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Magnetic Stripe

A magnetic stripe is a band of magnetic material on a plastic card that can store simple binary data via the orientation of the magnetic particles it contains. A credit card's magnetic stripe contains the account number, country code, name, and expiration date. The low security of magnetic stripes eventually led to the introduction of the EMV chip now used by most credit cards.

Manual Review

Manual review is the process by which orders that are red-flagged by fraud prevention software are manually reviewed in order to determine whether they should be accepted or rejected. Typically these are orders that fall in a gray area where the software's evaluation doesn't determine them to be clearly fraudulent or clearly legitimate. Read more >>>

Mastercard Dispute Resolution Initiative

The Mastercard Dispute Resolution Initiative is a series of changes implemented by Mastercard to improve the process of handling credit card disputes. It was designed to reduce the number of illegitimate disputes that are filed, reduce the amount of time it takes to resolve a dispute, and integrate Ethoca Eliminator into the Mastercom system. Read more >>>

Mastercard Excessive Chargeback Program

The Mastercard Excessive Chargeback Program is a system for tracking the number of Mastercard chargebacks individual merchants receive and implementing corrective measures for merchants receiving an excessive number of them. Merchants whose chargeback ratio exceeds 1% may be enrolled in the program, which fines merchants if the problem isn't corrected within three months. Read more >>>

Mastercard Identity Check

Mastercard Identity Check is Mastercard's implementation of 3-D Secure 2.0. 3-D Secure 2.0 allows merchants to send detailed transaction information to the issuing bank in real time so the bank can assist in authenticating the customer. The bank can either confirm the transaction based on the information alone or send a one-time password to the customer to confirm the order.

Mastercard SecureCode

Mastercard SecureCode is Mastercard's implementation of 3-D Secure 1.0. With SecureCode, the customer sets up a password with their bank that can be used to confirm their identity when a transaction is determined to be suspicious. Merchants with SecureCode enabled can automatically ask for this password during checkout in order to prevent fraudulent transactions from going through. Read more >>>

MATCH List

The MATCH list is a record of merchants that have had their accounts terminated due to excessive fraud, chargebacks, bankruptcy, or illegal activity. Merchants on the MATCH list often have significant difficulties opening new accounts. They also usually pay higher fees than other merchants and may have higher account reserve requirements. Read more >>>

M-commerce Fraud

M-commerce fraud is a form of e-commerce fraud conducted using a mobile app or website. The methods involved are largely the same as in e-commerce fraud in general, but the availability and effectiveness of various methods of fraud prevention differ. As more online purchases are made using mobile devices, preventing m-commerce fraud is becoming a greater concern for merchants. Read more >>>

Merchant Account

A merchant account is an account with a bank or other financial institution that allows a merchant to receive credit and debit card payments. Merchant accounts have fees and costs associated with them that individual bank accounts don't have, but they also come with a variety of capabilities and services necessary for operating a business. Read more >>>

Merchant Account Reserve Funds

Merchant account reserve funds are funds that are held back by a payment processor to cover potential costs associated with chargebacks. Merchant reserves may take the form of a fixed amount held by the processor until the account is closed or a rolling reserve that holds back funds from new transactions for a set period of time before releasing them. Read more >>>

Merchant Bank

merchant bank is an institution that provides financial services to businesses. These services may include merchant accounts, payment processing, business loans, etc. In the context of payments, the merchant bank is typically referred to as the acquiring bank or acquirer. Examples of merchant banks include Citigroup, Goldman Sachs, and JPMorgan Chase. Read more >>>

Merchant Category Code (MCC)

A merchant category code (MCC) is a four-digit number that identifies the type of products or services provided by a merchant. These codes are assigned to new merchants by the major card networks. MCCs are used in a variety of systems, including tax calculation, credit card rewards, card restrictions, risk calculation, and chargebacks. Read more >>>

Merchant Descriptor

A merchant descriptor or billing descriptor is the text that appears on an account statement to help identify a transaction. For most ordinary purchases, this text will include the name of the business the payment was made to. The descriptor may also include the location of the business, a website, or a customer service phone number. Read more >>>

Merchant Discount Rate

A merchant discount rate is a fee charged to a merchant for each debit and credit transaction processed. This fee is charged by the merchant's payment processor, and includes separate fees charged by the issuer, the card network, and the processor itself. The amount a merchant is charged will vary depending on the processor and the merchant's industry.

Merchant Error Chargebacks

Merchant error chargebacks are those that result from some error on the part of the merchant, such as failure to deliver the products or services the customer paid for, providing a defective product, or processing the same transaction twice. Chargebacks due to merchant error can't usually be reversed, but they can be prevented by making sure customers with such issues will contact customer service for a refund instead. Read more >>>

Merchant Fraud

Merchant fraud occurs when a fraudster poses as a merchant in order to steal money from would-be customers. In some cases, the fraudster will open a merchant account and start processing transactions using stolen credit card information. In other cases, they might sell products or services that they have no intention of delivering, often using payment methods that have fewer customer protections in place. Read more >>>

Merchant ID

A merchant ID or MID is a unique number that identifies a specific merchant. New merchants are typically assigned a merchant ID by an acquiring bank or merchant services provider when they open an account. MID numbers are used to route payments to the merchant and ensure they're deposited into the correct account. Merchant IDs aren't public information, but merchants can find their own ID on a merchant statement or by asking their merchant account provider. Read more >>>

Mobile App Fraud

Mobile app fraud is any fraud that occurs over a mobile app. While the methods involved are largely similar to those in typical e-commerce fraud, the tools and strategies available for detection and prevention differ. The most common types of mobile app fraud are account takeover and credit card fraud. Read more >>>