Chargeback Terminology

What is an issuing bank?

admin — Mon, 22 Aug 2022 06:06:22 +0000

What is an issuing bank? admin Mon, 08/22/2022 - 06:06

An issuing bank, or issuer, is the cardholder's bank. It is a member of a card association and issues payment on behalf of that association for the cardholder. Technically speaking, not all issuers are banks. Some card associations such as American Express serve as issuers themselves, bypassing the step of having a separate issuing bank.

Chargeback Terminology

What is an acquiring bank?

admin — Mon, 22 Aug 2022 06:05:53 +0000

What is an acquiring bank? admin Mon, 08/22/2022 - 06:05

An acquiring bank or acquirer is a bank or financial institution that processes payments, such as debit card or credit card transactions, on behalf of a merchant.

Chargeback Terminology

What is a pre-arbitration chargeback?

admin — Mon, 22 Aug 2022 05:59:37 +0000

What is a pre-arbitration chargeback? admin Mon, 08/22/2022 - 05:59

Pre-arbitration chargeback is a colloquial term used to refer to a second chargeback on a single transaction. This occurs when a chargeback is filed, reversed based on some successful representment efforts by the merchant, then reinstated by the issuer due to new information resurfacing. None of the card brands use the term “pre-arbitration chargeback” to describe this occurrence but it is nonetheless used informally within the payments industry.

Chargeback Terminology

What is a return item chargeback?

admin — Mon, 22 Aug 2022 05:59:08 +0000

What is a return item chargeback? admin Mon, 08/22/2022 - 05:59

A return item chargeback is something that a consumer receives from their bank if they have insufficient funds in their checking or other banking account to cover the cost of a check or withdrawal. It has nothing to do with merchants.

Chargeback Terminology

What is a BIN number?

admin — Mon, 22 Aug 2022 05:56:40 +0000

What is a BIN number? admin Mon, 08/22/2022 - 05:56

The bank identification number (BIN) is the first four to six digits on a payment card. They identify the bank or financial institution that issued the card, the issuer's location, and the type of card.

Chargeback Terminology

What is the MATCH List?

admin — Mon, 22 Aug 2022 05:55:00 +0000

What is the MATCH List? admin Mon, 08/22/2022 - 05:55

The MATCH List stands for Member Alert To Control High-risk merchants. It is a form of merchant processing blacklist. It lists merchants who have had merchant accounts terminated by their acquiring banks.

Chargeback Terminology

What is a Merchant ID Number (MID)?

admin — Mon, 22 Aug 2022 05:54:17 +0000

What is a Merchant ID Number (MID)? admin Mon, 08/22/2022 - 05:54

A merchant identification number (MID) is a unique alphanumeric identifier that is assigned to a merchant account. It is used to identify the account at the various stages of processing a transaction.

Chargeback Terminology

What are credit card brands?

admin — Mon, 22 Aug 2022 05:46:36 +0000

What are credit card brands? admin Mon, 08/22/2022 - 05:46

A credit card brand is a network of issuers and acquirers that process a specific brand of payment cards. Card brands are companies—such as Visa, Mastercard, or American Express—that facilitate credit card and debit card payments by lending funds to merchants and seeking reimbursement from cardholders. Some card brands work with issuing banks while others serve as their own issuers.

Chargeback Terminology

What does "EMV liability shift" mean?

admin — Mon, 22 Aug 2022 05:46:05 +0000

What does "EMV liability shift" mean? admin Mon, 08/22/2022 - 05:46

EMV stands for "Europay, Mastercard, and Visa". When the card networks developed and implemented EMV chips as a new fraud protection technology, they changed certain policies to induce merchants to upgrade to card readers that were compatible with EMV chips. The main policy change was to make it so that merchants without EMV-compatible payment terminals would be liable for the cost of any fraud claims stemming from transactions made with non-EMV terminals. Normally, that liability would lie with the issuer, hence the “EMV liability shift” from issuer (cardholder's bank) to acquirer (merchant’s bank). Certain reason codes relate to this liability shift.

Chargeback Terminology

What is my MID number?

admin — Mon, 22 Aug 2022 05:44:19 +0000

What is my MID number? admin Mon, 08/22/2022 - 05:44

Your merchant identification (MID) number is a 15-digit code that should appear in the upper right corner of your monthly merchant statement. If you have a physical payment card terminal, it may appear on that, as well. Also it can sometimes be found on physical transaction receipts.