resource center glossary of terms

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On-line
An operating mode in which terminals are connected to a central computer and have access to the data base for authorization, questions and file changes.

On-Line Debit Cards
Also known as ATM cards. Form of payment utilizing a PIN in order to disburse funds from a checking account.

Open-to-buy
The unused credit available on a credit card.

Optima True Grace
A type of credit card issued by American Express that allows the balance to be carried over from month-to-month with an interest charge.

Original draft
The actual member copy of the formset used in the transaction.

Over the Counter
Indicates merchants that submit actual sales drafts for payment (paper merchant) to a local bank for payment.

P&V
Proof and verification-Total Deposit detail fiche.

Packet-Switching Network
A telecommunications system that sends packets of debit and credit transaction data and authorization between issuing and acquiring members. MasterCard’s proprietary packet-switching network is called Banknet.

PAN
Primary Account Number. The embossed or encoded number that identifies the card issuer to which a transaction is to be routed and the account to which it is to be charged unless specific instructions indicate otherwise.

Paper
Sales slips, credit slips, cash advance slips, etc., showing the use of a credit card for a purchase, displaying the imprint or other reproduction of embossed or encoded information contained on the card.

Paper Processing
The process of submitting actual sales drafts to receive funds.

Paper Processor
A company that keys in the infromation on paper credit slips so it can be sent on to the Issuing Banks electronically.

Paper, Electronic
Electronic record showing the use of a card for purchase and bearing a representation of the embossed or encoded information contained on the card.

Partially Qualified Rate
A rate. Indicates the transactions did not meet all the requirements to qualify at the best rate but did not qualify for the lowest rate.

Payment due date
The date by which payment must reach the issuer to keep the account current.

Per Transaction Fee
What the merchant could pay for each transaction that is processed. Most prevalent needs to pay in discount rate every month.

Periodic Rate
The term of the finance charge as a percentage to be applied to a cardholder balance for a specified period, usually issuer.

Pick-up Card
An issuer’s response to an authorization request stipulating that the card be confiscated by the merchant and returned to the issuer.

PIN
Personal Identification Number. The confidential individual number or code used by a cardholder to authenticate card ownership for ATM or POS terminal transactions. This form of identification is used with On Line Debit Cards.

PIN Authorization Request
A procedure enabling the issuer to validate cardholder identity by comparing the PIN to the account number.

Plus
A National ATM network

Portfolio
The merchants who are under contract to a financial institution or processor for credit card processing services provided by that institution or processor.

POS
Point-of-sale. Refers to the location where goods or services are purchased.

POS Terminal
A terminal, at the point of sale, which is connected via telecommunication lines to a central computer. Authorization, recording and transmitting of transactions are performed through the terminal.

Positive File
A file listing the current balance and available credit for each active cardholder account. PIN and other cardholder information also may be included.

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