A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Term Definition
Factoring An illegal process where a merchant processes its credit card transactions through an ISO for a fee equal to a percentage of the transaction When factoring occurs in card processing, merchants without a merchant account receive immediate cash instead of accounts receivable, and the ISO processes the transactions through its own account for a percentage of the transaction.
Floor Limit The authorization level below which a purchase does not require approval Example: If your floor limit is $150, then purchases of $151 and greater require approval. Exception: All transactions for mail orders, telephone orders, and airlines require authorization, regardless of the floor limit.
Fraud A false, illegal plan that results in an attempt at theft Examples include organizing an attack on a merchant’s inventory, using a stolen credit card, etc.