Glossary of Terms A-B C-D E-F I-J L-M N-O P-R S-T U-Z

CheckGateway.com’s Glossary of Financial Terms (S-T)

Use CheckGateway.com as your information resource. Look through our glossary to get the details you need about merchant services, fraud protection and ACH processing.

Secure Sockets Layer

Used to encrypt and protect data usually on an order from an online merchants web site. Once the order has reached its destination the encrypted data is decoded.

Secure Electronic Transaction

A secure payment protocol developed by MasterCard and Visa designed to ensure security for bank card transactions over the Internet. In denying merchants access to credit card information, details are secured between the shopper and the bank.

Settlement

The step in the clearing process when the acquirer credits the merchant account with the amount of a credit card purchase, and the bankcard association (such as Visa and MasterCard) credits the acquirer and debits the card issuer for the transaction.

Settlement Amount

The transaction amount sent to the credit card processor or the ACH Network for collection. This amount will be posted as a charge or refund against the specified method of payment, and for credit card transactions, may be less than or equal to the amount originally authorized for the transaction.

Stored-Value Card

A financial card that is loaded with a certain amount of money with each purchase amount deducted from the card.

Terminal

A device used by merchants to submit credit card payment information to the processing network. Terminals are connected to the credit card processing network via dial-up telephone connection or Broadband.

Terminal Identification Number

A unique number assigned to each Point of Service terminal.

Third-Party Provider

An entity not directly involved with transaction processing, or necessary for the exchange of a transaction between two parties, but that provides merchants with business enhancing services.

Track Data

The payment information stored in the magnetic stripe of a credit, debit or stored-value card.

Transaction

Any action between a cardholder and a merchant that results in activity on the account, such as an authorization and settlement. Merchants and financial institutions also conduct follow-on transactions that affect the cardholders' account, such as a capture and credit.

Transaction ID

An identification number assigned to each transaction processed through a payment gateway. Merchant service providers use this ID to search for or sort transactions.

Transaction Type

The type of transaction occurring. For charge transactions, a consumer allows a merchant to collect payment for services rendered. However, in the case of a refund transaction, a merchant returns funds to the consumer for a previous charge transaction.