31

August

Sponsor Bank

A federally insured financial institution responsible for connecting merchants to Visa Inc. and MasterCard Worldwide authorization and settlement systems. Also called an acquiring bank, merchant bank or sponsor bank.

Acquirers and merchants are the two signatories to merchant agreements. Acquirers can be thrifts, banks or credit unions. For example, First National Bank of Omaha is an acquirer and a bank. To sell bankcard services, it is necessary to have a signed agreement with an acquirer or be part of an ISO that is sponsored by an acquirer.

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24

August

EMV advances beyond compliance

Retailers may be moving past the critical first phase of EMV (Europay, Mastercard and Visa) adoption, according to recent studies. A new report published in July 2016 by New York-based CardFlight Inc. used aggregated data to evaluate adoption levels among end users of the company’s mobile payments app. The results were better than expected, the company reported. “Since we were one of the first companies to bring an EMV mobile payment solution to the U.S. market, we feel it’s important to collect data and share it with the rest of

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17

August

Self-Assessment Questionnaire (SAQ)

A document used as a validation tool by merchants and service providers to demonstrate compliance with the PCI DSS.

Updated in 2008, it is designed to simplify and streamline the assessment process and aid small and mid-sized merchants who are not required to have on-site PCI compliance assessments. The new SAQ comes in four versions with questions tailored specifically for different categories of card acceptors.

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10

August

Merchant Discount

Consists of interchange fees charged to merchants by issuing banks for the ability to accept bankcard transactions combined with fees charged to merchants by acquirers to cover such services as processing, terminal installation, help desks and statement rendering. The merchant discount is set by the acquirer at a percentage of the purchase amount, typically between 1.5 percent and 3.5 percent. Sometimes the acquirer’s portion of the merchant discount is referred to as the net merchant discount. Also referred to as a transaction fee.

 

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13

July

Factoring

When a merchant processes sales through his or her merchant account on behalf of another merchant. Laundering violates the terms of merchant agreements. Also called draft laundering and factoring.

Also known as: card laundering, draft laundering

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06

July

Visa, MasterCard $5.7 Billion Pact Tossed As Merchants Win

A federal appeals court rejected a $5.7 billion settlement of claims that Visa Inc. and MasterCard Inc. improperly fixed credit-card swipe fees, potentially renewing years of litigation with millions of U.S. merchants.

The ruling is a blow to credit-card firms that sought to put an end to bitter court battles over fees amounting to tens of billions of dollars annually. The lawsuit, brought on behalf of 12 million merchants nationwide, was filed a decade ago after earlier disputes over the fees. The rejection of the deal raises the prospect that it will

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29

June

Program Manager

The entity responsible for managing the core attributes of a prepaid card program. Program managers can either manage for other companies, or be responsible for issuing their own prepaid card products. For MasterCard Worldwide, entities are required to have an ISO/MSP license in order to become program managers.

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22

June

Barcode technology digital makeover

Forty-two years after the first barcode was scanned at the POS, GS1 updated its barcode technology standard in an effort to make barcodes more ubiquitous and secure. More than 1 million companies are members of GS1, a global body focused on product tractability throughout the supply chain. Its evolving global standard helps organizations reduce business risk, improve efficeny and comply with varying regulatory environments, GS1 stated.

The new standard for barcode scanning is based on laser and infrared beaming technology that facilitates barcode scanning at the POS. The technology translates black-and-white areas

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09

June

Cloud Computing

A delivery model for computing as a hosted service over the Internet that is available on-demand as a shared resource managed by a provider. Cloud computing is commonly divided into three categories: software as a service, platform as a service and infrastructure as a service.

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25

May

Innovators Chip away at EMV Transaction Speed

The uneven U.S. rollout of Europay, MasterCard and Visa (EMV) technologies has triggered an array of initiatives designed to accelerate EMV adoption and transaction speeds. Challenges associated with early implementation combined with high costs of equipment upgrades have discouraged many small to midsize retailers from installing chip card readers at their stores. Payments analysts have recommended harmonizing processing hardware, software and backend systems to remedy inefficiencies in POS systems and processing hosts.

“There is nothing inherently slow about processing a transaction with an EMV chip card,” stated Henry Helgeson, Chief Executive

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