MC Glodsary

Glossary
CONTENT:
0-9 – A ……………………………………………….3-7
B ………………………………………………………….7-10
C ………………………………………………………….10-17
D…………………………………………………………..17-20
F-E-F-G..……………………………………………….20-25
L-M-N……………………………………………………25-35
O-P-Q…………………………………………………..35-42
R-S-T…………………………………………………….43-54
U-V-W-X……………………………………………….54-56
2
Term Abbreviation Definition
0-9
3D secure 3DS Security protocol to prevent fraud in transactions
with credit and debit cards online
A
Accountholder AAV The cryptogram generated by the chip card in case
Authentication Value the operation is rejected. The issuer cannot request
an authorization cryptogram, and therefore the
acquirer is not required to store it
Academy On The Web AOW The distance learning solution provided by
Mastercard Academy. It includes: Live Events over the
internet, e-Learning and an extensive Resource
Acceptance Center.
Term used to describe the action of accepting a
payment card as a means of paying for goods or
services purchased.
Acceptance Network Term used to describe encompass all of the conditions
associated with the acceptance of a card. Related
terms include: acceptance environment; Card Not
Present (CNP); face-to-face (F2F), etc.
Access Control Server ACS A server that generates a single-use value to secure a
Secure Code for e-Commerce transaction.
Access Device Term used to describe a device, other than a card,
that is used to access a Mastercard account.
Account Data Compromise ADC Term used to describe the situation where sensitive
data (such as the card number) has been hacked out
of a system. The event may be potential (suspected)
Account In Good Standing or actual
Term (real).
used to describe the process where a merchant
makes a pre- authorization request for a small
amount, in order to see if the account is valid (i.e. in
Account Management good
Term standing).
used to describe the actions an issuer can take
to control cardholder spending. This control can be
exercised at the level of a range of cards, or for an
individual card.
3
Account Takeover Term used to describe the process whereby a
criminal takes over the account of another person.
Often linked to identity theft.
Accountholder AAV A 32-byte value unique to the Secure Payment
Authentication Value Application™ (SPA) that is generated by the
issuer’s SPA server for each online transaction
and is passed to the merchant via the Universal
Cardholder Authentication Field™ (UCAF).
Acquirer The institution that maintains merchant
relationships, acquires data (itself or through its
agent) relevant to a card transaction from a card
acceptor, and submits that data to the Payment
Scheme
Acquirer Host System AHS The computer and communications systems that
perform processing for an acquirer. In many
cases, Terms ‘acquirer’ and ‘AHS’ are used
interchangeably.
Automated Clearing House ACH Regional organization used by member banks to
electronically transfer funds between members.
Access Control Server ACS A server that generates one-time code for
securing electronic sales transactions using secure
Activation code.
Term used to describe the set of activities
performed by the issuer to encourage the
cardholder to use a newly issued card.
Address Verification Service AVS An optional service that allows the acquirer to
provide the issuer with the billing address provided
by the cardholder for a non face-to-face
transaction. The issuer verifies that the address is
correct, thus providing the acquirer with additional
assurance that the person performing the
transaction is the genuine cardholder.
Advisors The professional services arm of Mastercard
Worldwide, which provides payments-specific
consulting, information and outsourcing services to
financial institutions and merchants around the
world.
4
Affinity Card A customized card product, aimed at potential
cardholders who share a common interest,
activity or membership of a specific (typically non-
commercial) organization. When the cardholder
uses the card, the organization typically receives
some kind of benefit.
Agent Term used to describe a third party that performs
activities on behalf of an issuer or an acquirer.
Acquirer Host System AHS Computer and communication systems
processing on the acquirer side. The terms
acquirer and AHS are often used
interchangeably.
Account Information AISP On-line service organisation which is
Service Provider authorised to access a user’s payment
accounts with their consent and
authentication to provide consolidated
information and services.
Annual Fee Term used to describe the money that a cardholder
pays each year in order to obtain a payment card.
Annual Percentage Rate APR Term used to indicate the annual percentage of
interest that the cardholder pays on the
outstanding balance on a credit card.
Anti-Money Laundering AML Term used to describe the set of activities that are
put in place by a bank to prevent money
laundering - the practice of engaging in financial
transactions in order to conceal the identity,
source, and/or destination of money originating
from illegal activities.
Application Authentication AAC The cryptogram generated by the chip card when a
Cryptogram transaction has been declined. The AAC cannot be
requested by the issuer, and therefore does not
have to be stored by the acquirer.
Application Cryptogram Term used to describe encompass the various types
of cryptograms that can be generated by a chip
card. The three types of cryptograms that can be
generated by the chip card are: TC, AAC, and ARQC.
5
Arbitration Case The procedure used to determine responsibility for
a disputed transaction. An arbitration case may be
used only after attempts to resolve the dispute
through the exception processing cycle have been
unsuccessful.
Artificial Intelligence AI Computer systems that can take data and make
decisions, solve problems or behave in a way
that replicates intelligence seen in a human
Automated Teller Machine ATM Access Fee A fee that the ATM operator charge to the
Access Fee cardholder for the convenience of withdrawing
cash at an ATM. Not allowed in all countries.
Automated Teller Machine ATM Directory A service offered by Mastercard Advisors that
Directory allows a cardholder to identify ATMs at a
particular destination.
Automated Teller Machine ATM A fee that the issuer charges to the cardholder for
Withdrawal Fee Withdrawal Fee ATM transactions.
Attempts Processing Service APS The Mastercard service that provides proof that
the merchant attempted to do a SecureCode
transaction.
Attrition Term used in portfolio management to indicate

cards that have not been renewed by cardholders
Authentication The process of verifying the claimed identity of

an individual or payment device
6
Authorization The process by which a transaction is approved or
declined. For chip cards, the decision may be taken
offline. For magnetic stripe transactions, the
transaction must go online to the issuer, if the
transaction exceeds one of the applicable limits.
Authorization Request ARQC The cryptogram generated by the chip card when a
Cryptogram transaction goes online to the issuer. This
cryptogram allows the issuer to verify that the
card is genuine.
Automated Dispensing A cardholder authenticated, unattended device
Machine that dispenses product(s) directly to the customer,
such as a fuel dispenser.This type of terminal
corresponds to a CAT Level 1.
Automated Fuel Dispenser AFD A terminal device used to accept payment for fuel
at a petroleum service station.
Automated Teller Machine ATM An unattended card-operated device that dispenses

cash.
B
Back Of Books Term used in portfolio management to indicate all
cards that were issued some time ago.
Back Office Term used to describe the set of core activities
required in order to run the business. Most
common examples include authorization, clearing
and settlement.
Bad Debt Term used to describe monies that are owed by a
cardholder and cannot be collected.
7
Balance Inquiry A real-time messaged sent by the acquirer to ask
the issuer for information regarding available
funds. The funds information provided depends
on the type of card: debit cards will usually
indicate funds on the current (checking) account;
credit cards will usually indicate funds on the
credit line. May be a dedicated message, or part of
an authorization request.
Balance Transfer BT Term used to describe the process where a
cardholder transfers the outstanding balance of
one credit card to another.
Bank Term used to describe a regulated financial entity
that has the required licenses and authorization to
accept deposits. Often referred to as a ‘full
service issuer’, they have the right to take
deposits and to issue the following types of cards:
credit cards, charge cards, debit cards and prepaid
cards.
Bank Identification Number BIN A unique series of numbers, assigned by the
Payment Scheme, to identify the card issuer and
the type of product. Some products require a
dedicated BIN (e.g. Gold, Business, Corporate, etc).
The BIN is included in the first digits of the
‘primary account number’.
Banknet One of the Mastercard communications networks.
A gateway provides a link to the Mastercard Debit
Switch.
Bank Transfer The sending of money from one bank account to
another, usually electronically.
Basel III The standard created by the Basel Committee on

