Glossary of Terms | JJS Global

Acquiring Bank

A financial institution that provides merchant’s the ability to accept payments from consumers for goods or services. Typically, this refers to accepting credit and/or debit cards. All merchant accounts must be sponsored by a bank that is a member of the card associations (such as Visa, Mastercard, American Express, and Discover. An Acquiring bank is responsible for depositing the funds into the businesses checking account.

Address Verification System (AVS)

The Address Verification System will compare the cardholder's billing address that is registered and on file with the card issuer against what was entered with the transaction at the Point of Sale. In most cases, a mis-matched AVS will not result in the transaction being declined. A merchant may be using other fraud prevention tools in which case they elect to set a rule to decline a transaction if there is not an AVS match, but by default, transactions will not be declined for this reason.

Approval Code or Authorization Code

The 6-digit code returned to the merchant upon approving a transaction.

Authorization, Capture & Settlement

Authorization - is the process of checking for available credit in the card holder’s account. A positive authorization places a hold the appropriate funds and reduces the cardholder’s available balance.

Capture - is when the merchant confirms that they wish to collect or formally withdraw the held funds from the consumer's account. When this occurs the consumer available balance is decreased.

Settlement - occurs when the funds are formally withdrawn and cleared from the consumers' account and are successfully received by merchant's bank account and those funds are made available to the merchant.

Automated Clearing House (ACH)

An ACH is an electronic funds transfer (EFT) from one account to another by way of bank account number and bank routing number. In online payments, it is the ability to accept a consumers account and routing number to process their payment. An ACH payment can take approximately 3-5 business days to process.

Batch

A collection of transactions that have been made in a single day. Rather than batching several times during the day, most terminals and real-time processors collect all the transactions and submit a batch at the end of day.

Batch ID

Once a batch is settled, it receives a batch ID. Every transaction in the batch shares this ID. If a transaction does not have a batch ID associated with it, the transaction has not been settled.

Cardholder

A person who owns a credit or debit card.

Change Requests

If information regarding my merchant account has changed, who do I contact?

No matter what information needs to be changed on the account, please call 224-535 9462 x 2 or email our support team and advise what has changed. Our team will provide the necessary Change Request forms and steps for completing the change. This can include, but is not limited to, adding/removing URL’s, storefronts, Owners, Addresses (mailing/physical/legal, or personal), Payment Descriptors, DBA (Doing Business As), Telephone Numbers, or Point of Contacts (POCs), Legal Name, EIN’s.

Again, our contact information is:

Email: [email protected]

Phone: 224-535-9462 x 2

Chargebacks

What is a Chargeback? A chargeback is when a consumer is disputing the charge/s they see on their bank statement. By default, when a consumer initiates a chargeback, the funds are immediately debited from the Merchant's account and placed back into the consumer's account. If the merchant wishes to fight the chargeback it is up to them to provide proof of purchase along with other supporting documentation that indicates the sale was made by and agreed to by the consumer and that all services/products were in fact received by the consumer.

How long do I have to respond to a Chargeback?

Chargebacks should be responded to as soon as possible. Most have a response time of 30 days, but this can vary by card network.

Retrieval requests should be responded to within 1-3 business days.

What do I need to include when responding to a Chargeback?

Delivery confirmation (any proof the customer received the product or service, i.e. receipts, tracking information, etc. )
Proof of customer purchase or usage history
Copy of the refund or return policy agreed to by the customer
AVS (address verification system) and CVV (card verification value) matches
IP address of customer’s purchase device for online transactions, along with exact time and date of purchase
Geographic location of the device
Correspondence, such as any emails, phone records or letters documenting conversations with the customer
Cover page or brief letter that recaps the reason for the Chargeback and what information you have on file with the consumer that validates the sale was valid and services/products were provided. It is important to be clear and outline the necessary information for the Card brands and Card Issuers; they won't go and "look" for the answers in the client's contract.

How to dispute the chargeback?

Once the information as outlined under “What do I need to include when responding to a Chargeback?” is collected; log into your Merchant portal, locate the chargeback section under reporting, and upload all of your supporting documents to the case. It is best to continue to check back regularly to monitor the status of the case. If the case is won in your favor the funds will be deposited back into your bank account. In the event the card brands rule in the cardholder's favor and you lose the case, then the funds will remain with the consumer. If you lose the chargeback, it is possible for you to dispute again in what is called pre-arbitration, but please be aware, this may lead to arbitration and can cost more. If you wish to continue to dispute a “lost” chargeback, it is recommended to reach out to JJS Global first to discuss the case further. You can reach us by phone at 224-535-9462 option 1 or via email to [email protected].

