We have put together a jargon buster to help you come to grips with the most commonly used terms, acronyms and abbreviations for transaction processing and e-commerce.

Jargon Buster

Acquirer or acquiring bank
The bank where a merchant has an account to process transactions and credit payments

AVS Address Verifications Service
Fraud-prevention mechanic that verifies a customer address against a card

AVV/CID
The American Express equivalent of AVS & CVC2

BIN
The bank identification number with the card schemes

Card Validation Code 2 (CVC2).
Fraud-prevention mechanisms initiated by MasterCard and Visa to protect merchants. These codes are the three digits on the back of a MasterCard or Visa card that follow the cardholder's credit card number—they offer Mail Order and Internet merchants additional security by helping to identify a cardholder in a CNP transaction.

CCS Cardholder Currency Selection
The Servebase enablement functionality for Dynamic Currency Conversion (DCC) through various providers

Chargeback
Is a practice in which the bank that issues the credit card returns a customer's disputed transaction to the merchant - via the merchant's acquirer - for resolution.

CNP Cardholder Not Present
For example, Mail order or Internet transaction processing

Commodity Codes (CC)
VISA specified codes for categorising the actual commodity (eg: nuts and bolts). Approximately 300codes.

Cost Allocation Codes (CAC)
Applying internal cost coding to each Purchasing Card Cardholder (eg: cost centre number, department number or budget number).

CPC
American Express Corporate Purchase Card – effectively the Amex version of VISA & MasterCard Purchase Cards

Customer Reference Code (CRC)
VAT capable suppliers can input a CRC at the Point of Sale up to a maximum of 16 digits being alpha or numeric. An example would be a job costing number.

Daily Transaction File (DTF)
The transaction file that includes all of your Purchasing Card spend for the previous 48 hours.

DCC Dynamic Currency Conversion
A foreign exchange mechanism provided by banks and third parties that gives a cardholder an option to pay either in the merchant’s local currency or their home currency at the point of sale

ECI Electronic Commerce Indicator
A mandatory requirement from card Schemes to distinguish transactions generated through the Internet

Government Procurement Card (GPC)
Same as a VPC but specifically aimed at Government Agencies and Bodies.

Level 1 Supplier
VISA Capable Suppliers (accept Purchasing Cards but are non-VAT enabled otherwise referred to as NVE supplier).

Level 2 Supplier
VAT Capable Suppliers (accept Purchasing Cards and provide the facility for a customer reference code and summarised VAT total).

Level 3 Supplier
VAT Capable Supplier with Line Item Detail (accept Purchasing Cards as VAT capable suppliers but in addition they will provide Line Item Detail descriptions for the goods / services provided with individual VAT amounts).

LID Line Item Detail
The auxiliary data attached to a purchase card transaction to qualify for VAT certification in place of an invoice (UK).

Line Item Detail (LID)
Suppliers with LID capabilities have software installed at their premises that will provide an individual line of detail for every commodity purchased.

Low Value Goods (LVG)
Typical commodities bought using a Purchasing Card would be LVG (eg: stationery).

Management Information (MI)
Reports and expenditure analysis for monitoring your purchasing card spend.

Merchant Category Codes (MCC)
VISA specified codes for categorising vendors (eg: stationery). Approximately 250 codes.

Merchant Category Groups (MCG)
VISA specified groups for categorising types of spend (eg: airlines, cash advance). Approximately 35 groups

MID
The Merchant Identification Number with the bank acquirer.

Point of Sale (POS)
Terminal at supplier through which the transaction is processed.

PSP
Payment Service Provider

SDOL
MasterCard Smart Data OnLine solution provides back office management information and works in conjunction with MasterCard ‘onecard’ combining purchasing card and travel transaction functionality on a single card

SPA/UCAF
The Mastercard equivalent of VbV (Now also known as MasterCard SecureCode)

Value Added Tax (VAT)
Tax that is added to each commodity at the appropriate rate depending on the commodity purchased.

VbV “Verified by Visa”
A methodology introduced by the Card Scheme and Banks to provide an additional, secure cardholder verification process prior to an Internet transaction proceeding.

VGIS
Visa Global Invoice Specification.

Visa Purchasing Card (VPC)
Charge card commonly used for low value, high volume transactions.