The World of Credit Cards

It's hard to believe that the payment card industry is a little more than 40 years old. Just a few decades ago, shoppers could pay for their purchases solely with cash or checks. Today, payment cards have become an integral part of our lives--whether we use them for credit or debit, for travel or at home, for purchases or at the ATM. Owning a payment card opens up a whole new world of possibilities. Millions of people throughout the world use credit cards as a form of payment. Cardholders consider the use of credit cards a simple easy method in which to pay for goods and services. Likewise merchants benefit from these transactions because it simplifies the process in which they receive funds for the purchased goods. How a transaction travels from a retail establishment to the cardholders account can be a complex process.

Industry Statistics

There are currently 281 million people in the United States all of which have the opportunity of using credit card for making purchases. More than 70% of on-line transactions involve some type of payment card. • • • • Approximately 35 million people carry both an American Express cards and either a Visa or a MasterCard. Approximately 185 million Americans use credit cards. There are about 500 million consumer credit cards – Visa, MasterCard, Discover and American Express There are about 700 million retail cards and other types of credit cards.

With a total of 1.2 billion credit cards the average number of cards per cardholder is 6.5 cards. This means about 81% of households in the United States have at least one credit card. The average amount of a charge is $70. The average household with at least 1 credit card is represented by: • 6.0 bankcards • 8.3 retail cards • 2.4 debit cards • A total of 16.7 cards. The world of debit payments is growing. As of March, 2002, there were 160 million Visa and MasterCard branded debit cards in the United States. In addition there are approximately 6,000 issuers of a general purpose cards which is represented primarily by credit unions.

Payment Companies

S.A. at 60 percent.A. U. is headquartered in San Francisco.S. The Visa network.Visa Visa cards are the world's most widely used form of "plastic" payment. 2 . financial institutions (Members) that comprise the U. accepted at more than 28 million. Visa U. VisaNet. CA and is an association of 14. with enough communications lines to encircle the globe nearly 400 times. Visa Network Visa operates the world's largest and most sophisticated consumer payments processing system.S. and is capable of handling transactions denominated in 160 different currencies. was greater than that of all other major payment cards combined. operations of the world's leading payment brand and largest payment system.S.8 trillion in products and services were purchased using Visa cards.S. more than $1.'s Members rely on Visa's processing system. and Visa's worldwide market share. Visa-branded cards are accepted at more than 28 million locations in 144 countries. As of December 2000. Visa U. making Visa the closest thing there is to a universal currency.including 51 percent of all Internet payments . commercial.with virtually 100 percent reliability. processes over 3. credit. to facilitate over $810 billion in annual transaction volume . There are more than 1 billion Visa card products in the market today.700 transactions every second during its peak season. known as VisaNet.000 U. stored value and check cards. consumers carry more than 345 million Visa-branded smart.

sophisticated payments technology to the financial services world. overseeing all transaction processing for the organization. and also manages the technical infrastructure for all MasterCard systems. Banknet Banknet is one of the world's largest global telecommunications networks. an increase of 15. MasterCard's VPN brings a new. last year. Louis. Located in St. the VPN has reduced cumulative payment processing time by over 90 years. MasterCard's Global Technology and Operations headquarters serves as the global nerve center for MasterCard transactions worldwide. The two interlocking circles symbolize a promise of quality. It serves as the software development hub for authorization. clearing and settlement applications. which links all MasterCard members and MasterCard data processing centers into a single financial network.14 trillion. The transaction processing system was developed in a collaborative effort with AT&T. Operating 24 x 7. the center provides monitoring for credit and debit transactions worldwide. VPN MasterCard's virtual private network (VPN). MasterCard manages a full range of payment programs and services.MasterCard MasterCard International is a global payments company with one of the most recognized and respected brands in the world. In fact.2% over the same period in 2001. updates Banknet to link new areas of the world to the global payments infrastructure. gross dollar volume for credit and debit programs exceeded US$1. 3 . With more than 30 million acceptance locations. no payment card is more widely accepted globally than MasterCard. Banknet facilitates the routing of transactions for authorization from almost anywhere in the world. MasterCard's portion of an authorization transaction is performed in less than two seconds. the first such network in the industry. including MasterCard credit and debit cards. 2002. For the year ending December 31.