Should you have any questions throughout the chargeback process or in general, please do not hesitate to reach out.

What is Chargeback Mitigation?

This is the use of third-party software to help identify when a consumer contacts their bank and opens an inquiry on a transaction that appears on their bank statement. If enrolled, the consumers inquiry will send an alert so that the merchant is aware that the transaction may result in a chargeback. This provides the merchant with an opportunity to contact the consumer in an attempt to work things out with them directly or offer an immediate refund. Alerts need to be responded to within 24 hours to be most effective. It is also important to note that chargeback mitigation services typically offer a maximum of 30% coverage across the card networks. It is recommended that merchants always follow up with their consumers throughout the sale life cycle; including after initial purchase, and especially after the product/service have been received to ensure the consumer is happy and to avoid any unwanted chargebacks.

Clearing

The process of exchanging financial transaction details between an acquirer and an issuer to facilitate the posting of a cardholder’s account and reconciliation of a customer’s settlement position. Clearing and settlement occur simultaneously.

Currency conversion

A process where the currency involved in the transaction itself is converted into the currency of settlement or the currency of the issuer, so the transaction can be authorized, cleared and settled.

CVC2 (Card Validation Code 2) & CVV2 (Card Verification Value 2)

A security feature known as “CVV2” and “CVC2”. These are the three-digit numbers printed on the back side of the card (signature panel) to the far right. The three-digit code helps validate that the cardholder has the card in his/her possession, and the account is legitimate. You can include the code in your transaction and expect to receive a “match” or “no match” response. If you are using a shopping cart, make sure it can collect these numbers. A CVV and CVC cannot be stored in any form by a merchant.

American Express may also have a four-digit security code that should be on the front of the card above the account number. Discover Card also has a three-digit code very similar to Visa/MC in the same location.

Declines

Most common decline codes can be accessed here, please add this chart to the website under this category

Discount Rate

A percentage that is charged on every transaction a merchant process. This fee is collected at the time of the transaction.

Ecommerce Merchant Accounts

These are special types of merchant accounts that allow you to accept card payments online. Online businesses may be viewed with a higher risk profile than compared to a retail business that captures face-to-face transactions with a signature.

Electronic Funds Transfer (EFT)

A paperless transfer of funds initiated electronically from one account into another.

In House Credit Underwriting

This is where the merchant account provider (ISO/MSP) writes the merchant accounts within their own company (in house).

Free Equipment

Can I receive a free physical terminal?

Yes, merchants may be eligible to receive free. This is typically reserved for low to medium risk merchants. Call JJS Global to find out if you qualify for free equipment. 224-535-9462.

Funding Schedules

A. Credit/Debit Card Processing

i. Local Acquiring Processing – (local processing will refer to the bank and merchant residing in the same country). Same-day and next-day funding options are available. Standard funding is 3 business days. For existing merchants with low-risk factors, they may be eligible for same-day funding.

ii. Non-local Acquiring Processing – (this refers to when the bank and Merchant may not reside in the same country). 3-day funding time is typical but may be subject to longer payment terms.

B. ACH Processing – Check Processing

i. Typical funding times are 3-5 business days.

ii. If a merchant is eligible and approved from Same-day debits and submits their files with the correct Effective Entry Dates, funds will be deposited sooner, typically the following business day prior to 5pm of merchant's local time-zone.

C. What is Same-Day Funding?

i. If a merchant is eligible and approved for same-day funding, sales processed earlier in the day, prior to the same-day cut-off time, are directly funded to the merchant bank account on file later that same evening.

Issuing Bank

The bank that issues a customer a credit or debit card.

Merchant

A business or person that sells goods or services and accepts payments from a consumer for those goods or services.

Missing Deposits

You may be missing a deposit for a few reasons.

Is it a federal observed holiday within your country or region? If so, the banks are closed and that will add a 1-day delay to your deposits.
Is it a weekend, if so, please wait until the following business day to receive your funds.
Have you processed a transaction that is higher than your approved high-ticket? If so, this can add a funding delay. When processing transactions that are over your approved high-ticket, please let our office know, so we can help monitor the deposit and ensure the sales receipt is provided to help expedite the funding time.

