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Glossary of Terms

Acquirer
A member of the Visa/MasterCard Associations who enters into a merchant agreement and then processes the merchant’s transactions into Interchange.
AMEX
American Express. Has 2 main acquiring programs. ESA is a direct program in which merchants are credited for and billed directly by American Express for accepted volume. OnePoint is a full-acquiring program in which the third party processor credits and bills the merchant on behalf of American Express
Approval Code
The process in which the merchant obtains approval for a credit/charge transaction at the point-of-sale. Bank cards are authorized for three main reasons: to control cardholder’s line of credit, to reduce fraud losses, and to reduce the likelihood of chargebacks. The Approval Code is displayed on each receipt.
Authorization
The process in which the merchant obtains approval from the card issuing bank for a credit/ charge transaction at the point-of-sale.
Average Ticket
The average dollar amount of each merchant bankcard transaction. Generally used to determine pricing.
Basis Points
A basis point is 1/100th of a percent. 50 basis points (sometimes indicated as “bps”) is 1/2 of 1% or .50 numerically.
Batch
Usually a day’s worth of transactions, including sales, credits (refunds), voids, etc. to be processed by the acquirer. Term used primarily when referring to Electronic Draft Capture merchants.
Cardholder
A person who wishes to use a bank card as a convenient way of payment that provides immediate credit, nearly universal acceptance, and the protection of not
Card Processing Fee
A fee charged to the merchant by either their merchant bank or third party processor. The processing fee is often a part of the overall discount rate paid by the merchant for processing services.