461. NPC and Paymentech are represented as the top 3 in the industry.6 $140.7 3.700.780.265.7 Transaction Volume (in millions) 2.036. Acquirer Chase Merchant Services NPC Paymentech Sales Volume (in millons) $175. Chase Merchant Services.746.0 $114.0 3.Member Statistics There are thousands of participating members in the bankcard transaction world.0 4 .

payment. Visa. payment • American Express . American Express. capture. the retailers and financial institutions must submit these transactions to a designated company (acquirer) for processing and payment. Diners Club/Carte Blanche and JCB credit cards on a merchant’s terminal. American Express and DCCB are commonly referred to as T&E cards because they were originally marketed to the travel and entertainment industries – like hotels and restaurants. • MasterCard . payment. Credit Card Types include:  MasterCard  Visa  American Express  Discover  Diners Club/Carte Blanche (DCCB)  JCB  Private Label  Fleet MasterCard and Visa are considered bankcards because they are issued through financial institutions. capture. When processing occurs each transaction must be authorized. Credit card numbering system begins with a 5 • Visa . Payments are made to the issuer monthly either in full (entire balance) or on a revolving basis with a minimum payment requirement each month. Credit cards are issued with a personal line of credit against which the customer makes purchases and/or obtains cash advances.authorization. capture.authorization.What are Credit Cards? Credit Cards provide customers with a convenient way to purchase good and services without having to use cash at the point of sale. Discover. capture. Although we can support all credit card types. Visa. Credit card numbering system begins with a 3 5 .authorization. DC/CB and JCB (Japanese Credit Bureau). Credit card numbering system begins with a 4 • Diners Club/Carte Blanche .authorization. captured and settlement/payment made back to the merchant. As credit card transactions occur. Most ISO’s have the capability of supporting MasterCard. Managing card processing Identifying each credit card type in the system is simple since each begins with a specific number or range of numbers. we only have the ability of processing settlement (payment to merchants) for MasterCard.

These include: • • • • • • • Hologram. expiration date and bank information from the magnetic stripe and print it on the receipt. many banks also issue the Visa Check Card and/or MasterCard’s Master Money Card – both of which can be used in either an on-line or off-line debit arena. cardholder name and other security information pertaining to the cardholder. In this environment goods or services are purchases with a debit card and the funds are removed from the customers checking account. Printed account number on signature panel. The mag-stripe plays a key role in the creation of an electronic transaction. When an off-line 6 . The POS terminal that reads and captures the information is referred to as a Track 1 or Track 2. capture. What is on-line versus off-line debit? The difference between these two debit choices is whether a PIN (personal identification number) is used at the point-ofsale. MC’s unique security character “M”. If it has Track 1 capabilities. The words “Visa” or “MasterCard” printed in the signature panel.authorization. capture. it can read all of the above as well as the cardholder’s name. Credit card numbering system begins with a 6 • JCB (Japanese) . Photograph of the cardholder. There are a variety of credit card security options from which each issuer can choose in order to further secure the card. In addition to the standard ATM cards. Valid expiration date. When a PIN is used the transaction becomes “on-line” and funds are immediately withdrawn from the cardholders available funds. On the back of all credit cards is a black magnetic stripe (mag-stripe). it can read the account number. payment (not widely used today) Components of the credit card Credit cards are issued as a plastic card with the full credit card account number embossed on the face of the card along with the cardholder name and card expiration date. Within this mag-stripe is specific cardholder information including the card account number. If the terminal has Track 2 capabilities.authorization. Visa’s first four numbers of card printed above first four embossed numbers. What are Debit Cards? Debit cards at the point of sale create an alternative means of payment.• Discover .

• No cash back option On-Line Debit Cards • ATM cards. • Visa’s off-line product is called the Visa Check Card. Visa Check Card or Master Money. funds are not withdrawn until the transaction processes – usually 2-4 days after the sale. • Funds are immediately and automatically withdrawn from the cardholder’s DDA at the time of purchase. • Signature required. • If a cardholder returns something purchased by debit. • Dual utility usage at both ATMs to obtain cash or to buy goods at the point of sale. • Merchants are charged regular interchange fees. • Funds are debited out of the cardholder’s checking account (DDA) after the transaction has been processed as compared to credit cards which go onto revolving credit account or monthly pay off account. • Accepted anywhere Visa and MasterCard are accepted. • Looks like regular ATM cards and carry the Visa or MasterCard logo on the card. If funds are not available. • Issued by a Visa/MasterCard member financial institution. • MasterCard’s off-line product is called the MasterMoney Card.debit transaction occurs. the merchant can either give cash back or an in-store credit. a decline response will be given. Off-Line Debit Cards • Swiped through credit card terminals and processed like credit cards. • Separate hardware equipment (pin pad) is needed in addition to the terminals to allow the cardholder to enter their Personal Identification Number (PIN) number at the time of purchase for security. • No established lines of credit. 7 .