Monthly Minimum Fee

The minimum monthly charge a merchant must pay in Discount Rate fees. If the merchant’s sales for the month result in his paying Discount Rate fees greater than or equal to the agreed minimum monthly amount, no further fee is involved in this category However, if the merchant’s sales for the month result in his paying Discount Rate fees less than the agreed minimum monthly amount, the merchant must pay the difference.

Payment Processor

A company that attends to the actual processing of a credit/debit card

Payment Gateway

A payment gateway is typically used for eCommerce transactions and connects the Merchant's website to the payment processor. A payment gateway will offer APIs/SDKs, and other robust integration options for merchants who wish to collect payments directly from the customers where the consumer enters their own payment information either on the merchant's website directly/shopping carts or via a hosted payment.

PCI Compliance

The Payment Card Industry, which includes MasterCard and Visa, requires banks, online merchants, gateways, and Member Service Providers (MSPs) to protect cardholder information. This is done by adhering to a set of agreed upon data security standards. The Payment Card Industry security standard (PCI) includes MasterCard’s Site Data Protection (SDP) program and Visa’s Cardholder Information Security Program (CISP).

PIN (Personal Identification Number)

A secret code that allows the issuer of a card to positively authenticate the cardholder for the purpose of approving a transaction. The cardholder enters his/her PIN into a PIN pad. The PIN is required to complete an ATM/Debit card transaction. A PIN can only be requested in a Face-to-Face environment, where the cardholder can securely enter the data into the POS (Point-of-sale) directly themselves.

Point Of Sale Terminal (POS)

The physical machine that allows a merchant to swipe, insert, or wave, a credit card through to initiate a transaction. Most common in retail environments.

Pricing Structures

A third party company providing merchants with merchant accounts. Providers generally have an established relationship with a number of banks that operate merchant accounts. Providers either have their own processing system to process or validate transactions, or they act as resellers of third parties’ processing systems.

Prior Authorized Sale

A transaction for which authorization was obtained at an earlier time.

Processing Gateway

The gateway will automatically collect information and pass it to your acquiring bank. The processing gateway allows for automated real-time processing. Processing gateways JJS Global is partnered with are NMI (Network Merchants, Inc.) and Authorize.NET and FluidPay to name a few.

Real-Time Processing

Credit/debit card processing is completed instantly.

Processing Volume

How much will my account be approved for?

A merchant is able to dedicate how much processing volume they may need on a monthly volume, but this will be validated against existing and previous processing, along with business or even personal financials.

Recurring Transactions

A transaction in which a cardholder has given a merchant permission to charge the cardholder’s account on an ongoing basis until the agreed upon amount has been received. Subscription based accounts such as Netflix/Hulu/Amazon enroll its customers in recurring billing.

Reserves

What is a Reserve?

A reserve is typically a percentage that is held back from the total sale. For example, a 10% reserve would result in 10% of the total sale being withheld from the deposit to the Merchant. If a consumer makes a $100 purchase and the Merchant is subject to a 10% reserve, then the Merchant would have $10.00 withheld from that sales deposit.

Secure Socket Layer (SSL)

A secure web protocol designed to ensure cardholder information is safe during the ordering process.

TID (Terminal ID)

The identification number assigned to a credit card transaction device (such as a POS terminal or gateway). It identifies the merchant’s equipment to the processor and bankcard data transport networks. A TID is also used for payment gateways and other software applications.

Transaction Fee

A fee that is assessed on a per-transaction basis, expressed in dollar and cent terms that a merchant provider or processor charges merchants for each transaction processed.

Diagram to use for customization

Click here to check out Visa’s video for a more in-depth look at the transaction life cycle.

VAR

VAR stands for Value Added Reseller and is commonly referred to as a a VAR sheet. This document contains pertinent information that allows an Acquiring Bank to board the merchant account and connects it to downstream terminals, gateways, or software.

Virtual Terminal (VT)

A virtual terminal is an application that can be accessed through a web browser (cloud based) for any device that has internet connection or installed directly on your computer or mobile device. The application allows you to securely key-in, swipe, or accept contactless payments from paying customers.

Void

A void is the reversal of an approved transaction, one that has been authorized but not settled. A settled transaction requires processing a credit, i.e., a refund, to be reversed.

Void

The reversal of an approved transaction, one that has been authorized but not settled. Settled transactions require processing of a credit in order to be reversed. A void does not remove any hold on the customer’s open-to-buy.