Banking Supervision containing recommendations
on banking laws and regulations, particularly
focused on risk management.
Basis Points A unit that is equal to 1/100th of 1% (i.e. 0.01%).
The basis point is commonly used for calculating
key performance indicators, such as return on
investment, fraud levels, etc.
8
Beneficiary A person or business that receives a
payment.
Biometrics Term used to describe the set of
characteristics that can be used to uniquely
recognize a particular person. Examples
include: finger prints, iris, hand veins.
Bitcoin A cryptocurrency – a private, de-centralized
digital currency - not issued by a bank or
backed by any sovereign nation's
government.
Blockchain A distributed ledger, or list, of all
transactions across a digital peer-to-peer
network – also referred to as DLT (see
Distributed Ledger Technology)
Brand The combination of names, symbols and colors
which visually convey a brand’s identity.
Business card A card given to a cardholder (typically an
employee) by a business (typically an
employer).
Business Continuity Planning BCP Term used to describe the set of activities that
must be performed to ensure that a company
is able to continue business, or quickly resume
business, further to a major disaster or
extended disruption. It is one of the elements
covered by Basel III.
Business Risk Assessment and BRAM A Mastercard program designed to ensure
Mitigation that Mastercard’s brands, programs or
services are not to assist, facilitate or support
illegal activities. The objective is to preserve
the integrity of the Mastercard brand and
network for the benefit of all users.
Business Service Arrangement BSA Term used to describe a bi-lateral or multi-
lateral (between a number of entities, at the
level of a country, etc) agreement that
specifies interchange rates and special
processing requirements.
9
Business To Business B2B Term used to describe commercial activities
between one business and another.
B
Call Me/ Call referral A generic term for the authorization
response. A call referral indicates that the
acquirer or merchant must contact the
issuer for further instructions. The issuer
uses the call referral as a fraud prevention
tool when it suspects or is attempting to
prevent fraud at the point of interaction
(POI).
Card Acceptor Business Code CABC A four-digit code used to identify the type of
merchant involved in a transaction. This term
has replaced by Term ‘merchant category
code’ (MCC). The set of CABC codes is
determined by ISO—the codes are used
throughout the payments industry in all types
of messages and reports.
Card Authentication Method CAM Method used to ensure that a card is genuine.
Card Functional Approval CFA One of the tests that an EMV chip card vendor
must perform in order to appear in the list of
M/Chip Approved Products.
Card Not Present CNP Term used to describe the situation where a
transaction is performed without the card
being present. Typically the case for MO/TO
and e-Commerce transactions
Card Personalization Validation CPV One of the tests that the issuer of an EMV
chip card must perform before being able to
enter live operations.
Card Quality Management CQM One of the tests that an EMV chip card vendor
must perform in order to appear in the list of
10
Card Risk Management Term used to describe the set of checks and
processing options that may be performed by
a chip card in order to reduce fraud losses.
Card Validation Code CVC A special cryptographic code encoded on the
track data, and used by the issuer to
authenticate the validity of a card.
Cardholder Activated Terminal CAT A terminal (often unattended) that
dispenses a product or provides a service
when activated by a cardholder. Typically
installed in petrol stations, train stations,
tolls, parking lots.
Cardholder Verification Method CVM The means used to verify a cardholder.
Examples include PIN and signature.
Cash Advance The process where a cardholder receives cash
at a bank branch.
Cashback Card A card where the issuer gives back to the
cardholder a percentage of the amount of all
transactions performed on the card.
Cash on Delivery A transaction in which a payment for goods
is made at the time of delivery.
Central Acquisition/Central Service that allows licensed acquirers to
Acquiring acquire transactions from international
merchants operating in different countries.
Central European Time CET A time reference for many European
countries. There is usually a time difference of
one hour between GMT (Greenwich Mean
Time) and CET.
Central Processing Date/ Central The date when a message is processed by the
Site Date GCMS. Often used as a reference in dispute
resolution.
Challenger A relatively small retail bank set up with
the intention of competing for business
with large, long-established national
banks.
11
Charge Card A payment card where all transactions for a
given period (often one month) are reported
on a single statement. The cardholder is
expected to pay the full amount by the
payment date.
Chargeback The message sent by an issuer to claim back
from the acquirer all or part of the amount of
a disputed transaction.
Often also used as a synonym of ‘Dispute
Resolution’
ChargebackMonitored Merchant CMM A merchant that was flagged by the acquirer
during Excessive Chargeback Program
monitoring. A report must be sent to
Mastercard and actions should be taken to
reduce chargeback levels.
Chargeback Supporting CSD Term used to describe the information that
Documentation must be provided by the issuer to the
acquirer in order to support a chargeback.
Typically, this will be a letter from the
cardholder.
Chargeback To Turnover Ratio CTR A measurement used by the acquirer during
ECP monitoring. The CTR is calculated by
taking the number of merchant sales divided
by the number of chargebacks for that
merchant in a calendar month. Merchants in
excess of applicable thresholds are identified
as being CMM or ECM.
Chatbot A computer program which can have a

conversation through either voice or text-
based chat interfaces. Also known as
virtual assistants.
Check Digit A single-digit number, produced by applying

the Modulus 10 algorithm. It is used to verify
the accuracy of a card number. Often
referred to as the Luhn check digit.
12
Chip Integrated circuit card (ICC) technology. Used
to describe specifically the chip on the card,
or as a generic term to describe the
technology as a whole.
Chip & PIN Term used to describe the combination of a

secure technology (chip) with a secure
cardholder verification method (PIN).
Chip Authentication Program A smart card solution for authentication of

the chip during electronic transactions, such
as e-banking and e-commerce.
Clearing The process by which financial details

regarding a transaction are exchanged
between the acquirer and the issuer. The
Mastercard Global Clearing Management
System (GCMS) contains a complete set of
electronic messages to support clearing.
Clearing Cycle The time between the previous cut-off and
the current cut-off. Data received after the
cut-off will be processed during the next
clearing cycle.
Clearing House A common processing mechanism through

which market operators exchange
instruction/information for funds, securities
or other instruments.
Closed Loop A payment system managed by one financial

institution that owns the relationship with
both the end users (cardholder and
merchant).
Co-Branded Card A card issued by a member in association with

a commercial partner. When the cardholder
uses the card, he/she typically receives some
kind of benefit (points, miles, cash, etc.).
13
Co-Branding The process of associating an issuer and a
commercial partner. Co- branded cards are
targeted at the customer base of the
commercial partner, and typically bear the
logo of the issuer and the commercial
partner.
Commerce Platforms A technological system or solution that
allows goods and services to be sold and
bought
Collection-Only Messages Term used to describe clearing messages that

are submitted by the acquirer to GCMS for
information purposes only. Such transactions
were processed either On Us or using the same
processor (i.e. intra- processor).
Collections Term used to describe the set of actions the
issuer takes to obtain payment for amounts
due by cardholders whose debts are still on
the issuer’s accounting books. Often
referred to as ‘outstandings’
Combined Data Authentication CDA A type of cryptogram generated by a chip
card during a chip transaction. It is currently
the most secure Card Authentication
Method.
Combo Card Term used to describe a card that combines

the debit and credit payment functionality.
Common Purchase Point CPP Term used to design a merchant location

where a number of cardholders have used
their card and subsequently experienced
fraudulent transactions.
14
Companion Card Term used to describe a card with a special
format (special shape, smaller size, etc) that is
issued in addition to a card of normal format.
Compliance Term used to describe the obligation to

comply with the rules.
Compliance Assessment And CAST One of the tests that an EMV chip card vendor
SecurityTesting must perform in order to appear in the list of
Compliance Case The procedure by which two members may

resolve a compliance or rule violation that has
resulted in a direct financial loss, and for
which no chargeback reason code applies.
Contactless Term used to describe a technology that does

not require physical contact between the card
and Terminal. Instead, a radio frequency (RF)
interface is used to exchange data between
the card and Terminal.
Cost Of Funds COF Term used to describe the cost to the issuer of
extending credit to the cardholder, from the
date of the transaction to the date of
payment.
Couponing See ‘vouchering’
15
Customer Performance CPEP Mastercard's European monitoring

