevent fraud. MasterCard requires that the number located on the back of the card and above the magnetic stripe be entered with the transaction to verify that the card is present and authentic
CVV—(Card Verification Value)
A Visa card’s unique check value encoded on a magnetic stripe and replicated in a chip to validate card information during the authorization process.
Cyberspace
A term coined by the science-fiction novelist William Gibson in his fantasy novel; Neuromancer that is used to describe the world of computers; especially the Internet. (Source: Federal Communications Commission)
Cycle
The grouping of cardholder accounts to provide for a distribution of workload and easier account identification.
Cycle Billing
The preparation of monthly cardholder statements by group (cycle) for the purpose of evenly distributing the workload and receipt of cardholder payments.
Cycle Period
A specific period during which both debit and credit transactions are accumulated from billing.
Daily Periodic Rate
The annual percentage rate (APR) expressed on a daily basis. It equals 1/365th of the APR and is typically used to calculate a loan payout.
Data
Representation of facts; concepts; or instructions in a formalized manner suitable for communication; interpretation; or processing by humans or by automatic means. Any representations such as characters or analog quantities to which meaning is or might be assigned. (Source: Federal Standard 1037C; Telecommunications: Glossary of Telecommunication Terms)
Data Authentication
A process used to verify data integrity e.g.; verification that data received are identical to data sent; or verification that a program is not infected by a virus. (Source: Federal Standard 1037C; Telecommunications: Glossary of Telecommunication Terms)
Database
A computer file used to store large quantities of information; such as customer names and addresses.
Data Capture
The collection; formatting; and storage of information in computer memory. Some point-of sale terminals perform data capture functions. See EDC Terminal
Data Capture-Only Capability
Point-of-transaction capability in which the transaction receipt data are electronically captured for deposit purposes but does not have the capability to go online for authorizations.
Data Dictionary
A manual that outlines the content and definition of data elements used in building a particular transaction set.
Data Element
The basic unit of information in EDI transaction sets; containing a set of values that represent a piece of information.
Data Encryption Key (DEK)
Used for the encryption of message text and for the computation of message integrity checks (signatures).
Data Encryption Standard (DES)
A cryptographic algorithm for the protection of unclassified computer data and published by the National Institute of Standards and Technology in Federal Information Processing Standard Publication 46-1. In the Bank card industry the primary method for encrypting and decrypting a Personal Identification Number and securing that these PIN numbers never appear in the clear when transporting from a terminal. All messages are encrypted and decrypted using this format. In the bank card industry; the approved algorithm used by electronic hardware devices for the cryptographic protection of computer data.
Data Integrity
- The condition existing when data are unchanged from their source and have not been accidentally or maliciously modified; altered; or destroyed. 2. The condition in which data are identically maintained during any operation; such as transfer; storage; and retrieval. 3. The preservation of data for their intended use. 4. Relative to specified operations; the a priori expectation of data quality. (Source: Federal Standard 1037C; Telecommunications: Glossary of Telecommunication Terms)
Data Management
The control of data-handling operations; such as acquisition; analysis; translation; coding; storage; retrieval; and distribution of data; but not necessarily the generation and use of data.
Data Mining
The process of analyzing data to determine data relationships undiscovered by previous analyses.
Data Storage Entities (DSE)
The term used by MasterCard to describe all entities that store MasterCard account data on behalf of merchants; such as Web hosting providers and payment gateways.
Data Transmission
The electronic exchange of information between two data processing points.
Data Transport Network
In MasterCard; the part of the BankNet system through which information is exchanged between members and the central processing site in St. Louis; Missouri.
Daylight Overdraft
A negative funds position in an account that occurs after opening of business and is cleared before close of business on the same day.
Days Outstanding (DSO)
The number of days between the time a transaction occurs and the time that funds are collected. (Source: American Express)
DBA (Doing Business As)
A formal name under which an individual; company; or organization conducts business. (Source: American Express)
Death Notification Entry
An automated notice of death sent by a federal agency to a financial institution to notify the financial institution that a recipient of payments from that agency has passed away.
Debit
An entry to the record of an account to represent the transfer or removal of funds from the account.
Debit Block
The process used to restrict debits to a demand deposit account; generally limited to business accounts.