These merchants issue private label cards to add convenience to the cardholder for shopping at that establishment over another. Some of the benefits are special discounts. Private label cards carry the insignia of the retailer that issued the card. Private Label programs can also be used as the final leverage needed to win a prospective merchant’s credit card business.What are Commercial Cards? Commercial Cards – corporate. MasterCard and Visa each provide issuers with the ability to issue commercial card products. These services will provide A company with the edge required to gain incremental new business. furniture stores. purchasing – are issued for businesses as an alternative way to finance expenses such as supplies. T&E. loyalty programs. and co-branded cards. etc. or American Express card. It is issued by issuers on behalf of merchants as an incentive for cardholders to spend money at their business. These cards also provide users with specific reporting advantages. deferred payment schedules. business. but it also gives Companies a competitive edge. Department stores. There are many private label card segments. department stores. Cardholders receive benefits for using the private label card instead of any other Visa. The merchant’s primary goal is to increase its revenue. frequency points. simplifying reimbursement procedures and helping to track expenses. Emphasis can be placed on the value-added services that are unique to private label acceptance. Private label card acceptance not only provides cardholders with benefits. as a marketing research source. cardholders have itemized records of all their purchases. 8 . Finance companies primarily target the retail industry. however. What are Private Label Cards? A private label card is a credit card issued under the name of a particular merchant organization. gas stations. and as a revenue stream. in reality the card was issued by the financial institution that the retailer contracted with. MasterCard. By using a commercial card. This specialized reporting is possible because of specific data captured at the point-of-sale. etc. as advertisement for their “store”. retailers. for example. and gas stations are examples of retailers that issue and accept private label cards.

• Merchant Reporting .The merchant needs to process stored value card transactions from the point-of-sale. These transactions are delivered to the stored value card authorization system for processing in real-time. • Transaction Processing . When the cardholder uses this card it discounts certain advertised items in the store. An example is grocery stores encourage customers to carry a card that is tied to their store and is used at the point-of-sale. The stored value card authorization system is where account balances are maintained for all cards. the Loyalty Card may also be tied to credit and membership to an establishment.The merchant expects to receive some reporting that gives them information about the stored value card transactions processed during a period of time and gives them information about the stored value card balances that are outstanding for their customers. 9 . The transactions made with these cards are typically low ticket items. What is Stored Value? Stored value card programs have gained a great deal of popularity in the merchant markets that we serve. they all share some common components: • Magnetic Stripe Cards .What is Loyalty Card? Loyalty Cards reward regular shopping and often offer discounts to customers. The stored value card program allows a merchant to offer their customer a proprietary card pre-loaded with value for future purchases. The Sam’s card grants users admittance to their stores as well as the opportunity to charge the transaction. Although there are many applications for stored value cards. the merchant's name/logo. The card typically includes a magnetic stripe. and an account number. When the total dollar amount in the cards has been used additional value can be added or the cardholder can dispose of the card. In other cases.The merchant gives a consumer a stored value card in exchange for some kind of pre-payment.

support services. installation and consulting. and promoting the card for that purpose primarily creates the different applications for a stored value card. In some case. • Pre-Paid Card . training. restaurant and lodging industries. This application is relevant in the retail. The end result is the elimination of coupon benefits distribution. Some of the more popular uses for a stored value card in our merchant markets are: • Gift Card . custom credit card software. consultants. What is VAR (value added re-seller)? The traditional term of VAR (Value-Added Reseller) refers to a person or business that adds "value" to products before reselling them at a profit. a merchant may choose to offer a discount when a consumer adds value to the card. This application is relevant in the retail industry. This application is relevant in the petroleum industry. The electronic process results in increased security. Primarily used overseas. developers. This is accomplished with the use of plastic magnetic-striped cards at the point-of-sale terminals. 10 .Used for merchandise returns with no receipt. They can therefore be integrators. This replaces the "We'll mail you a check in X days" policy.Designating the card for a new purpose. or when the original tender type was a check. That value is usually in the form of technical knowledge. • Merchandise Return Card . data capture and settlement processes. What is EBT? Electronic Benefits Transfer (EBT) is the automation of cash or cash-like benefits through electronic authorization.Replacement for the paper gift certificate. • Chip Card – Cards used to store value. Value-Added Resellers (VARs) reflect the idea and understanding that businesses can add value via services without necessarily reselling product.Used to provide a more convenient form of payment to a customer who would otherwise tender cash or a check. or all three. thereby reducing fraud and benefit misuse.

