Assessment Fee:
The portion of the discount fee that goes directly to VISA/MasterCard.
AVS:
Address Verification Service enables merchants to verify a cardholder’s billing address before completing a transaction.
Authorization:
The process of verifying that the payment card has sufficient funds available to cover the amount of the transaction, and that the card is authentic and not reported as stolen. An authorization number is obtained for every sale.
Bankcard:
A payment card issued by a financial institution. The most common bankcards are MasterCard and Visa brand payment cards.
Batch:
The collective amount of transactions in the merchant’s terminal or point of sale (POS) device that have yet to be settled.
Cardholder:
A person who uses a payment card to purchase goods and services.
Chargeback:
A customer dispute over a specific charge to their payment card. The merchant is notified of the dispute, a must respond to the chargeback, offering proof of validity for the transaction.
Centralized Credit/Debit Card System:
Tthe university’s system-wide credit/debit card system administered by Treasury that processes VISA, MasterCard, Discover and American Express.
Check Card:
Payment card whose funds are withdrawn directly from the cardholder's checking account.
Commercial Card:
A payment card used by businesses to cover expenses such as travel, entertainment, and purchasing.
Copy Request:
A request for a merchant to provide a copy of the original sales slip for a particular transaction. Copy requests should be acted on within ten days, and if ignored, can lead to chargebacks.
Corporate Card:
A payment card used for business-related expenses such as travel and entertainment.
Debit Card:
Payment card whose funds are withdrawn directly from the cardholder’s checking account.
Discount Rate:
A collection of fees charged by the acquirer to process the merchant’s transaction. This includes interchange fee, assessment, and per item charges.
E-Commerce:
Electronic Commerce is the act of conducting retail operations through the Internet.
ECS:
Electronic Check Service is a process that converts consumer checks to an electronic funds transfer transaction that is settled either by NOVA for participating institutions or ACH for non-participants.
Electronic Cash Register (ECR):
A device used for cash sales. It can also be integrated to accept payment cards.
Electronic Check Transaction:
The act between a customer who presents a check, and the merchant who accepts it, that results in:
Electronic Draft Capture (EDC):
Process of electronically authorizing, capturing, and settling a payment card transaction. The POS terminals are a form of EDC.
Encryption:
The process of encoding electronic transaction information, to allow secure transmission of data over the Internet.
E-Store@IU:
An Internet application that allows Indiana University merchants to establish a web based storefront. This application is best suited for merchants selling inventory items.
Fleet Card:
A private label payment card designed mainly for repairs, maintenance, and fueling of automobiles.
Independent Sales Organizations (ISO):
Companies that independently solicit prospective merchants for acquirers. ISOs may assume either partial or shared financial liability for merchant activity.
Information Technology Policy Office (ITPO):
Provides Information technology policy development, dissemination, and education.
Information Technology Security Office (ITSO):
Provides proactive security analysis, development, education, and guidance related to Indiana University's information asset and information technology environment.
Interchange:
The association function that enables members to exchange payment card transaction data and funds on a standardized basis.
Interchange Fee:
For purchases, the fee charged to the acquirer and paid to the issuer. Also known as “Interchange Reimbursement Fee”.
IPAS:
The Internet Payment Authorization System gives Indiana University merchants the ability to accept payment cards for purchases through a web site.
IUpay:
Similar to WEB Pay but does not interface with departmental Web pages; does not interface with shopping carts or registration systems.
Merchant Number:
An identifying number assigned to each merchant. Each IU department that accepts payment cards has their own unique merchant number.
Merchant:
An organization or department that accepts payment cards as payment for goods or services.
NACHA:
National Automated Clearing House Association. The national association comprising a local ACH association that establishes standards, rules, and procedures to enable depository financial institutions that are members of regional ACH associations to exchange electronic payments.
Network:
A company used to authorize and capture payment card transactions. U.S. Bank uses Vital as their processing network.
NOVA:
The data processing systems, networks, and operations that are used to support and deliver Visa’s authorization, clearing and settlement services.
Offline Transaction:
Transaction for which there is no PIN verification; processed like a payment card.
Online Transaction:
Transaction requires a personal identification number (PIN).
Payment card:
A broad term, applying to any magnetic coded card used to make purchases.
Payment Card Industry Data Security Standards (PCI DSS):
An industry standard that sets technical and compliance standards for protecting cardholder data. PCI DSS is supported by VISA, MasterCard, Discover and American Express and applies to everyone that stores, processes or transmits cardholder data.
Per Item Charge:
Fees paid to the processor on a per transaction basis.
POP:
Point of Purchase check conversion is a process that will allow a merchant to accept a check and convert that paper check into an electronic transaction, which is processed and debited from the customers’ checking account.
POS:
The Point of Sale is the physical or web location where a sales transaction occurs, and payment is authorized.
POS Partner:
PC based point of sale software used to authorize and settle payment card transactions via a modem.
Private Label:
A payment card that can be used only within a specific merchant’s store.
Processor:
An organization that is connected to a payment card association and provides authorization, clearing and settlement services on behalf of a member.
Procurement Card:
A payment card typically used by government organizations, which allows for large expenditures.
Purchasing Card:
A payment card designed specifically for smaller volume business-to-business purchases made by mid or large size corporations.
Regulation E
A regulation issued by the Board of Governors of the Federal Reserve System. This regulation carries out the purposes of the Electronic Fund Transfer Act, of which the primary objective is the protection of individual consumers engaging in electronic fund transfers.
Sales Draft:
The paper form used by the merchant, and signed by the cardholder, to document the transaction.
Settlement:
The process of sending the merchant’s batch to the network for processing and payment.
Smart Card:
A payment card that electronically stores account information in the card itself.
Software:
Programming that determines the characteristics and features of the terminal.
T&E Card:
A form of corporate card used by businesses for travel and entertainment expenses.
Terminal:
The POS equipment used to capture, transmit, and store payment card transactions.
TransformEP:
An Internet application that allows Indiana University merchants to use their own web based forms to collect and process payment card transactions. This application is best suited for merchants handling intangible sales, such as registrations and subscriptions.
UITS:
University Information Technology Services is an Indiana University department responsible for the development and maintenance of information technology systems.
US Bank:
The entity which currently holds the contract for payment card processing with Indiana University.
Value Added Reseller (VAR):
A third party that enhances or modifies existing hardware or software, adding value to the services provided by the processor or acquirer.
V Number:
An identification number given to a single point of sale device.
Verisign:
A provider of Internet payment services and electronic payment services. All Indiana University merchants accepting Internet based payment card transactions use Verisign services.
VITAL:
The processing network used by US Bank to process Indiana University’s payment card transactions.
WEB Pay:
Allows a departmental Web page to interface with the university payment page to accept a credit card transaction via infiNET, QuickPay, IPASPF/VeriSign or Apply Yourself; allows for shopping carts, registrations, etc.
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