Enhancement Program program, aimed at tracking customer
performance indicators and their
compliance with processing requirements.
The goal of the program is to improve the
quality and efficiency of processing and
increase the number of approved
transactions.
Credit Bureau An institution that provides information on

a person’s credit history. Data can be
positive (full details about all credits) or
negative (data about bad debts only). Used by
issuers to determine the credit worthiness of
a potential new cardholder.
Credit Card A payment card where all transactions for a
given period (often one month) are reported
on a single statement. The cardholder is
expected to pay back at least a portion of
amount by the payment date, and pays
interest to the issuer on the remaining
amounts.
Credit Line The amount of money the issuer grants the
cardholder on a credit card. The amount
varies based on the credit-worthiness of the
cardholder.
Credit Loss The amount written off because of the
failure of the cardholder to repay the
amount owed on an account.
Credit Risk Management CRM The set of actions taken by the issuer in order
to avoid giving a card to someone that is
unable or unwilling to pay back the money
owed. The issuer will typically take a number
of actions to ensure that they minimize their
credit risk.
Credit Transfer The transfer of funds between bank

accounts requested by an account holder
(payer) to a payee – see ‘Push Payment’ /
Direct Credit.
16
Currency Conversion Assessment CCA A mark-up applied to all issuing volumes
where the issuer payment currency is
different from the transaction currency.
Customer Interface Specification CIS Name of the message format used for real-
time authorizations.
Customer Performance A European Mastercard monitoring program
Enhancement Program designed to monitor customer performance
and adherence to processing mandates. The
objective is to improve processing and
efficiency and increase the number of
approved transactions.
Customer Relationship Term used to describe the set of actions
Management required to management the relationship
with the customer.
Cut-Off Term used to describe the time when GCMS
starts the clearing process. The time between
the previous cut-off and the current cut- off
is called a ‘clearing cycle’. Data received
after the cut-off will be processed during the
next clearing cycle.
Card Verification Value CVV The 3 (or 4) digit code printed on a

payment card used for customer
authentication purposes.
D
Data Breach The intentional or unintentional release of
secure or private/confidential information
to an untrusted environment i.e. hack, data
leak or disclosure.
Data Security Standard The PCI DSS is a security standard that includes
requirements for security management,
policies, procedures, network architecture,
Data Storage Entity DSE software
An entitydesign
- otherand other
than critical protective
a member, merchant,
measures.
ISO, or TPP - which stores, transmits, or
processes card or transaction data. DSEs are
subject to special security requirements.
17
Days Past Due Indicates the number of days that have
elapsed since the cardholder was due to
make a repayment on a credit card.
Debit Card An electronic card issued by a bank to its

customers to provide access to their core
bank account for the withdrawal of funds to
pay for goods or services.
Debit Transfer The transfer of funds between bank
accounts requested by the payee from the
payer – see ‘Pull Payment’ / Direct Debit.
Decal Term used to describe the label displayed in a

merchant location or at an ATM, designed to
indicate the brand(s) that can be accepted.
Delinquency Term used to describe the situation where the

cardholder is not up- to-date with
repayments on a credit card.
Digital Payment On-line payments where the payer and

payee both use digital channels to send and
receive money. It is also called electronic
payment.
Digital Secure Remote Payments DSRP A Mastercard service designed to provide a
high level of security to remote payments
performed on the internet. Provides a level of
security that is similar to that of EMV for face-
to-face transactions.
Digital Wallet An electronic wallet that can be used across
multiple merchants and allows the
cardholder to store multiple payment card
credentials.
Digital Wallet Operator DWO The provider of a digital wallet
18
Direct Debit DD An arrangement made with a bank that
allows a third party to transfer money from
a person's account on agreed dates,
typically to pay bills.
Display Card Term used to describe a card that has an

embedded LCD display (screen). May be used
to display the remaining balance on a card, or
to authenticate the cardholder during an
online transaction.
Direct Expense (Cost) Direct expenses are those expenses that are
incurred to operate a business that can be
directly associated with a product, service,
or customer.
Dispute Resolution A defined procedure which allows issuers and
acquirers to resolve transaction disputes. A
set of electronic messages are available in
GCMS. If the dispute cannot be resolved,
either of the two parties may file an
‘arbitration case’.
Doing Business As DBA Term used to describe the name commonly
used by a merchant when doing business.
This name may be different from the
official/legal name on the merchant contract.
Dormancy Term used in portfolio management to

indicate cardholders that have stopped using
their card.
Data Security Standard DSS The data security standard developed by
The PCI Security Standards Council for
payment card systems.
Due Diligence Term used to describe the set of checks that
are performed on a business or person,
prior to signing a contract. See also
‘Simplified Due Diligence’ and ‘Enhanced
Due Diligence’
19
Dynamic Currency Conversion DCC See ‘POI Currency Conversion’
Dynamic Data Authentication DDA A type of cryptogram generated by a chip

card during a chip transaction. It is a secure
Card Authentication Method.
Dynamic Monitoring System A Mastercard rules-based fraud detection

tool, comprising a basic fraud detection
module and optional additional modules.
E
Early Months On Books EMOB Term used in portfolio management to
indicate all cards that were issued within the
previous 2-3 months.
E-Commerce Term used to describe business performed via
the Internet.
Electronic funds transfer at POS EFTPOS Used to describe the terminal that supports
EFTPOS.
Electronic Money Institution EMI Term used to describe credit institutions
which are governed by a simplified regulatory
regime because their activity is limited to
specific types of issuance activities, in
particular prepaid cards.
Electronic Warning Bulletin EMB A blocked card file maintained by Mastercard.
The issuer can block the use of a card in
different regions, countries and at certain
types of merchants.
Emboss The process of printing identifying data on a
card, in the form of raised characters.
Emergency Card Replacement ECR An optional service that issuers can offer their
cardholders, in order to replace a lost or
stolen card.
20
Emergency Cash Advance ECA An optional service that issuers can offer their
cardholders, in order to obtain a certain
amount of money, further to the loss or theft
of their card.
E-money Electronic money (e-money) is broadly

defined as an electronic store of monetary
value on a technical device that may be
widely used for making payments to
entities other than the e-money issuer.
The device acts as a prepaid bearer
instrument which does not necessarily
involve bank accounts in transactions.
Expert Monitoring System EMS A comprehensive, rule-based Mastercard
early fraud detection tool.
Europay Mastercard Visa EMV Acronym for Europay (former name of

Mastercard Europe) Mastercard and Visa. In
1996 these companies developed standards
for integrated circuit cards (ICCs), terminals,
and applications.
Also used to refer to the EMV specification
itself.
Encrypting Pin Pad The technology used to encrypt the PIN typed
by the cardholder on the PIN pad. Effective 01
Feb 2008, the PCI Security Standards Council
has taken over responsibility for the security
evaluation of EPPs.
Encryption The technique of scrambling sensitive data
automatically, using cryptographic
algorithms, within a POS terminal or
computer before the data is transmitted for
security/anti-fraud purposes.
End-To-End Demonstration ETED One of the tests that issuers and acquirers
may be required to perform before being
able to enter live operations.
21
Enhanced Due Diligence EDD Term used to describe the extensive set of
checks that are performed on a business or
person, prior to signing a contract. Usually
associated with ‘Know Your Customer ‘or
KYC.
Enterprise Risk Management ERM Term used to describe the set of methods and
processes used by organizations to manage
risks related to the achievement of their
objectives.
Encrypting PIN Pad EPP The technology used to encrypt the PIN
entered by the card holder on the PIN
input keyboard. Beginning February 1,
2008, the PCI Security Standards Board
has been responsible for the EPP Security
Assessment.
E-retailer A retailer selling goods or services on-line
European Banking Association An independent EU Authority which works

