Glossary
This page provides a list of glossary terms used in this guide.
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3D Secure (Three Domain Structure), also known as a cardholder authentication, is a security protocol that helps to prevent fraud in online (e-commerce) credit and debit card transactions.
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Account Balance
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Activation Code Notification (340000). The message sent to Thredd and also the Program manager via EHI which contains the One Time Password (OTP) to verify the cardholder.
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The merchant acquirer or bank that offers the merchant a trading account, to enable the merchant to take payments in store or online from cardholders.
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Actual Balance
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Automatic Fuel Dispensers are machines that can be used to deliver fuel to vehicles, normally at a petrol station. These are identified with a specific Merchant Category Code of 5542. The cardholder pays at the machine, normally by inserting their card (or swiping or contactless), and the fuel pump machine will then either: - authorise a maximum amount (e.g., £100), then pump up to this, and send an advice to say how much fuel was actually delivered (common outside USA). -or- - authorise a nominal amount (e.g., 1 USD), then pump up to the permitted maximum it is allowed to clear according to the chargeback rules, then it will send an advice to say how much fuel was actually delivered (common in USA).
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Acquiring Institution Identification Code
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Application Programming Interface
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Mastercard Automated Parameter Worksheet
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Authorisation Request Cryptogram
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This includes checks to confirm the cardholder identity, such as PIN, CVV2 and CAVV.
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Stage where a merchant requests approval for a card payment. The merchant requests approval by sending a request to the card issuer to check that the card is valid, and that the requested authorisation amount is available on the card. At this stage the funds are not deducted from the card.
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Automatic fuel dispensers (AFDs) are used at petrol or gas stations for customer self-service fuel payments. Typically the customer inserts their card and enters a PIN number and the AFD authorises a fixed amount (e.g. £99). Once the final payment amount is known, the AFD may reverse the authorisation and / or request a second authorisation.
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Available Balance
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An Address Verification Service (AVS) check compares the billing address used in the transaction with the issuing bank’s address information on file for that cardholder. Depending on whether they match fully, partially, or not at all, the merchant can use that information in their decision on whether or not to accept or cancel the order. AVS is one of the most widely used fraud prevention tools in card-not-present transactions.
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The domestic currency or accounting currency for the card.
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Billing Amount
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The currency you choose to be billed in
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Bank Identification Number (First 6 digits of the 16-digit PAN)
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Blocked Amount
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Card network, such as MasterCard or Visa, responsible for managing transactions over the network and for arbitration of any disputes
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Consumer or account holder who is provided with a card to enable them to make purchases
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A feature through which an issuer or an acquirer can raise a concern with Mastercard.
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Cardholder Authentication Verification Value
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A chargeback is where a cardholder disputes a transaction on their account and is unable to resolve directly with the merchant, they can raise a chargeback with their card issuer. The chargeback must be for a legitimate reason, such as goods and services not received, faulty goods, or a fraudulent transaction.
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Where a cardholder disputes a transaction on their account and is unable to resolve directly with the merchant, they can raise a chargeback with their card issuer. The chargeback must be for a legitimate reason, such as goods and services not received, faulty goods, or a fraudulent transaction.
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Visa Client Implementation Questionnaire
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Thredd receives batch clearing files from the card networks, containing clearing transactions, such as presentments and network fees. The card issuer transfers the requested settlement amount to the acquirer and 'clears' the amount on the card, reducing the available card balance accordingly.
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Card Request Interface
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Customer Support
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Card Validation Code
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Dynamic Currency Conversion
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Data Element (000-999) number. For full details of each element, see the card scheme customer interface specification manual
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Device PAN. The PAN value set up on the cardholder’s device. This is not visible to the cardholder, but is the PAN used for the transactions as far as the merchant is concerned.
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The External Host Interface (EHI) provides a facility to enable exchange of data between Thredd and external systems via our web services. All transaction data processed by Thredd is transferred to the External Host side via EHI in real time. For certain types of transactions, such as Authorisations, the External Host can participate in payment transaction authorisation.
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EMV originally stood for "Europay, Mastercard, and Visa", the three companies which created the standard. EMV cards are smart cards which store their data on integrated circuit chips, in addition to magnetic stripes for backward compatibility. EMV cards also called chip cards, integrated circuit cards, or IC cards.
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The external system to which Thredd sends real-time transaction-related data. The URL to this system is configured within Thredd per programme or product. The Program Manager uses their external host system to hold details of the balance on the cards in their programme and perform transaction-related services, such as payment authorisation, transaction matching and reconciliation.
