Glossary

This page provides a list of glossary terms used in this guide.

• Acquirer
  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.
• authorization
  Stage where a merchant requests approval for a card payment by sending a request to the card issuer to check that the card is valid, and that the requested authorization amount is available on the card. At this stage the funds are not deducted from the card.
• Automated Back Office
  An automated reconciliation and reporting platform from Thredd for Card Issuers, BaaS providers and BIN Sponsors. The platform automates the manual processes for running a compliance card programme, where it provides reconciliation, scheme reporting and network fee management.
• BID
  The Business Identification Number (BID) is an ID number assigned by Visa that identifies an issuing bank. A BID can have multiple BINs associated with it.
• BIN Sponsor
  Issuer, who creates the BIN range used by the Program Manager.
• Business as a Service (BaaS) provider
  A provider of payment processing as a business service. The Baas provider integrates to Thredd and enables their own business customers to use the Thredd Platform.
• Card Scheme (Network)
  Card network (such as Discover, MasterCard, or Visa), responsible for managing transactions over the network and for arbitration of any disputes.
• Chargeback
  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.
• Clearing File/Clearing Transaction
  Thredd receive 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.
• Collection
  A Collection enables you to add and view the data associated with your program or feature. The data is presented as a table.
• FTSRE
  Funds Transfer Settlement Reporting Entity is a reporting unit for displaying settlement information.
• ICA
  The Interbank Card Association (ICA) number is a four-digit number assigned by MasterCard that identifies an issuing bank. An ICA can have multiple BINs associated with it.
• Incremental authorization
  A request for an additional amount on a prior authorization. An incremental authorization is used when the final amount for a transaction is greater than the amount of the original authorization. For example, a hotel guest might register for one night, but then decide to extend the reservation for additional night. In that case, an incremental authorization might be performed in order to get approval for additional charges pertaining to the second night.
• Issuer (BIN Sponsor)
  The card issuer, typically a financial organisation authorised to issue cards. The issuer has a direct relationship with the relevant Card Scheme.
• Merchant
  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 authorization for transactions. Online sites provide an online shopping basket and use a payment service provider to process their payments.
• Merchant Category Code (MCC)
  A unique identifier of the merchant, to identity the type of account provided to them by their acquirer.
• Offline Transaction
  This is often used in scenarios where the merchant terminal is not required to request authorization 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.
• Partial Amount Approval
  Some acquirers support a partial amount approval for Debit or Prepaid payment authorization requests. The issuer can respond with an approval amount less than the requested amount. The cardholder then needs to pay the remainder using another form of tender.
• Pretty Good Privacy (PGP)
  Pretty Good Privacy (PGP) is an encryption program that provides cryptographic privacy and authentication for data communication. PGP is used for signing, encrypting, and decrypting texts, e-mails, files, directories, and whole disk partitions and to increase the security of e-mail communications.
• Program Manager
  A 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.
• Quarterly Management Report (QMR)
  Mastercard quarterly report provides details needed for quarterly reporting to the Scheme, and includes details such as the number of live cards, card issued, and information on card activity and status.
• Quarterly Operating Certificate (QOC)
  Visa quarterly report, provides details needed for quarterly reporting to the Scheme, and includes details such as the number of live cards, card issued, and information on card activity and status. For more information, contact your Thredd Implementation Manager or Account Manager.
• Settlement Service
  A service that categorises settlement as national and international.
• SFTP
  SFTP (SSH File Transfer Protocol, also known as Secure File Transfer Protocol) is a protocol that provides secure encrypted file transfer over SSH.