The merchant’s terminal is programmed to capture the check information: • Check number • Routing/Transit number (ABA) • Checking account number This data is then sent to the appropriate center for processing and posting to the individuals checking account. in the retail industry. VARs produce all types of software ranging from low-end.There are three types of Value-Added Resellers (VARs). 2. off-the-shelf software. to very costly software that is customized for a particular merchant. produce reports as well as accept credit/debit card transactions. financial. When working with a VAR. hospitality. software and services. government. The cost for such a system is a committed investment by the merchant. VARs must complete a certification process with each network. Horizontal VARs. They sell turnkey or custom solutions that include hardware. etc. perform price searches. 3. Since they interface with the networks. An ISO does not control the software. VARs typically drive the customer relationship. For instance. Resellers who sell to or consult with customers in specific market segments such as medical. and are available in the United States and Canada. What is ECP? Electronic Check Processing (ECP) is a transaction via ACH or facsimile draft sent by a merchant to directly debit or credit a customer's checking or savings account. 11 . 1. deployment nor provide the primary support. They build functionality into the software that manages the merchant’s business. Total Solution VARs. Resellers who sell or consult at no specific market segment but may have a target customer size or product specialty. education. Vertical VARs. such as monthly membership fees. a cash register and its supporting software may control inventory. ECP transactions are often used for recurring payments.

When the sale occurs. When the transaction occurs. Merchants who typically ship their merchandise to the cardholder will benefit from using AVS. The terminal then compare this information to what it has read in the magnetic stripe located on the back of the card. ISO’s merchant will typically receive payments through the ACH system.What is ACH? The Automated Clearing House (ACH) provides for the exchange and settlement of electronic payments between financial institutions. What is AVS? AVS stands for Address Verification System. the transaction is completed. the merchant is prompted. to enter the 3-digit code found in the signature panel on the back of the card. If there is a match. It is available to any merchant and provides another level of security for both the card and the transaction. When the terminal dials for authorization this information if verified to determine it’s accuracy. This process usually takes 2 days to get to the merchant’s bank account. by the terminal. 12 . the terminal will prompt for either the cardholder’s ZIP code or street address (or both). What is CVV? CVV stands for Card Verification Value. Merchant’s benefit since the approval code granted provides assurance that the merchant has the correct shipping address for the cardholder.

If their bank or acquirer was not local. As the credit card is swiped through the reader. the network becomes the telephone operator. Although the majority of the merchant’s today are processing electronically we still have some merchants that submit paper drafts for processing. the merchant uses a terminal similar to a telephone to enter cardholder and transaction data. electronic processing is the preferred method of data transmission. This technology is much faster and less expensive for the merchant. Before electronic processing technology was available. the merchant had to mail their tickets thus creating an even longer time period for receiving credit. 13 . contacts the credit card company to make sure funds are available and. the least amount of times errors can occur! In addition to being faster and cheaper. and then hand you the receipt to sign. which in turn. the terminal ‘calls’ the network one last time to report total sales for the day. Given this scenario. stores the sale transaction with all the others the merchant has processed that day. When talking about payment processing. finally. starts the process by which the merchant is reimbursed for cardholder purchases. At the end of each sales day. you probably noticed the sales person swipe the card through a terminal. Error is also reduced dramatically. the terminal verifies its validity. making sure all the ‘calls’ got sent to where they needed to go and the merchant was able to communicate effectively. Retail Plus 680 Paymentech Payment processing is the method by which we collect credit card and merchant data activity. enter the amount. electronic processing is also very valuable because it can help merchants and ISO’s prevent fraud. In many cases. doesn’t it? What happened in the few seconds it took your receipt to print is what we call ‘payment processing’.What is payment processing? When you pay for something with a plastic card. merchants manually created paper sales drafts and daily created a manual batch ticket to submit to their bank for processing. because the least amount of times a human comes into contact with information. Because tickets were manually created this opened the door for both human error and fraudulent activity. Sounds easy.