Debit Cap
The limit on the dollar amount of debit transactions for an account or entity.
Debit Card
A plastic card linked to a checking or savings account. Offline or signature-based debit cards work in the merchant environment the same as a credit card transaction and are not required to be “online” to the account balance. Offline signature-based functionally work like credit cards; an initial transaction is used to hold funds and a second to settle or remove the funds from the card balance. Online debit cards or PIN-based debit cards ride over the ATM network; they require a PIN and the ability to authorize against the actual balance of the card in a single step transaction. Prepaid cards fall into the debit category.
Debit Identifier
The word DEBIT displayed on the front of all consumer debit and prepaid cards.
Decipher
To decrypt or unencode information.
Decision Maker
The business owner or manager who is authorized to make decisions for the business. (Source: American Express)
Decline
The denial of a transaction either online or during stand-in or a telephone authorization.
Declined Response
An authorization response indicating that the transaction is declined and the card is not to be honored.
Decryption
The mathematical process of unencoding encrypted information so the original message or information can be used.
Dedicated Circuit
A circuit designated for exclusive use by specified users. Usually operated between two users only. See Leased Line.
Default
Failure; inability or unwillingness to pay a debt; or bankruptcy.
Deferred Clearing Transaction
A transaction that is cleared and settled without authorization or a transaction that is authorized with one system and cleared though another.
Deferred Payment Transaction
A transaction completed in a card-absent environment for which the cardholder is billed once; no more than 90 days after the first shipment of merchandise.
Delayed Delivery Transaction
A single transaction in which a cardholder completes two separate transaction receipts. The first transaction receipt functions as the deposit for goods or services (such as a down payment); the second is to pay the balance due the merchant.
Delimiter
A predetermined code that indicates the beginning and end of a data segment.
Delinquency
Late payment of a bill or debt.
Delinquent Account
The account status occurring when the cardholder does not meet the payment conditions of the cardholder agreement; i.e.; one or more payments are past due.
Demand Deposit Account (DDA)
The merchant bank account that the acquirer/processor credits or debits for deposits; fees; and adjustments. Also used by consumers for funds access. Funds can be accessed by check; debit card; or the Automated Clearing House (ACH). Also called a checking account.
Demand Draft
A single payment check without a scannable remittance document attached. This draft may be drawn on the customer’s account or the consumer payment provider’s (CPP) account. Generally; it is created by the payee with authorization from the payor and may not have a signature. (Source: Billing.org)
Demographics
The specific geographic attributes of a business; market segment; or product usage area.
Department of Justice (DOJ)
The U.S. Cabinet department created in 1870 to enforce the law and defend the interests of the United States according to the law and to ensure fair and impartial administration of justice for all Americans. The DOJ is administered by the Attorney General. Some of its many divisions include Antitrust; U.S. Attorneys; and the Federal Bureau of Investigation. The DOJ investigates unfair practices by businesses as reported by other contracted businesses or by consumers.
Deposit:
The submission of a transaction receipt by a merchant to an acquirer; resulting in a credit or debit to the merchant’s Visa account.
Deposit Account
An account used by a customer to make deposits and withdrawals at a financial institution. Deposit accounts include checking; savings; and NOW (negotiable order of withdrawal) accounts.
Deposit Date
The date on which an acquirer receives the transmission receipt from the merchant. Also; the date when the merchant receives his funds.
Depository Financial Institution (DFI)
A financial institution able to receive deposits from another financial institution by completing and depositing checks.
Derived Unique Key Per Transaction (DUKPT)
In cryptography; a key-management technique that uses a unique key for each separate transaction to prevent the disclosure of any past key used by the transaction-originating tamper-resistant security mode (TRSM). The unique transaction keys are derived from a base derivation key using only nonsecret data transmitted as part of each transaction.
DES Algorithm
The Data Encryption Standard algorithm that is a publicly available mathematical calculation used in conjunction with confidential encryption keys to scramble data securely.
Descriptive Statement
A financial institution account summary or a bank card account summary that contains descriptive information about one or more entries for which a separate item may or not be enclosed.
Dial-up Terminal
An authorization terminal that; like a telephone; dials the authorization center for validation of transactions.
Digital
Systems whose information is represented in binary form.