to ensure effective and consistent
prudential regulation and supervision across
the European banking sector.
European Central Bank ECB The ECB was founded in 1998. It is responsible
for monetary policy covering the 15 member
countries of the Eurozone. Its headquarters
are in Frankfurt, Germany.
European Economic Area EEA Founded in January 1994, it allows European
Free Trade Association (EFTA) countries to
participate in the European single market
without joining the European Union (EU).
Eurozone Term used to describe the European Union
states that have adopted the euro as their
sole official currency.
22
e-Wallet Term used to describe the storage of card
credentials into a software application,
stored either on a mobile phone or remote
ExceptionProcessing website. It is the
See ‘Dispute electronic equivalent of the
Resolution’
physical wallet.
Excessive Chargeback Merchant ECM A merchant that was flagged by the acquirer
during ECP monitoring. A report must be sent
to Mastercard and actions should be taken to
reduce chargeback levels.
Excessive Chargeback Program ECP Mastercard system designed to encourage

acquirers to closely monitor chargeback
performance at the merchant level.
Expert Monitoring System A comprehensive Mastercard rules-based
early fraud detection tool.
Expiration Date The date (month and year) when the card
expires. The card is valid until the last day of
the month indicated. Also referred to as the
expiry date.
F
Face-To-Face F2F Term used to describe a transaction where the
card, cardholder and merchant are all
Fallback present.
Term used to describe the situation where a
chip card is used in a chip terminal, but the
chip technology could not be used. In such
cases, the transaction falls back (reverts) to the
magnetic stripe technology.
Fedwire The RTGS system for settlement of

transactions in US Dollars.
23
Fee Income Revenues generated by payments providers
for specific services/customer actions such
as annual fees on credit cards, deposit
loading on pre-paid cards, etc.
Financial Institution FI Term used to describe an institution that
provides financial services for its clients or
members. More specifically, an FI may be a
‘Bank’, a ‘Payment Institution’ or an
‘Electronic Money Institution’.
Fintech New technology and innovation that aims to
compete with traditional financial methods
in the delivery of financial services.
Fleet Card A card used for the purchase of items related
to a car (typically petrol).
Float Term used to describe the money earned by
the issuer during the time between the
payment of an amount on a prepaid card and
the money being spent.
Floor Limit Term used to describe the financial limit for
offline transactions: for amounts that are
equal to or below the floor limit, no
authorization is required.
Foreign Exchange The process of converting one currency to
another.
Forex FX See ‘foreign exchange’
Form Factor Term used to describe a payment instrument.
Includes physical cards, stickers and tags, key
fobs, wristbands, smart phones, etc.
Four Party Model Term used to describe a processing model
with four main entities: cardholder, merchant,
issuer, and acquirer. The Payment Scheme
operates the infrastructure that links the
issuer and acquirer.
24
Front Office Term used to describe the set of departments
dedicated to earning revenue. Most common
examples include Sales and Marketing.
G
General Data Protection GDPR European regulation effective from May
Regulation 2018 which is designed to protect
consumer data privacy.
Global Automated Referral Service GARS An optional service provided by Mastercard,
which quickly connects the acquirer and the
issuer, in order to accelerate the call referral
process.
Global Clearing Management GCMS The Mastercard clearing system designed to
System support the exchange of data between issuers
and acquirers.
Global Merchant Audit Program GMAP The Mastercard system that identifies
merchant locations that have experienced a
certain level of fraud in any one calendar
month.
H
Handset Term used to describe an NFC-enabled smart
phone
Hardware Security Module HSM A hardware device dedicated to cryptographic
processes
High Net Worth HNW Term used to describe cardholders that have
high incomes and generate significant
revenue to the issuer.
25
Hologram One of the security features that may appear

on a credit card. The hologram may be
displayed on the front or on the back of the
card, or it can be replaced by a holomag (a
holographic magnetic stripe)
Honor All Cards Rule HACR The Mastercard rule which specifies that a
merchant must accept all cards bearing the
brand(s) for which they have signed a
contact with the acquirer.
Host Card Emulation HCE The process that allows a smartphone user to
perform a remote payment transaction
without the need for a physical secure
element. See also ’Mastercard Cloud
Based Payments’.
Hybrid Card Or Terminal Term used to describe a card or terminal that
supports both magnetic stripe and chip.
I
Inter Card Association ICA The original name is Mastercard. An ICA
number is assigned to each Mastercard
credit card organization and is used as a
unique identifier.
Issuer Host System HIS Computer and communication systems

processing on the issuer's side. In many
cases, the terms “issuer” and “IHS” are used
interchangeably.
Imprinter A machine that takes an imprint of the
embossed card details.
In-Branch Terminal A terminal that is installed inside a bank
branch, and attended by a teller.
26
Income Statement A financial report showing a company's
financial performance (revenue, expenses,
net income / loss) over a specific
accounting period.
inControl A Mastercard platform that provides issuers
and their cardholders with controls and
alerts in order to determine how their cards
can be used.
Independent Sales Organization ISO Term used to describe an entity that

provides services, other than transaction
and cardholder processing, to a member.
Examples include: merchant solicitation,
cardholder solicitation, customer service,
and ATM deployment.
Indirect Expense (Cost) Indirect expenses are those expenses that
are incurred to operate a business as a
whole (or part of a business) but cannot be
directly associated with a product, service
or customer.
In-Flight Commerce A transaction that a cardholder initiates
during a flight. Examples include use of a
satellite phone, pay-as-you-view video, and
gaming (casino) transactions.
Incumbents Refers to an established financial or

banking institution(s) which hold the key
responsibilities for managing their
customers financial affairs such as current
bank account, payment card, etc.
Instant Payments Payments in which the clearing and
settlement of a transaction takes place
immediately or close to immediately.
Integrated Product Message IPM Name of the message format used for
clearing.
27
Interbank Card Association ICA The original name of Mastercard. An ICA
number is assigned to each Mastercard
credit card customer institution, and is used
as a unique identifier.
Interchange Term used to describe the exchange of data
between two parties. Sometimes used as an
abbreviation for interchange fee.
Interchange Fee A fee paid between the acquirer and the
issuer, to cover the costs incurred by the
transaction. For retail transactions, the
acquirer pays the interchange fee to the
issuer. For cash transactions, the issuer pays
the interchange fee to the acquirer.
Customers are free to conclude Business
Service Arrangements (BSAs) which define
interchange fees on a bi-lateral or multi-
lateral basis (between a number of entities,
at the level of a country, etc). In the absence
of a BSA, the appropriate fallback rates are
applied.
Interchange Rate Designator A special code provided in the clearing
message to indicate the interchange fee tier
that is being claimed for the transaction.
Interest Income The amount of money earned during a
specific time period from charging interest
on lending money.
Interest Spread The difference between a credit card

issuer’s cost of funds and the interest it
charges customers on balances not paid in
full each month.
International Standards An international-standard-setting body,