If the merchant elects to process directly with a principal acquirer. Visa and DC/CB transactions. Although they function under a dual program. As Principal players these entities are required to follow all rules and regulations established by the associations. 14 . In this section we highlight each player and we take a look at how they fit together. the principal will pay the merchant for a total of MasterCard. Merchant relations are typically established by American Express/Discover and account numbers are assigned allowing the merchant to accept these card types. American Express and Discover These are independent companies that issue their own credit cards and process transactions. Diners Club/Carte Blanche These card companies operates like American Express/Discover or like the bankcard associations.Who defines the processing industry ISO’s are one piece of the ‘puzzle’ when it comes to the credit industry. In this world. No additional merchant identification (account) number is needed. In either case. ISO is short for an Independent Sales Organization (ISO). merchants are assigned a unique number to use when accepting MasterCard and Visa credit cards as a form of payment. Once the numbers are assigned. for processing and issuing credit card transactions all MasterCard and Visa rules and regulations are established independently. In this environment. There are many players who define the processing industry. American Express/Discover sets the fees to be charged and manages the payment process to the merchant on every deposit. the merchant may elect to process directly with these card companies or with another acquirer. ISO’s are responsible for operating merchant processing within these established guidelines. the DC/CB transactions can process along with the MasterCard/Visa transactions. A ISO contracts with an ‘acquirer’ for the purpose of capturing and processing credit cards transactions. The Bankcard Associations – MasterCard and Visa The associations set the policies and procedures that the Principals players must follow. The Principal Members The Principals are the financial institutions that directly participates as an issuing and/or acquiring member of the bankcard associations – MasterCard and Visa.

The acquirer is responsible for marketing processing to merchants. the issuer collects finance charges on the unpaid balance. which means they do not pay the entire balance upon receipt of statement. to ensure that the funds reach the merchant’s deposit account. these companies offer a full range of products including merchant 15 . When the cardholder uses a card to make a purchase. If the cardholder chooses to “revolve” the balance. Independent Sales Organizations (ISO) ISO’s serve as merchant service providers. The Acquirer In this role. reimburses the acquirer via interchange. receives it through interchange. Acquirers also represents the merchant in all chargeback and retrieval transactions. screens them for creditworthiness. Their role is to: • Issue cards to approved cardholders • Receive and pay for transactions received via the MasterCard/Visa interchange system • Bill and collect payment from the cardholder The issuer solicits potential cardholders. Financial Institutions that are licensed principal members of MasterCard and Visa are known as issuers.JCB (Japanese Credit Bureau) The Issuers JCB is the largest card issued in Japan. acquiring companies solicit. processes their application. This financial company is a member of MasterCard and Visa and holds written agreement with merchants to: • Accept the merchant sales drafts • Provide the merchant with credit card authorization terminal instructs and support services • Handle and process credit card transactions An acquirer is defined as follows: A licensed association member that maintains the merchant relationship and acquires data relating to a transaction from the merchant or card acceptor and submits the data into interchange either directly or indirectly. either directly or through a third party processor. screen and accept merchants into their program. and issues them a card. screening applications for creditworthiness. By establishing a relationship with an acquirer. training merchants on acceptance procedures and receiving transactions from merchants to submit to issuers via interchange. A third party processor is a company that is contracted to perform any of the data processing and/or payment functions of either an issuer or an acquirer. the issuer approves or declines the transaction (directly or through a stand-in). it is the acquirer’s responsibility. and bills the cardholder on their monthly statement. Once transactions have been submitted to interchange and paid by the issuer.

Many focus on unique offerings. Merchants Any company that meets the qualification standards of an association and an acquirer can be an established merchant. The Back End This is the processing company that submits all transaction data to the interchange system. The front-end network transfers transaction information to the appropriate acquirer. creates billing files. a line of credit is established and a credit card is issued. It separates transactions from the batches and sends the bankcards to the acquirer’s backend network and the non-bankcards to the appropriate card association. Upon approval by the issuer. 16 . host. and provides reporting and accounting functions to the acquirer. The front-end network is the system that communicates directly with the merchant’s POS device. frontend system. The Front End This is the electronic network that captures the transaction data then transmits it to the processing center. A cardholder is defined as follows: The person to whom a financial transaction card is issued or an additional person authorized to use the card. processor. If you carry any sort of financial card in your wallet. such as a credit or debit card. A back-end network also processes payments for the acquirer and sends the payments to merchant’s deposits accounts. The Cardholders Prospecitve cardholders submit a bankcard application to an issuer. vendor. Other terminology used to describe a front-end network includes network. The back-end network maintains merchant files. An Example of front-end networks is Paymentech Network Services (PNS). A back-end network receives transaction information from the front-end network and routes transaction to the card association for billing the cardholder. a frontend network serving as a vendor for multiple ISO’s. The merchant enters into a written agreement with the acquirer or ISO to accept credit cards as payment and to abide by the terms of the agreement. such as internet transaction processing business. then you are an example of a cardholder.processing and reporting services to merchants.