Digital Cash
Two main mechanisms that download “digital coins” to a personal computer from a participating bank that set up a digital money account with a bank. Both encrypted forms of cash can be sent to merchants for payments.
Digital Dozen
The 12 requirements of the Visa Cardholder Information Security Program (CISP)
Digital Money
The same as digital cash; but can also involve the use of software-based secure credit card transactions
Digital Signature
An electronic means of authentication that uniquely identifies the sender of a message or payment through special encryption techniques.
Digital Signature Algorithm (DSA)
The algorithm used to generate a digital signature.
Digital Subscriber Line (DSL)
In integrated services digital networks (ISDN); equipment that provides full-duplex service on a single twisted metallic pair at a rate sufficient to support ISDN basic access and additional framing; timing recovery; and operational functions. The physical termination of the DSL at the network end is the line termination; the physical termination at the customer end is the network termination.
Digital Wallet
The software that provides the equivalent of a wallet for electronic commerce. Also called an e-wallet; it holds digital money that is purchased similar to travelers’ checks. A wallet may also hold credit card information or checking account information along with the associated digital certificate that authenticates the cardholder.
Diners Club Card/Carte Blanche
: An independent card wholly owned by CitiGroup primarily known as a T&E card. In 1950; the Diners Club Card was the first charge card in the U.S. issued as a cardboard card to Frank McNamara (founder of the company) to be used in restaurants. The Diners Club program also issued the first corporate card in the U.S. in 1975. Diners Club International was acquired by Citicorp in 1981 but many franchises are still independently owned. It also boasts the issuance of the first rewards program in 1984. In the US; Diners Club/Carte Blanche cards are acquired through the same methods as MasterCard’s. The messages and rules are very similar to MasterCard. All card numbers begin with a “36”. However in the US; they have a MasterCard number starting with a “5.”
Direct Billing Costs
These costs include the costs of invoicing (statement creation and issuance); collecting funds (e.g.; through a lock box); reconciling balances and handling basic disputes and non collections. (Source: American Express)
Direct-Connect Merchant
A merchant that directly enters authorization requests into Visa’s V.I.P. system and MasterCard’s BankNet network.
Direct Deposit
A payment method used in the ACH system in which funds are automatically transferred from the account that owes the funds to the account of the payee.
Direct Federal Program
Any federal benefit program that is prefunded into the cardholder’s cash account.
Direct Marketing
A transaction category for customized services and procedures for merchants that offer merchandise or services via catalogues; telephone; mailings; and/or advertisements.
Direct Mail
A lead generation technique used by issuers; acquirers; and direct sales agents in which pre-approved mailers; postcards; or letters are sent to new businesses or consumers.
Direct Payment
A method of collection used in the ACH Network for certain claims; generally those that are repeated over a period of time; under which the debtor gives the originator a standing authorization to debit his or her account.
Disclosure
The information required by federal or state law (see Regulation Z) to be relayed to the cardholder concerning terms of the credit agreement or fees and conditions associated with any kind of payment card. Disclosure must be made by the issuer before the first use of the card by the cardholder and must be included on all monthly statements and other documentation mentioning finance charges and/or fees. The same principle applies to contracts with a merchant. All fees and charges must be fully disclosed before charges are made and agreed upon by both parties contractually. Some items to be disclosed include: interest rates (annual and periodic); amount; types; and timeline of fees; method of calculating finance charges; credit line; and any terms affecting billing.
Discount Rate Revenue
The amount of revenue that American Express generates from the discount rate charged a merchant. (Source: American Express)
Discover
Morgan Stanley spun off Discover Financial Services in 2007. Discover Financial Services (NYSE: DFS) is comprised of Discover Network (network; credit and signature debit card issuing; acquiring; merchant services and prepaid issuing); Pulse; Goldfish (UK subsidiary); Discover Bank and Discover Card.
Discover Card
The Discover Card began as a reward-based card issued by Sears in the mid-1980s. Discover/Sears issued all of the cards and had a reseller program for the sales to merchants. Since then Discover has grown to over 5 million merchants accepting the card. In 2007; Discover went to an indirect acquiring model by allowing acquiring processors to acquire and sell Discover as part of the MasterCard/Visa package. All Discover Cards begin with a “6.”