Organization headquartered in Geneva, Switzerland.
Composed of representatives from various
national standards organizations, it
promulgates world-wide proprietary
industrial and commercial standards.
28
Internet of Things IoT Network of computing or digital devices
which can connect, exchange and consume
data with minimal human interaction. This
term applies to devices such as objects,
sensors or everyday items (e.g. household
appliances).
Intra-Processor Term used to describe the situation where
banks using the same processor perform
clearing & settlement between themselves,
without going through the Payment Scheme.
Interchange Rate Designator IRD A special code indicated in the clearing

message to indicate the level of the
interbank commission due for the
transaction.
Issuer Host System The computer and communications systems

that perform processing for an issuer. In
many cases, Terms ‘issuer’ and ‘IHS’ are
used interchangeably.
K
Key Performance Indicators KPI The set of data that is used to evaluate the
performance of a business. Examples
include: Return on Investment (ROI), card
approval rates, net losses, net receivables,
etc.
Know Your Customer KYC Term used to describe the set of actions a
member must perform to ensure that their
customers do not engage in criminal
activities.
29
L
Late Payment Fee A penalty fee charged by the issuer to a
cardholder that is does not pay amounts due by
the payment date indicated on the statement.
Legacy System Term used to describe an existing (and often
quite outdated) IT infrastructure.
Lifestyle Card Term used to describe a card that appeals to a
cardholder by relating to a lifestyle choice (e.g.
running, golfing, etc)
Limited Amount Terminal LAT A terminal that dispenses a product or provides
a service when activated by a cardholder. The
value of the product or service is subject to a
maximum amount.
This type of terminal corresponds to a CAT Level
3.
Line Increase Term used to describe the action of increasing
the credit line that is granted to the cardholder.
Line Utilization Term used to describe the amount of the total

credit line that the cardholder has already used.
Load Term used to describe the process where the
cardholder puts an additional amount of
money onto a prepaid card.
Log A file containing a copy of specific data (e.g.
authorization messages), required mainly for
legal purposes.
Loss Control Program LCP Term used to describe the set of actions taken
by customers to prevent and detect fraudulent
activity.
Low Value Payments LVP Term used to describe transactions for a low
amount typically below 15 euros) and that were
previously hard to service using a payment card.
The deployment of chip cards provides a suitable
solution to this business challenge.
30
Loyalty card A card designed to reinforce the relationship

between a merchant and its customers, by
providing the customer with some kind of
benefit (points, miles, cash back, etc.). These
cards are designed to encourage regular use of
the card. Sometimes used as a synonym for a co-
branded card.
Luhn check digit See ‘check digit’
M
MDES for Merchants M4M Uses the tokenization platform
Mastercard Digital Enablement Service to
tokenize card-on-file credentials.
Magnetic Stripe A magnetically encoded stripe, on the reverse
side of a card, which contains information
about the card, cardholder and account. The
information contained on the magnetic stripe is
sent to the issuer in an authorization request,
along with other data needed to allow the
issuer to approve or decline a transaction.
Magstripe Abbreviation for Term ‘magnetic stripe’.
Mail Order/Telephone Order MO/TO A transaction conducted by mail or telephone.
Management Information Term used to describe the system used to collect

System critical data, as well as the output produced by
the system.
Mastercard Authorization MAS Proprietary Mastercard software, designed to
Simulator help customers test their authorization system
before entering live operations.
31
Mastercard Clearing MCPS Proprietary Mastercard software, designed to

Presentment Simulator help customers test their clearing system
before entering live operations.
Mastercard Cloud Based MCBP The Mastercard service that allows a
Payments smartphone user to perform a remote payment
transaction without the need for a physical
secure element. See also ‘HCE’
Mastercard Connect MC Connect The Mastercard portal for delivering business
tools and secure communications capabilities to
customers worldwide.
Mastercard Consolidated MCBS The Mastercard system that generates the
Billing System monthly invoices and effects the automatic
payment of amounts due to Mastercard for
services rendered.
Mastercard Debit Switch MDS One of the Mastercard communications

networks, dedicated to debit and PIN-based
transactions. A gateway provides a link to
Banknet.
Mastercard Digital MDES The Mastercard service that allows a cardholder
Enablement Service to activate his/her smartphone in order to use
it as a payment instrument.
Merchant Service Charge MSC Term used to describe the fee charged by the
acquirer to the merchant for the services
provided. Also referred to as the merchant
discount or merchant fee.
Message Authentication Code MAC Term used to describe a short piece of

information used to authenticate a message.
Middle Office Term used to describe the set of activities to
manage position- keeping. The most common
example is the Finance department.
Millennials A term used for the generation of people born
between the early 1980s and 1990s - who
typically have the most familiarity with
communications, media and digital
technology.
32
Mobile Network Operator MNO The provider of wireless communications services
for NFC-enabled handsets.
Mobile PIN m-Pin The PIN typed in by a cardholder on smartphone

when performing a remote payment
Mobile POS m-POS A low-cost mobile card accepting device.

Usually used to refer to a dongle that is
attached to a smartphone or tablet and allows
for acceptance of card payments at micro
merchants.
Modulus 10 check See ‘check digit’
MOL MOL See ‘Mastercard Connect’
MoneySend A Mastercard remittance service that allows

customers to make payments from one
cardholder account directly to another
cardholder account, by performing a
‘payment transaction’ instead of a bank
transfer.
Monoline Issuer Term used to describe an institution that acts as

an issuer of credit cards only.
(By opposition to a bank, that provides a
complete range of banking services.)
Multi-Application Card Term used to describe a chip card that contains
a number of different applications/programs.
Multilateral Interchange Fee MIF Term used to describe the interchange fee that
is applied by multiple parties.
33
N
Near Field Communication NFC A short-range high frequency wireless
communication technology which enables
the exchange of data between devices in close
proximity (about 10 centimeters apart). It is
the technology used for contactless
transactions.
Net Interest Income A credit card issuer’s interest revenue ($)
less its cost of funds on the balances
earning interest revenue.
Net Interest Margin The difference in interest rate (%) between

a credit card issuer’s cost of funds and the
interest rate it charges customers on
balances not paid in full each month.
Net Settlement Information NSA Form completed by the customer to select the
Form/Agreement Settlement Services needed to do business.
Network Interface Validation NIV One of the tests that the acquirer of an EMV
chip terminal or the issuer of an EMV chip
card must perform before being able to enter
live operations.
Network Management NMC A department of Mastercard that manages
Centre the authorization network on a 24/7 basis.
Network Security Platform NSP A Mastercard owned security device used to

encrypt/decrypt key data in online
authorization messages.
Neural network Term used to describe a fraud detection tool

that uses powerful data modeling
capabilities identify fraudulent transactions,
even those that do not fully match known
fraud patterns. According to Mastercard
rules, such systems may be imposed on issuers
and acquirers in the case of high levels of
fraud.
34
Non card form factors Term used to describe payment tools other
than cards. Examples include: mobile phones,
watches, key fobs.
National Payment Card NSPK NSPK is the Russian domestic processor.

System All domestic authorization and clearing
traffic between Acquirers and in Issuers in
Russia is now Russia is now processed via
NSPK’s host system.
O
Office of Foreign Assets OFAC Part of the US Department of the Treasury
Control that administers and enforces economic
and trade sanctions based on US foreign
policy and national security goals.
One Time Password OTP One-Time Password: a single use password
or code
On us Term used to describe the situation where
the issuer and the acquirer of the
transaction are the same financial
institution.
Open-to-buy Term used to describe the amount of
money that the cardholder still has
available on the credit line.
Open Loop A payment system that connects two
financial institutions who own the
relationship with their respective
customers.
Operating Expense The day-to-day business operational

expense incurred to deliver a product,
service or business such as equipment,
marketing, payroll, etc.
35
Over-the-limit fee A penalty fee charged by the issuer to a
cardholder that exceeds the credit line
assigned to the card.
P
Person to person P2P A term used to refer to commercial
transactions between two persons.
Primary Account Number PAN A unique sequence of digits assigned by

the issuer to identify the individual
account of the card holder. PAN consists
of the following elements: common
industry identifier, BIN, cardholder
account number, check digit.
PAN Key Entry PKE Term used to describe the process where
the merchant types in the card number
(PAN) manually, instead of reading the card
number from the magnetic stripe or chip.
PAN Mapping Service Term used to describe the process that

convert the ‘token’ back to the original
card number (PAN).
Pass Thru Wallet A digital wallet that allows the cardholder

to retrieve payment card credentials in the
context of a four party model transaction
flow. By opposition to a ‘Staged Wallet’.
Past Due Term used to describe the situation where
the cardholder is not up-to- date with
repayments on a credit card.
Pay Before Synonym for Pre-paid cards.

