Glossary

Filter by first letter

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

Search by keyword

TC40

TC40 is a report sent by issuing banks to Visa that contains information on claims of fraud made by cardholders. For each report of fraud, TC40 data may include information about the merchant, the issuing and acquiring banks, and the transaction itself. Merchants can only obtain their TC40 data if their acquiring bank agrees to share it with them. Read more >>>

Third-party Processing

Third-party processing is an arrangement that allows a merchant to accept payments indirectly without a merchant account. Instead of the merchant having their own account into which payments are routed, a third-party processor accepts those payments itself on behalf of the merchant. The merchant may then be able to make payments with those funds directly or transfer them to a separate bank account.

Tokenization

Tokenization is a method of securing payment credentials or other personal information by substituting a unique token that can be used to reference the appropriate credentials without actually containing them. The organization providing the tokenization service creates and verifies these tokens in order to authorize payments without the merchant ever receiving payment credentials directly. Read more >>>

Transaction Fee

A transaction fee is a fee paid by a merchant to their processor for each credit card transaction they process. This fee often includes both a flat charge and a percentage of the transaction amount. The total amount of a transaction fee includes multiple fees that are distributed between the processor, card network, and issuer. Read more >>>

Transaction ID

A transaction ID is a unique string of numbers and letters attached to a particular transaction. Every transaction ID is unique. A bank can use the transaction ID to request further information about a specific purchase from a merchant, and the merchant can then use the ID to pull up the details of that purchase in their system. Transaction IDs also streamline the process of issuing a refund for a purchase.

Transaction Settlement

Transaction settlement is the part of the transaction process where funds are transferred from a customer's account to the merchant's account. Settlement often occurs when the merchant submits a transaction batch to their processor at close of business. During settlement, the various transaction fees are deducted from the total amount before the remainder is deposited into the merchant account. Read more >>>

Transaction Type

The transaction type defines the basic parameters of the transaction being processed, such as whether it will withdraw or deposit funds. Other transaction types can authorize a future transaction without completing it, void a previous transaction that hasn't yet been settled, or verify the validity of the customer's payment credentials.

Triangulation Fraud

Triangulation fraud occurs when a fraudster poses as a merchant and accepts orders from customers, fulfilling those orders by purchasing the items from a legitimate merchant with a stolen credit card. The fraudster may accept orders themselves through a website or may enlist sellers on sites like eBay to sell their goods. Read more >>>

Telex

A telex transfer is a method of electronic funds transfer that was once commonly used for international transactions. Telex transfers may also be known as telegraphic transfers, and are a type of wire transfer. Traditional Telex transfers were largely replaced when the new SWIFT system was created in 1973 to standardize these transactions and increase their speed. However, messages can still be sent and received over the old telex network, some countries still use the term "telex transfer" to refer to transfers made through SWIFT.