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Visit the Electronic
Retailing Association website
www.retailing.org
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GLOSSARY
Authorization
The first requirement when processing a credit card transaction.
The amount charged on the card is compared to the individuals' bank
account balance, and that amount is then put on hold for approximately
72 hours. The process then goes to Settlement. 
AVS
(Address Verification System)
This is an automatic check done on credit card transactions that
verifies that the billing address supplied by the customer is the
same address for the credit card presented at the time of payment.
This is feature is built into most credit card transaction processing
equipment in order to prevent fraud.
Backorder
This is an order for a product that is currently out-of stock that
will arrive after the shipping date it was originally expected on.
Batch
This is a collection of credit card transactions that a merchant
collects over a certain amount of time. Typically batches of credit
card transactions are collected in one day and then submitted to
the acquiring bank at one time; often at the end of the day. A batch
fee is charged by acquiring bank so as to encourage merchants to
submit their credit card transactions in groups as apposed to doing
a number of transactions each day.
Bill
of Lading (BOL)
This is a written receipt from the carrier which specifies and confirms
information such as what is being shipped and how many items are
being shipped to the shipper.
Card
Issuer
This refers to a financial institution, typically a bank, which
institutes a line of credit with a particular cardholder, and is
responsible for issuing the credit card which will be used to purchase
goods and services.
Cash
on Delivery or Collect on Delivery (COD)
This is a type of shipment in which the cost of the item and the
cost of shipping the item is paid at the time of delivery.
Chargeback
This is a credit card transaction where money is given back to an
unsatisfied customer from a merchant after the return of a product
has been settled. This happens when a customer has been unhappy
with the product they have purchased.
Merchants can reduce chargebacks by ensuring their customer service
department is proactive and is skilled in effectively resolving
disputes with customers before a chargeback is requested. Many merchants
choose to outsource their customer service department to ensure
the highest quality and reduce chargeback occurrences.
Decline
This is when a charge can't be authorized for whatever reason,
whether that be because there are not enough funds available in
an account or because a credit card has gone past its expiring date,
or has been reported stolen.
Discount
Rate
This is a fee based on a percentage, typically between two and ten
percent, which is charged by an ISO or acquiring bank for time and
expense used to handle electronic transactions.
Drop
Shipping
This refers to products being on hand at a main warehouse just before
the airtime of an infomercial intending to sell that product.
E-Checks
Customers can use E-Checks either by Internet or telephone, without
customer service intervention. No signature is required for the
check to clear. E-Checks can be used by customers to pay bills or
order products.
E-Commerce
This refers to electronic commerce which is an automated or a semi-automated
form of online commerce allowing a consumer to purchase a product
or order a service electronically using a website or email.
E-commerce can also mean a transaction through Electronic Data Interchange
(EDI) with the use of peer-to-peer systems, intranets and additional
electronic means.
An e-commerce fulfillment house specializes in importing these types
of orders into its database, and then taking care of the handling,
packing, and shipping of the products, as well as providing continuous
customer service.
EDI
(Electronic Data Interface)
Electronic processing of payroll, child support, taxes and bank
transfers. Also allows you to make deposits right from your office!
E-Invoices
This service allows customers to receive an email telling them that
their monthly bill is now ready for viewing. The invoice can be
viewed, downloaded, or printed. They can also pay the bill over
the Internet with speed and convenience using an E-Check.
Electronic
Advance Check
Customer process their advance lease checks or deposits electronically.
Electronic
Check Recovery
Revolutionizes the collection of NSF (bounced) checks by converting
a paper check into an electronic check for electronic collection
of the face value and service fee. An electronic check is cleared
quickly without bank fees and can be timed for higher collecting
efficiency. 2 attempts are allowed to re-clear with E-checks instead
of only 1 with a paper check. With E-checks only the NSF collection
fee of $25.00 (by state) is allowed! We share part of this with
you!
Electronic
Lockbox
You can now convert paper checks into electronic items. This system
is designed to allow companies that receive checks in the mail to
process thes checks directly through CEC. Actual checks are no longer
required to be taken to the bank as they are deposited electronically.
E-Logistics
In regards to third party logistics, e-logistics refers to the act
of managing all back-end operations that involve handling the data
as well as intramodal and intermodel communications over networks.
Fulfillment
This refers to the functions involved in an infomercial campaign,
from the warehousing, labeling, packaging, shipping and tracking
of a product Often fulfillment functions are subcontracted to 'fulfillment
houses' who specialize in this business. Some offer their clients
inbound phone customer service.
Gateway
Processor
A gateway processor charges your customers' credit cards via the
web and sends the funds to your merchant account.
