Archives: Glossary

Travel and Entertainment

Travel and Entertainment often seen as the acronym T&E) Properly used, refers to American Express (AmEx) and Diners Club cards where a cardholder normally pays off the card each month. This is to differentiate these programs from pure credit cards. Discover is commonly lumped in with the other T&E card types, although it is not

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Transaction Fee

A per item fee charged for each transaction for checks or credit cards. Online gateways will charge their own transaction fee, in addition to the processor’s transaction fee.

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Trade Reference

A trade reference is anyone that knows you and your business. Usually your first trade reference will be your bank for deposits. Other references can be your landlord, utilities provider (web host, ISP, phone company), vendors, suppliers, distributors or partners (web programmer etc).

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Terminated Merchant File

TMF (Terminated Merchant File): A “black-listing” of merchants that have had a merchant account terminated for violating a merchant agreement. The problem with this is, once you are on the TMF list, you will most likely *not* be able to get approved for another merchant account, and it is very difficult to be removed from

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Swipe

The action of physically sliding a credit card through a terminal or magnetic stripe reader that “reads” the magnetic strip on the back of all credit and debit cards. This is a card present transaction, and is qualifies for the lowest rates as it tells Visa/MC that the card is physically present, and that the

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Shopping Cart

As used on the Internet, a shopping cart is analogous to choosing items in a grocery store and placing them in a shopping cart for eventual purchase. Chosen items are grouped into a single purchase (Shopping Cart) so that only one electronic purchase is completed. There are dozens of popular shopping carts available to merchants.

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SSL

All websites that host electronic payments should use a SSL (secure socket layer) certificate. Typically 128 bit is the customary level of security used. Note: There are two types of gateway integration methods: (1) Secure buy page, SIM, or “hosted” integration, where the gateway hosts the transaction on its server for security. The customer is

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Upfront Reserve

In this situation, the processor will ask for a reserve upfront, usually based on a % of your applied for monthly volume, and they will require this amount either paid upfront via 1) an ACH from your checking account or 2) withholding 100% of your sales volume until the reserve has been met. As an

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“Static” or “Capped” Reserve

In this scenario, the processor will typically hold 5%-15% of your sales until they have on reserve the equivalent to either (A) one-half of your monthly processing volume, or (B) one month of your processing volume. For example: if you are applying to process $20K/mo, the processing bank may ask for either $10K or $20K

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