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Fixed fee
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Groups which control the card transaction authorisation fees, and other fees, such as recurring fees and Thredd web service API fees.
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Forwarding Institution Identification Code. Identifies the acquiring institution forwarding a Request or Advice message.
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Funding PAN. The true 16-digit PAN of the card, which Mastercard/Visa converts when authorisations come through to them from Acquirers on the DPAN.
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Foreign Exchange
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Foreign Exchange Padding – padding for currency conversion, to compensate for any fluctuations in currency exchange rates between the authorisation and the presentment
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The card issuer, typically a financial organisation authorised to issue cards. The issuer has a direct relationship with the relevant card scheme.
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Create and manage dispute claims in Mastercom
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Merchant Category Code – The type of merchant
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Merchant Category Code Padding – padding for particular merchants who do the pre-authorisations
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The MasterCard Digital Enablement Service (MDES) is a data interchange platform for generating and managing secure digital payment tokens. It enables devices such as smartphones, smart watches, as well as merchants, to create a tokenised version of a Mastercard, which is specific to that device or merchant. Then the device/merchant can use the tokenised version of the card to perform transactions. The tokenised version of the card appears as just a normal Mastercard card number to the merchant and acquirer, and Mastercard will map the transactions onto the original cardholder Mastercard.
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The shop or store providing a product or service that the cardholder is purchasing. A merchant must have a merchant account, provided by their acquirer, in order to trade. Physical stores use a terminal or card reader to request authorisation for transactions. Online sites provide an online shopping basket and use a payment service provider to process their payments.
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Merchant category codes (MCCs) are four-digit numbers that describe a merchant's primary business activities. MCCs are used by credit card issuers to identify the type of business in which a merchant is engaged.
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Payment card which supports payment and settlement transactions in multiple currencies. The MFX card typically has a single PAN with multiple currency wallets linked.
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A Thredd feature for seamless currency conversion. MultiFX lets customers hold different balances in different currencies simultaneously in one wallet
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A type of Thredd card that is restricted to loading and unloading to a physical or virtual card and cannot be used for e-commerce or in-store transactions. An MVC is used to reflect the value of the ‘actual’ money in the Issuer's bank account. An MVC guarantees that the load is limited to the amount prefunded (i.e. loaded onto MVC) and gives the Program Manager the ability to distribute funds immediately rather than having to wait for notification of each individual load into the Issuer Bank account.
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This is often used in scenarios where the merchant terminal is not required to request authorisation from the card issuer (for example for certain low risk, small value transactions used by airlines and transport networks). The card CHIP EMV determines if the offline transaction is permitted; if not supported, the terminal declines the transaction. Note: Since the balance on the card balance is not authorised in real-time, there is a risk that the card may not have the amount required to cover the transaction.
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One Time Passcode / Activation code sent to the cardholder for use in authenticating
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The card’s 16-digit primary account number (PAN) that is typically embossed on a physical card.
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Program Manager
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Point of Sale
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A Thredd feature which makes spending abroad easy with real-time and transparent point-of-sale FX rates
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The payment has been financed and taken by the merchant bank
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A Thredd customer who manages a card program. The program manager can create branded cards, load funds and provide other card or banking services to their end customers.
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Rate fee – Fee based on the transaction amount
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System Trace Audit Number
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The card network (Visa and Mastercard) may perform approve or decline a transaction authorisation request on behalf of the card issuer. Depending on your Thredd mode, Thredd may also provide STIP on your behalf, where your systems are unavailable.
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Tokenisation Authorisation Request messages enable the issuer to provide a real-time decision as to whether the token service provider (MDES/VDEP) can digitise a card and designate a token on their behalf.
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Transaction Currency. Defines the currency of the transaction.
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Tokenisation Complete Notification. Sent from Mastercard/Visa to Thredd and made available via EHI to the Programme Manager to confirm the setup of the token was successful (note: there may be further messages for activation).
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Tokenisation Event Notification. Informs the issuer of unsuccessful Activation Code entry attempts and subsequent invalidation of an Activation Code or when a token is suspended, resumed or de-activated.
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The obfuscated 16 or 9-digit Card Number
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Triple DES (3DES or TDES), is a symmetric-key block cipher, which applies the DES cipher algorithm three times to each data block to produce a more secure encryption.
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Checks to confirm the card is valid, such as CHIP cryptograms, magstripe data (if available) and expiry date
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Visa Digital Enablement Programme. Also called the Visa Tokenisation Service (VTS). VDEP is the Visa product name for tokenisation and equivalent of Mastercard’s MDES (see MDES).
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Visa Dispute Resolution Online system, provided by Visa for managing transaction disputes.