Card authorization terms

Before you get started, it is a good idea to become familiar with some of the terms that are used throughout this section. The following is a list of some of the most commonly used terms.

Acquiring financial institution

An acquiring financial institution is a bank or other financial organization that contracts with banks and merchants to allow merchants to accept card transactions. Some financial institutions perform merchant services; others outsource these services to a third-party processor.

Authorization

An authorization is an electronic request for approval of the sale that is sent to the financial institution that issued the customer’s credit/debit card. Authorization options in iMIS include Manual, Immediate, and Deferred. Manual is the default authorization setting.

Batch (CC Auth)

A batch is an accumulation of card transaction authorizations that are awaiting settlement.

Capture

A capture is the process of submitting a credit/debit card sale for financial settlement. When a transaction is captured, the sale amount is credited to your deposit account through your acquiring financial institution and posted to the cardholder’s credit/debit card account. This transaction usually occurs after midnight when authorizations for the previous day are batched.

Card authorization gateway

A card authorization gateway is a third-party credit/debit card interface, similar to an automated point-of-sale system that provides a front end to financial networks, financial institutions, and payment processors, which allows merchants to provide credit/debit card authorization to their clients.

Card Security Code (CSC)

The 3- or 4-digit, unembossed number that displays on the front or back of a credit/debit card; often used as an added measure of verification for card transactions. The Card Security Code (CSC) is not part of the actual card number.

DBA name

(Doing Business As) A DBA name is the name used to identify the business, as opposed to the business’ legal name.

Deferred authorization

Deferred authorization is transaction information that is saved for later processing.

Manual authorization

Manual authorization option enables a system licensed for card authorization to turn off automatic authorization.

Editing

Editing is the process of changing the payment information for a transaction in the Trans database table in iMIS.

Flag

To flag is to mark a transaction to be processed later.

Immediate authorization

With immediate authorization, the payment information is sent immediately to the gateway for authorization (and for later capture) when a credit/debit card transaction is entered.

Issue date

The 5-character date (mm/yy format) date of issue that is printed on certain European debit cards, used for authentication.

Issue number

The 1- or 2-digit number that is printed on certain European debit cards, which indicate how many versions of the card have been issued to the cardholder. This value is used for authentication.

Issuing financial institution

An issuing financial institution extends credit to a customer through credit card accounts or provides electronic account debits through debit cards. The issuing financial institution issues a credit card and bills the consumer against the credit card account. An issuing financial institution is also referred to as the cardholder’s financial institution or issuer.

Merchant account

The account that collects the funds from a credit/debit card transaction. The merchant account receives the funds after the capture is complete.

Submit

Submit is the process of sending deferred credit/debit card transactions to a gateway for authorization.

Settlement

Settlement is the process in which an electronic credit card transaction is settled between your acquiring financial institution and the customer’s credit card issuing financial institution. Your acquiring financial institution credits your account for the credit card sale and the sale is posted to the customer’s credit card account.

User account

The account that is debited after an authorized credit/debit card transaction is captured.

Void

A void is a deleted payment transaction. The transaction can then be replaced with a new transaction.