Glossary of Terms

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Telephone Order

A credit card transaction that is completed between the merchant and the cardholder via the telephone.

Terminal

A small box-like device that is placed at the merchant location to electronically process credit card transactions. Attached to a telephone line at the merchant location, the terminal is capable of authorizing, capturing, and settling credit card transactions. (See Point-of-Sale Terminal)

Transaction

Any action between a cardholder and a merchant that results in activity on the cardholder's and merchant's account.

Transaction Date

The date a cardholder affects a card purchase or goods, services, or other things of value or effects as cash disbursement.

Transaction/Authorization Fee

This amount is charged each time a card transaction is submitted for authorization and is in addition to the discount rate.

Voice Authorization

Occurs when the merchant calls the appropriate authorization vendor and provides the operator with "exact" cardholder and purchase information over the phone. The authorization center operator records the specific data and provides the merchant with an authorization number over the phone that the merchant MUST write on the sales draft. The authorization operator may direct the merchant to contact the Issuing bank or decline the authorization. (see ARU)