General
Ledger Posting
Posting direct to your general ledger electronically. This feature
saves you the task of inputting or updating your general ledger
for any E-Check activity which has occurred or the checks that have
bounced.
Issuing
Bank
This is the bank that keeps the consumer's credit card account and
is responsible for taking the money out of a merchant's account
in order to pay for a purchase made from a credit card. Then the
issuing bank sends a bill to the consumer for the amount paid.
Merchant
Account
This is an account that a merchant acquires from a credit card issuer.
This type of account allows a merchant the ability to process his
customer's credit card purchases. In order to run a successful B2C
e-commerce as well as B2B e-commerce a merchant must have merchant
accounts with the major credit cards such as MasterCard, Visa, Discover
and American Express.
It is also important that a merchant keep a good working relationship
with these account providers and can do this by running a quality
customer service department, as well as insuring that customer orders
are shipped promptly and accurately. In order to maintain this quality
service a merchant may choose to use the services of a third party
fulfillment service.
Merchant
Account Processor
-this refers to the company that authorizes and processes credit
card transactions for a fee.
Merchant
Bank
This is a financial institution that provides merchants with credit
card processing accounts. It's also an acquiring bank that receives
funds from a cardholder once the credit card transaction is finalized,
and deposits that payment amount, minus any fees, into the merchant's
account.
Monthly
Processing Minimum
The monthly processing minimum is the MINIMUM monthly fee you must
pay to the credit card company. A competitive monthly minimum is
approx $30. Example: If you sell $1000 in goods over one month,
your total Discount Rate (see explaination above) would be $23.90.
This amount does not meet the $30 minimum so the credit card company
will round your charge up to $30. If the discount rate and transaction
fees exceed $30, then you have met the Monthly Processing Minimum
and the fee does not apply.
Multiple
Payments
This is a sales offer technique which breaks down the retail price
of a product into smaller amounts which can be paid in installments
with the use of a credit card or with advertiser sponsored financing.
Offline
Processing
This method of credit card charging allows you to capture your customers'
credit card information for charging at a later time. If you have
an existing offline merchant account, this may be a good option
for you.
Past
Due
This is the status of an order or a product which has gone past
its required shipping date without having completed fulfillment
tasks associated with the order completed. Past due orders differ
from back orders, because the product is actually on hand, but has
not been shipped out yet.
Payment
Processing
This is a secure processing system done in real time for online
debit card and credit card transactions. This process also includes
the verification and the authentication of a credit card that is
used to buy products or pay for services.
Point-of-Sale
Conversion
Allows you to process checks like credit cards by converting a paper
check to an electronic transaction at the point-of-sale. You can
also verify a check before accepting it.
Post-Sale
Conversion
This service allows a merchant to process their paper checks after
their customers have completed a sale using a check reader and a
PC or a high speed check reader and collect the funds within 24-48
hours without going to the bank; it also eliminates bank deposit
fees.
Real-Time
Processing
This method of credit card charging authorizes and charges the customer's
credit card at the time of purchase.
Returns
This is the number of items, the dollar amount or the calculated
percentage of total sales returned to the direct marketer in order
to get a refund.
Reverse
Logistics
This is when products are returned from B2C or B2B operations and
processed. Reverse logistics typically involves product refurbishing,
customer service, repackaging of products, processing refunds and
credits, liquidation of a product, and the restoration of the product
to inventory.
Secure
Socket Layer (SSL)
SSL is a secure web protocol that uses 128 bit or higher encryption
to keep your customer's card number and personal information secure.
Selling
Cycle
This is a cycle of information that gives details of the product
information. It's typically put into one of three pods and replayed
throughout the infomercial, but rearranged in a different manner.
Each selling cycle lists the features of a product, the benefits,
the credibility, the guarantee, the offer, the substantiation and
the call to action.
Settlement
This is when all necessary funds are transferred so a merchant who
is involved in a credit card transaction gets paid for goods or
services.
Shipping
and Handling (S & H.)
This is an added cost charged to the consumer which is tacked on
to the stated product price, which is stated on the billboard.
Statement
Fee
This charge is exactly as it sounds. The fee you pay for the bank
to generate and mail you a statement outlining your transactions.
Statement fees usually cost between $10.00-$15.00/month.
Transaction
Fee
Most companies charge around $0.30 per transaction. If you make
50 sales per month, the total transaction fee would equal $15.00
(0.30 x 50 = $15.00).
Upsell
This refers to any product that is also offered to a DRTV customer
at the time of their initial phone order. Inbound telemarketers
may offer a caller a one or more additional related items for a
discounted price, after the key product is ordered.
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infomercial
paymentprocessing.com
is sponsored
by:
www.moultonlogistics.com
www.cambridgecommerce.com
www.koeppeldirect.com
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