Pay Later Synonym for Credit cards.
Pay Now Synonym for Debit cards.
36
Payment Card Term used to describe any type of card
(prepaid, debit or credit) used to purchase
goods or services.
Payment Card Industry PCI Term commonly as an abbreviated
reference to either the PCI Security
Standards Council (PCI SSC) or the PCI Data
Security Standard (PCI DSS).
Payment Facilitator PF Term used to describe an entity that has
direct dealings with a payment scheme and
provides payment services to the smaller
merchants (called sub-merchants) that use its
services.
A Payment Facilitator is a merchant that has
been registered by an Acquirer with
Mastercard, and is responsible for
facilitating transactions on behalf of its Sub-
merchants.
Payment Gateway Term used to describe an e-commerce
application service provider service that
authorizes payments for e-businesses. It is
the internet equivalent of the POS terminal.
Also referred to as a Payment Services
Provider or PSP.
Payment Guarantee Term used to describe the guarantee given

to merchants that ensures that their
transactions will be paid, even if the issuer is
subsequently unable to obtain the funds
from the cardholder.
Payment Hierarchy Term used to describe the prioritization

that a cardholder will apply to determine
which bills to pay first (e.g. mortgage/rent,
child care, credit card bill, etc)
37
Payment Holiday Term used to describe the process where the

issuer allows the cardholder to not make a
payment on his/her credit card.
Payment Instrument Term used to describe any type of device (card,

key fob, mobile phone) used to purchase goods
or services.
Payment Initiation Service PISP An on-line service organisation which is
Provider authorised to access a user’s payment account
to transfer funds on the user's behalf with
their consent and authentication.
Payment network Global organizations or schemes which

provide the necessary infrastructure (e.g.
technology, brand, rules & regulations) to
allow participants to initiate, clear and settle
payment card transactions globally. Examples
include Visa, Mastercard, American Express,
Union Pay, JCB, etc. The term can also be
applied to local payment schemes.
Payment Scheme Term used to describe the entity that offers
payment product and services. Customers
participate in the Payment Scheme by entering
into one or more license agreements.
Payment Services Directive The legal foundation for the creation of an EU-
wide single market for payments. The PSD aims
at establishing a modern and comprehensive set
of rules applicable to all payment services in the
European Union.
Payment Service Directive II PSD2 Payment Service Directive II: European
directive replacing the original Payment
Services Directive
Payment Services Provider PSP Term used to describe an entity that offers e-
Commerce merchants the ability to accept a
wide variety of payment methods, such as credit
cards, bank transfers, direct debits, etc.
38
Payment Transaction Term used to describe the process where one
cardholder sends an amount to another
cardholder.
PIN Based Transaction PBT A term used to refer to transactions in which
the identity of the cardholder is verified using a
PIN.
Payment Card Industry PCI A term commonly used as an abbreviation
for either the PCI Security Standards Board
(PCI SSC) or the PCI Data Security Standard
(PCI DSS).
Person to Person payment P2P Payment Peer to Peer (or Person to Person) payment:
The electronic transfer of funds made from
one individual to another.
Personal Identification Number PIN A secret code, known only by the cardholder,
which allows the issuer (or its agent) to verify
the cardholder.
Personalization Term used to describe the process where
cardholder details (name, PAN, expiry date) are
put onto a card.
PersonallyIdentifiable PII Term used to describe information that can be
Information used identify an individual, either directly
(name, email, etc.) or indirectly (combination of
gender, age, job and seniority in a particular
department).
Pharming Term used to describe a hack attack where one
website's traffic is redirected to another
website, controlled by the criminal.
Phishing Term used to describe a hack attack where a

criminal creates a web site or pop-up screen
that appears to be legitimate, and encourages
the cardholder to provide critical data (such as
the PAN, expiration date, CVC2, PIN, etc)
39
Payment Institution PI A legal entity that owns or has received the
right to use the trademark and other marks
identifying the payment cards and other
payment instruments belonging to the
payment system, and which determines the
rules of the payment system, as well as
performs other functions to ensure the
functioning of the payment system and is
responsible compliance with law and contract.
Personal Identification Number PIN A secret code known only to the cardholder
and allowing the issuer (or its agent) to
establish the identity of the cardholder.
PIN Based Transaction Term used to describe transactions where
the cardholder is validated by means of PIN.
PIN bypass Term used to describe the process whereby

the merchant overrides the PIN
requirement, in order to allow signature-
based cardholder verification. Not allowed
on all terminals and in all countries.
PIN Entry Device PED The technology used by the cardholder to
type in the PIN. Effective 01 Feb 2008, the
PCI Security Standards Council has taken
over responsibility for the security
evaluation of PEDs.
PIN pad The portion of Terminal, or separate device
attached to a terminal, used by the
cardholder to type in the PIN.
POI Currency Conversion The process whereby the merchant converts, at
the point of interaction, the amount of the
transaction from the merchant’s currency
into the cardholder’s currency.
40
Point Of Interaction POI Term used to describe the point where the
card and the ‘terminal’ (POS terminal, PC, etc )
come together.
Portfolio Analytics A Mastercard service providing advanced
management information system (MIS) reports
to customers.
Pre-Authorization Request A real-time message sent by a merchant to
obtain an extended payment guarantee This
type of message is sent by certain types of
merchants such as car rental companies, hotels
and petrol stations.
Premium Card Term used to describe exclusive cards that offer
unique benefits to high net worth cardholders.
Premium Listing The Mastercard service that allows an issuer to

define high spending limits for high net worth
customers within the stand-in authorization
services.
Presentment The message sent by the acquirer to provide
information to the issuer about a transaction
that took place. It is submitted to GCMS with
the view to obtain payment.
Primary Account Number PAN A unique series of numbers, assigned by the
issuer, to identify an individual cardholder
account. The PAN comprises: major industry
identifier, BIN, cardholder account number,
check digit.
Private Label Card A card issued by a merchant that can only be
used in the issuing merchant's stores.
Profit The money a business makes after accounting

for all expenses.
41
Payment Services Directive PSD EU Directive, replacing the original Payment
Services Directive.
Pull Payment A payment instructed by the payee from the

payer – see ‘Debit Transfer’
Purchase At ATM Term used to describe items (such as mobile

phone top-ups, prepaid card loads, etc.) that
are performed at an ATM.
Purchase With Cash Back No cash
Term is to
used dispensed
describe for such transactions,
a transaction where the
consequently from an interchange
cardholder makes a purchase and also perspective
requests
thisreceive
to is considered
a certainto be a retail
amount transaction.
of money in cash.
Push Payment A payment instructed (originated) by the account

holder (payer) to a payee – see ‘Credit Transfer’.
Q
Quarterly Mastercard Report QMR The various data that Mastercard customers
must report on a quarterly basis.
Quasi-Cash Term used to describe items that are
directly convertible to cash, such as: gaming
chips, money orders, opening deposits, wire
transfer money orders, etc.
Questionable Merchant Activity QMAP The Mastercard program that is designed to

Program enable an issuer to seek partial recovery of
fraud losses that arise from merchant
collusion with the cardholder.
Quick Payment Service QPS A type of transaction designed to move
customers quickly through the ordering and
payment process, as cardholders do not
have to sign a receipt. Specific processing
requirements apply to these transactions.
42
R
Risk Based Authentication RBA An authentication system that takes into
account the profile of the agent requesting
access to the system to determine the risk
profile associated with this operation. Then, a
risk profile is used to determine the
complexity of the task.
Real-Time Gross Settlement RTGS An online system for settling transactions of
financial institutions within a country, or
group of countries using the same currency.
For the euro, the RTGS system is called TARGET2.
Receivables/outstandings Term used to describe the amounts due to the
issuer by its cardholders.
Recovery Term used to describe the set of actions taken
to obtain payment for amount due a
cardholder whose debts are no longer on
the issuer’s accounting books. These actions
may be performed by the issuer, or by a third
party.
Recurring Payment Cancellation RPCS A Mastercard service which allows an issuer to
Service block recurring payments from a particular
merchant on a particular card.
Recurring Transaction Term used to describe a transaction that is
generated by a merchant on a regular basis
(e.g. to cover the costs of a regular
subscription).
Redemption Term used to describe the process whereby a
cardholder can redeem loyalty points or
vouchers.
Refund The reimbursement of money to a cardholder.
Regulator Term used to describe any official body that
has to power to impose rules and regulations
(e.g. local government, central banks, etc).
43
Regulatory Technical Standard RTS Regulatory Technical Standard: provides the
technical rules by which PSD2 will be
implemented.
Reload See ‘Load’