Interchange fees are the fees charged by issuers and passed through to merchants by the acquirers. to cover the costs of this exchange.The Bank Identification Number (BIN) The BIN is a unique series of numbers that is assigned by MasterCard and Visa to a primary member institution which identifies the member in the processing cycle. It is the first three to six digits of a standard account number. ISO’s and acquirers can either own a BIN or “Rent A BIN” depending on their situation. 17 . In either case in order for processing to occur a BIN must be available Interchange System This is the system that Visa and MasterCard utilize to transmit the cardholder transaction data from the back-end network to the appropriate card issuer for posting to the card accounts. Interchange is the process of exchanging financial data between acquiring and issuing institutions.

provide deposit statements. The cards also have credit limits. authorization fee. The front-end network communicates with the back-end provider for settlement of all transactions through the interchange system to the issuers. the issuers provide monthly statements to cardholders itemizing their purchases and card balance. Merchant fees may be quoted as a flat percentage of the merchant’s credit card volume. The acquirer arranges to accept bankcard transactions from the merchant. In addition the acquirers are responsible for servicing merchant accounts. investigates their creditworthiness and. the volume of transactions. they are captured by the front-end network (host). The institution that processes credit card transactions for a merchant is called the acquirer. usually 20 days from the date of billing. issues a credit card. known as an “unbundled” rate. the type merchant and how the transactions are authorized. As transactions occur. capture and processed. supply fee. etc. capture fee. family. monthly fee. The issuer receives an application from an individual. Each acquirer determines its own fee structure for each of its merchants. small company or large corporation. In addition. Credit cards have specified monthly payment terms. The discount fees vary depending on the merchant’s average transaction amount. ranging from a few hundred to many thousands of dollars depending upon the creditworthiness of the consumer. A fee is charged for this service. annual fee. manage any disputes filed by cardholders. may charge an annual fee and impose interest if the entire balance is not paid within a specified time frame. Typical fees include discount rate. known as a “bundled” rate. or may be a percentage plus additional fees. research disputes and monitor account transaction activity. Once the merchant has completed the appropriate set up requirements he/she may begin to accept credit cards as forms of payment. 18 . Some credit cards are set up to revolve with a minimum monthly payment requirement while others are issued under the guidelines that full payment must be made monthly. A single bank can both issue credit cards as well as process card transactions. upon approval. and monitor transaction activity.How do the Players work together? Bankcard processing is a communications system with payment companies at each end of the system and Visa and MasterCard in the middle. The bank issuing a credit card to a consumer is called the issuer. Merchants have the option of accepting whatever card types they choose by simply contacting the appropriate card association or acquirer and contract for these services.

card is not present at the point of sale and the sale process is referred to as a NON face-to-face transaction.Who are ISO’s Customers? In the processing world we look at customers in various ways. mail order. membership organizations and telecommunications providers. car rental. insurance companies. The types of merchants that we process for include catalog. Retail Business Any type of business that relies on credit card transactions as a form of payment and has POS equipment on site to manage transactions is referred to as a retail merchant. clothing stores. infomercial and internet retailers. etc. These are the types of businesses that typically do not have a store front where an employee takes a credit card and swipes it through some type of electronic terminal. telephone order. etc. hotels. gas stations. Any business with a store front! Card Not Present Business In this line of business we are dealing with transactions that may have been created through a catalog order. The entire sale process occurs without the card being present. internet. Instead an alternative method (key-in) is used to capture the card and transaction data.card is present at the point of sale and the sale process is referred to as a face-to-face transaction) • Card Not Present Business . infomercial. These typically include restaurants. 19 . internet service providers. Two ways in particular that we define our customer base includes: • Retail/POS Business . utilities. grocery stores. magazine and newspaper publishers.

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