Remitter A person or business who sends money
Remote Payment & Presentment RPPS A Mastercard service, available in the US,
Service designed to allow the remote payment of bills.
Response Code A code used to indicate the issuer’s

authorization decision.
Reversal A message generated to reverse (nullify) a

previous message.
Revolver Term used to describe a person that regularly
carries a balance on their credit card.
Revolve Rate The percentage of credit card customers'
outstanding balances which are accruing
interest at any point in time. Can also be
calculated as the percentage of cardholders
paying interest at any point in time as well.
Rivest, Shamir and Adleman RSA Term used to describe an encryption protocol
used to make transactions secure. Named
after the inventors, Rivest, Shamir and
Adleman.
44
S
System to Avoid Fraud SAFE A central repository of Mastercard fraud
Effectively data from which all Mastercard security
and risk management tools are derived.
SAFE assists customers in detection and
prevention of fraud, in addition to
providing customer fraud data.
Sales Agent Term used to describe a person, or third
party, that performs sales activities.
Settlement Account S.A.M. The Mastercard settlement processing
Management system system that generates the advisements and
funds transfer for the purpose of effecting
financial settlement of clearing
transactions, Mastercard fees, and other
transfer of funds between Mastercard and
customers.
Signature Based Transaction SBT A term used to refer to transactions in
which the identity of the cardholder is
verified by signing it.
Scoring The process of evaluating the characteristics of
a person (age, marital status, home ownership,
etc) in order to assess risk. Used by issuers to
determine the credit worthiness of a potential
new cardholder.
45
Static Data Authentication SDA The authentication of EMV chip card as a
result of interaction between a hybrid card
acceptance device and a EMV chip card,
without online authentication to the issuer.
The point-of-interaction (POI) terminal
verifies the card’s fixed cryptographic
signature. During SDA the card is passive
and the POI terminal is active.
Simplified Due Diligence SDD A term used to indicate the minimum set of
checks carried out in relation to a client
before signing a contract with him. Usually
associated with the Know Your Customer
(KYC) procedure.
Specially Designated Nationals SDN A list of individuals and / or legal entities

and / or states compiled by OKZA with
which it is not permitted to conduct
business.
Site Data Protection SDP A program designed to encourage
Programme customers, merchants, Third Party
Processors (TPPs), and Data Storage Entities
(DSEs) to protect against account data
compromises. SDP facilitates the
identification and correction of
vulnerabilities in security processes,
procedures, and website configurations.
Strong Customer SCA A methodology which aims to reduce

Authentication payment fraud and is based on
authenticating payment initiation using
multiple factors.
46
Secure Element SE The tamper-resistant device in an NFC-enabled

handset that can securely host contactless
applications as well as the associated
confidential and cryptographic data. Often a
SIM card.
Secure Element Issuer The provider of the secure element to the
smartphone user.
SecureCode The Mastercard solution to make e-Commerce

transactions more secure.
Securitization Term used to describe the process of grouping
pooling and repackaging of cash-flow
producing financial assets (such as the
receivables on a credit card) into securities that
are then sold to investors in the form of
securities. It is one of the elements covered by
Basel II.
Segmentation Term used to describe the process of creating
various types of card offerings and matching
them to the relevant target group of
cardholders.
Secure Element Issuer SEI The provider of the secure device to the
smartphone user.
Self-Service Terminal A terminal that dispenses a product or provides

a service when activated by a cardholder.This
type of terminal corresponds to a CAT Level 2.
47
Single Euro Payments Area SEPA General principles and rules that allow
European customers to make payments
and withdraw cash in euros using general
purpose cards throughout SEPA are as easy
and convenient as in their home country.
SEPA Cards Framework The high level principles and rules designed to
enable European customers to use general
purpose cards to make payments and cash
withdrawals in euro throughout the SEPA area
with the same ease and convenience than
they do in their home country.
Service Fee Term used to describe the fee paid by the

issuer to the acquirer for a cash transaction.
Service Provider MSP An entity that is registered by Mastercard as

a Service Provider. They are classified in the
following categories: Independent Sales
Organization (ISO); Third Party Processor
(TPP); Data Storage Entity (DSE); Digital
Wallet Operator (DWO); Service Provider
Registration Facilitator (SPRF); Payment
Facilitator (PF).
Settlement The process whereby funds are exchanged.
Settlement Account The Mastercard system that calculates net

Management settlement positions for customer
institutions.
Settlement Bank Term used to identify the bank that moves
funds to and from customer accounts,
further to settlement calculation.
Settlement Service Term used to describe the Mastercard

service that allows customers to perform
settlement of their transactions.
Shoulder Surfing Term used to describe the process whereby a

criminal looks over a person’s shoulder and
illegally obtains a cardholder’s PIN.
48
Side Card (Companion card) A term used to refer to a card in a special

format (special form, smaller size, etc.)
issued in addition to a card in a standard
format.
Signature Based Transaction Term used to describe transactions where

the cardholder is validated by means of
signature
Simplified Due Diligence Term used to describe the minimal checks

that must be performed on a customer
before signing a contract. Usually associated
with ‘Know Your Customer or KYC.
Single Euro Payments Area The EU initiative to create a zone in which all
euro payments between countries in the
euro zone are considered domestic (and no
longer cross-border).
Stand-in Processing STIP One of the authorization services provided

by Mastercard and designed to process
authorization requests on behalf of the
issuer.
Stoplist/ Electronic Warning A data file containing all restricted

Bulletin accounts/ranges on the Account
Management System (AMS). The file is
formatted to include the chargeback
effective date and purge date of each
account and range. It is a compilation of
regional/composite files and restricted card
list daily updates.
49
Store Card A credit, charge, or debit card that a
merchant issues. The cardholder can use
the private label card only at sites that the
merchant specifies.
Sub-merchant Term used to describe a merchant that has an

agreement with a Payment Facilitator, and is
authorized to accept payment cards.
Substitute Draft Term used to describe the paper record that
may be provided by an acquirer in response to
a Retrieval Request, as a substitute for the sales
draft.
Supporting Documentation Term used to describe the information that
must be provided to support a chargeback or
second presentment. In order to ensure
speedy resolution of the dispute, the
supporting documentation should be sent via
MasterCom.
Surcharge Term used to describe the practice whereby
the merchant charges the cardholder a fee, in
addition to the transaction amount, for the
use of a payment card. This practice is only
allowed in certain regions.
System to Avoid Fraud Effectively A proprietary Mastercard database containing

details of fraudulent transactions.
50
T
Trans-European Automated Real-time TARGET2 RTGS system for calculating transactions in
Gross Settlement Express Transfer euros between member countries of the
System European Union (currently Sweden and the
United Kingdom are not involved in the
system).
Transaction Certificate TC An application cryptogram that the EMV
chip card generates to indicate that the
transaction has been approved.
t-Commerce Term used to describe business performed via

a television.
Terminal Integration Process One of the tests that the acquirer of an EMV
chip terminal must perform before being able
to enter live operations.
Terminal Quality Management One of the tests that an EMV chip terminal
vendor must perform in order to appear in
the list of M/Chip Approved Products.
Terminal Risk Management Term used to describe the set of checks and
processing options that may be performed by
a chip terminal in order to reduce fraud
losses.
Third Party Processor Term used to describe an entity that provides
transaction processing or cardholder
processing services to support a Mastercard
customer’s activity as an issuer or acquirer.
Transaction Identification TID Mastercard term used for transaction

Document documentation, such as formsets,
records, sales slips, terminal receipts, and
record of charges.
51
Time-Out Term used to describe the situation where a
terminal terminates a transaction because
the response was not received within the
required timeframe.
Terminal Integration Process TIP or M-TIP Terminal testing process for receiving
Mastercard cards. One of the checks that
an acquirer with an EMV chip terminal
must go through before starting its
business activity.
Token Term used to describe the non-sensitive
‘token’ obtained during the tokenization
process. It is the token and not the card
number (PAN) that is used to perform a
transaction.
Requires a ‘PAN mapping service’ to
convert the token back to the original card
number.
Tokenization Term used to describe the process of
substituting sensitive data (such as the card
number) with a non-sensitive equivalent.
Third Party Processor TPP A term used to refer to an organization that

provides transaction processing services or
data processing for cardholders to support
Mastercard customers as issuers or
acquirers.
Terminal Quality Management’ TQM One of the checks that the EMV chip
terminal provider must pass in order to be
listed as an approved retailer / chip
product.
52
Transaction Certificate The cryptogram generated by the chip card
when a transaction has been approved. The
acquirer provides the TC to the issuer in the
clearing message. The TC can be
subsequently requested by the issuer, and
therefore it must be stored by the acquirer.
Transaction Information Document Term used to describe any kind of transaction

documentation, such as sales slips, terminal
receipts, record of charges, etc.
Transactor Term used to describe a cardholder that pays

the full amount due on a credit card by the
payment date, and thus does not accrue
interest.
Transactor Rate The percentage of customers who repay

their credit card balances each month in
full.
Trans-European Automated Real- The RTGS system for settlement of euro

time Gross Settlement Express transactions between participating
TransferSystem countries in the European Union (currently,
Sweden and the UK do not participate).
Transfer Agent Term used to describe a bank that performs

settlement with the Settlement Bank on
behalf of another bank.
Transponder Abbreviation of short-for Transmitter-

responder. Used in certain gas stations in the
US to allow fast transactions. Classified as a
CAT Level 7 terminal.
53
Terminal Risk Management TRM The term used to denote a set of
checks and processing options that can
be carried out on the chip terminal in
order to reduce losses from fraud.
Truncation Term used to describe the process where
part of a set of data is either deleted or
replaced by other characters. For example,
on ATM receipts, a number of characters
of the must be replaced by other
characters, such as asterisks.
Trusted Service Manager TSM Term used to describe the entity that
enables a Service Provider (SP) to access
the secure element (SE) of an NFC-enabled
handset in order to distribute and manage
their contactless applications.
Token Service Provider TSP Entity within the payments ecosystem
that is able to provide registered token
requestors – for example the
merchants holding the card credentials
– with ‘surrogate’ PAN values,
otherwise known as payment tokens.
U
User Interface UI In information technology, a user interface
is all that is intended for an information
device with which a person can interact. It
can be display screens, keyboards, a
mouse and the appearance of the desktop.
It is also the way in which a user interacts
with an application or website.
Unbanked Term used to describe people that do not
have access to banking services.
54
Underbanked Term used to describe people that have
access to limited banking services.
Universal Cardholder UCAF A field in the authorization request
Authentication Field designed to transport cardholder
authentication information for an e-
Commerce transaction performed using
SecureCode.
V
Vouchering Term used to describe the process of
collecting data and generating a
voucher that allows a cardholder to
redeem loyalty points or special offers.
Often associated with EMV chip cards,
that can do vouchering at the POI.
W
Wallet Generic term used to describe an
application that allows a cardholder to
store payment information, either in the
cloud or on a smartphone.
War On Cash Term used to describe the set of actions
that can be taken to reduce the number
of cash transactions that are performed
around the world. Examples include the
issuance of prepaid cards, the
deployment of CATs, etc.
55
Wearable A device that can be worn and can
generate a payment
White Label Term used to describe a card, product or

service that is not specifically branded. It
can usually be customized to meet the
specific branding requirements of the
user.
White Plastic Term used to describe a counterfeit card
that does not bear any graphical features
at all, and therefore does not attempt to
appear to be a genuine card. Such cards
typically contain skimmed data on the
magnetic stripe.
Write-Offs (Charge-Offs) Term used to describe the account process
whereby an issuer indicates a cardholder
debt as being uncollectible, and thus
writes the debt off the issuer’s
accounting books.
X
X-Code One of the authorization services
managed by Mastercard and designed
to process authorization requests on
the issuer’s behalf.
56

MC Glodsary

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

MC Glodsary

Uploaded by

Copyright:

Available Formats

Glossary

Attrition Term used in portfolio management to indicate

Authentication The process of verifying the claimed identity of

Automated Teller Machine ATM An unattended card-operated device that dispenses

Basel III The standard created by the Basel Committee on

Chatbot A computer program which can have a

Check Digit A single-digit number, produced by applying

Chip & PIN Term used to describe the combination of a

Chip Authentication Program A smart card solution for authentication of

Clearing The process by which financial details

Clearing House A common processing mechanism through

Closed Loop A payment system managed by one financial

Co-Branded Card A card issued by a member in association with

Collection-Only Messages Term used to describe clearing messages that

Combo Card Term used to describe a card that combines

Common Purchase Point CPP Term used to design a merchant location

Compliance Term used to describe the obligation to

Compliance Case The procedure by which two members may

Contactless Term used to describe a technology that does

Customer Performance CPEP Mastercard's European monitoring

Credit Bureau An institution that provides information on

Credit Transfer The transfer of funds between bank

Card Verification Value CVV The 3 (or 4) digit code printed on a

Debit Card An electronic card issued by a bank to its

Decal Term used to describe the label displayed in a

Delinquency Term used to describe the situation where the

Digital Payment On-line payments where the payer and

Display Card Term used to describe a card that has an

Dormancy Term used in portfolio management to

Dynamic Data Authentication DDA A type of cryptogram generated by a chip

Dynamic Monitoring System A Mastercard rules-based fraud detection

E-money Electronic money (e-money) is broadly

Europay Mastercard Visa EMV Acronym for Europay (former name of

E-retailer A retailer selling goods or services on-line

European Banking Association An independent EU Authority which works

Excessive Chargeback Program ECP Mastercard system designed to encourage

Fedwire The RTGS system for settlement of

Hologram One of the security features that may appear

Issuer Host System HIS Computer and communication systems

Independent Sales Organization ISO Term used to describe an entity that

Incumbents Refers to an established financial or

Interest Spread The difference between a credit card

International Standards An international-standard-setting body,

Interchange Rate Designator IRD A special code indicated in the clearing

Issuer Host System The computer and communications systems

Line Utilization Term used to describe the amount of the total

Loyalty card A card designed to reinforce the relationship

Management Information Term used to describe the system used to collect

Mastercard Clearing MCPS Proprietary Mastercard software, designed to

Mastercard Debit Switch MDS One of the Mastercard communications

Message Authentication Code MAC Term used to describe a short piece of

Mobile PIN m-Pin The PIN typed in by a cardholder on smartphone

Mobile POS m-POS A low-cost mobile card accepting device.

MOL MOL See ‘Mastercard Connect’

MoneySend A Mastercard remittance service that allows

Monoline Issuer Term used to describe an institution that acts as

Net Interest Margin The difference in interest rate (%) between

Network Security Platform NSP A Mastercard owned security device used to

Neural network Term used to describe a fraud detection tool

National Payment Card NSPK NSPK is the Russian domestic processor.

Operating Expense The day-to-day business operational

Primary Account Number PAN A unique sequence of digits assigned by

PAN Mapping Service Term used to describe the process that

Pass Thru Wallet A digital wallet that allows the cardholder